The Impact Of Oil On The Economy

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History Of Oil In The Economy For a very long time, oil was widely used for things such as medicine, lubricants and adhesives. However, ‘A new era began when Edwin Drake successfully produced commercially usable quantities of crude oil from a 69-foot well in Pennsylvania in 1859’ (Parker, 2013). In the 19th century, oil became a key player in all industries, businesses, technology and geopolitics (Hinsdale, 2014).
Oil has become the means of survival for both consumers and producers. Consequently, the fluctuations in the price of oil have become one of the greatest concerns in the economy. According to Branginskii, ‘the market of energy carriers, primarily oil, are a great threat to world economy. Lack of clarity with crude oil prices
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After being vertically and horizontally integrated, the organization decided to better the quality of its oil by hiring scientists to increase economic efficiency and reliability. Although The Standard Oil Company was not the only refinery at this point in time, it was a key player in the industry. Once a degraded product, oil fuelled cars and planes: a necessity in World War 1. Wall explained how land and oil was negotiated: ‘the various oil strikes focused attention on a legal situation unique to the United States. Land ownership carried with it rights to all subsoil minerals, termed the common law right of capture. Oil companies, like other mineral companies, negotiated with each landowner for drilling rights’. Designated land had to be agreed upon, not just by landowners, but also by the government. ‘World War II made the oil industry a key American resource. Oil company research and executive leadership played major roles in the conflict. Research increased the number of products made from petroleum and natural gas, including the explosive Trinitrotoluene and artificial rubber. Oil tankers supplied gasoline for the Allies at great risk from submarine attacks. The government rationed gasoline and controlled prices during the war and ended the delusion that American supplies of crude were unlimited. From this, the industry and the securing of oil became a top priority for both foreign and domestic policy’ (Wall, 2014). Today, approximately 90% of
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