oil industry: lecture

What was oil initially used for in the 1800s?

Lubrication; gasoline was a byproduct of refining kerosene.

What was the main product of oil refining before electricity?

Kerosene, used in lamps.

What was gasoline initially considered?

Useless and often dumped in rivers or fields.

What allowed gasoline to be used in engines?

Stabilization of gasoline.

Who developed the first gasoline-powered internal combustion vehicle?

Karl Benz.

What limited the early adoption of gasoline-powered vehicles?

Lack of fuel distribution network, leading to the creation of gas stations.

Who secured a British monopoly on Persian oil?

William Knox D'Arcy, founding British Petroleum (BP).

Who founded Standard Oil in the U.S.?

John D. Rockefeller.

What percentage of refining did Standard Oil control by the 1890s?

~90%.

What happened to Standard Oil in the early 20th century?

It was broken up by U.S. courts.

What car popularized the automobile in the early 1900s?

Henry Ford's Model T.

What production method reduced costs for automobiles?

Assembly line production.

What did the increased demand for gasoline lead to?

Expansion of roads, highways, suburbs, and fueling infrastructure.

Where did oil exploration shift due to increased demand?

Larger U.S. fields (Texas, Oklahoma) and increased importance of the Middle East.

Why is gasoline essential for military use?

It powers tanks, planes, and ships.

What did Western companies often pay to Middle Eastern governments for oil?

Extremely low royalties.

What did Iran's Prime Minister Mossadeq seek in the 1950s-60s?

Higher royalties from oil companies.

What was orchestrated by the CIA & MI6 in Iran?

A coup that installed the Shah.

What is OPEC?

Organization of Petroleum Exporting Countries formed to control oil prices and production.

What was the impact of the 1973 Yom Kippur War?

OPEC oil embargo caused global recession, demonstrating cartel power.

What environmental issues arise from oil production?

Pollution, spills, and pipeline risks.

What Canadian corporation was created to assert national control over oil?

Petro-Canada.

What happened to Petro-Canada in the 1970s?

It focused on extraction and refining, with profits reinvested in expansion.

What is the current status of Petro-Canada?

Partially privatized but retains Canadian identity.

What remains critical to economies and geopolitics today?

Oil and gasoline.

How does control over oil supply influence global affairs?

It influences global conflicts and economic stability.