Petroleum – summary of the modern history of oil

Petroleum, or crude oil is a fossil fuel. It is the result of organic matter transforming
into 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 known
to man since ancient times. Around the world, oil was used as sealing
material in construction and for medical purposes. But it is only in the middle of the 19th century
that its consumption would explode. Europe and North America, in the midst of
industrial revolution, have rapidly increasing energy requirements that are mainly met by coal. Interest in oil intensifies throughout the
world. From the Russian Empire, to Europe, to North America, the first modern drilling location. In the United States, this causes a rush of
black gold and the country became the largest oil producer in the world. Initially, distilled oil replaces the burning
of whale oil in lamps. It offers a better calorific value than coal
and 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 in
a refinery to separate the hydrocarbons as needed. The lighter molecules evaporate to the top
of the distillation column where the temperature is around 20 degrees Celsius. Liquefied Petroleum Gases are harvested and
used, among other things in lighters and in kitchens. Between 30 and 105 degrees Celsius, gasoline
for cars is produced. Between 105 and 160 degrees Celsius, naphtha
is created, used in petrochemicals in order to create plastics, synthetic textiles, drugs
and cosmetics. Between 160 and 230 degrees Celsius, kerosene
is 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 is
heated to above 450 degrees Celsius to form heavy fuel oil used by ships, and to obtain
bitumen used for road construction and roofing. Crude oil was transported in barrels with
a capacity of 42 US gallons, or slightly less than 159 liters. The barrel thus became the unit for setting
oil prices. More and more oil deposit discoveries are
made 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 country
through royalties. During World War II, demand for oil skyrockets
and the resource becomes a major international issue. At the end of the war, the United States signs
an alliance with Saudi Arabia, guaranteeing security of the country in return for privileged access to its oil. Western companies dominating oil markets contribute
to nationalist movements in producer countries. In Saudi Arabia, an agreement is signed allowing
the country to receive 50% of oil profits. In Iran, negotiations with the Anglo-Persian
Oil Company fail, following which the prime minister nationalizes the country’s oil. In response, the US and the UK secretly organize
a coup to overthrow the prime minister. The Shah of Iran remains in power and then
allows 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 to
become the primary source of energy in the world. So far, its price remains below 3 dollars
a barrel. Five major oil-producing countries decide
to unite to derive more benefits. They create OPEC, the Organization of Petroleum
Exporting Countries. Together, they want to counter the dominance
of Western companies, to increase oil prices and to have a common policy. The organization would gradually be joined
by new nations. In 1972, the United States reaches peak production
and is forced to import oil to meet its increasing needs. As the United Kingdom withdraws from the Middle
East, security in the region is provided by Iran and Saudi Arabia which are armed by the
West. After the Yom Kippur War between Israel and
the Arab states of Egypt, Syria and Jordan, OPEC for the first time uses oil as a political
weapon. An oil embargo is imposed on Israel’s allies
and 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 consumption
and invest in alternatives such as nuclear and hydro power, or reinvest in coal. Oil companies in turn explore the world in
search of new deposits. Sources at sea, called offshore sites, are
discovered and exploited, particularly in the North Sea. The Soviet Union becomes the largest producer
of oil in the world, while in the United States, production increases with the exploitation
of 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, causing
the second oil crisis. Following border disputes, tensions between
Iran and Iraq lead to 8 years of war. Globally, non-OPEC oil production rises and
exceeds production by OPEC countries. Henceforth, supply and demand sets the price
of a barrel rather than OPEC. However, for industrialized countries, the
stability of the Middle East still remains a priority. Thus when Iran and Iraq begin to target oil
facilities in the Persian Gulf, hundreds of Western military vessels step in to ensure
the supply of oil. At the end of the war, Iraq is weakened and
indebted 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 to
invade Kuwait following a border dispute. An international coalition is formed under
the UN, and led by the United States, to intervene and neutralize the Iraqi army. This time the United States establishes a
permanent presence in the region by installing military bases and signing defense agreements
with Gulf monarchies. The country imposes a series of embargoes
against Iran and Iraq, which it considers rogue states. Saudi Arabia, for its part, wants to once
again become a major producer of oil. The country has the largest known oil reserves
in the world and floods the market to become the largest producer of crude. In Russia, new investment revives the oil
industry. But as the price of oil is low, and offshore
operations unprofitable, oil companies find themselves in difficulty. In 1998, they begin to merge together and
combine forces. 6 giant oil companies are born that would
become the richest and most influential in the world. In the Middle East, the military presence
of the United States begins to raise concern. On one hand, radical Islamists do not want
the presence of an Israeli ally on their soil. On the other, some consider the sanctions
imposed on Iraq and Iran as too heavy. On September 11, 2001, the United States becomes
the target of a major terrorist attack on its territory. 15 of the 19 terrorists were Saudis, raising
grave concerns. The US actively seeks new sources to reduce
oil dependency on the Saudis. In Africa, production accelerates after the
discovery of large offshore fields off the Gulf of Guinea. In the Middle East, the United States invades
Iraq under the pretext of its war against weapons of mass destruction. A few years later, the country’s oil would
be back on the international market. Iran for its part opens its market to new
rising Asian powers, such as China and India. The abundant supply of oil in the world stimulates
the economy. Growth skyrockets, mainly in emerging countries. In addition, Wall Street traders speculating
on black gold, pushes prices further upward. But the financial crisis of 2008 would cause
a sharp drop in prices. Venezuela, over a few years, discovers
it holds the largest known oil reserves in the world, putting it ahead of Saudi Arabia. With more global demand for oil, its price
rise again. The “unconventional” exploitation of petroleum
becomes profitable despite the difficulty in its pumping and treatment. Thus in Canada and Venezuela, oil companies
rely on the exploitation of huge oil sand deposits. As this thick bitumen is found near the earth’s
surface, 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 make
the 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 seem
enormous. This oil is wedged between different layers
of 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 United
States cause to the country’s production to explode. The fact that the biggest oil consumer in
the world becomes a bigger producer does not please its Saudi ally. Saudi Arabia then wants to make the production
of unconventional oil unprofitable by dropping prices. To achieve this, Saudi Arabia persuades OPEC
to flood the oil market. The price of the barrel drops, making oil
production barely or sometimes not at all profitable. But the oil industry of the United States
resists and continues to increase its production. With oil abundant and cheap, world consumption
continues to rise and approaches 100 million barrels per day. Two-thirds of the oil used in transportation
industry is the main emitter of CO2. In the maritime sector, heavy fuel oil used
by ships emits 3,500 times more sulfur than diesel fuel, causing severe air pollution. The United States and Europe react by creating
zones 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 other
producing 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, continues
to increase production to keep prices low and to support growth and the economy. The country eventually becomes the largest
oil producer in the world. While IPCC experts are sounding the alarm
and call for drastically reducing CO2 emissions to limit global warming, we have currently
found enough oil to carry on for at least another 50 years at current rates. Saudi Arabia now speaks of diversifying its
investments to prepare for the post-oil era. Iran, which has the 3rd largest oil reserves
in the world, suffers since 2018 from sanctions imposed by the United States aimed at choking
its oil sales. In Venezuela, the countryy is hurt by the low
oil 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 the
most powerful entities in the world. In 2017, five of them figure in the list of
global top 10 companies with the highest turnover. The International Maritime Organization imposes
drastically reduced sulfur emissions goals for vessels by 2020. This could force the industry to abandon heavy
fuel oil in favor of other hydrocarbons, which may push up its demand and price. If the price of a barrel increases, the exploitation
of unconventional oils could restart with renewed vigor. This includes areas such as the Arctic, which
shows promise of holding vast deposits. And with polar ice caps melting, it makes
it possible to explore new areas potentially rich in oil.

Comments 100

  • Hello viewers,

    Our channel is growing. To mark reaching 100,000 subscribers, we have set up a Patreon page for those who would like to support our work.

    We would also like to specify that for this video, barrel prices indicated are in real dollar terms and non inflation-adjusted.

    Happy viewing.

  • USA: History of Oil? Looks like you need some freedom! invades this youtube video

  • The oil have been the most reason for wars at the middlele east and the US.invaded countries like Iraq to get its oil. The truth hurts

  • Well, from the sounds of it. In 50 years we won't need to worry about oil.

  • Time for a second Nuclear era

  • I fill oil my car’s tank I HAPPY but they car doesn’t work WHY .
    USA : The tank needs freedom .

  • the war against means of mass destruction seem the most idiotic thing ever, however many dumb americans fell for it

  • The western powers did a huge mistake by paying the Saudis, Iranians and other middle east nations after the discovery of oil there in the early 20th century.

    They should have instead expelled them from the oil rich areas and could have made all the profits for themselves and continued so till date. They would have done a favor saving the world from a 9/11 or a 26/11.

  • USA stupid

  • We want dark mattar not oil

  • OIL
    Others : wooo oil…
    Americans : ?

  • India map is wrong please change Jammu&kashmir only for india?????? jai hind??????

  • What a bunch of nonsense! Noah's flood about 4500 years ago buried all living animals including dinasaurs which became todays oil. All the plants, trees and forest became coal. This is a scientific fact!

  • I have heard by the Scientist who started Greenpeace has mentioned that the earth is carbon dioxide starved in many areas and he said that Trees and other Organic Plant live is starving because plants breath Carbon dioxide and return Oxygen into the air which humanity needs to breath. So making lower carbon dioxide emissions is making things worse.

  • "negotiations" with the APOC Fail… yeah, more like they didn't have the ability or infrastructure to be able to do anything with the oil so the auctioned it off in exchange for a %, the brits won the bid and set up shop(which costed a lot of money that was out of pocket, in other words, a major investment.). fast forward a few years, the country is in a much better position and tries to renegotiate to a deal they knew the brits wouldn't accept, this ends in them kicking the brits out and ceasing the property. they did this knowing full well what impact it would have had on the western economies and only did it because they knew the soviets would back them up if the west tried to directly intervene.

  • Now acts as a tool to blast our earth planet.

  • Would be interesting to see the price in real terms rather than nominal

  • I wonder at some of these facts

  • "Kerosene" (aka paraffin) for lamps, lanterns, and kitchen stoves was the desired product obtained from distilling crude oil. The difficulty was that a useless somewhat dangerous byproduct called "gasoline" or "petrol" came out first during the process and it had little value beyond use as a crude dry cleaning agent for soiled fabrics. Inventors believed it might be possible to use this "free fuel" in internal combustion engines to replace the horses presently used to move carriages. There seemed little chance for anything in the way of huge growth there because in ground oil resources seemed very limited. If "cars" could be perfected, it seemed they would just be popular in a small luxury item market.
    This changed overnight when huge oil reserves were discovered in Texas which could easily supply the world's oil and petrol automotive needs for decades well into the future.

  • Oil is natural…so what’s the problem?!

  • why not displaying years with respect to transition of video

  • Suprised to see India as the 10th largest producer of oil –

  • It's a Fossil Fuel, unless you realize that oil is produced via an Abiotic geological process that has zero to do with organic matter. Which would explain why no one who should have run out of oil ever has.

    No dinosaurs on Titan and that moon has methane volcanoes. Methane on Mars too.

    The World will never run out of oil, if anything we have a glut of it. The only thing keeping the price of a barrel above $20.00 US is Saudi Arabia and Iran cutting production and artificially generating military tensions in a play act for the World's oil traders.

  • What about Norway??

  • What about oil sands in Canada?

  • Very interesting thanks!

  • USA is a virus of oil

  • Digging petroleum not Haram ??? Causes naturals Disasters like Earthquake(Tsunami)

  • Pork Haram in Saudi Arabia but digging petroleum that causes naturals Disasters like Earthquake & Tsunami that kill human lives not Haram??? Funny zakir naik

  • Saudi Arabia is a leader of the muslims because we have mecca and a leader of the arabs because all arabs came out of the saudia arabia and its leader of the world, because we have the largest oil ????

  • Oil does not come from fossils or organic matter under pressure. It comes from processes deep in the earth that create it. Then it seeps up near ground level or lower that is why its found everywhere on earth. Their are places that have no idea that sit on huge reserves because they have not figured out how and where to survey. I believe their will be huge oil discoveries made in India. Think of oil as the veins if the earth. As long as the heart is pumping the blood will flow just like the oil does. Their will never be a shortage of oil.

  • The world's largest oil reserves are neither Iran or Saudi Arabia or even Venezuela for the matter it's Antarctica.

  • U didn't mention all the years the USA was stealing Iraq's oil for years.

  • Good video ?

  • Very informative.

  • My hair is oily

    Knock knock democracy is here

  • Very beautiful.

  • This is one of the best informative videos in YouTube ☺️??

  • Whatever the reason may be but religion has nothing to do with these Oil wars religion is faith not business or money
    One good thing from my point of view is End of fossil fuels brings the end of religion wars?

  • So the military fights for the oil industry. Not the safety of our country. Petro $ controls the world.

  • it is all about oil, wars..civil wars bcoz of it.

  • Would you mind sharing the source document of this video? Reference of your talk from the books.

  • If conventional oil producing countries were to be left to their own devices, what would happen? Would healthy competition arise? Or would they band together to extort the rest of the world?
    I suddenly find myself entertaining the idea that war might be a necessary evil, as I fear that some countries could possibly grow to become new world powers who will join the struggle for world control. I do not mean to suggest that the US hegemony is necessarily better or worse, it's that I don't think humanity in its current consciousness (or lack thereof), could sustain a truly free and independent world.

  • Very informative video, good job.

  • 12:32 future? USA has a lot offshore oil , time to explore them

  • globe warming? i came here to know history not hoax

  • too much falsehood. ice are not melding, unless you are talking about during summer time

  • In Malaysia, the typical Muslims believe that US invaded Kuwait for oil and Iraq tried to save Kuwait.

  • Great video, earned a sub

  • BOY is THIS FULL of propaganda.

  • Wat about the discovery of oil in Norway. Good video

  • Me: Lets add Some Oil!
    Door: * Knocks Ragely *
    Me: Cooking Oil
    Door:* Stops Knocking *

  • Jordan did not take part in the Yom Kippur War, and the West Bank and Gaza were already under Israeli occupation after the 1967 war. Great video nevertheless.

  • 80% of comments: USA memes
    15% of comments: "hey, my [shithole country] pumps 5 barrels of oil per day; what about us?"

  • I thought ?? oil ⛽️ comes from dinosaurs ??

  • Good geopolitical summary. Keep it up!

  • noice.

  • How can you say "Oil production not profitable at all?". Dude, the entire world runs on petroleum, and is not like they produce it, THEY EXTRACT IT, and in most cases for free.

  • Americans are alway called backwards for not fully accepting the metric system yet the british still call gasoline "petrol" short for petrolium, which is inaccurate since gasoline is one product of petrolium and of which there are others like oil and plastics.

  • why is "medical purposes" represented with a Swiss flag?? at 0:27

  • Interesting, but it's time we move on from oil.

  • i hated to music sounds !!!

  • I wish i had my own oil companies

  • no to oil yes to electrical technology…

  • Weren't OPEC countries and the US allies in 1973? How was the embargo possible? Didn't SA and Iran depend on US money and military back then?

  • Without Oil we wouldn't have cars and i love cars so lets keep oil so we can keep cars. MMMMMMMMMMMKAY?

  • I think Venezuela could use some democracy right about now

  • False!! It’s not over millions of years!!!

  • Excellent.

  • This series is all crap. This guy has a totally false telling of the "History of the Jews" but doesn't allow any comments on his web of lies and misinformation to correct him. You cannot believe a word he says. As far I as can tell, you cannot even contact him at his site.

  • Not a “fossil fuel”.
    Scarcity and marketing.
    We have all been played, as this fellow parrots or plays you too.

  • It has always been the black gold…

  • What about Canada?? Canada produces 3 million barrels a day. Why is Canada excluded in this history???

  • This video and its title seem to demonstrate the conclusion that the video creator understands neither the word “modern” nor the real price as opposed to confusing nominal prices. Way to miss the mark.

  • America: I am democratic and support peace
    The world: What no

  • 2:36
    He meant "slightly less than 159 thousand litres"

  • America and Iran ?? must be one ☝? or more strikes immediately to stop ✋ increasing violence.If it turns into brutal war.Then we have to deal with it????☹️There is no waiting for diplomacy now is the action to move into serious violence for control in the Gulf.??????

  • climate change has never been proven and we aren't running out of oil! I SUPPORT CANADIAN OIL AND GAS WHO'S WITH ME?

  • 100 years from now, people of the future will only wonder why the people in the past are so addicted to fossil fuel!

  • Take a look at this, a great speech about Oil

  • thx for this infos but don't be a rediculose who meny tons of insects ans humens and forst and animales to make a gaint or super massive of oil from the begining to our days than the futur days is not organic it's materiel or chimist thing

  • I was correct! Off a little bit
    Correct all the same
    Fuck that Now, I will enlighten
    All you Motherfuckers I am sueing
    I am Jesus; I want billion two ?

    Ebola ?

  • The history of

    Panic at the Disco ☠️

  • Saudi Arabia ???.

  • You're wrong about 2014. This is the start of the Ukrainian-Russian war. United States has ordered Saudi Arabia to increase production and drop the prices of oil, in order to reduce Russian profit from the oil. As they have calculated that Russia's state budget depends on the oil price being around $90. They were hoping that Russia will fall into poverty and Putin will lose elections because of that. But obviously the US calculation was wrong, since the artificially lowered price hurt more Saudi Arabia and Canada than Russia.

  • "Control oil and you control nations control food and you control the people. – kissinger"

  • the main politics in the world is USA vs UK.

  • We need to get rid of this nasty thing and substitute it for other energy sources before is too late or we might be one of the last human generations

  • it is called the arabian golf, not persian golf ?

  • videio was well done.

  • Informative, I like this type of videos!

    Top 15 OIL RESERVES by Country
    I've made a video about. Check it out, guys!

  • Where’s petronas?

  • Oil ín Venezuela! Let's destabilize that country as well and earn a profit.. -USA

  • Not only are we a violent species, but a greedy one at that.

  • They forgot to tell about petrodollar that are the reason why Kaddafi in Libya got a visit by the forces of UN and the same thing with Irak there was never any weapons of mass destruction. People must start to think instead of watching all crap on tv.

  • We're effing doomed

  • This should be renamed to Petroleum- a summary of US history.

  • Thank God my country doesn't have Oil Or else US would have destroyed us…..

  • Trinidad and Tobago has oil..

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