History of Oil: What can we learn?

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History of Oil - Oil Rig

With the interest in oil and the dramatic drop in prices by over 50% since Dec-2014 from USD100 per barrel to slightly under USD50 per barrel, it is also intriguing to understand the history of oil and what resulted in the growth of oil in the first place. This series of videos shows how the oil industry started in the 1800s and grew substantially over the years that resulted in our current intense dependence on this “black gold of oil”.

 

History of Oil: Part 1

  • 1852: Kerosene was first made from crude petroleum to light lamps
  • Petroleum is formed when living things die and decay and are converted to carbon based minerals
  • 1800s: Rush to find crude petroleum including John D. Rockefeller

History of Oil: Part 2

  • Demand for Kerosene grew after the civil war ended and america became more industrialized
  • 1860s: Rockefeller went into the refining business of oil to kerosene
  • 1867: Henry M. Flagler joined Rockefeller
  • 1879: Standard Oil by Rockefellar owned 90% of all refinery operations in the US

History of Oil: Part 3

  • 1891: Standard Oil had ventured upstream and produced 25% of the US crude and refined nearly 90% of the crude
  • 1890s: Cheaper electrical lamps had replaced kerosene lamp lighting
  • 1900s: The automobile industry developed by Henry Ford used gasoline a derivative from petroleum for internal combustion engine. This created continued demand for Rockefeller’s crude oil and refineries.
  • 1910: By 1910 half a million cars were on America’s roads
  • 1901: Large discovery of oil on Spindletop Hill, Beaumont, Texas – a first discovery for the gulf coast region

 History of Oil: Part 4

  • 1901: Gulf Oil started with the discovery of oil at Spindletop backed by the Mellon family
  • 1901: Texaco was also founded in Beaumont, Texas as the Texas Fuel Company in 1901
  • 1910: Texas oil companies started to compete throughout the country
  • 1911: US Supreme Court ruled that Standard Oil Trust was in violation of federal laws which prohibited a restraint of trade. Standard Oil was ruled to be broken up. Mobil, Chevron and Esso were all Standard Oil breakups
  • 1950s: US demand for oil after WW2 was immense driven by the increase in number of automobiles. Between 1945 to 1950, cars on the american roads climbed from 26 million to 40 million
  • 1960s: US started to rely on imported oil
  • 1960: 13 oil producing countries in the middle east and south america formed Organization of the Petroleum Exporting Countries
  • 1973: OPEC declared an oil embargo for the US (and other countries) due to their support of Israel in the Yom Kippur War

  History of Oil: Part 5

  • 1990: Iraq invaded Kuwait that led to a potential supply shortage for the US economy
  • 2000s: Oil prices stabilize and companies are still in search for oil around the world

Source: goldhunting.com

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