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.

coal fields

___ 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

Result: major disruptions to Earth’s ____ cycles and climate systems.

biogeochemical

___of world energy still comes from fossil fuels.

80%

20th century: ___ becomes dominant—economically, militarily, and ___.

oil, geopolitically

• Dutch East India Company (1602): early trading empire.

  • Found oil in ____

indonesia

• Royal Dutch Petroleum (1890, Sumatra, Indonesia) and Shell Transport and Trading (UK, 1897) established early oil ventures.

  • ___ oil and transporting back to ___

mining, Europe

Pioneered __ shipping for oil transport.

tanker

1909: Anglo-Persian Oil Company founded after a major discovery in Persia (modern __).

Iran

1912: British Royal Navy switched from ___ to ___under Winston Churchill

coal, oil 

Britain had __but no domestic oil.

coal 

Partly nationalized Anglo-Persian Oil, securing access to ___oil.

middle eastern

After WWI, Britain and France carved up the ___ Empire, creating the modern Middle East map.

Ottoman

Aim: control ___ wealth and limit Pan-Arab unity.

oil

Result: small, resource-rich __ states separated from populous nations like Iran and Iraq.

gulf

___ firms (BP, Shell) also gained global footholds after WWI.

european

Massive oil ___ boom in the Middle East after WWII.

extraction

7 sister companies Created strong U.S.–___ state alliances through the Cooperation Council for the Arab States of the Gulf.

gulf

Iran and Iraq held about 69% of the population, but much less oil __.

wealth 

The new borders created ___, oil-rich states with tiny populations, separated from more populous but poorer nations like Iran and Iraq.

small

This division preserved ___ and elite control over oil and weakened regional unity.

western

US formed strong economic and political ties with ___ states, reinforcing ___ influence in the region.

gulf, western

After WWII, the U.S. increasingly relied on ___ oil, as domestic reserves ___.

imported, declined

The post-war economic boom depended heavily on ___(especially ____) oil ___.

foreign middle eastern exports 

Major conventional oil discoveries occurred from the late 1940s to the late 1970s, especially within the “energy ellipse” (the region spanning the Persian Gulf to the Caspian Sea), which became the global center of oil ____.

production