The Man Responsible For All Of It Is John D. Rockefeller

At the dawn of the twentieth century America’s future looked bright, Industrialization in addition to transforming America had brought with it advances in medicine, science, and technology. Production of everything from food to pharmaceuticals grew at an unprecedented rate throughout the twentieth century. Through the use of fossil fuels the developed world, especially that of the United States was able to sustain larger economies, populations, food surpluses and money surpluses. However when world production of oil peaked in 2005 (Ruppert), meaning the end of cheap, abundant crude oil that had fueled everything for so long. Thus began the recession of 2008, and through our politicians claim it ended in 2009 it remains clear that whenever the economy begins to gain momentum, the increase in fuel use retards its growth, all because the price of oil control our national and global economies. All the while we as Americans continue to live in our oil fantasy thinking the end of cheap oil will never happen and that there shall always be oil.

Probably the most effective secret deals done by Rockefeller and his partners were with the railroads. Rockefeller saw that he could not compete with the refineries in New York, Philadelphia, and oil cities unless he could even up the conditions by freight concession. He demanded a lower rate by asking for a rebate from Michigan Central Railroad.(7) These "in harmony" deals meant those refineries and oil traders not "in harmony" with Standard Oil would find that railroads would refuse to move their oil, whatever the price. Oil is free at source, so once the investment in refining and extraction plant has been made, the only important cost was transportation.(8) Rockefeller’s secret railroad rebates on the transportation of his oil kept his competitors guessing for years. None of them could understand how he kept

The recent drop in the price of crude oil by more than half since June 2014 involved complex causes, but much of the problem stemmed from an imbalance of supply and demand. The oil industry thrives on advances in science and technology and historically has proven remarkably adept at producing knowledge and techniques to locate, process, and transport oil but ill-equipped at using its investments into industrial research and development to create market stability. For example, American energy production has boomed in recent years due to advances in hydraulic fracturing and horizontal drilling but those innovations created vulnerability for American oil producers and particularly for smaller independents when world production outpaced consumption and prices dropped.

The oil industry, like other industries, has been forced to adjust to the massive change forces of technology, globalization, industry transformations, and entrepreneurial innovations. The oil industry has some special characteristics as well. Oil is a global market with 53% of volume internationally traded. It accounts for about 10% of world trade, more than any other commodity. While the

The United States’ increasing dependence on oil is a growing problem. Oil demand is increasing at an outstanding rate, not only in the U.S. but also around the world. Consider this, in 2008, “the world produced about 85 million barrels of oil a

Oil is a huge part of everyone’s everyday life. From transportation to heating homes and businesses, oil prices are always dramatically changing due to the constant change of supply and demand. The economic impact that the price of oil has on the U.S economy continues to rise and fall due to political instability. Americans especially have a heavy reliance on oil, especially on foreign origins. The increasing price of oil has spiked large concerns and has become a major global debate. Many sources of oil are in economically and politically unstable regions and countries like former Soviet Union, the Middle East, and Africa. Not only is oil affected by this instability, prices are also determined by natural disasters and political issues. Due to an increase in demand, oil prices in 2011 increase instability due to more instability in oil producing countries like Saudi Arabia because of conflicts and uncertainty. The oil industry is one of the Commanding Heights of the global economy and therefore should not be regulated. It is a global commodity and is the most efficient method of allocation through the free market.

A year ago, it created a normal of 8 million barrels of oil a day, up from 4.5 million in 2008. Common gas yield took off from 57 billion cubic feet a day to 75 billion, as per government officials. Oil creation represents almost 2 percent of the economy, up from under 1 percent in 2000

This report focuses on the decline of the oil industry and how humanity has become so reliant on it. It discusses how we as a society have come this far to rely on oil, what our world will be after peak oil, and what we can to do prevent peak oil or reduce the impact of peak oil.

Oil is a scarce commodity that is extracted from deep in the ground and it is not available everywhere. It is a commodity that has many uses and as such, its price, supply and demand fluctuate based on the needs of the economy and the market. In addition to oil being used to make gasoline it has many other uses, such as to make plastics, heating for people’s homes, in asphalt, and other things. Because of its many applications, it is a product that is in or plays an important part in our daily lives in one way or another. When the economy goes through periods of expansion, which are periods of economic growth, the demand for oil becomes greater and producers are encouraged to engage in more drilling in order to increase the supply to keep up with the consumption and also to maximize profits.

Now, the whole world’s population relies on oil deeply. Since the industrial revolution of the nineteenth century, it is hard to imagine how our lives would be possible

There are four distinctive trends identified for the oil and gas industry: increased energy demand because of social and demographic factors, increased energy efficiency, increased cost of oil extraction, and increased production of natural gas in the US . Through analysis of these factors the future picture of the industry become clearer and it is easier to plan ahead and prepare. Of all products we use in our daily lives, 96% of all components are made with oil and gas, so the industry is disappearing despite the pressure for more green energy .

Did you realize that at our current consumption of crude oil and at our current status of known reserves, we have approximately 40 years of reserves remaining? This is a startling fact when we take into account all the products that are produced from refined crude oil or from its by-products. Many people are aware of the price increases they feel at the gas pump, but has anyone ever considered the cost or investment put forth in finding new reserves? Under the right conditions, oil would sometimes seep up to the surface, but in our times, the search for new reserves is more costly and dangerous.

Oil has is the lifeblood of our economy and has a long history as a source of heat and light, and more recently it is the main source of fuel that is used in transportation, and thus it maintains its presence as the lifeblood of our economy. The sheer quantity of oil now being transported by sea has increased in volume by huge factors, and the size of the rigs tankers used to extract and transport the oil has seen steady increases, which gives the possibility of larger environmental disasters due to spillage by accident or due to operations. Due to increasing population and booming economies, and despite the increasing demand of green energy, the world still sees a need for increasing demand in oil supplies. Only very recently has it begun to slow down in some parts of the world that have traditionally been major consumers of oil. The US National Research Council (2003) has released some stats on how much oil consumption has increased since 1970:

In 1861, the U.S oil refinery came online and made its first shipment to London. Over the next century and a half, the United States began replacing the use of coal with oil as their main source of fuel which led to oil becoming a major economic power. By the 1880’s the U.S was the leader in crude oil production and refining, with kerosene being the 4th largest export in the U.S. Russia, Britain, and the Dutch, however , have challenged U.S dominance over the European and Asian oil markets with new discoveries of oil. Within the next few decades, the United States was able to increase its dominance in oil production from 26 million barrels a year to 64 million by the discovery of new oil in states such as Texas, California and

Besides, due to the rapid economic expansion in some country like China, Brazil, Russia and India, the demand for oil product is increased dramatically. “Global oil consumption grew by a below-average 0.7% per day.” (BP, 2012) This lead the price of oil grows up every year.