Oil (1): Lecture Part 1 History of Oil Industry Flashcards
What is gasoline?
Byproduct of refining oil to kerosene
Why was it not heavily used before 1800s US?
It was unstable and hard to control. Limited uses before combustion engine.
What oil related invention was important? By who?
In 1870s, Karl Benz began commercial production of combustion engines.
What company related to oil came out of Britain?
British Petroleum - Oil monopoly in Persia by William Knox Darcy
What company related to oil came out of the US?
Standard Oil - Monopoly, gas used to fuel heat oil in refining process by John D. Rockefeller.
Why did Standard Oil need to be broken up by the US gov’t?
Had too much power.
What invention came from oil? What impact did it have on infrastructure?
Henry Ford’s Model T Car. It replaced steam engines in agriculture and required highways and gas stations.
How did businesses and countries shift their focus as the oil market expanded?
Focused on oil exploration and sources.
Canada -> Alberta
US -> Texas/Oklahoma
World -> Middle East
Why was oil essential for war? What did it cause?
Tanks, ships, planes, transport. Caused conflict between rivals.
What happened between the US, UK, and Iran? Which people and organizations were involved?
August 1953. UK/US paid low to Iran and Premier Mohammad Mossadeq wanted money. CIA and MIA had coup to overthrow to a more lenient government
Does the public know what the CIA did to Iran about oil?
Yes - historians filed freedom info requests
What is OPEC?
Organization of Petroleum Exporting Countries - cartel to control oil.
What’s the most notable thing that OPEC did? What’s important for them to work?
Launched oil embargo on West in 1973, creating recession. Cartels need discipline but members raised prices anyways.
What oil branch opened in Canada?
Imperial Oil - branch of Rockefeller’s Standard Oil
What oil company opened in Canada in 1970s?
PetroCanada started during crisis where Canada wanted to join in (most oil companies were American). Eventually privatized.
