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A Brief History of Oil

A Brief History of Oil Adjusted Oil Price, 2011 Money Global Liquids Production, 000 bbls/day External Events Industry Events Construction work begins on the Suez Canal, which will become one of the main transport routes for oil. (1) Edwin L Drake brings in the first producing ol well at Titusville, Pennsylvania; an event often referred to as the birth of the modern oil industry. (A) 1859 The Pony Express service links the East and West of America prior to the telegraph. 1860 Oil City is established in 1860 from where oil is transported by steamboat to Pitts burgh. The American Civi War begins at Fort Sumter. 1861 The first commercial-scale oil refinery is built in Pittsburgh. The Pony Express is rendered obsolete by the first Transcontinental Telegraph line. 1862 The railroad reac hes the oil region of Pennsylvania. Vktorian engineers complete the first section of the London Underground. 1863 John D. Rockefeller invests $4,000 in a speculative oil refinery in Cleveland. The Inter national Workingmen's Association is established in London to address the class struggle. Karl Marx is a key figure 1864 20 refineries are operating in Canada around Oil Springs and Petrolia in Ontario. The end of the Amerikcan Civil War. President Abraham Lincoln is assassinated by one-time oil investor John Wilkes Booth, An early ol pipeline is built from Titusville to a railroad station 5 miles away. The Pithole Creek oil field is discovered. 1865 Alfred Nobel invents dynamite. The Atlantic Cable is completed, allowing transatlantic telegraph communication for the first time. Fithole Creek oil production is already skowing. Early explosive perforation of an oil well to increase production rates. 1866 The US pays around $7.2m to purchase Alaska from Russia. 1867 The early oil finds in Canada begin to run dry The first elevated railway is built in the US. At the age of 21, Thomas Edison applies for his first patent. 1868 Oil City continues to grow and is incorporated as a borough. Oil Creek (A) Dritri Mendeleev publishes the Periodic Table of cherical elements. The last spike of the 1869 New oil finds in southern Pennsylvania. Transcontinental Railroad is driven at Promontory Summit, Utah. The Suez Canal opens. Construction of the Suez Canal (1) The Franco-Prussian War begins, leading to the creation of a powerful German empire, talan Unification and the collapse of the French Empire. 1870 Standard Oil of Ohio is establis hed by John D. Rockefeller. (B) President Ulysses S. Grant visits Titusville to view the important new American industry. 1871 The first oil exchange in America is established in Titusville. The "South Improvement Scheme", an attempt by the Railroad Corporations and Standard Oil to fix oil shipping prices is thwarted by independent producers. Parcels of oil land are auctioned off in Balakhani, a suburb of Baku, Azerbaijan. 1872 James Clerk Maxwell publis hes "A Treatise on Bectricity and Magnetis m, setting the scene for many later breakthroughs in the field of Physics. 1873 Edwin L Drake is awarded a $1,500 annual person by the Commonweath of Pennsylvania. The East India Company, which had once effectively ruled large swathes of hdia, is dissolved by an Act of Parliament. 1874 The Nobel Brothers arrive in Baku. The recently completed Suez Canal becomes Anglo-French after the British purchase the Egyptian share. 1875 The Continental Oil and Transportation Company (later Conoco) is established. John D. Rockefeller (B) Nikolaus Otto files a patent for the four-stroke cycle internal combustion engine. Alexander Graham Bell is granted a patent for an invention he calls the telephone. 1876 Branobel is established in Baku. (C) The beginning of America's "Gikded Age" when population, territory, commerce and wealth expanded greatly.- 1877 The borough of Pithole is unincorporated. The first commercial telephone exchange is established in the US. 1878 The Swedish company Branobel buikds one of the first commercial oil tankers, the Zoroaster. Karl Benz is granted a patent for a two-stroke internal combustion engine. 1879 The Pacific Coast Oil Company (later SoCa) is established to exploit oil discoveries in California. Thomas Edison (2) The Edison Iluminating Company is established, and electricity begins to displace ol-derived Kerosene in the lighting business. (2) 1880 Standard Oil controls around 90% of US refining capaciky Early press attacks on Standard Oil. John D. Rockefeller becomes well known outside of the oil industry. 1881 Standard Oil creates the National Transit Company to own and operate pipelines. The Standard Oil Trust is created to control 41 oil hoklings. The new organisation has its headquarters in New York The British invasion and subsequent occupation of Egypt. (3) 1882 An early electrical lighting system is instaled by Edison's company at Roselle, New Jersey. 1883 Oil companies owned by the Rothschikd family move into Baku. The "Scramble for Africa" between the European colonial powers continues to accelerate after the Berlin Conference. 1884 Baku (C) Continental Oil is acquired by Standard Oil, Singer begin production of the "Vbrating Shuttle" sewing machine, an early example of mass production. 1885 Oil is discovered in the East Indies (Sumatra). The first Benz Patent-Motorwagen is built. This is widely regarded as the first true motor vehicke. (4) 1886 Burmah Oil, an early ancestor of BP, is establis hed. British in Egypt (3) The British Empire takes controlof Balochistan, which encompasses parts of modern-day ran, Pakistan and Afghanistan. 1887 The Ohio Oil Company (kater Marathon) is established. Sarawak and Sabah, now part of Malaysia, become British protectorates. A 40 mile road trip is completed in a Benz Patent-Motorwagen. 1888 Ludwig Nobel, the Oil King of Baku, dies. The Effel Tower is officially opened. 1889 Standard Oil of hdiana (later Amoco) is established as a subsidiary of the Standard Oil Trust. The Royal Dutch Petroleum Company is established. Union Ol (later Unocal) is established in California. Congress passes the Sherman Antitrust Act. 1890 The Ames Hydroelectric Generating Rant in Colorado is the first commercial systemto produce and transmit AC electricity. 1891 Oil production from Pennsylvania peaks according to some estimates. Rudolf Dieselapplies for a patent on the compression ignition engine. The General Electric Company is established. Marcus Samuel & Co. (later Shell) launches its first oil tan ker, the Murex. 1892 The early days of Shell (D) The start of the "Progressive Era" in the US, as a reaction against the waste, and Standard Oil of New York (Sacony) opens an office in Japan to sell Kerosene. Marcus Samuel launches ten more oil tankers. 1893 injustices common in the Gikded Age. The beginning of the First Sino-Japanese War. A year later, the Japanese prevail and take control of Korea. Standard Oil negotiates with the Nobels and Rothschikds to break into the Russian market. Early oil drilling in Texas at Corskana in Navarro County. 1894 The start of the first talo-Ethiopian War, in which the Ethioplans are victorious. The Pure Oil Company is established by independent oil refiners to counter the dominance of the Standard Oil Trust. 1895 Benz Patent-Motorwagen (4) Henry Ford, an employee of the Detroit Edison Company buikis his first gasoline-powered automobile. 1896 A spectacular Baku oil gusher is shown in an early Lumière Brothers fiIm The Greco-Turkish War. American miners stage a mass strike to improve working conditions. 1897 Marcus Samuel founds the Shell Trans port and Trading Company. (D) The US gains control of of Cuba, Puerto Rico and the Philippines after the Spanish-Amerian Russian oil production, primarily from Baku, exceeds US production according to estimates at the time. 1898 Royal Dutch embarks on a drilling campaign to replace declining production. Wikkatters discover oil along the Kern River in California. The first automotive fatalities are recorded in the UK. 1899 Around 4,000 automobiles are sokd in the US. Sales almost quadruple in the following year. 1900 The Pacific Coast Ol Company is acquired by Standard Oil. Theodore "Teddy" Roosevelt becomes the 26th President of the United States. He rails against the powerful corporate trusts of the day. (5) A well strikes oil at the Spindletop field in East Texas. Gulf Oil is established in the area. The Shah of ran signs a concession agreement with William D'Arcy. (E) 1901 Spindletop (E) The unification of Saudi Arabia begins. 1902 After a period of frenzied drilling activity, Spindletop hits peak production. The Wright brothers'achieve powered flight for the first time. The Ford Motor Company is established. 1903 The Texas Oll Company (Texaco) is established in Beaumont, East Texas. "The History of the Standard Oil Company" by kla Tarbell exposes price fixing, industrial espionage and ruthless business practices. 1904 Burmah Oil signs an agreement supply oil to the British Admiralty The Baku oil fields are set alight during the first Russian Revolution 1905 A major oil discovery is made at Glenn Pool near Tulsa, Oklahoma. Teddy Roosevelt (5) The Al-hdia Muslim League is established to advocate the creation of a separate Muslim majority nation. The Pacific Coast Ol Company is consolidated with the other west coast operations of Standard as the Standard Oll Company of Calfornia (SoCal). 1906 Joseph Stalin is sent to Baku to raly the large working class population against the ruling The Royal Dutch Shell Group is created through a merger. Dutchman Henri Deterding is the driving force behind the deal 1907 classes. The first Model T Ford rolls out of the Piquette Plant in Detroit. (6) 1908 Oil is discovered at Masjid-i Suleiman in Iran, announcing the Middle East as a major oil region. Louis Blériot becomes the first person to cross the English Channel in an aeroplane. 1909 Howard Hughes Sr. patents the roller cone bit. The Anglo-Persian Ol Company is establis hed. Edison releases his "Type A" battery for use in electric vehicles. However, it is becoming clear that the internal combustion engine will become dominant. Standard breakup (F) 1910 The first oil discovery is made in Mexico at Tampico. The British Navy under Winston Churchill, then First Lord of the Admiralty, begins to comvert its fleet fromcoal to oil power, and oil's strategic importance increases. (7) The United States Supreme Court declares Standard Oil to be an unreasonable monopoly, and orders it to broken up. (F) 1911 The Turkish Petroleum Company (TPC), is formed to exploit Mesopotamian oil. Calouste Gulbenkian is a driving force behind its creation. (G) The Republic of China is established 1912 Winston Churchill tells Parliament that "Safety and certainty in oil lie in variety and variety 1913 The thermalcrac king process is patented, improving the efficiency of the refining process. alone." World War One is the first mechanized conflict. The UK establishes the Sultanate of Egypt as a 1914 The British government takes a controlling stake in the Anglo-Persian OI Company (later BP). protectorate. The RMS Lusitania is sunk by a German U-Boat. President Woodrow Wikon refuses to react with force. 1915 Regulators attermpt to curb overproduction in Oklahoma. The first tank is introduced into the battlefield by the British. There are 3.4 million registered automobiles in the US. The Sinclair Oil and Refining Corporation is established. Anglo-Persian is supplying a fifth of the British Navy's oil requirements. 1916 Walter C. Teagle becomes President of Standard Oil of New Jersey (Esso and later Exxon). Under is leadership, the company becomes the world's largest oil producer. Ford Model T (6) The Russian Revolution overthrows the Tsarist autocracy. Oil production falls sharply and the industry is nationalised by 1920. The US declares war on Germany. 1917 With US ol supplies diverted to the war effort, ol prikes spike, and a national appeal is launched to promote "Gasolineless Sundays". 1918 Anglo-Persian Ol purchases the British Petroleum Company from the British government. The Treaty Versailles redefines European borders. The League of Nations is established. Benito Mussolini establishes the National Fascist Party. Standard Oil of New Jersey acquires a controlling stake in Humble Oil, a major player in Texas. 1919 Iraq and the Mesopotamian oil reserves are placed under the authority of the United Kingdom. 1920 The Halliburton Oil Well Cementing Company is established in Oklahoma. The start of hyperinfl ation in the Weimar Republic and Adolf Hitler becomes kader of the Nazi Party. A coup brings the Pahlavidynasty to power in ran. Fueled by capital from Standard Oil of New Jersey, Humble Oil becomes the largest oil producer in Texas, 1921 Calouste Gulbenkian (G) The Teapot Dome strategic oil reserve in Wyoming is illegally leased to a private ol company, leading to a major politic al scandal. 1922 A well in the Maracaibo basin blows out, and rapid expansion of the oil sector begins. (H) Oil discovery at Signal Hill in California. The Long Beach oil field becomes one of the most productive in America. Kemal Atatürk becomes first President of the newly established Republic of Turkey. 1923 At the behest of the French government, the Compagnie française des pétroles (later Total is founded by Colonel Ernest Mercier. Early commercial discovery of oil us ing the seismic method. Following the death of Vladimir Lenin, koseph Stalin consolidates his power base. 1924 Benito Mussolini, already Prime Minister of Italy, adopts the title N Duce, and begins to develop the apparatus of a totalitarian state. 1925 TPC is awarded all oil concessions in kaq. Churchill (7) Schlumberger is established, going on to become the largest Oilfield Services company in the workd. Hirohito becomes Emperor of Japan, and a new era of "Enlightened Peace" is proclaimed. 1926 The massive Kirkuk field is discovered in Northern raq by TPC. Standard Oil of New Jersey and I.G. Farben sign a deal to develop synthetic fuels technology. The 15 millionth Model T Ford rolls off the assembly line at the Highland Park factory in Michigan. 1927 Venezuelan oil (H) During the "Roaring Twenties", automobiles, industry, and power, drive a massive surge in The "Red Line" Agreement alocates a percentage of the Middle East oil produced by TPC to each of the signatories including Calouste Gulbenkian. 1928 demand for oil. There are estimated to be more than 300,000 retail establishments selling gasoline. The Great Depression begins. TPC changes its name to the Iraq Petroleum Company (IPC). SoCalestablis hes the Bahrain PetroleumCompany. 1929 Ibn Saud's controls Arabia following the destruction of the Ikhwan mvement. Frank Whittle submits an early patent for a turbojet engine. Discovery of the giant East Texas fiekd, kading to oversupply, and a collapse in the oil price. The Texas Railroad Comrission (TRO intervenes to ration production. ) 1930 Standard Oil of New Yorkacquires the assets of the Vacuum Oll Company, becoming Socony- Vacuum Corporation (later Mobil. The Chinese Sowiet Republic is proclaimed by Mao Zedong. 1931 bn Saud unites his dominions into the Kingdomof Saudi Arabia. Franklin D. Roosevelt become Oil is discovered in Bahrain. The Iranian Shah cancels the Anglo-Persian Oil Company oil 1932 President of the United States concession. Germany's new Chancelor Adolf Hitler recognises the power of the automobile, and orders Ferdinand Porsche to develop a Volkswagen, or "People's Car". Standard Oil of Calfornia (SoCal) is granted the right to prospect for oil in Saudi Arabia, in return for a fee belleved to be $275,000. 1933 Anglo-Iranian and Gulf Oil establish the Kuwait Oil Company (KOC) as a means to compete for Kuwait oil concessions. Folowing the death of President Hindenberg, Hitler dec lares himself Führer of Germany. 1934 Mussolini invades the Empire of Ethiopla. The League of Nations response including proposed oil embargoes are an abject failure. Early exploration work starts in Kuwait. Anglo-Persian renamed Anglo-ranian Oil Company (AO). Henri Deterding unilaterally initiates discussions on supplying oil to Germany. 1935 East Texas (I) Nylon is invented, becoming the first plastic made from petroleum products. The invention sparks a wave of petrochemical innovations. Texaco joins with SoCal to establish California-Arabia Standard Oil Company (Casoc) to hold the concession in Saudi Arabia. 1936 Hitler invades the Soviet Union (8) John D. Rockefeller dies at the age of 97. His dual legacy is the creation of Standard Oil and a highly efficient brand of targeted philanthropy. Early oil exporation in Saudi Arabia is unsuccessful. Bolivia nationalises its oil industry. 1937 The Burgan oil field is discovered in Kuwait, followed swiftly by the first discovery of oil in Saudi Arabi Mexico nationalizes the assets of foreign oil companies. 1938 oc. J) World War Two begins. During the conflict, six of every seven barrels of oil used by the Alles comes fromthe US. Ol production begins in Saudi Arabia. The Casoc concession is massively expanded, dissapointing IPC, as well as the Axis Powers. 1939 The Second World War halts the rapid expansion of oil production in the Middle East. Gernany's synthetic fuel production reaches more than 70,000 barrels per day. The US limits gasoline exports to lapan. 1940 Htler invades the Soviet Union, partly to secure land and raw materials, including the Baku oil fields, for the German people. Japan mounts a surprise attack on Pearl Harbor. (8) The first 50:50 split deal between oil companies and a national government is signed in Venezuela. 1941 Construction begins on the "Big Inch" pipeline to take oil from Texas to the East Coast. The project was completed inside a year. Japan occupies the East hdies, taking controlof the oil reserves. 1942 A US-sponsored geological mission to Saudi Arabia concludes that "oil in this region is the greatest single prize in all history." The Allies win the Battle of the Atlantic, safeguarding oil supply lines. 1943 The D-Day landings take place. General Patton's Third Army is slowed by a lackof gasoline. 1944 The Arabian-American (ARAMCO) company is established. Ibn Saud and FDR summit meeting on the USS Quincy. The Second Worki War ends. US gasoline rationing ends. (9) Shell continues to internationalise with drilling campaigns in North Africa, Nigeria, Trinidad and British Borneo. 1945 Dammam No. 7, Saudi Arabia (J) The start of the Cold War between the US and the Soviet Union. 1946 Total crude production in the US hits record levels. Kuwaiti oil exports commence. Ibn Saud and FDR (9) Chuck Yeager breaks the sound barrier in a Bell X-1 rocket plane. The Truman Doctrine establishes a policy of containment of communism 1947 Kerr-McGee Oil industries makes the first oil discovery drilled out of sight of land. M. King Hubbert (K) The first well is drilled at the Ghawar fiekd in Saudi Arabia. Today, production is more than 5 million barreks per day, making it the most productive oil fiekd in the world. The State of Israel is established. The US becomes a net importer of oil by some measures. (10) 1948 End of the Chinese Gvil War and the establishment of the People's Republic of China. The Netherlands for mally recognises Indonesia's independence. J. Paul Getty and Aminoil purchase an oil concession in the neutral zone between Kuwait and Saudi Arabia. A massive oil fiekd is discovered four years later. 1949 The Aramco agreement is renegotiated as a 50:50 split, increasing tax and royalty payments to Saudi Arabia. The Trans-Arabian Pipeline (TAP is completed. The beginning of the Korean War. 1950 Prime Minister Mossadegh nationalises ran's oil industry. (11) The Anglo-lranian Oil Company (later BP), Britain's largest foreign asset at the time, refuses to renegotiate its Iranian concessions. 1951 Iranian oil production collapses by 97% to 20,000 barrels a day. Atlantic (later ARCO) begins The Egyptian Reolution under Gamel Abdel Nasser ends the British occupation. 1952 offshore production fromthe Gulf Coast. Mossadegh is overthrown in a Coup d'état supported by the British and Americans. President Eisenhower delivers his "Atoms for Peace" speech. BP discovers the supergiant Rumaila oil field in Iraq, which remains one of the largest producing fields in the world. Enrico Mattei establishes Ente Nazionale kdrocarburi (EN). 1953 A consortiumof Western operators form the ranian Oil Participants Ltd. (IOP) and negotiate an agreement with the Iranian government to produce oil. The Soviet Union generates nuclear power for the first time. 1954 The Warsaw Pact is signed creating a mutual def ence treaty between eight communist states in Eastern Europe. The first McDonakf's drive-through opens. The Soviet Union resumes oil exports. Libyan Petroleum Law attracts small independents to enter the market. Socony-Vacuumbecomes Socony Mobil Ol Company. Birth of Israel (10) 1955 Construction of the US Interstate Highway System is authorized by resident Dwight D Eisenhower. M. King Hubbert forecasts that US oil production will reach a peak between 1965 and 1970. Oil is discovered in Algeria and Nigeria. (K) 1956 ENI sec ure an oil concession in Iran upsetting the dorminant "Seven Sisters" (APOC, Gulf Oil, SoCal, Texaco, Shell, Eso and Socony). J. Paul Getty named as the richest living American. (L) British Prime Minister Anthony Eden resigns from office over his mishandling of the Suez crisis 1957 Britain and France fail to achieve their aim of controling the main oil supply route into Europe. The July Revolution overthrows the Iraqi monarchy. Iraq becomes a Arab Nationalist and Socialist one-party state up to 2003. 1958 The Universe Apollo is launched, herakling the age of the Oil Supertanker. Mossadegh (11) The Arab Oil Congress is held in Cairo. The major oil exporters come away determined to gain greater influence over global olil markets 1959 ENI negotiates an oil import deal with the Soviet Union. The first Libyan oil discovery is made. The Organization of Petroleum Exporting Economies (OPEC is founded in Baghdad. (12) Early offshore oil discoveries in the Middle East. Standard Oll of New Jersey markets gasoline under the brand name Esso. 1960 The British rapidly mobilise military forces to counter a threat raq to annex Kuwait. 1961 Libyan oil exports commence, and the country quickly becomes one of the major oil exporters. The Cuban missile crisis is one of the most serious confrontations of the Cold War. 1962 Enrico Mattei dies in a mysterious plane crash. (M) Algeria gains independence. OPEC established (12) Launch of the first geostationary satellite. The country of Malaysia is established. 1963 The first purpose-built semi-submersible drilling rig is launched. The Iraq National Oil Company (INOC) is established to facilitate state exploration of areas expropriated fromthe Western oil companies. King Saud is forced to abdicate the throne after a power struggle with Prince Faisal. 1964 J. Paul Getty (L) Winston Churchill dies and is granted a state funeral. Amongst many achievements, he had recognised olf's strategic importance before almost any other statesman. The supergiant Samotlor oil field is discovered in the Soviet Union. Peak production of more than several million barrels per day is achieved in 1980. 1965 Enterprise de Recherches et d'Activities Petrolieres (ERAP) is created by the French Government, eventually becoming the Elf Acquitane Group. Iraq starts to nationalise oil concessions. 1966 Six-Day war between Israel and the Arab nations. The Arab nations attempt an oil embargo, which fails due to a global oversupply of oil. (13) 1967 Commercial exploitation of Canadian oil sands begins. The Ba'ath Party seizes power in kraq. Harokd Wilson announces that British troops will be withdrawn East of Suez by 1971. A massive oil field is discovered on Alaska's North Slope. Production peaks at 2 million barrels per day in 1988. 1968 Enrico Mattei (M) After a series of dry holes, Phillips Petroleum makes the first major discovery of oil in the North Sea at the Ekofisk fiekd. (N) Libyan military officers led by Muammar Gaddafi stage a coup détat against King kiris. (14) 1969 The new regime in Libya dictates terms to the Western oil companies including Occidental. US oil production peaks as predicted by Hubbert. Earth Day announces the birth of the modern environmental moverment. 1970 The Tehran oil agreement is signed between six major oll exporting countries, forcing the oil companies to accept higher tax rates. 1971 Middle Eastern oil production exceeds 30% of total global production. Six-Day War (13) Iraq's oil fields are fully nationalised. The Club of Rome publis hes the Limits to Growth report, predicting that endless economic grow th is unsustainable. Standard Oil of New Jersey becomes Exxon. Statoil is established to ensure Norwegian participation in the oil sector. 1972 Oil crisis sparked by the October War, and OPEC oll embargo. The ol price jumps from $2.90 to $1.65 in the space of three months. The Saudi Arabian government starts to buy into ARAMCO, eventually taking full control in 1980. The company is renamed Saudi Aramco in 1988. 1973 Muammar Gaddafi (14) The oil embargo is f ted in March. 1974 The Kuwaiti government acquires 60% of the Kuwait Ol Company. Automobile fuel efficiency measures are introduced in the US. The Strategic Petroleum Reserve (SPR) is created under the Energy Policy and Conservation Act. 1975 BPcommences oil production from the Forties field in the North Sea. Juan Pablo Pérez Alfonso refers to oilas the "Devil's excrement". In the same year, the Venezuelan oil industry is fully nationalised by President Carlo Andrés Perez. The offshore Cantarell field is discovered in Mexico. Peak production of more than 2 million barrels per day is achieved in 2003. 1976 Petrodollars are proving a curse for the Shah of Iran with inflation, corruption and an ever widening social divide, leading to mass discontent First oil production fromthe North Slope field in A laska. OPEC nations produce around two thirds of "free world" oil, a historik high. 1977 Anti-Shah demonstrations and oil workers go on strike in ran. The Three Mle kland accident cripples the US nuclear industry, further increas ing the importance of fossil fuels. Over a million barrels a day are flowing through the Alaskan pipeline. Ol is discovered in Sudan but it is 1999 before oil exports begin. 1978 The Shah of Iran forced into exile. The Ayatollah Khomeini becomes Supreme Leader. President Jimmy Carter orders cessation of Iranian imports. The oil price spikes at $39.50 a barrel. (15) A blowout in the Mexican sector of the Gulf of Mexico leads to one of the largest oil spils ever recorded. 1979 North Sea oil (N) The Alexander Keilland, a semi-submersible drilling to the loss of 123 crew. ran-Iraq war commences. 1980 breaks up after a fatigue fracture, leading Conoco becomes a wholly owned subsidiary of chemicals giant DuPont in a transaction worth $7.4 billion. President Ronald Reagan lifts remaining oil price and production controks. 1981 OPEC is forced to cut production due to a combination of depressed demand and new discoveries. Marathon becomes a wholly owned subsidiary of the United States Steel Corporation. The steel and oil businesses are later separated 1982 A wildcat well on the Mukluk prospect in Alaska proves a massively expensive failure. Union Oil changes name to Unocal. Trading of crude oil futures contracts starts in the US. 1983 Folowing a hostile takeover bid by T. Boone Pickens, SoCal acquires Gulf Corporation and the restructured entity is named Chevron Corporation. Iranian Revolution (15) Oil tankers are targeted by both ranian and raqi forces. 1984 Saudi Arabian oil production is greatly reduced due to increasing oversupply and indiscipline amongst OPEC members. CFPchanges name to TOTAL CFP. Mikhail Gorbachev becomes leader of the Soviet Union. 1985 The price of oil collapses from $29 a barrel to $10 a barrel due to oversupply in the market. The Chernobylaccident in the Soviet Union. The oil price collapse proves particularly devastating in high cost regions such as the US. 45 men die after a Chinook helicopter crashes in the North Sea. 1986 The "Black Monday" stock market crash spreads from Hong Kong, to London, and then New York, powerfully illustrating the interconnectedness of the global economy 1987 The British government sells off its stake in BP. The ran-raq War ends, having claimed the lives of half a million sokliers. The war leaves both countries with massive debts. 167 ives are lost following a fire on the Piper Alpha platformin the North Sea. The China National PetroleumCorporation (CNPC) is established to handle all petroleumactivities in China. 1988 The fall of the Berlin Wall and the collapse of the Eastern Bloc. 1989 The Exxon Vaktez runs aground, spilling 11 million US gallons of crude oil. (O) Exxon Valdez (O) BPembarks on a massive cost-cutting exercise. Over the following two years, 19,000 personnel are laid off. raq invades Kuwait. President George H.W. Bush orders troops into Saudi Arabia. 1990 kaq is rapidly defeated by US and Allied forces. Retreating Iraqi soldiers ignite the Kuwaiti oil fields, and it takes nine months to extinguish the fires. (16) 1991 The French government reduces its direct shareholding in Total from 31.7% to 5.4%. BRITEEN aTROLTUN ComPANT The Russian oil industry is restructured along western lines, creating three integrated oil companies: Lukoil, Yukos and Surgut. Collapse of the Soviet Union. Bill Clinton is elected President of the United States. 1992 Kuwait oil fires (16) Fueled by a boorring economy, Chinese domestic oil demand outstrips supply and the country becomes an oil importer. Chevron enters a joint venture with the gover nment of the Republic of Kazakhstan to exploit major oil fields in the country. CNPC begins operations outside of China. 1993 The North American Free Trade Agreement (NA FTA) comes into force, further accelerating the globalisation trend. BP merges with A moco to create the first "Supermajor" Operator, leading to a period of consolidation in the industry. (P) 1994 A UN resolution allows limited raqi oil production in the "oil for food" deal. 1995 Shell is forced to abandon plans to dump the Brent Spar at sea. RIP AnmoO pLe General Motors introduces the EV1, a highly advanced all-electric vehicle. Despite numerous technical firsts, the vehicle is a comercial failure. Production begins from Shell's Mars TLP in the ulta-deepwater Gulf of Mexico. The French government further reduces its stake in Total to less than 1%. 1996 Start of the Asian financial crisis. The Kyoto Protocol sets binding emissions reduction targets for countries in the developed world but the US later withdraws fromthe process. 1997 First oil is produced from the supergiant ACG field in Azerbaijan. The Asian financial crisis spreads to Russia, and the price of oil falls sharply. 1998 Conoco gains independence from Dufont, culminating in the largest IPO in history. US sanctions against Libya are lifted as the Western powers attempt to bring Gaddafi back into the fold. 1999 Peak oil production of 6 million barrels per day is achieved in the North Sea region. Vladimir Putin is elected President of Russia. George W. Bush is elected President of the United A consortiumof Western companies strike oil at the Kashagan field in Kazakhstan, which is later proclaimed as the largest oil discovery since 1968. Production is set to begin in 2013. 2000 States. The 9/11 attacks on America by Al Qaeda. The war in Afghanistan begins. The Supermajor Era (P) 2001 Chevron acquires Texaco in a deal estimated to be worth $36 billion. Ol production in Venezuela is disrupted by an attempted coup and worker strikes against President Hugo Chávez. Conoco and Phillips Petroleum merge. Shell acquires the independent operator Enterprise Oil in a deal worth more than $6 billion. 2002 Saddam toppled (17) Saddam Hussein is toppled from power, and the occupation of raq begins. Re-development of the oil industry is made a priority. (17) Canadian oil reserves are massively uprated to take oil sands into account. BPannounces that it will purchase a 50% stake in TNK, one of Russia's largest oil producers. 2003 Strong economic growth leads to surging oil demand. 2004 Shell is reorganised following a scandal involving overstated reserves. Hurricane Katrina slams into the Gulf of Mexico, leading to a human tragedy, and disruption of the oil industry. The ol price surges. China's CNOOC launches a $16-18 billion bid to acquire oil major Unocal CNOOC later withdraws its bid in the face of US national security rhetoric 2005 A year after mandating ethanol content in gasoline, President Bush call for an end to America's The Tupi oil fiekt, kater renamed Lula, is discovered offshore Brazil t is estimated that full fiekd development could cost more than $50 billion. 2006 "addic tion to oil". More than 50 million passenger vehicles are produced, setting a new record. The Financial Times identifies the "new Seven Sisters" as Saudi Aramco, Gazprom CNPC, NIOC, PDVSA, Retrobras and Petronas. 2007 On July 11th, oil reaches a record high norrinal price of $147.27 a barrel. However, the financial crisis triggers a rapid collapse, to lows of $30 a barrel in December. (18) Saudi Arabian supertanker hijacked off the coast of Somalia. US Geological Survey estimates that the Arctic holds 22% of the world's undiscovered, recoverable oil and gas reserves. 2008 hdia's Tata Motors introduces the Nano, a low-cost vehkcle designed specifically for the developing world. 2009 Saudi Aramco brings the massive Khurais oil field development onstream. The oil price falls due to concerns over the slowing European economy but recovers later in the year. A blowout on BPs Macondo field kills eleven oil workers, and leads to an oil spill that flows for 3 months unabated. (Q) 2010 Libyan oil production is disrupted due to a popular uprising. Oil prices surge towards $130 a barrel. The Fukushima accident casts doubt on the future of nuclear energy. ConocoPhillips becomes the first Supermajor to formally announce plans to split its Exploration & Production (E&P) and Downstream/ Marketing divisions. 2011 Financial collapse (18) Deepwater Horizon (Q) Adjusted Oil Price, 2011 Money Global Liquids Production, '000 bbls/day Oil Production Sources: 1950 - Present (BP Statistical nt Eriergy, 1900 - 1950 INefte, Pre 1900 (OIL150 Websitel. :BP Statistical Review of Energy larnual average pricel Events Sources: the Economist, Financial Times, OIL 150 Website, Petroleum Archives Project, The Prize by Dani el Yergin, The Quest by Daniel Yergin, Saudi Aramco, Shell, Upstream Online, USGS Imagery based on historice photographs

A Brief History of Oil

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From the birth of the modern oil industry in Pennsylvania, through the rise of the Middle East as an oil superpower, to the present day, and the search for oil in frontier regions.

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