What do whales have to do
with Saudi Arabia?
Defeat	

Darkness
58 Hours
1750 B.C.
41.5 Hours
1800
3 Hours
1850
2 Hours
Whale oil for light	

Demand increases	

Whales are common property	

Run out of whales	

Price of lamp oil goes up	

Look...
Samuel Kier	

!

Pennsylvania
USA 	

!

1840s	

!

Salt Mine	

!

Oil
byproduct
Petroleum	

Latin	

petra - rock	

oleum - oil
George H. Bissell
Benjamin Stillman	

!

Yale University	

!

First to distill
petroleum into
parts or fractions	

!

distill is to heat up
...
BISSELL REPORT	

!

Your company have in their
possession a raw material from
which, by simple and not
expensive process, ...
Products

Degrees C.

Carbon

liquified petroleum gas

20

1 - 4	


chemical, naphtha

70

5-9

gasoline

120

5 - 10

jet ...
George H. Bissell	

!

Needed 	

Financial Capital:	

incorporation laws
and investors 	

!

Pennsylvania RockOil Company	...
Colonel Drake	

August 27, 1859	

!

Colonel Drake	

Titusville,
Pennsylvania
Kerosene	

!

Greek	

“wax”	

!

Gasoline and
Diesel	

!

Dangerous
byproducts
Electric Light Bulb	

1883	

!
!

1/4 the the price of
Kerosene light
Nikolaus Otto	

1867	

Germany
Charles Duryea	

1892	

First gasoline-powered car	

!
Rudolph Diesel	

French - German	

!

reads a book by 	

Sadi Carnot	

!

1881 patent	

ice maker
At first, his submission
is declined as being "not
original", however, after
an appeal, a patent is
granted on February 28,...
John D. Rockefeller	



Buys first refinery
1865	

!

Starts Standard Oil 	

1870	

!

Controls 90% of
U.S. oil market 	

18...
Standard Oil	

!

Blue Barrel of Oil	



bbl	

!

42 U.S. gallons	

159 liters	

!

allow for
evaporation and
leakage to 4...
Henry Ford	



automobile	

innovator	

!

Starts Ford Motor
Company	

1903
1908	

Model T Ford
Ford	

Cars

Rockefeller	

Gasoline
Wright	

Brothers
December 17, 1903
1911 	

Monopoly Breakup
Damman No. 7	

March 3,1938	

!

Dhahran	

!

Standard Oil	

Rockefeller

World’s most
valuable company
Hans von Ohain	

German	

!

1939	

!

Gas Turbine
Gas Turbine
Kerosene Fuel
Whales to 747s
Global Oil Use
Lubes, Waxes, other	

7%
Road Construction	

4%
Refinery Fuel	

4%
Plastics & Petrochemicals	

6%

Industria...
Transportation 	

64% of Global Oil Use
Gasoline 26%

Jet Fuel 6%
Residual Fuel 12%

Diesel 20%
Oil economics 1
Oil economics 1
Oil economics 1
Oil economics 1
Oil economics 1
Oil economics 1
Oil economics 1
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Oil economics 1

  1. 1. What do whales have to do with Saudi Arabia?
  2. 2. Defeat Darkness
  3. 3. 58 Hours
  4. 4. 1750 B.C. 41.5 Hours
  5. 5. 1800 3 Hours
  6. 6. 1850 2 Hours
  7. 7. Whale oil for light Demand increases Whales are common property Run out of whales Price of lamp oil goes up Look for substitutes
  8. 8. Samuel Kier ! Pennsylvania USA ! 1840s ! Salt Mine ! Oil byproduct
  9. 9. Petroleum Latin petra - rock oleum - oil
  10. 10. George H. Bissell
  11. 11. Benjamin Stillman ! Yale University ! First to distill petroleum into parts or fractions ! distill is to heat up and capture vapor at different temperatures
  12. 12. BISSELL REPORT ! Your company have in their possession a raw material from which, by simple and not expensive process, they may manufacture very valuable products. ! Professor Benjamin Sillman Yale College It is worthy of note that my experiments prove that nearly the whole of the raw product may be manufactured without waste, and this solely by a welldirected process which is in practice in one of the most simple of all chemical processes.” !
  13. 13. Products Degrees C. Carbon liquified petroleum gas 20 1 - 4 chemical, naphtha 70 5-9 gasoline 120 5 - 10 jet fuel, kerosene, paraffin 170 10 - 16 diesel 270 14-20 lubricants, oils, waxes, polishes 320 20 - 50 ships, factories, heating 370 20 - 70 bitumen, roads, roofs 400 >70
  14. 14. George H. Bissell ! Needed Financial Capital: incorporation laws and investors ! Pennsylvania RockOil Company ! Used Stillman Report
  15. 15. Colonel Drake August 27, 1859 ! Colonel Drake Titusville, Pennsylvania
  16. 16. Kerosene ! Greek “wax” ! Gasoline and Diesel ! Dangerous byproducts
  17. 17. Electric Light Bulb 1883 ! ! 1/4 the the price of Kerosene light
  18. 18. Nikolaus Otto 1867 Germany
  19. 19. Charles Duryea 1892 First gasoline-powered car !
  20. 20. Rudolph Diesel French - German ! reads a book by Sadi Carnot ! 1881 patent ice maker
  21. 21. At first, his submission is declined as being "not original", however, after an appeal, a patent is granted on February 28, 1892. ! Has 15 years of protection ! Receives patents in Germany, United States, and England ! Financial Capital Maschinefabrik Augsburg
  22. 22. John D. Rockefeller 
 Buys first refinery 1865 ! Starts Standard Oil 1870 ! Controls 90% of U.S. oil market 1890
  23. 23. Standard Oil ! Blue Barrel of Oil 
 bbl ! 42 U.S. gallons 159 liters ! allow for evaporation and leakage to 40 gallons
  24. 24. Henry Ford 
 automobile innovator ! Starts Ford Motor Company 1903
  25. 25. 1908 Model T Ford
  26. 26. Ford Cars Rockefeller Gasoline
  27. 27. Wright Brothers
  28. 28. December 17, 1903
  29. 29. 1911 Monopoly Breakup
  30. 30. Damman No. 7 March 3,1938 ! Dhahran ! Standard Oil Rockefeller World’s most valuable company
  31. 31. Hans von Ohain German ! 1939 ! Gas Turbine
  32. 32. Gas Turbine
  33. 33. Kerosene Fuel
  34. 34. Whales to 747s
  35. 35. Global Oil Use Lubes, Waxes, other 7% Road Construction 4% Refinery Fuel 4% Plastics & Petrochemicals 6% Industrial Fuel 8% Heating 7% Transportation 64%
  36. 36. Transportation 64% of Global Oil Use Gasoline 26% Jet Fuel 6% Residual Fuel 12% Diesel 20%

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