Oil and the Modern Economy

Oil became the dominant energy source of the twentieth century following the discovery of vast petroleum reserves and the development of efficient extraction methods. The industry transformed global trade, transportation, and industrial production beginning in the 1850s.

Key Historical Developments

• Edwin Drake drilled the first commercial oil well near Titusville, Pennsylvania in 1859, launching the American petroleum industry
• John D. Rockefeller founded Standard Oil in 1870 in Cleveland, Ohio, which controlled approximately 90% of U.S. oil refining by 1880
• The Texas oil boom began in 1901 near Beaumont, Texas, establishing the region as a major petroleum hub
• OPEC (Organization of the Petroleum Exporting Countries) was founded in 1960 in Baghdad, Iraq, giving producing nations control over supply and pricing

By 2023, global crude oil consumption reached approximately 100 million barrels per day. Oil powered automobiles mass-produced by Henry Ford's assembly lines after 1908, fundamentally altering urban development and commerce across Europe, North America, and beyond.

The 1973 oil embargo, initiated by Arab nations against Western supporters of Israel, demonstrated petroleum's geopolitical importance. This crisis prompted energy conservation efforts and accelerated research into alternative fuel sources, establishing oil's central role in international relations and economic policy throughout the modern era.

Reference:

Wikipedia reference

https://en.wikipedia.org/wiki/history_of_energy