HISTORY AND TERMINOLOGY OF CRUDE OIL 15
After completion of the first well by Edwin Drake, the surrounding areas were immediately leased and extensive drilling took
place. Crude oil output in the United States increased from approximately 2000 barrels (1 barrel, bbl = 42 US gallons = 35 Imperial
gallons = 5.61 foot
3
= 158.8 liters) in 1859 to nearly 3,000,000 barrels in 1863 and approximately 10,000,000 barrels in 1874. In 1861
the first cargo of oil, contained in wooden barrels, was sent across
the Atlantic to London, and by the 1870s, refineries, tank cars, and
pipelines had become characteristic features of the industry, mostly
through the leadership of Standard Oil that was founded by John
D. Rockefeller (Johnson, 1997). Throughout the remainder of the
19th century, the United States and Russia were the two areas in
which the most striking developments took place.
At the outbreak of World War I in 1914, the two major producers
of petroleum were the United States and Russia, but supplies of oil
were also being obtained from Indonesia, Rumania, and Mexico.
During the 1920s and 1930s, attention was also focused on other
areas for oil production, such as the United States, the Middle East,
and Indonesia. At this time, European and African countries were
not considered major oil-producing areas. In the post-1945 era,
Middle Eastern countries continued to rise in importance because
of new discoveries of vast reserves. The United States, although
continuing to be the biggest producer, was also the major consumer
and not a key exporter of oil.
In the United States, approximately 20% of domestic production
currently comes from marginal wells, which are the most vulnerable to low prices. Since 1998, domestic production has dropped to
approximately 5.5 million barrels/day, with approximately twice
that amount being imported.
At this time, oil companies are beginning to roam much farther
afield in the search for oil, and, as a result, there have been significant discoveries in several countries.
1.3 Oil Companies
The term oil company is taken to mean a company that deals with
the exploration, recovery, and refining of oil. Furthermore, in the
United States, the term "big oil company" is taken to mean the
major private international oil companies, largely based in Europe
or North America (Pirog, 2007).
After completion of the first well by Edwin Drake, the surrounding areas were immediately leased and extensive drilling took
place. Crude oil output in the United States increased from approximately 2000 barrels (1 barrel, bbl = 42 US gallons = 35 Imperial
gallons = 5.61 foot
3
= 158.8 liters) in 1859 to nearly 3,000,000 barrels in 1863 and approximately 10,000,000 barrels in 1874. In 1861
the first cargo of oil, contained in wooden barrels, was sent across
the Atlantic to London, and by the 1870s, refineries, tank cars, and
pipelines had become characteristic features of the industry, mostly
through the leadership of Standard Oil that was founded by John
D. Rockefeller (Johnson, 1997). Throughout the remainder of the
19th century, the United States and Russia were the two areas in
which the most striking developments took place.
At the outbreak of World War I in 1914, the two major producers
of petroleum were the United States and Russia, but supplies of oil
were also being obtained from Indonesia, Rumania, and Mexico.
During the 1920s and 1930s, attention was also focused on other
areas for oil production, such as the United States, the Middle East,
and Indonesia. At this time, European and African countries were
not considered major oil-producing areas. In the post-1945 era,
Middle Eastern countries continued to rise in importance because
of new discoveries of vast reserves. The United States, although
continuing to be the biggest producer, was also the major consumer
and not a key exporter of oil.
In the United States, approximately 20% of domestic production
currently comes from marginal wells, which are the most vulnerable to low prices. Since 1998, domestic production has dropped to
approximately 5.5 million barrels/day, with approximately twice
that amount being imported.
At this time, oil companies are beginning to roam much farther
afield in the search for oil, and, as a result, there have been significant discoveries in several countries.
1.3 Oil Companies
The term oil company is taken to mean a company that deals with
the exploration, recovery, and refining of oil. Furthermore, in the
United States, the term "big oil company" is taken to mean the
major private international oil companies, largely based in Europe
or North America (Pirog, 2007).