USA OIL INDUSTRY

The settlers oil used as a light source of medicine, and as fat wagons and tools. distillate oil from shale stone became available as kerosene, even before the industrial revolution began. While traveling in Austria, John Austin, a New York merchant, a lamp effective, cheap oil is observed and made a model that updates kerosene lamps. Soon the oil industry stone US It sounded like whale oil price increased due to the growing scarcity of this mammal. Samuel Downer, Jr., an entrepreneur early, patented "Kerosene" as a trade name in 1859 and licensed its use. As increased production and refining of oil prices collapsed, which it became characteristic of the industry.

The first oil company, which was created to exploit the oil found floating in the water near Titusville, Pennsylvania, was the Pennsylvania Rock Oil Company of Connecticut (later the Seneca Oil Company). George H. Bissell, a lawyer from New York, and James Townsend, a businessman from New Haven, became interested when Dr. Benjamin Silliman of Yale University analyzed a bottle of oil and said it would be an excellent light. Bissell and several friends have bought land near Titusville Edwin L. Drake committed to locate oil. Drake employs William Smith, a drilling expert salt, to monitor drilling operations and August 27, 1859, oil was found at a depth of sixty-nine feet. As is known, this was the first time the oil was tapped at its source, using a drill.

Titusville and other towns in the area soared. One of those who had heard about the discovery was John D. Rockefeller. Because of their entrepreneurial instincts and his genius for business organization, Rockefeller became a prominent figure in the US oil industry .. In 1859, he and a partner operated a business in Cleveland commission. Soon they were sold and a small oil refinery was built. Rockefeller bought his partner and in 1866 opened an export office in New York City. The following year, his brother William, S. V. Harkness, Henry M. Flagler and created what would become the Standard Oil Company. Flagler is considered by many to have been almost as important a figure in the oil business as himself John D ..

discoveries of interest near the pit Drake had led to the creation of numerous companies and the Rockefeller company quickly he began buying out or combine with its competitors. As stated by John D., its purpose was to "unite our skill and capital." In 1870 it had become standard refiner dominant oil in Pennsylvania.

Early pipes became an important consideration in the unit standard to earn business and profits. Samuel Van Syckel had built a pipeline of four miles Pithole, the nearest railway. When Rockefeller saw this, he began to acquire pipes for the standard. Soon the company owned a majority of the lines, which provided, efficient, cheap transportation for oil. Cleveland became a center of the refining industry, mainly because of their transport systems.

When commodity prices fell, the panic that followed led to the beginning of an alliance of Standard Oil in 1871. Within eleven years, the company became horizontal integral and vertically and is classified as one of the large corporations of the world. The alliance used an industrial chemist, Hermann Frasch II, to remove sulfur from oil found in Lima, Ohio. Sulfur made kerosene distillation very difficult, and even then had a foul odor Frasch another problem solved. Thereafter, standard scientists used both to improve their product and for pure research. Soon replaced kerosene lighting other materials; it was more reliable, efficient and economical than other fuels.

Eastern cities linked to the oil fields by rail and boat boom too. Export trade of Philadelphia, New York, Baltimore and became so important that Norma and other companies located refineries in those cities. Already in 1866 the value of petroleum products exported to Europe provides sufficient to pay the interest of US bonds held in foreign trade balance.

When the Civil War interrupted the regular flow of kerosene and other petroleum products to the western states, the pressure increased to find a better method of using oil found in states like California. But standard exhibited little interest in the oil industry on the West Coast before 1900. In that year he bought the Pacific Coast Oil Company in 1906 and incorporated all its operations in Western Pacific Oil, now Chevron.

Edward L. Doheny first well located in Los Angeles in 1892, and five years later in 2500 had two hundred wells and oil companies in the area. When Standard of California came in 1900, seven oil companies integrated and flourished there. Union Oil Company was the most important of them.

operational difficulties, and the threat of taxes on their property out of state led to the creation of the Standard Oil Trust in 1882. In 1899, the trust created Standard Oil Company (New Jersey), which became the parent company . The trust members mainly controlled corporations through stock ownership, an arrangement not unlike that of the holding company today.

The enormous growth of the standard was not without competition. Pennsylvania producers engineered the creation of a major competitor, the pure oil company, Ltd., in 1895. This concern endured for over half a century.

In 1901, one of the largest and most important oil strikes in history occurred near Beaumont, Texas, on a hill called Spindletop. Drillers put the largest gusher ever seen in the United States. This strike ended any possible monopoly of Standard Oil. A year after the discovery of Spindletop more than 1500 oil companies had been chartered. Of these, fewer than a dozen survived mainly the Gulf Oil Corporation, the Magnolia Petroleum Company and the Company of Texas. The Sun Oil Company, a concern Ohio, Indiana, also moved to the Beaumont area like other companies. Other oil companies followed strikes in Oklahoma, Louisiana, Arkansas, Colorado and Kansas. Oil production in the United States in 1909 equaled more than the rest of the world combined.

Many smaller companies developed outside the Northeast and Midwest, where Rockefeller and his associates operated. Oil found in Corsicana, Texas, in the 1890s attracted a remarkable Pennsylvania, Joseph S. ( "Buckskin Joe") Cullinan, who organized several small companies. He later moved to Spindletop which became a decisive role in the organization of the Texas Company, soon a major competitor of the standard. Henri Deterding, creator of the Royal Dutch-Shell Group in the Netherlands and Britain, moved to California in 1912 with his American Petrol Company (Shell Company of California after 1914).

As the Standard Oil grew in wealth and power, he met with great hostility not only of its competitors, but a large segment of the public. Standard fought competition securing preferential rates and discounts rail shipments. Also it influenced legislatures and Congress through tactics which, although common at the time, were unethical. Nor was management work in the best company.

In 1911 the Supreme Court ruled that Standard Trust had operated to monopolize and restrict trade, and confidence was ordered dissolved in thirty four companies. The participation of industry confidence has declined from 33 to 13 percent of the Court considered of little consequence. Splitting off of standard affiliates proved difficult. Some market, some produced some refined, and these concerns quickly moved towards vertical integration of its business. But the 1911 decision ensured that although the industry might be giants, at least in competition.

Increased sales of gasoline for cars first and then for aircraft in 1900 came as oil discoveries in the United States mounted. The oil industry had a vast new market for what had been for many years a useless byproduct of the distillation process. As soon as the internal combustion engines created demand, refiners sought better methods of producing and improving gasoline.

Before its entry into the First World War, the United States helped oil to the allies, and in 1917 the oil companies cooperated with the Administration of fuel. end of war executives who had served with the agency created the American Petroleum Institute (1919), which eventually became a major force in the economy and business.

Although the oil industry USA had widely marketed abroad before the war, he had some foreign properties. Judging by government surveys, many farmers believed that soon a major oil shortage would occur. Both the Secretary of Commerce Herbert Hoover and Secretary of State Charles Evans Hughes began to pressure US companies for oil abroad. These companies invest in the Middle East, Southeast Asia and South America East and searched everywhere oil before they continued to export quantities of US oil.

The individual attention back in the United States was focused Columbus Marion ( "Dad") Joiner. Joiner was convinced that some flat land in East Texas basinlike structure contained oil. He obtained a lease near Tyler, Texas, and October 5, 1930, after having drilled two dry wells, hit perhaps the biggest pool of oil that has been found in America. It was under 140,000 acres and contained five billion barrels. H. L. Hunt, a businessman oil, bought leasing carpenter and then sells the oil companies with a profit of $ 100 million, which added to his already considerable fortune.

In a sense the Joiner strike came at an inopportune time; It was the beginning of the Great Depression. Oil prices fell to ten cents per barrel in 1931, creating chaos in the industry. However, some measures of the New Deal restore a minimum of prosperity, and after World War II greatly stimulated the oil business.

The various oil strikes focused attention on a single legal situation for the United States. Land ownership was carrying the rights of all subsurface minerals, called common law "right of capture." Oil companies, like other minerals companies negotiated with each owner drilling rights. This right of capture continued for years despite the efforts of these industry giants such as conservation-minded Henry L. Doherty of Cities Service Oil Company, which sought to institute unification oil field. The right of capture insured premature depletion of oil and tragic loss of a valuable source of energy. Wallace E. Pratt, geologist and leader long time ago Jersey Standard, has estimated that to release the natural gas that often underlies pools of oil and using poor production techniques, oil producers have lost at least 75 percent of oil and natural gas found to date in the United States.

World War II made the oil industry a key resource of America. the oil research and executive leadership played an important role in the conflict. Research the number of petroleum products and natural gas increased, including the explosive TNT and artificial rubber. The Jersey-Dupont jointly owned product, tetraethyl lead, gasoline updated to improve the speed of the aircraft. Tankers that supply gasoline to the allies at great risk of attack submarines. The government rationed gasoline and controlled during the war prices. In the final analysis, the war ended the illusion that US crude supplies were unlimited, so industry and oil production became a priority for both foreign and domestic policy.

When the war ended, the United States faced the problem of peace stabilization. Over the next forty-five years they produced many major crises, many of which oil plays a key role. Europe suffered a shortage of coal, the first energy crisis, immediately after the war. The Marshall Plan, created to solve this and other problems, was hampered by the first Iranian crisis 1950-1954. From the 1956 Suez crisis to the Iraqi invasion of Kuwait in 1990, oil was the most important in the Middle East policy of the United States consideration. The United States tried to balance support for the new state of Israel against the pressures of oil producers, mostly Arabs united in 1960 as the Organization of Petroleum Exporting Countries (OPEC). This became increasingly difficult for the United States became increasingly dependent on imported oil. In the United States the standard of living based on cheap oil rose continuously and the public, accustomed to this way of life, resisted all conservation measures. The United States continues to consume about two-thirds of world oil production. The oil should be considered as the cornerstone of the standard of living in the United States and in much of its range world power.

Part of the problem of energy from 1940 as a result of declining domestic oil reserves during World War II, about 6 billion barrels. In the struggle of Vietnam experts say the United States provides about 5 million barrels of oil, despite the large amounts of which came from the Middle East properties owned by US companies. Indeed, the total of the two wars represents a larger than any of the large oil field in East Texas or possibly they discovered in North Slope of Alaska in 1967. After the 1960 amount, as production and it decreased domestic demand soared, the oil industry had to import large quantities from the Middle East and Venezuela. key energy source of the nation increasingly articulated in the balance of diplomatic relations with oil-producing Arab countries, while continuing its aid to Israel.

While America was blessed with abundant supplies of oil to the rank growth accelerates powerful. In today's world as an oil dependent power you must find alternative energy sources or adapt to drastic changes in their lifestyle and position in the world.

Paul H. Giddens, The Birth of Petroleum Industry (1938); Ralph W. and Muriel E. Hidy, a pioneer in big business, 1882-1911 (1955); Bennett H. Wall et al, growth in a changing environment :. A History of the Standard Oil Company (New Jersey), 1950-1972, and Exxon Corporation, 1972-1975 (1988); Daniel Yergin, The Prize: The Epic Quest for Oil, Money and Power (1990).