Petroleum, or crude oil is a fossil fuel. It is the result of organic matter transforminginto hydrocarbons over millions of years. Generally buried in the form of a deposit,crude oil sometimes appears on the surface of the earth, which is why it has been knownto man since ancient times. Around the world, oil was used as sealingmaterial in construction and for medical purposes. But it is only in the middle of the 19th centurythat its consumption would explode.

                   

                                         Petroleum ||  modern history of oil full information

 Europe and North America, in the midst ofindustrial revolution, have rapidly increasing energy requirements that are mainly met by coal. Interest in oil intensifies throughout theworld. From the Russian Empire, to Europe, to North America, the first modern drilling location. In the United States, this causes a rush ofblack gold and the country became the largest oil producer in the world. Initially, distilled oil replaces the burningof whale oil in lamps. It offers a better calorific value than coaland is easier to transport than gas.


 Oil consumption rises in the early 20th century,especially in the field of transport, with the development of the automobile, the reconversion of ship engines, and the aviation boom during the World War I. Crude oil, once extracted, is distilled ina refinery to separate the hydrocarbons as needed. The lighter molecules evaporate to the topof the distillation column where the temperature is around 20 degrees Celsius.


 Liquefied Petroleum Gases are harvested andused, among other things in lighters and in kitchens. Between 30 and 105 degrees Celsius, gasolinefor cars is produced. Between 105 and 160 degrees Celsius, naphthais created, used in petrochemicals in order to create plastics, synthetic textiles, drugsand cosmetics. Between 160 and 230 degrees Celsius, keroseneis obtained for aviation. Between 230 and 425 degrees Celsius, diesel is created for cars and heating oil for domestic purposes. 


Finally, the thick, high-sulfur residue isheated to above 450 degrees Celsius to form heavy fuel oil used by ships, and to obtainbitumen used for road construction and roofing. Crude oil was transported in barrels witha capacity of 42 US gallons, or slightly less than 159 liters. The barrel thus became the unit for settingoil prices. More and more oil deposit discoveries aremade worldwide, including in Venezuela which becomes the second largest global producer. In the Middle East, where Britain is present,


 Western companies seize the new market, giving a portion of their profits to the local countrythrough royalties. During World War II, demand for oil skyrocketsand the resource becomes a major international issue. At the end of the war, the United States signsan alliance with Saudi Arabia, guaranteeing security of the country in return for privileged access to its oil. Western companies dominating oil markets contributeto nationalist movements in producer countries.


 In Saudi Arabia, an agreement is signed allowingthe country to receive 50% of oil profits. In Iran, negotiations with the Anglo-PersianOil Company fail, following which the prime minister nationalizes the country's oil. In response, the US and the UK secretly organizea coup to overthrow the prime minister. The Shah of Iran remains in power and thenallows the exploitation of oil in the country by a consortium of Western companies. In the USSR, the discovery of oil fields in Western Siberia pushes the country to invest in its exploitation.


 Plentiful and cheap oil overtakes coal tobecome the primary source of energy in the world. So far, its price remains below 3 dollarsa barrel. Five major oil-producing countries decideto unite to derive more benefits. They create OPEC, the Organization of PetroleumExporting Countries. Together, they want to counter the dominanceof Western companies, to increase oil prices and to have a common policy. The organization would gradually be joinedby new nations. In 1972, the United States reaches peak productionand is forced to import oil to meet its increasing needs.


 As the United Kingdom withdraws from the MiddleEast, security in the region is provided by Iran and Saudi Arabia which are armed by theWest. After the Yom Kippur War between Israel andthe Arab states of Egypt, Syria and Jordan, OPEC for the first time uses oil as a politicalweapon. An oil embargo is imposed on Israel's alliesand production slows to inflate the price of oil. This is the first oil crisis which hits industrialized countries whose economies now depend on the black gold. Countries try to reduce their oil consumptionand invest in alternatives such as nuclear and hydro power, or reinvest in coal.


 Oil companies in turn explore the world insearch of new deposits. Sources at sea, called offshore sites, arediscovered and exploited, particularly in the North Sea. The Soviet Union becomes the largest producerof oil in the world, while in the United States, production increases with the exploitationof Alaskan oil. In 1979, the Iranian revolution takes place. The Shah's regime is overthrown and replaced by an Islamic republic that sets up an anti-Western policy. Oil production in the country falls, causingthe second oil crisis. 


Following border disputes, tensions betweenIran and Iraq lead to 8 years of war. Globally, non-OPEC oil production rises andexceeds production by OPEC countries. Henceforth, supply and demand sets the priceof a barrel rather than OPEC. However, for industrialized countries, thestability of the Middle East still remains a priority. Thus when Iran and Iraq begin to target oilfacilities in the Persian Gulf, hundreds of Western military vessels step in to ensurethe supply of oil. At the end of the war, Iraq is weakened andindebted to Saudi Arabia and Kuwait.


 But having received large amounts of military equipment, the country has the most powerful army in the region. Iraq takes advantage of this situation toinvade Kuwait following a border dispute. An international coalition is formed underthe UN, and led by the United States, to intervene and neutralize the Iraqi army. This time the United States establishes apermanent presence in the region by installing military bases and signing defense agreementswith Gulf monarchies. The country imposes a series of embargoesagainst Iran and Iraq, which it considers rogue states.


 Saudi Arabia, for its part, wants to onceagain become a major producer of oil. The country has the largest known oil reservesin the world and floods the market to become the largest producer of crude. In Russia, new investment revives the oilindustry. But as the price of oil is low, and offshoreoperations unprofitable, oil companies find themselves in difficulty.


 In 1998, they begin to merge together andcombine forces. 6 giant oil companies are born that wouldbecome the richest and most influential in the world. In the Middle East, the military presenceof the United States begins to raise concern. On one hand, radical Islamists do not wantthe presence of an Israeli ally on their soil. On the other, some consider the sanctionsimposed on Iraq and Iran as too heavy. 


On September 11, 2001, the United States becomesthe target of a major terrorist attack on its territory. 15 of the 19 terrorists were Saudis, raisinggrave concerns. The US actively seeks new sources to reduceoil dependency on the Saudis. In Africa, production accelerates after thediscovery of large offshore fields off the Gulf of Guinea. In the Middle East, the United States invadesIraq under the pretext of its war against weapons of mass destruction.


 A few years later, the country's oil wouldbe back on the international market. Iran for its part opens its market to newrising Asian powers, such as China and India. The abundant supply of oil in the world stimulatesthe economy. Growth skyrockets, mainly in emerging countries. In addition, Wall Street traders speculatingon black gold, pushes prices further upward. But the financial crisis of 2008 would causea sharp drop in prices.


 Venezuela, over a few years, discoversit holds the largest known oil reserves in the world, putting it ahead of Saudi Arabia. With more global demand for oil, its pricerise again. The "unconventional" exploitation of petroleumbecomes profitable despite the difficulty in its pumping and treatment. Thus in Canada and Venezuela, oil companiesrely on the exploitation of huge oil sand deposits. As this thick bitumen is found near the earth’ssurface, forests are razed to extract the oil. It is then transformed with more expensive,highly polluting techniques. 


While offshore now provides 30% of global production, oil companies try exploiting deeper deposits. In the Gulf of Mexico, an attempt to makethe deepest borehole in the world fails, causing one of the world’s worst known oil spills. In the United States, improved technologies, such as fracking, now make it possible to pump shale oil, the reserves of which seemenormous. This oil is wedged between different layersof solid rock.


 A fluid is injected at high pressure to break the rock and release the black gold which is then pumped. Numerous such reserves discovered in the UnitedStates cause to the country's production to explode. The fact that the biggest oil consumer inthe world becomes a bigger producer does not please its Saudi ally. Saudi Arabia then wants to make the productionof unconventional oil unprofitable by dropping prices.


 To achieve this, Saudi Arabia persuades OPECto flood the oil market. The price of the barrel drops, making oilproduction barely or sometimes not at all profitable. But the oil industry of the United Statesresists and continues to increase its production. With oil abundant and cheap, world consumptioncontinues to rise and approaches 100 million barrels per day. Two-thirds of the oil used in transportationindustry is the main emitter of CO2. In the maritime sector, heavy fuel oil usedby ships emits 3,500 times more sulfur than diesel fuel, causing severe air pollution.


 The United States and Europe react by creatingzones where heavy fuel consumption is prohibited. Since the beginning of the modern era of oil,many oil spills cause major environmental damage, with the Niger Delta probably being the most affected region with 60 years of oil spills largely ignored. Saudi Arabia undergoes its own policy changes,being faced in recent years with a large fiscal deficit. OPEC countries are forced to appeal to otherproducing countries to together try boosting the price of oil. This inlude Russia, the second largest crude exporter in the world.


 The United States, in contrast, continuesto increase production to keep prices low and to support growth and the economy. The country eventually becomes the largestoil producer in the world. While IPCC experts are sounding the alarmand call for drastically reducing CO2 emissions to limit global warming, we have currentlyfound enough oil to carry on for at least another 50 years at current rates. Saudi Arabia now speaks of diversifying itsinvestments to prepare for the post-oil era.


 Iran, which has the 3rd largest oil reservesin the world, suffers since 2018 from sanctions imposed by the United States aimed at chokingits oil sales. In Venezuela, the countryy is hurt by the lowoil prices and the country never really benefits from its huge reserves. Political instability could potentially impact exports, which currently mainly benefits China and Russia. Meanwhile, oil companies remain among themost powerful entities in the world. In 2017, five of them figure in the list ofglobal top 10 companies with the highest turnover. 


The International Maritime Organization imposesdrastically reduced sulfur emissions goals for vessels by 2020. This could force the industry to abandon heavyfuel oil in favor of other hydrocarbons, which may push up its demand and price. If the price of a barrel increases, the exploitationof unconventional oils could restart with renewed vigor. This includes areas such as the Arctic, whichshows promise of holding vast deposits. And with polar ice caps melting, it makesit possible to explore new areas potentially rich in oil.