The Hydrocarbon Man

Could you imagine your life without petroleum? Our daily lives from the food we eat to the cars we drive depend on the oil industry. Without oil, we would not have our comfortable life of abundance and hyper-connectivity. I always knew oil was important and that it had influenced a lot of our world politics in the last century. I never knew the full extent of how oil shaped the hydrocarbon man until I read the The Prize by Daniel Yergin. This book is 800 pages of pure geological-political-historical-orgasmical enjoyment. It won the Pulitzer Prize and encompasses the rise of the world-oil industry between 1859 to 1991. Suffice it to say there is no easy way to summarize this book. There are some very important events in world oil that everyone should know:

1859-“Colonel” Drake drills the first oil well in Titusville, Pennsylvania
1870-John D. Rockefeller forms Standard Oil Company
1873-Oil fields in Russia open for development
1896-Henry Ford builds his first car
1901-Gusher at Spindletop, Texas discovered: beginning of Sun, Texaco, Gulf
1903-Wright Brothers first flight
1907-First drive-in gasoline station opens in St. Louis, MO
1908-Discovery of oil in modern day Iran
1910-Discovery of “Golden Lane” in Mexico
1911-US Supreme Court rules dissolution of Standard Oil Trust
1914-World War I sees first mechanization of battlefield and need for secure oil
1922-Discovery of oil in Venezuela
1930-Discovery of biggest oil deposit in East Texas
1936-Hitler occupies the Rhineland and ramps up synthetic fuel production
1938-Discovery of oil in Kuwait and Saudi Arabia
1938-Mexico nationalizes foreign oil operations
1939-WWII begins with all countries heavily dependent on oil to mobilize soldiers and weaponry
1951-Iran nationalizes foreign oil operations
1952-First Holiday Inn opens (middle-class hitting the open road)
1955-First McDonald’s opens in suburban Chicago
1956-Discovery of oil in Nigeria and Algeria
1960-OPEC founded in Baghdad
1968-Oil discovered in Alaska
1973-Yom Kippur War: Arab Oil Embargo (price per barrel rises from to $2.90 to $11.65)
1975-Automobile Fuel Efficiency Standards introduced in America
1979-Iran overthrow of Shah and Iranian hostage crisis
1981-Panic from problems in Iran send oil from $13 to $34 dollars a barrel
1982-OPEC implements first quotas
1983-First launch of Crude Oil Futures
1989-Exxon Valdez tanker accident
1991-Gulf War motivated by large reserves of oil in Kuwait

That is a lot of dates but they are all very important to understand. In the beginning, America was the main world producer of kerosene which was used for lamps. Uses for oil started to change with advancements in the combustible engine. At the turn of the 20th century, oil was starting to be used for gasoline in automobiles and fuel oil for all types of transportation. World War I was an experimentation in technology and showed countries how crucial it was to have secure access to oil reserves. The outcome of World War II was determined by who had the most oil. Germany and Japan both exhausted their supplies and were helpless to move their war equipment in the last battles. After World War II, the Middle East came center stage in supplying industrialized countries and the US was no longer a supreme exporter of oil. The Middle East would use their oil to increase prices and control foreign policy up until the 1980’s. In the 80s, oil began being traded on the futures market and its price was no longer exclusively controlled by OPEC. Oil is everywhere and has shaped our modern day lifestyle, politics, and even geo-political borders. I highly recommend reading this book because it shines light on our interconnected world and how it was shaped by a single commodity.

 

One thought on “The Hydrocarbon Man

  1. Wow that was a very interesting report about oil I didn’t realize there was so much history thanks for sharing I highly doubt if we will stop using oil for many years to come unless a very smart man maybe Jon Oldham might invent a new method

    Like

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