The Seneca Oil Company

The passage I will analyze in this close reading is from the works of Theodore

Gas is something we need in our day-to-day life to operate vehicles that bring us places we need to go. Without gas we can't go on living our normal lives. Sadly the prices of gas are not pleasant to the consumers at times, but we have to deal with it. Around the year 2012 gas was a staggering $ 3.60 average and was $4.00 at time, the people were asking the government to mandate gas prices. Although if the government were to mandate gas prices, the prices would be more appealing to the consumers, but not for the long run.

Central Idea: Gas prices are on the rise in the US recently because of three major factors: the price of crude oil, the increase in internal regulations, and the increased demand for the gas.

The first of the three that I’ll be covering is gasoline. Back in 1928 the average price of gasoline was anywhere from twenty to twenty-five cents per gallon. In today’s world, the price is over tenfold what it was in 1928 at a staggering two dollars and ninety cents per gallon. This is an over thirteen-hundred percent increase in the price of gas.

When people hear the word oil it is commonly interpreted as gas, but the oil that we drill is not what goes into our cars. The oil that is retrieved from the ground is called crude oil, Oil in its raw natural form and when it becomes refined it is used in plastics, rubber, and gasoline. ”Gasoline is a volatile, flammable liquid obtained from the refinement of petroleum, or crude oil. It was originally discarded as a byproduct of kerosene production.” The first oil well was found and harvested in Titusville, Pennsylvania by a man named Edwin L. Drake, in 1859. The well was about 70 feet deep (How gas). It pumped between 20-40 barrels a day

In Texas, there is an economic powerhouse that not only runs deep beneath fields of cotton, but also reaches miles beyond the green pastures of cattle. Its multitude of uses in daily life also far outweighs the benefits of technology. This resource, greater than any other in Texas, is oil. In 1866 the first commercial oil well was dug near Nacogdoches, Texas but unfortunately the well came up dry. Thirty years later in 1894 oil was discovered in Corsicana, Texas by accident while a water well was being dug. This was the first economically significant discovery of oil in Texas. On January 10, 1901, Texas was catapulted into the era of oil and gas with the discovery at Spindletop. The Spindletop well, located south of Beaumont produced roughly

It is a known fact that war causes inflation which makes the prices of everything go higher as well as taxes. After World War I instead of going back down the prices continued to rise which helped to contribute to the deep depression felt during the Great Depression.

Rockefeller introduced new techniques that completely reshaped the oil industry as well as how business was run. In 1859, Edwin Drake discovered oil in Titusville, Pennsylvania, and Rockefeller was quick to foresee a future. He was persuaded that refining oil would bring immense wealth and so he began to sell off his other interests. Around 1863, Rockefeller and several partners entered the booming oil industry by investing in a Cleveland Refinery. During the 19th century, kerosene was in high demand and during the process of refining crude oil to kerosene, there were many byproducts that many saw as waste, but thrifty Rockefeller saw it as gold. Byproducts such as petroleum jelly was sold to medical supply companies, paraffin to candlemakers, and other wastes as paving materials for roads. He kept shipping a plethora of goods, therefore, railroad companies drooled over the prospect of getting his business. Due to the immense use of railroads, Rockefeller demanded discounted rates, or rebates from them. The high cost of transporting his oil to his Cleveland refineries cost 40 cents

In 1859, the first oil well was dug, however, the gasoline had no use until the invention of the automobile (EIA, 2014). Nowadays, gasoline is classified as a refinery product and is produced as three types: Unleaded Regular, Premium and Super-Premium (Gary, J. et al, 2007). The first one is most common between automobiles, it is a byproduct of crude oil with an 87 octane rating and a highly flammable material. It is also environmentally-friendly and has less hazardous to health due to no lead compounds. Premium Gasoline is less polluted due to its detergent additives that make engines cleaner. It shares similar characteristics

At the end of World War II the United States economy improved greatly because more and more people were considered middle class and the United States affirmed itself as the richest country in the world. Companies were growing larger and demand increased as more and more people came to the U.S. During the first decade after the war people taxes increased to 88% and stayed at that level until 1963 when the taxes payed off the war debt. With the collapse of the Bretton woods system the golden age after World War 2 came to an end in 1971. The president dropped the taxes to 70% which gave people more money than they had before and increased their spending and their overall way of life became more expensive to maintain. And around this time Reagan was president and his economic policies caused America’s middle class to stagnate and he also increased the debt of the

Oil was first thought to be discovered in the state of Louisiana in 1868 by the Louisiana Oil and Coal Company fifteen miles west of Lake Charles. However, the Louisiana Oil and Coal Company was unsuccessful at drilling oil but the company did find extensive sulfur deposits. (Louisiana Mid-Continent Oil and Gas Association. (n.d.). Retrieved October 07, 2016, from http://www.lmoga.com/resources/oil-gas-101/history-of-the-industry/) Oil was first discovered in Louisiana on September 21, 1901. (Louisiana Mid-Continent Oil and Gas Association. (n.d.). Retrieved October 07, 2016, from http://www.lmoga.com/resources/oil-gas-101/history-of-the-industry/)

Settlers used oil as an illuminant for medicine and as grease for wagons and tools. Rock oil distilled from shale became avaialable as kerosene even before the industrial revolution began. While traveling in Austria, John Austin, A new york merchant, observed an effective, cheap oil lamp and made a model that upgraded kerosene lamps. Soon the u.s rock oil industy boomed as whale oil increased in price owing to the corporation, which was created to develop oil found floating on water near titusville, Pennsylvania, was the pennsylvania rock oil company of conneticut ( later the seneca oil company). Pipelines early became a major consideration in standards drive to gain buisness and profits. Samuel syckel had built a four-mile pipeline from pithole,

The way of life before World War I (WWI) and the way of life after greatly differ. This new way of living is the indirect cause of every direct cause of the Great Depression. During the Industrial Revolution, or time before WWI, people all over the country worked, not only men but also boys, because “the Industrial Revolution transitioned the United States from a rural to an urban society” (The Industrial Revolution in the United States, 2014). They worked long hours and had low pay. According to statistics, “most workers in the worked over 10-hour a day, yet earned between 20 to 40 percent less than the minimum pay necessary for a decent life” (The Industrial Revolution in the United States, 2014). These people’s lives revolved around having very few money and only having necessities. People already had a hard time coming across food, so when WWI began, obtaining food became a big problem. This was not only because they need to feed soldiers, but also their allies’ soldiers. During this time, farming had to expand to feed the citizens of the Unite States and of the Allies. Farming expanded, but a lot of the crops and food went to away from US citizens and there became a need for rationing. Food had to be rationed by the government. The rationing was called “Food Will Win the War” (Food Will Win the War: On the Homefront in World War I, 2014) to encourage voluntary food conservation. It was said to have been voluntary because the government did not want to force businesses

The demand of gasoline has increased steadily over the last twenty years. In 1981 the U.S. averaged 6.5 million barrels of gasoline consumption per day. By comparison, in 2004 the U.S. averaged 9.2 million barrels of gasoline consumption per day. For most of this time period, gas prices stayed relatively the same. This is because the U.S. refineries increased their production to meet the demand and maintain the equilibrium price. Also during this same time period worldwide demand for crude oil increased 27%. Crude oil producers also increased their production to meet the demand keeping prices the same.

Union Oil Company of California (Unocal) is a California-based oil company founded in October 17, 1890. Unocal is to expand oil field in California. However, in the 1990, the oil field in the States nearing dry out, the company had started to invest in energy resources projects outside the US.