The invention and rise of the automobile had a profound impact on the oil industry. As cars became more popular and affordable in the early 1900s, the demand for gasoline skyrocketed. This led to a boom in oil exploration and production, as well as the development of new technologies for refining crude oil into gasoline.
Before Auto: Petroleum was used Primarily for Illuminating Oils
Before the invention of the automobile, the primary use for petroleum was as a source of illuminating oils. Kerosene, derived from petroleum, was widely used in lamps and lanterns. However, with the advent of electric lighting in the late 1800s, the demand for kerosene declined. This led to a surplus of petroleum, which drove down prices and made it more economical to use for fuel.
Automobile Created Demand for Gasoline
The invention of the automobile created a new demand for gasoline, which is a refined product of crude oil. As the number of cars on the road increased, so did the demand for gasoline. This led to a boom in oil exploration and production in the United States and around the world.
Discovery of Oil Fields in Texas and California
In the early 1900s, major oil fields were discovered in Texas and California. These discoveries led to a significant increase in the production of crude oil, which further fueled the growth of the automobile industry.
Standard Oil Dominated Oil Market
At the turn of the century, the oil industry was dominated by Standard Oil, a company founded by John D. Rockefeller. Standard Oil controlled most of the oil production, refining, and transportation in the United States. However, the company's monopoly was eventually broken up by the U.S. government in 1911, which led to greater competition in the oil industry.
Emergence of Gas Stations
As more and more people began to own automobiles, gas stations started to pop up along roads and highways. These gas stations provided a convenient place for motorists to refuel their vehicles.
Oil Industry Became a Global Industry
The demand for oil for automobiles led to the expansion of the oil industry into a global market. Oil companies from around the world began to explore for and produce oil to meet the growing demand.
The Automobile's Impact on the Development of Suburbs
The automobile also had a significant impact on the development of suburbs. As people could now commute to work and other activities more easily, they were no longer tied to living in the city center. This led to the growth of suburban areas, which were often built around highways and automobile-centric infrastructure.
Overall Impact
The invention of the automobile and its subsequent rise in popularity had a transformative impact on the oil industry. It led to the development of new technologies, the expansion of the global oil market, and the rise of the automobile-centric society that we know today.
