- The automobile industry created a huge new demand for oil. In 1900, there were only a few thousand automobiles in the world. By 1920, there were more than 20 million. This rapidly increasing demand for oil put a strain on existing supplies, and led to a number of changes in the oil industry.
- The growth of automobile industry led directly to the growth of the oil and gasoline industries. It created a tremendous increase in the demand for petroleum products, particularly gasoline.
- As the use of automobiles became widespread, the oil companies began building refineries to convert crude oil into gasoline. In 1911, the first commercial oil refinery was built in the United States.
- By 1920, there were more than 300 refineries in operation in the United States alone.
- The automobile industry also led to the development of new technologies for exploring for and producing oil. In the early days of the oil industry, most oil was found by drilling shallow wells on land. However, as the demand for oil increased, oil companies began to explore for oil in deeper waters and in more remote areas. This led to the development of new drilling technologies, such as the rotary drill and the offshore drilling platform.
- The automobile industry also led to the development of new transportation methods for oil. In the early days of the oil industry, most oil was transported by ship or by rail. However, as the demand for oil increased, oil companies began to build pipelines to transport oil more quickly and efficiently. By 1920, there were more than 100,000 miles of oil pipelines in the United States alone.
The growth of the automobile industry had a profound impact on the oil industry. It led to the development of new technologies, new transportation methods, and new sources of oil. The automobile industry also helped to create a global oil market, and it made oil one of the most important commodities in the world.
