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Oil 101 – Chapter 1

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I’ve been working my way through Morgan Downey’s book Oil 101. Here are some of the highlights from the first chapter.

  • Mankind has used oil obtained from the ground since at least 4,000BC.
  • In China, crude oil was refined and used for lamp and heating oil around 1,000BC.
  • The Byzantines used crude oil for flame-throwing weapons around 600AD.
  • Until 1859, fuel for lighting came from beeswax candles or whale oil. In fact, it was a scarcity of whales that sparked the modern oil industry.
  • Colonel Edwin Drake struck oil on August 27, 1859. His title, Colonel, did not come from the military, rather from the Pennsylvania Rock Oil Company.
  • In 1867 Nikolaus August Otto of Germany developed the first practical gasoline internal combustion engine.
  • The price of a barrel of oil fluctuated from $18 a barrel, $375 in today’s terms, in January of 1860 to $2.60 a barrel, or 10 cents in today’s term, by the end of 1861.
  • Due to the expansion and contraction of oil, caused by temperature change, large oil transactions allow for a volume operational tolerance of one to five percent.
  • Spindletop, located just south of Beaumont, Texas, produced 20% of daily US production around 1901.
  • Whiskey and wine barrels were only briefly used to store and transport oil but still remained the standard to measurement for oil.
  • The term independents referred to oil companies not owned by John D. Rockefeller. Rockefeller, and his company Standard Oil, held about 90% of the US oil market around 1890.

Of course, there is much more in Chapter 1. You can pick up a copy of this book by clicking on the image below.

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