In order to better understand current oil and gas industry trends it is beneficial to recognize the historical significance these natural resources have had. While the equipment, techniques, and uses have evolved over the years, the value of oil and gas has similarly increased from its discovery. Here are just three of the many important time periods in the history of the oil industry.
1.) Early History: According to early historians, oil was found in pits and river banks in Greece and the surrounding areas over 4,000 years ago. However, the first documented oil wells in existence were created in China, circa 347 AD out of bamboo. It would take until the mid-20th century before the oil and gas industry would begin to develop its foothold in the Middle Eastern region, which they of course still rely on today.
2.) 1800s Boom: Although there were many great discoveries and advancements in the industry in the time between, one of the most dramatic changes was when John D. Rockefeller formed the Standard Oil Company in 1865 which would eventually cement his legacy as the industry’s first “baron.” Rockefeller would begin to utilize horizontal integration monopoly techniques by buying up his smaller competitors to become one of the biggest and most successful oil companies of all-time.
3.) 20th Century and Beyond: The 20th Century would see the oil and gas industry rise to new heights never before seen. In 1938, Chevron made Saudi Arabia’s first commercial oil discovery at Dammam Dome No. 7. Before it was 50 days old, the well had produced 100,000 barrels of oil, the first step in developing their current industry dominance.
World War I would be the first time oil began to be seen as not only a source of energy, but also a strategic military asset as it powered the ships, trucks, tanks, and planes used in warfare. In 1919 gasoline sales would exceed kerosene and never look back. World War II would only accelerate this unobstructed growth until environmental concerns and alternative energy exploration became popular in the last decade or so.
Still, approximately 8.7 million barrels of crude oil were produced every day in the U.S. in 2014.
While this is certainly not an all-encompassing list, it’s good basic knowledge to know if you’re trying to familiarize yourself with the oil and gas industry. It’s important to understand history to better predict what will happen in the future.
For more, visit our History of Oil page which includes a timeline of important developments in the industry. Of course, oil history is just one module in our Oil 101 e-learning course.
Related Article: Upstream vs. Downstream
Read more about the difference between Upstream and Downstream segments of the oil and gas industry.
