MGMT 1035 Week 11 Flashcards
What is gasoline?
Initially, gasoline was a byproduct of refining oil into kerosene. Prior to the internal combustion engine, it had limited use. In the USA in the 1800s, it was routinely dumped, often into nearby rivers.
When were internal combustion cars developed?
In Germany, internal combustion cars were developed in the 1870s, and by the mid-1880s, Karl Benz had begun commercial production.
Who benefitted from the increasing importance of gasoline?
William Knox D’arcy, who developed the oil industry in Persia and elsewhere in the Middle East, founded what became British Petroleum.
What did John D. Rockefeller found?
John D. Rockefeller founded Standard Oil and used gasoline as a fuel to heat oil in the refining process.
What impact did gasoline have on technology?
The power of gasoline made internal combustion engines superior to other types. Henry Ford’s Model T made cars more widespread, and tractors replaced steam engines in agriculture.
How did cars affect society?
Cars need highways, allow more suburban spread, and require the expansion of networks of gas stations.
What changes occurred in the oil business due to increased gasoline markets?
Increased markets for gasoline led to increased exploration for sources in Canada (Alberta), the USA (Texas and Oklahoma), and globally in the Middle East.
How did gasoline become essential in war?
Gasoline became an essential tool of war as tanks, ships, planes, and transport all required it, making it a strategic resource and a cause of conflict.
What was the 1953 coup against Iranian Premier Mohammad Mossadeq?
The CIA and the UK organized a coup in Iran to replace the popular government with one more amenable to the oil and gas industry, illustrating the industry’s influence on world events.
What is OPEC?
The Organization of Petroleum Exporting Countries controls ~72% of world crude oil reserves and influences prices by setting production targets.
What are the environmental impacts of the oil industry?
The impact goes beyond car usage, including production in refineries, transportation of products, and land issues with pipelines.
What role does oil play in the Canadian economy?
Oil and gasoline remain critical to the Canadian economy, with key focus areas including companies and individuals like Imperial Oil, a branch of Rockefeller’s Standard Oil.
What is Petrocanada?
Petrocanada started as a Crown Corporation during the economic crisis in the 1970s, intended to serve as a ‘window on the industry’ and was eventually privatized.
What is petroleum?
Petroleum is a naturally occurring liquid found beneath the earth’s surface, refined into fuel, plastics, and other products.
How is petroleum formed?
Petroleum is created over millions of years from decomposed organic matter under heat and pressure.
