Oil and Gas Industry History- 2022 Current Updates : Current School News

Oil and Gas Industry History- 2022 Current Updates

Filed in Articles, Job by on January 10, 2022

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– Oil and Gas Industry History –

Today, the oil and gas industry history. However, is an international, multi-million dollar sector. However, you may ask where, when, and how did the industry begin? Hence, wondering how the oil industry came about and where was oil first discovered. In this article, we will show all you need to know about the oil industry history.

Oil and Gas Industry History 2021

Oil and Gas Discovery

The first oil had actually been discovered by the Chinese in 600 B.C. and transported in pipelines made from bamboo.

However, Colonel Drake’s heralded discovery of oil in Pennsylvania in 1859 and the Spindletop discovery in Texas in 1901 set the stage for the new oil economy.

Petroleum was much more adaptable than coal. The kerosene that was refined originally from crude provided a reliable and relatively inexpensive alternative to “coal-oils”.

Also, whale oil for fueling lamps. Most of the other products were discarded.

With the technological breakthroughs of the 20th century, oil emerged as the preferred energy source. The key drivers of that transformation were the electric light bulb and the automobile.

Automobile ownership and demand for electricity grew exponentially and, with them, the demand for oil.

By 1919, gasoline sales exceeded those of kerosene. Oil-powered ships, trucks and tanks, and military aeroplanes in World War I proved the role of oil as not only a strategic energy source but also a critical military asset.

Prior to the 1920s, the natural gas that was produced along with oil was burned (or flared) as a waste by-product.

Eventually, gas began to be used as fuel for industrial and residential heating and power. As they realized its value, natural gas became a prized product in its own right.

Oil and Gas Industry History

Oil and Gas Industry

They had already used oil and gas in some capacity, such as in lamps or as a material for construction. However, for thousands of years before the modern era, the earliest known oil wells were drilled in China in 347 AD.

The modern history of the oil and gas industry started in 1847. However, with a discovery made by Scottish chemist James Young.

He observed natural petroleum seepage in the Riddings coal mine. Also, from this seepage distilled both a light thin oil suitable for lamps and a thicker oil suitable for lubrication.

Following these successful distillations, young experimented further with coal and could distil several liquids including an ancient form of petroleum.

He patented these oils and paraffin wax, also distilled from coal. However, in 1850, and later that year formed a partnership with geologist Edward William Binney.

The partners formed the first truly commercial oil refinery and oil-works in the world, manufacturing oil and paraffin wax from locally mined coal.

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Creation of Major Oil Company

The late 18th century and the early 19th century marked the creation of major oil companies that still dominate the oil and gas industry today.

John D. Rockefeller founded the Standard Oil Company in 1865. However, he became the world’s first oil baron. Standard Oil quickly became the most profitable in Ohio.

Undoubtedly, controlling about 90% of America’s refining capacity and several gathering systems and pipelines.

ExxonMobil, one of Standard’s successors after it dissolved in 1911, is the world’s ninth-largest company by revenue today.

In Russia, the Rothschild family commissioned oil tankers from British trader Marcus Samuel to expand their oil operations. Also to reach more overseas customers.

Samuel’s first vessel, the Murex–named after a sea snail–became the first oil tanker to pass through the Suez Canal connecting the Mediterranean Sea to the Red Sea.

The Murex became the flagship vessel of Shell Transport and Trading. However, he eventually merged with Royal Dutch Petroleum to become Royal Dutch Shell.

Today, Royal Dutch Shell is the fifth-largest company in the world and one of six oil and gas super-majors.

The discovery of oil in Masjed Soleyman, Iran by William Knox D’Arcy led to the incorporation of the Anglo-Persian Oil Company (APOC) in 1907.

The British Government purchased 51% of the company to provide the Navy with oil during World War I in 1914. In 1954, APOC became British Petroleum, known today as BP. However, it is currently the sixth-largest oil and gas company in the world.

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Modernization of the Oil Industry

In the late 20th century, changes in the oil market moved influence from oil-consuming areas such as the US and Europe to oil-producing countries.

Iran, Iraq, Kuwait, Venezuela and Saudi Arabia formed the Organization of the Petroleum Exporting Countries (OPEC) in 1960.

This is, however, in response to multinationals in the ‘Seven Sisters’ including ExxonMobil–at the time split into Esso and Mobil–Shell and BP, which operated from oil-consuming countries.

Today, OPEC has 15 member countries, accounting for approximately 44% of global oil production and 81.5% of the world’s oil reserves.

The 1980s saw a significant glut in oil following the 1970 energy crisis. Petroleum production peaked in the 1970s, which caused a sharp rise in oil price and a subsequent decrease in demand.

Oil-producing countries suffered during this glut, with OPEC struggling to maintain high oil prices through decreasing oil production. The dissolution of the Soviet Union can also be part of a loss of influence as an oil producer.

The glut lasted six years, with oil prices gradually recovering in 1986, but a similar surplus in oil started in 2014 and continues to have effects on global oil prices.

The oil and gas industry is still thriving today despite competition from renewable sources of energy, albeit in a more volatile state than ever, because of world events.

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CSN Team.

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