Oil - A Brief History

IPCC Report 2012

Petroleum is the biggest energy source globally in the world today (IPCC). It played a part in the industrial revolution although coal was the dominant energy source. From the 20th century onwards and throughout the Great Acceleration is seen by many as the key for fuelling society (Ruddiman, 2012). Industrial production of oil created cheaper energy, increased fertilizers and fuelled construction. Everything that makes the modern world! 

It interesting to note a few key dates in the history of oil summarised from World History of Oil

450BC - Herodotus described oil pits near Babylon

1500s - Oil from seeps in the Carpathian Mountains in Poland was burned in street lamps to provide light in the Polish town of Krosno

1836 - For the first time, academician G.I. Gessi researched Absheron natural associated gas from a scientific point of view and defined its composition.

1803 - Offshore oil extraction reported in Bibi-Heybat Bay of the Caspian Sea (Azerbaijan) from two hand-dug wells 18 and 30 meters away from the shoreline. The first offshore oil field ceased existence in 1825 when a huge storm ravaged all wells in the Caspian

1818 - In southeastern Kentucky another salt well produced oil. It was known as the "Beatty Well," named after the owner of the land on which it was drilled (Shepherd 1988).By 1820, oil from this well was being shipped to Europe as well as several other southern states. Thus the Beatty Well seems to be the first drilled well which produced commercial oil in North America.

1846 - Baku the first ever well drilled with percussion tools to a depth of 21 metres for oil exploration

1849 - Abraham Gesner developed a method for distilling kerosene from crude oil

1859 - Col. Edwin Drake struck oil 69ft below the surface of the ground in Titusville, Pennsylvania.

1870 - J.D.Rockerfeller formed Standard Oil (Ohio).- controlled 10% of American oil refining

1885 - Oil discovered in Sumatra by Royal Dutch

1910 - Lakeview gusher blew out near Los Angeles, CA, reportedly at rates of >100,000BOPD with a total of 9,000,000 Bbls oil released before the well was brought under control

1938 - Oil discoverd in Kuwait and Saudi Arabia

1960 - OPEC (Organization of Petroleum Exporting Countries) founded in Baghdad - Saudi Arabia, Venezuela, Kuwait, Iraq, and Iran

1969 - Oil discovered in North Sea

1971 - US oil production peaked

1986 - Oil prices collapse

1989 - March - Exxon Valdez aground in Prince William Sound, Alaska

1998 - 50 year moratorium on mining and oil exploration in Antarctica approved

2002 - (November) - Oil tanker Prestige sunk off NW coast of Spain

2004 (Oct 25) - Oil at a record price of $55.67 US per barrel on concerns over high demand and possible supply disruptions in the Middle East and damage on the Gulf Coast from Hurricane Ivan .

2007 (Nov 20) - WTI oil price futures hit a record close of $99.29US driven by supply concerns and weakness in the US dollar

2008 (July 23) - Alaska gives nod to TransCanada Pipeline to develop the Alaska Gas Pipeline.

2009 (Jan 19) - Oil price falls to $34 US per barrel

2010 (Apr 20) - Deepwater Horizon rig explosion and fire while drilling BP’s Macondo exploration well, in Gulf of Mexico, 11 workers killed and concern about a major environmental catastrophe along the Gulf Coast

2010 (Oct 12) - USA lifts ban on deep water drilling in the Gulf of Mexico

2011 (Dec 31) - US natural gas production in December 2011 at a record high level of 66.2Bcf/d breaking a previous high dating back from 1973

012 (Apr 1) - Total well leaking gas at Elgin Field 240Km east of Scotland in North Sea

2012 (Aug 25) - A blast at the Amuay oil refinery in Venezuela kills nearly 50 people