The History of Oil and Gasoline

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Questions and Answers

What was gasoline primarily considered before the development of the internal combustion engine?

  • A major source of energy
  • An essential lubricant
  • A useless byproduct (correct)
  • A significant component of lighting

In which decade did Karl Benz begin commercial production of internal combustion cars?

  • 1860s
  • 1880s (correct)
  • 1870s
  • 1890s

What challenge did early gasoline face that hindered its use prior to the internal combustion engine?

  • High cost of production and refining
  • Instability and difficulty in controlling ignition reactions (correct)
  • Limited range of potential applications
  • Lack of availability in oil-producing areas

What was a common disposal practice for gasoline in the 1800s in the USA?

<p>Dumping it into rivers and fields (B)</p> Signup and view all the answers

What process was necessary to make gasoline a viable source of fuel?

<p>Stabilizing the gasoline to control its volatility (B)</p> Signup and view all the answers

What was one of the main reasons Karl Benz needed to establish connections with others who had internal combustion engines?

<p>To gain access to gasoline for his vehicle (B)</p> Signup and view all the answers

Which businessman founded Standard Oil in the late 1800s and controlled a significant portion of the refining industry?

<p>John D Rockefeller (D)</p> Signup and view all the answers

What political aspect significantly influenced gasoline and oil during the emergence of the fuel market?

<p>Colonial monopolies in oil production (B)</p> Signup and view all the answers

What was the original source of gasoline for Karl Benz's internal combustion engine vehicle?

<p>The fuel he brought in himself (B)</p> Signup and view all the answers

What was one significant outcome of the establishment of Standard Oil in the context of world oil refining capacity?

<p>Standard Oil became a virtual monopoly, owning over 90% of refining capacity (D)</p> Signup and view all the answers

What major change did the invention of the internal combustion engine bring to automobiles in the early 20th century?

<p>Cars became more widespread and popular. (D)</p> Signup and view all the answers

How did the introduction of the assembly line impact automobile production?

<p>Production became faster and cheaper, enabling wider car ownership. (B)</p> Signup and view all the answers

Which of the following was a consequence of the increasing demand for automobiles?

<p>Expansion of highways and road networks. (D)</p> Signup and view all the answers

What strategic role did gasoline play in warfare?

<p>It powered tanks, ships, and planes in war. (B)</p> Signup and view all the answers

Which development in oil exploration did the increasing demand for gasoline lead to in the USA?

<p>Exploration shifted primarily to Texas and Oklahoma. (A)</p> Signup and view all the answers

What did the breakup of Standard Oil result from?

<p>The government seeking to eliminate monopoly power. (D)</p> Signup and view all the answers

In what way did post-WW2 oil countries assert their influence over oil production?

<p>They started to nationalize oil reserves. (C)</p> Signup and view all the answers

How did Henry Ford's production methods revolutionize the automobile industry?

<p>He introduced the assembly line for faster production. (B)</p> Signup and view all the answers

What was a primary motivation behind the 1953 coup against Iranian premier Mohammed Mossadeq?

<p>To increase control over the oil and gas industry (C)</p> Signup and view all the answers

What significant economic event occurred as a result of the OPEC oil embargo in 1973?

<p>A decade-long recession in Western economies (D)</p> Signup and view all the answers

What environmental issues are associated with oil extraction and transportation?

<p>Pollution from production and accidents (A)</p> Signup and view all the answers

Which company became the largest player in the Canadian oil industry in the late 1800s?

<p>Imperial Oil (C)</p> Signup and view all the answers

What was the original purpose of Petro Canada when it was established?

<p>To provide a government-managed oil industry (C)</p> Signup and view all the answers

What problem does OPEC face regarding its members' interests?

<p>Discipline among self-interested members (B)</p> Signup and view all the answers

Why did Petro Canada ultimately never make a profit?

<p>High spending on expansion (B)</p> Signup and view all the answers

Which government was responsible for selling 50% of Petro Canada in the 1980s?

<p>The Conservative government led by Moroney (A), The Liberal government of Jean Paul San Martin (D)</p> Signup and view all the answers

Flashcards

Gasoline's Early Use

Gasoline was initially a byproduct of kerosene production, and had limited use due to instability before the internal combustion engine.

Gasoline's Early Disposal

In the US during the 1800s, excess gasoline was frequently disposed of, often in rivers and fields.

Internal Combustion Engine's Impact

The development of the internal combustion engine significantly increased the demand and usefulness of gasoline as a fuel.

Gasoline's Stability Problem

Early gasoline was unstable and difficult to control in reactions, making it unusable as a fuel.

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Early Use of Oil

Oil was initially used for lubrication, before refining processes led to the creation of gasoline as a byproduct.

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Bertha Benz's Journey

Bertha Benz's groundbreaking journey demonstrated the practicality of the first internal combustion engine vehicle, highlighting its need for gasoline.

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Gasoline's Impact on Markets

The rise of gasoline fueled new markets for oil refining and distribution.

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William Knox D'arcy

A key figure in establishing the oil industry in Persia and the Middle East, he ultimately formed British Petroleum.

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John D. Rockefeller

American industrialist who founded Standard Oil, establishing a near-monopoly over oil refining in America.

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Standard Oil's Monopoly

Standard Oil's control over a vast majority of oil refining capacity highlighted the significant influence on oil production from the ground to the consumer.

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Standardized Oil Breakup

The US government and courts forced Standard Oil to break into smaller companies in the 20th century, reducing its enormous control over the oil industry.

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Internal Combustion Engine

A type of engine that uses the explosion of fuel to generate power; gasoline powered engines were vastly superior in the 20th century.

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Model T

Henry Ford's revolutionary car, made widely accessible due to assembly-line manufacturing.

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Assembly Line

A manufacturing process where workers perform specific tasks, increasing production speed and lowering the price of goods, like cars.

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Oil Exploration Expansion

Increased demand for gasoline led to more exploration for oil in regions like Canada (Alberta), Texas/Oklahoma (USA), and the Middle East (crucial for global oil).

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Gasoline in War

Gasoline became a vital resource during wartime, essential for tanks, ships, planes, and transportation. Its strategic value fueled conflicts.

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Oil as Strategic Resource

Oil's importance in war made it a cause of conflict. Controlling oil supplies is often a key goal in international tensions.

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Suburban Spread

Cars allowed people to live farther from their workplaces and cities driving suburban development.

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1953 Iranian Coup

A coordinated effort by the CIA and UK intelligence to overthrow the democratically elected Iranian Prime Minister Mohammad Mosaddegh, replacing him with a pro-Western regime.

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OPEC

Organization of the Petroleum Exporting Countries, an intergovernmental organization of countries that collectively control a significant percentage of the world's oil production and exports.

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Oil Embargo (1973)

A reduction in oil production and a subsequent increase in oil prices by OPEC nations in response to the Yom Kippur War, severely impacting Western economies.

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Petro Canada

A Canadian Crown corporation formed in the 1970s to manage Canada's oil resources. It was later partly privatized.

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Crown Corporation

A government-owned company responsible for a specific industry or service, often established to manage resources or provide essential services within a country.

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Imperial Oil

A major Canadian oil company that originated from Rockefeller's Standard Oil.

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Oil Industry Environmental Concerns

Environmental issues related to oil production, refining, transport, and use, including pollution, accidents, and land use.

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Privatization of Petro-Canada

The partial selling of government-owned Petro-Canada to private entities, a process undertaken by successive Canadian governments.

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Study Notes

The History of Oil and Gasoline

  • Oil and gasoline are crucial components of the capitalist economy
  • Initially, gasoline was a byproduct of kerosene production, and used in lamps and lighting, and some engines
  • Demand for gasoline was high
  • Early gasoline was unstable and difficult to control.
  • In the 1800s, gasoline was frequently dumped in the US, especially in Ohio and Pennsylvania.
  • Initially, gasoline had limited uses.

Internal Combustion

  • In the 1870s, internal combustion cars were developed in Germany.
  • Karl Benz began commercial production by the mid-1880s
  • Bertha Benz made a journey, demonstrating practicality for the internal combustion engine
  • Karl Benz built the first internal combustion engine vehicles.
  • Gasoline was needed to fuel the early cars.

The Impact of Gasoline

  • Gasoline and oil became very political due to their importance.
  • William Knox D'Arcy recognized Persia's oil resources and developed the oil industry there.
  • D'Arcy aimed for a monopoly in middle eastern oil.
  • John D Rockefeller played a critical role in the oil industry.

Technology

  • Internal combustion engines were superior to previous technologies
  • Henry Ford's Model T popularized automobiles and used the assembly line.
  • Assembly lines increased production speed.

Society

  • Cars provided new possibilities for commuting.
  • Cars led to more suburban living.
  • Increased gas demand led to greater exploration.

Politics

  • Oil became a strategic resource and source of international conflict
  • The US and UK interfered in Iran to secure oil resources and control prices.
  • OPEC was formed for controlling the global price and supply of oil.
  • Oil played a role in conflicts and economic crises, e.g., the 1973 oil crisis
  • The oil industry's influence affected government policies.

Petro Canada

  • Petro Canada was originally a crown corporation.
  • Petro Canada aimed to gain independence in the Canadian oil industry, but later became privatized.

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