growth lecture 2

1900: __ dominated; small amounts of oil and natural gas.

coal

U.S. (1850–1900): energy mostly from __ and ___, then transition to oil and gas.

wood, biofuels

1859: first successful ___ drilled by Edwin Drake in Titusville, Pennsylvania — start of the modern oil industry.

oil well

• John D. Rockefeller (Standard Oil, 1870):

  • Pioneered vertical and horizontal integration (control of production, transport, and sales).

  • Created massive ___; symbol of “Robber Barons.”

Other major industrialists: Vanderbilt (rail/shipping), Carnegie (steel), Morgan (finance).

monopoly 

Over time → ___ into modern giants (ExxonMobil, Chevron, BP, Shell).

reconsolidation

European nations caught up industrially, fueled by ___ in France and Germany.

coalfields

___ expansion accelerated energy and resource rivalries (“Scramble for Africa”).

imperial

britain had coal but no domestic

oil

• U.S. dominated oil production: 

  • By 1945, produced ___ of the world’s oil.

Became world’s leading exporter, producer, and consumer.

2/3

massive oil extraction boom in the middle east after wwii, controlled by the 7 sisters

7 dominant US and Euro oil corps

7 sisters received long-term ___ with highly profitable terms.

concessions

U.S. shifted from exporter to ___-dependent power post-WWII.

import

___oil became critical to U.S. economic growth.

foreign 

“Energy Ellipse” (Persian Gulf + Caspian region): Holds ~70% of global ___ reserves and ~40% of ___ reserves.

oil, natural gas

Conventional oil discoveries (1940s–1970s) drove the post-war global __ boom.

economic

energy ellpise regions

persian gulf, caspian region

British Strategy

Coal → __; early nationalization of Anglo-Persian

oil 

U.S. Leadership

Produced ⅔ world oil by 1945; later became__

importer 

Shell Transport and Trading Company was founded in the UK in 1897, originally focused on trade in the ____before rapidly moving into oil.

middle east 

•  early leader in oil tanker development.

shell 

By WWI, ___became the first Western power dependent on Middle Eastern oil, revealing the geostrategic importance of both oil and the region itself.

UK 

After WWI, ____and ___oil giants moved aggressively into the Middle East, creating a Western-dominated oil economy.

american, euro 

After World War II, the U.S. remained the top ___and __but anticipated being overtaken.

producer, exporter 

The post-war economic boom depended heavily on foreign (especially Middle Eastern)__

oil exports 

energy ellpise became

global center of oil production

WWI = __ becomes key strategic resource; Britain reliant on Mideast oil.

oil