The Long Road of Energy

The Oil Industry
 

Between 3500 and 3000BC in the Bible is the earliest that we can fined oil.
The Tower of Babel, They bake bricks and used tar for mortar.

In fact the Babylonians, Assyrians, and Sumerians had used asphaltic bitumen. Even though they did not have cars, trucks, ocean liners, and aircrafts it became a big part of their economy.
I have kinda wondered what the Babylonians used to bake bricks with??? A mystery: Can you guess?


Bitumen which came from tar-pits (seeps) was used in paints, for waterproofing of baskets, wicker and mats. Bitumen mix with sulfur was used for fumigation, and the treatment of sores, fluxed with oil it was used for inflamed eyes. Bitumen mix with beer was a cure for different ailments. In fine art it was use as a cement for Mosaic, in construction, and in warfare.
Babylonians, Assyrians, and Sumerian's was a part of Mesopotamia.


The Persian used Bituminous Mastic for the caulking of ships and nothing else.
The Romans and the Greeks did not use it at all, and thought it to be some kinda freak of nature,
And by the time early western Europe came around the technology was totally lost.


1712 Sperm Whales were hunted for oil. Their was used fat for lighting, lubricating qualities, and Lard.
From the head of the Sperm Whale (spermaceti) was used to make candles.
This was used by the "wealthy"(The Rich).
The "Poorer Customer" (Common Folk) used animal and vegetable fat for lighting, which gave off a unpleasant odor.
Before they hunted Whales for oil, tallow candles, fish oil, and greases were used for lighting.


Thomas Jefferson 1801-1809

1802 The first commercial manufacture of Coal gas near Birmingham, England by Thomas Murdock was used at his factory "Boulton & Watt".

James Madison 1809-1817

In 1812 The streets of London became the first in the World to be lighted by gas.
By 1816 Baltimore was lit up by Coal gas.


Andrew Jackson 1829-1837

In 1830 Boston and New York had gas lighting. Mostly in Public buildings and Street-lights.

Isaiah Jennings took out a Patent on Camphene in 1830.
(A redistilled spirit of Turpentine), and was used in lamp illuminating, sometime mix with alcohol.

1833 Benjamin Stilliman, Jr. had performed the First reported distillation of Petroleum in the United States.

In 1834 A. F. Selligue took out a Patent for making Water Gas, a mixture of Carbon Monoxide and Hydrogen produced by reacting steam with incandescent coke.
Selligue patented Autun schists (shale) for an oil that mixed with his water gas for better lighting.

Major Pollutants

Carbon Monoxide:

Carbon Monoxide is a odorless poisonous gas which is produced by the incomplete burning of carbon in fuels. Although Carbon Monoxide is produced from other sources, gasoline engines count for most of the Carbon Monoxide in the air.


James Polk 1845-1849

In 1845 the pneumatic tire was invented by a Scottish engineer name Robert W. Thomson.

During the late 1840s and early 1850s the United States had a short lived Coal Oil Industry.

Millard Fillmore 1850-1853

James Young Obtained a Patent in England in 1850, and two years later in the United States in 1852 on the distillation of bitumeous mineral (from coal) such as Coal-Oil and a paraffin-type Crude Oil.
From Coal was made a Marketable lubricating oil, coal-oil, and kerosene.

Franklin Pierce 1853-1857

Major Pollutants

Nitrogen Oxides:

Nitrogen makes up about 78% of the air we breath, and oxygen about 21%. Normally these gases don't combine chemically in the atmosphere, But in engines that run at high temperature they combine to from gases called Nitrogen Oxides, or Oxides of Nitrogen.

In 1854 a Canadian by the name of Abraham Gesner got a US Patented on Kerosene, It was use for Lighting.



James Buchanan 1857-1861

Edwin L. Drake, and Billy Smith (a man employed by Edwin Drake) drilled his First well near Titusville, Pa. on Aug. 27 1859.
With in 3 years there were some many wells that the price of oil went from $20.00 per barrel in 1859 to 10 cent; per barrel in 1861.

Abraham Lincoln 1861-1865

After Drake's well-started produce oil other started drilling well, including John Wilkes Booth. Booth and two other formed the Baramatic oil company to drill for oil Near Franklin Penn. After John Wilkes Booth shoot Abraham Lincoln in 1865 the well came in six week later, and it was a good one! (a gusher)

Some of the first oil companies that came out of Pennsylvania where (Penn-Drake, Pennzoil, Quaker State, Valvoline, Coreco, Eldred, Pennreco, Colonial, Sohio, Socony, Indian, and Atlantic).

In 1861 the first refinery was built in Pennsylvania, with 6 stills and bleachers.
Oil has been a part of the World market even back then.
It uses to be our number one Export.


In 1863 the Pennsylvania legislature passed the First Anti-pollution Bill forbidding the running of tar and other distillery rejects into the creeks.
During the 1800s oil was used to make Kerosene, and Gasoline was a waste product of Kerosene.
Gasoline was taking out back some place and Burned in ditches.
   

In 1865 the first oil pipeline was built. At five miles long, it cared 800 barrel per day.

Major Pollutants

Particulate Matter:

This is made up of tiny solid or liquid particles of dust, whether natural or produced by human activity, is particulate.
fly ash is an example, which results from the burning of fuels. Beryllium and asbestos are among the materials lotted as particulate pollutants
Beryllium, used in rockets.
Asbestos, used for isolating against heat

Ulysses Grant 1869-1877

In 1870 the first solid rubber tires appeared in England.

In 1871 Chesebrough Manufacturing Company was the first to market petroleum jelly under the trade name Vaseline ™.
Some of the other early uses of petroleum as a base for salves, unguents, ointments, lotions, and pharmaceutical preparations.

In 1876 Nikolaus August Otto, and Eugen Langen obtained a US patents on the Two-cycle and four-cycle engine.
The first successful four cycle gas engine was built.




Chester Arthur 1881-1885

In 1882 Thomas Edison mad his first pubic presentation of his invention, the light bulb powered by electricity. (This reduced the need for Kerosene.)
You may find it interesting that there are people today that still don't have electricity to their homes, including a friend of mine that live east of Sacramento, California.
The problem that he has is that he has to buy the Power poles, and cover the cost of putting them in if he wants electricity to his house, and the cost are quit high.
So they just use a generator for now.


In January 1882 Standard Oil Trust agreement came into play where 29 separate oil companies stocks were put in the hands of nine trustees' for "safe keeping" and "management" with John D. Rockefeller at the head. This became a way for Rockefeller to control the Price of oil by controlling the distribution, facilities, the exchange and the markets in the United States plus making deal with the railroad that other oil companies didn't enjoy.

(Webster's Dictionary defines Trust as in a: /company/ a Corporation organized to perform the fiduciary function of tracts and agencies|commercial bank|)

The customers sure love it when John D. Rockefeller drop prices to run the other oil companies out of business even though he was operating under cost of production, he was able to do this because of the Deals he made with the railroads.

In 1863 Mauric B. Clark, John D. Rockefeller, and Samuel Andrews went into partnership to manufacturer Kerosene.

Grover Cleveland 1885-1889

Asphalt or Asphaltum, a solid or semi-solid bitumen is obtained either from mining deposits of natural bitumen, or as a by-product of petroleum refining operations. Its use started in the late 1880s on both the East coast, and West coast from natural deposits, ship from California, and imports, chiefly from Trinidad.

In 1885 Gottlieb Daimler and Mayborn Wilhelm the first gasoline engine, and mounded it on a bicycle (The first motorcycle was born).
Karl Benz mounded one on a three-wheeler.
In 1886 Karl Benz add a 4th Wheel and the gasoline car was born.


1887 The Ohio Oil Company founded.

On February 4 1887 (Interstate Commerce Act of 1887) which created the Interstate Commerce Commission (ICC) The agency's original purpose was to regulate railroads to ensure fair rates, to eliminate rate discrimination.
The ICC was the first independent regulatory body and the first agency to regulate big business in the U.S.
also in later years the ICC had authority to regulate other modes of commerce, Common Carriers (Trucking), interstate bus lines,telephone, ferries, pipelines, bridges, internal and coastal shipping. Abolished January 1, 1996.

In 1888 John B. Dunlop (a Scottish Veterinarian) developed air filled rubber tubes for his son's Tricycle.

1889 Standard Oil purchased the Ohio Oil Company which keep its Name.



Benjamin Harrison 1889-1893

In 1890 Daimler Company was founded by Daimler and Wilhelm, and produce the Mercedes car. Mayborn Wilhelm was the inventor between the two of them; He invented the carburetor, radiator, and the Mercedes car.

A man name Rudolf Diesel a German engineer born in Paris first Patented Diesel engine in 1892.
The first Diesel engine he built almost killed him when it blow-up.


Grover Cleveland 1893-1897

In 1893-1894 Charles E. Duryea, and J. Frank Duryea built the First American gasoline powered car.

In 1895 air filled Tube Pneumatic tires appeared on automobiles.

In 1896 Henry Ford, Charles Brady King, Ransom Eli Olds, and Alexander Winton introduced their gasoline cars.

Rudolf Diesel first built a successful Diesel engine in 1897.

Major Pollutants

Sulfur Oxides:

Is a gas. They are produced by sulfur containing fuels, such as Coal or Oil is burned. Sulfur Oxides, or Oxides of sulfur irritate the breathing passages and can damage your Lungs. Sulfur is also used in manufacturing processes producing the same gases.


William McKinley 1897-1901

The Curtis Act of 1898. This involved the Creek, Choctaw, Seminole, Chickasaw, Cherokee, and the Osage Nation. These were lease to drill for oil on Indian land. Supervision and administration of the leases was under the Secretary of Interior, and all royalty payment were paid directly to the United States Treasury and credited to the individual Tribes, and Osage Nation.



Theodore Roosevelt 1901-1909

In 1901 Ransom Eli Olds built the 425-gasoline automobile. Which began the mass production of cars in the United States.

Also in 1901 at a depth of about 1100 ft. Captain Anthony F. Lucas, at Big Hill near Beaumont, Taxes was the biggest gusher the World ever seen, at a rate of 100,000 barrels per day.
Within a year more than 400 oil well had been drilled. And so much oil was coming out of Texas that the price of oil plummeted to 3¢ per Barrel, It was named Spindle-Top by a land developer.
(The price per barrel is at the wellhead.)
This is the first time that supply and demand did not work. John D. Rockefeller would not drop his prices to the consumer, He cap his prices at $2.00 per gallon for kerosene, and the other Oil Companies that where not part of his trust companies where afraid to go against him for the fear of being ran out of Business.
Rockefeller would do this by taking a loss on the refinery end, by lowing the cost to the customer, he still was able to make money from the deals he had made with the railroads that the other oil companies didn't share, Lower shipping rates for high quantity shipping.


In 1903 Henry Ford organized the Ford Motor Company. The first car where expensive, by 1908 the First Model T's appeared at a price of $850.00, By 1925 Ford had to a great extent reduce the cost of building the Model T and passed the saving on to the customer.
The Cost to buy a Model T in 1925 was $260.00.
A concept that has been lost in today's World, I must say.

On December 17, 1903, Wilbur and Orville Wright in Kitty Hawk North Carolina made the first Airplane Flight. Orville flew a 120 ft., That lasted about 12 Seconds and Wilbur the longest was 852 ft., And was in the air for 59 Seconds.

In 1905 The Automobile Gasoline Company of St Louis, Missouri, The first drive-n filling station In the United States Open for Business. They probably used Jerry Cans.

Also 1905 in Tulsa, Oklahoma a discovery of the Gleen Pole Field which made the State the largest oil producer in the United States.

In 1906 the Hepburn Act gave ICC authority to set maximum railroad rates, and extended the agency's authority to cover bridges, terminals, ferries, sleeping cars, express companies, and oil pipelines.
Introduced by Senator Henry Cabot Lodge as an amendment to the Hepburn act This was the first step which makes pipeline act as a common carriers, and under the control of the ICC.

In 1906 John A. Tokheim Invented the Tokheim Dome Oil Pump in Cedar Rapids, Iowa. It was the first Visible Measuring pump used in the World. Tokheim also designed one of the first curbside pumps with underground storage which where introduced in 1910.




William Taft 1909-1913

Major Pollutants

Photo Chemical Oxidants:

This is formed when Nitrogen Oxides combine with other substances found in automobile exhaust, and sunlight promotes the combining process. The photo Chemical Oxidants are the main ingredient of smog, and causes breathing problems and eye irritation.

September 17,1907 The US Government filed a bill in equity in the U.S. Circuit Court for the Eastern district of Missouri against Standard Oil Company (New Jersey), John D. Rockefeller, six other directors with various partnerships and corporations.
On September 17, 1907 the suit began charging the holding company with violating the Sherman Anti-Trust Act of 1890.
On November 20, 1909 by unanimous decision the judges in St. Louis found Standard Oil of New Jersey, 7 of it CEOs with 37 subsidiaries guilty as charged.

In 1910 General Motors Corporation headed by Alfred Sloan in which he consolidation of several brands of cars; including Pontiac, Buick, Oldsmobile, and Cadillac. By direct responsibility GM's division chiefs supplied the market with the variety of models, colors, and accessories.

On March 14 1910– September 10 1911 the Lakeview Gusher in Kern County, California. The Gusher put some 378,840,000 gallons (9,020,000 barrels) of crude on the ground.

In 1911 the US Supreme court ruled for the dismantling of Standard Oil Trust into 30 independent Companies.

February 1912 Selandia the first diesel-powered ocean liner made her maiden voyage from Copenhagen to Bangkok.
This is the year the Titanic sunk as well.


May 17, 1912 the Liquid Petroleum Gas (LPG) was born in Waterford, Pennsylvania.


Thomas Wilson 1913-1921

In September 1913 The Panama Canal was completed.
This made shipping oil cheaper, because ship no longer had to sail around South America.

In 1914 Cadillac produced the first V-8 Engine.

In 1914 Petroleum coke used chiefly as a boiler fuel by refiners, sold to industrial or household for heating was adapted to the manufacturing of Carbon Electrodes:
Without the Carbon Electrode we would not have Radios, TVs, Stereos, etc.

Petroleum was also used to make a refine Medicinal oil for protective sprays in the nose and throat, and used as a very good laxative. Prior to 1914 medicinal oil was imported from Russia, But because of World War I it was no longer possible after 1914. By the end of 1914 the United States had developed at least 10 sources of domestic white oil for medicinal purposes, and marketed it under 50 or more different trade names.

In 1914 Henry Ford cut the work day to 8hrs and doubled workers salary to $5.oo Per day.
Can you even wrap your head around living on $5.oo a day? I know I can't.

In 1916 The United States congress made if official that a barrel is 42-gallons.
At one time half the people used 55-gallon barrels, and the other half used 42-gallon barrels.

Major Pollutants

Chloro-fluoro Carbon:

This was used as a refrigerant, and cleaners. It was also once used in sprays.

A Senate report in 1916 claimed that American oil had already passed their peak production, and were likely to be exhausted within 25 years.
(This started the first oil panic in the United States.)

In 1917 Hughes Tool Company offered for rent a Patented-drilling bit that was far superior to anything else at the time.

US enters into World War I in April 1917.
Aviation gasoline was develop during World War I by the military. Air plane where largely used to spot troop movement and to direct artillery fire.
During 1917-1918 the American Oil Industry suppled the bulk of the petroleum needs of the United States and its Allies military, and most of neutral customers and domestic markets.


In 1918 oil was $2.00 per barrel, and by December 1918 The first airmail route (New York-Philadelphia-Washington).

In February 1919 The First State tax on oil in Oregon (1¢ per Gallon).

By 1920 oil cost $3.00 per barrel, More than 30 oil companies where involved in Venezuelan oil production including Exxon, Gulf, Mobil, Texaco, and Amoco in addition to other American firms. Oil production rose from 1919 from 19,000 barrels per day to 523,000 barrels per day.


Warren Harding 1921-1923

Major Pollutants

Acid Rain:

This is rain or other precipitation that contains oxides of sulfur and nitrogen, along with other chemicals.

Between 1920 and 1929 some 19,872 miles of pipe were add to interstate trunk-lines.

In 1921 Henry Ford cut his worker's Workweek from 6 days to 5 days.
I'm sure it was to cut cost, and these days we enjoy a 5 day work week.


John Coolidge 1923-1929

Diesel locomotives were introduced experimentally in 1923.

President Calvin Coolidge established the Federal Oil Conservation Board in 1924 in the interest of national security and future oil needs.
It consisted of the Secretaries of War, Navy, Interior, and Commerce.

In 1925 the first Diesel train was placed in regular service.

In 1925 The Hughes Tool Company developed a new bit this one twice as efficient, the rotary Bit, Which he would not sell, but rent it instead.
(Don't forget the Model T is now selling for $260.00)

In 1926 Mayborn Wilhelm headed Daimler Company because of Gottlieb Daimler death in 1900, The Daimler Company and Benz merged together to make the Mercedes Benz Companies and Mercedes-Benz (the car) was born.

By 1927 the last year the Model T was sold, Ford had sold 15.5 million of them.

Herbert Hoover 1929-1933
Yearly average
Gasoline Price
1929 1930 1931 1932
209¢ 199¢ 169¢ 179¢

In June 1932 Federal government place a “Temporary Tax” (of 1¢ per gallon) on gasoline.
This so called “Temporary Tax” has never gone away, but it sure has gone up.

Manufacturers of electrodes, brushes, and other electrical equipment continued to purchase between 10 per cent and 15 per cent of the petroleum coke sold domestically after 1929.
(Products derived from Crude Oil)
This amount is sure to be much higher now a days when you take in a count the number of electronics people have in their households.


Franklin Roosevelt 1933-1945
Yearly average
Gasoline Price
1933 179¢ 1937 199¢ 1941 189¢
1934 189¢ 1938 199¢ 1942 199¢
1935 189¢ 1939 189¢ 1943 209¢
1936 189¢ 1940 179¢ 1944 209¢

The Burlington zephyr train went into service in 1934

In 1939 oil production rose to 779,000 barrels per day.

The first freight diesels train went into service in 1940.

July 1941 was the start of gasoline rationing during the war.

Before World War II some Oil Companies used Feedstock to Boost Octane levels, and still other used Tetraethyl Lead to do that, although there was some lead in gasoline before that. Hush, Don't tell anybody, it is a trade secret, which the oil companies did not want to share with each other.

December 7, 1941 (the day the United States joined into World War II)
The First meeting of the Petroleum Industry War Council was held in Washington.
The Military needed higher-octane aviation gas (avgas for short) around 130% to 150% Octane levels.
The Petroleum Administration for War (PAW) forced The Oil Companies to tell trade secrets to each other. They began to use both feedstock and tetraethyl lead to boost Octane.
The military, and our allies during the war used 600,000 barrels per day of avgas.
For the first time Oil Companies band together to argue with Congress on March 23, 1942. To argue with Congress to build a pipeline, to transport all the oil needs of the war. From that the War Emergency Lines Corp. a nonprofit organization chartered by Congress.
The pipelines were name "Big inch" and "The Little big inch."
In August of 1942 "Big inch" was started being built, and by December 31, 1942, the First oil was pumped into a 20" pipeline from Texas to New York.
Little big inch was stated in February 1943. By the wars' end the two pipelines delivered 380 million barrels of oil.
The War Emergency Lines Corp. stockholders were [Attanic Refining Company, Cities Service, Gulf, Pan American, Shell, Sinclair, Socony (Mobil today), Standard of New Jersey, sun, Texaco, and Tidewater].

During the war in 1944 the Arabian American Oil Company (Aramco) [it consist of Mobil, Exxon, Chevron, and Texaco] found oil in Saudi Arabia, the Ghawar field that has proven to be the largest petroleum deposit on earth.


U.S. Oil Spills

On March 6 1937 the SS Frank H. Buck / SS President Coolidge collision in the San Francisco Bay, resulting in 2,732,000 gallons (65,047 barrels) spilling into the bay.

From 1940s to the 1950s the Greenpoint, Brooklyn oil spill in Newtown Creek, Greenpoint, Brooklyn, New York. the spill was some 17,002,000 gallons (404,800 barrels) to 29,999,000 gallons (714,267 barrels).



Harry Truman 1945-1953
Yearly average
Gasoline Price
1945 209¢ 1949 269¢
1946 209¢ 1950 269¢
1947 229¢ 1951 269¢
1948 259¢ 1952 269¢

On August 15, 1945, rationing of gasoline and fuel oil came to an end, and by November 1, 1945, federal controls on restrictions on distribution, marketing, supply and transportation, construction and well spacing regulations, domestic and foreign operations were ended.

World War II ended in Europe on May 7, and in the Pacific on September 2, 1945.

PAW was ended on May 9, 1946, by executive order.

June 30, 1946, The Office of Price Administration (OPA) ended price control on crude oil and refine products, and at the same time terminated subsidy payments to stripper wells.

In December 1946, Big inch, and Little big inch were turned into Natural gas transmission pipelines.

After the war was over and because of the war need for High-octane fuel, along came the High compression automobile engines, and America Love affair with the Automobile. With the high-octane levels in fuel we were getting more powerful, and high mileage cars than every before.
After the war was over we had Regular gasoline, Premium or Supreme gasoline (depending on what service station you where at)


The tubeless tire was introduced in 1948.


U.S. Oil Spills

From 1950's – 1996 the Avila Beach pipeline in Avila Beach, California. It spilt a total of 400,400 gallons (9,533 barrels).

From 1950's – 1994 the Guadalupe Oil Field in Guadalupe, California. 8,932,000 gallons. (212,667 barrels)



Dwight Eisenhower 1953-1961

In 1954, The first modern solar cell was invented at Bell Laboratories.

In 1954 US Department of State promoted the establishment of the "International Consortium" on Iranian oil.

September 1959 the price of a Barrel of oil was $1.91

I Am The Oil Industry

I'm a hundred years oil... but I'm a youngster. I have put the mightiest nation in the world on wheels, in the air, on the sea.

Before I was born, the world was a-slumber. Now that I exist, the world is alive as never before. If I should die, The world would surely slumber again, Perhaps wither, and in many ways...die.

Yes, I am might.

I oiled the tanks that fired the cannon that stopped the Hun at St. Mihiel. I advanced with every dogface that wrested an inch of ground at Guadal Canal and Iwo Jima. I powered the plane that dropped the bomb a Hiroshima and I fueled the fleet that crossed the channel to Normandy. I mixed with American blood that dried an Pork Chop Hill and barren sod of Korea.

But I'm as humane as I am Mighty. I grease the parts of the iron lung. I fuel the tractors that work the field that produce the bread that feeds the hungry. I power the trucks with the beg red cross that fight disaster. I lubricate the gear that spins the generators that light the land and I oil the glove that catches the pitch in the World series.

I am freedom, Independence, the American way of life.

I take the savings of the people, blend them with the labor by the people, and convert them into profits for the people.

I search for oil, and if I'm lucky, I find it...and produce it...and transport it...and refine it...and sell it. And while profit is my Motive, Progress is the result.

I'm hundreds of skills and thousands of products and millions of people. I'm as democratic and law-abiding and public-spirited as American can make me. What I do, I do for the good of the more than 3,000,000 Americans who own me, the 1,650,000 Americans who work for me, and the 180,000,000 American customers I serve.

When People hail my merits, I must pass this credit on to the whole of America, And when people condemn me I must ask them to reassess their own shortcomings. for I am the people of America, with all their short coming... With all their greatness.

I am the Oil Industry.

(From the D-X Sunray News 1959)

Yearly average
Gasoline Price
1953 269¢ 1957 299¢
1954 289¢ 1958 309¢
1955 289¢ 1959 299¢
1956 289¢ 1960 309¢

In 1959 President Eisenhower put in place to regulations restricting the amount of Oil we could import into the United States.
This was to promote the Oil Companies to look for Oil here in the United States.

In 1960 Opec was founded (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.)
The United States and European oil companies, payed royalties and Income Tax to the Government that the oil came from. (According to what the price was on the world market.)
Before the 1960s Opec had very little to say about the price of oil, and Opec was formed so they could take control of the price of oil and production.

After W.W. II, The Government did not release control of the synthetic Rubber Plants until 1953 — 1955 pending further development of the industry.

In 1960 the first commercial nuclear power plant started on line operation, The Yankee Rowe in the United States.
This helped cause the over production of crude oil, and caused the cost per barrel of oil to greatly drop during the 1960s'.


U.S. Oil Spills

On December 30 1958 the African Queen oil spill in Ocean City, Maryland. It spilt 6,468,000 gallons (154,000 barrels).


John F Kennedy 1961-1963
Lyndon B Johnson 1963-1969


John Kennedy LyndonJohnson
1962 The Ohio Oil Company change it name to Marathon. On April 1, 1967, The US Department of Transportation (USDOT or DOT) began operation, It is governed by the United States Secretary of Transportation.
After ICC was dissolved some of the regulatory functions were either eliminated or transferred to the DOT. (Federal Motor Carrier Safety Administration, or to the Bureau of Transportation Statistics with in DOT.) On January 1, 1996.
Official Site Links
Fiscal Year 2014
Funding (in billions)
Management and Finance
Office of the Secretary $0.9
Office of the Inspector General $0.1
Surface Transportation Board $0
Operating Divisions
Federal Aviation Administration $15.6
Federal Highway Administration $41.0
Federal Motor Carrier Safety Administration $0.6
National Highway Traffic Safety Administration $0.8
Federal Transit Administration $10.9
Federal Railroad Administration $6.6
Pipeline and Hazardous Materials Safety Administration $0.3
Maritime Administration $0.4
Saint Lawrence Seaway Development Corporation $0
TOTAL $77.2

Richard Nixon 1969-1974
Yearly average
Gasoline Price
1969 339¢ 1971 359¢ 1973 359¢
1970 349¢ 1972 359¢  

Congress passed 1970 Clean Air Act.

On December 2, 1970, The United States Environmental Protection Agency (EPA) began operation by executive order. It was created for the purpose of protecting human health and the environment.   

August 15, 1971, Nixon takes the United States off the Gold standard.

In April of 1973 Nixon ends import regulation that President Eisenhower put in place to restrict the amount of Oil we could in import into the United States.

By September 1973 Libya wanted $6.00 per barrel, more that double $2.50 per barrel payed to Persian Gulf oil.

October 6, 1973, The Arab - Israeli war.
US oil companies publicly wanted the United States to back the Saudis and oppose Israel.

In 1973 there was a shortage of fuel while Richard Nixon was in office.
This cause gasoline rationing in a lot of the States.
It went off the last number of your license plate. If the last number on your license plate was odd you could get gas on odd dated days, and if your licensed number was even you could get gas on even dated days.
The gas-line went around the block in many cases.


In 1974 President Nixon establish a Federal Energy Administration to deal with the energy shortage.
From when the oil shortage began in 1973 the price of crude oil went from $2.75 per barrel to $34.00 per barrel in 1981.

1974 Congress created the (CFTC) Commodity Futures Trading Commission a government agency to regulate the future markets.    

March 1974 Saudi Arabia oil embargo.
Oil companies made big profit while everybody else had times of famine.


U.S Oil Spills

On January 28 1969 the 1969 Santa Barbara oil spill in Santa Barbara, California. It spilled 3,080,000 gallons (73,333 barrels) to 4,312,000 gallons (102,667 barrels).

On 17 January 1971 the Arizona Standard / Oregon Standard collision in the San Francisco Bay. The collision spilled 832,000 gallons (19,800 barrels).

Gerald Ford 1974-1977
Yearly average
Gasoline Price
1974 1975 1976
389¢ 529¢ 569¢

On January 22, 1975, President Ford ended gasoline rationing.


U.S. Oil Spills

On January 31, 1975, The Corinthos in Marcus Hook, Pennsylvania. It dumped in the Delaware River some 10,996,000 gallons (261,800 barrels).

On June 23, 1976, The NEPCO 140 oil spill in the Saint Lawrence River. The spill was 308,000 gallons (7,333 barrels).

On December 15, 1976, The Argo Merchant in Nantucket Island, Massachusetts. It spilt 7,700,000 gallons (183,333 barrels) to 8,624,000 gallons (205,333 barrels)


James Carter 1977-1981
Yearly average
Gasoline Price
1977 1978 1979 1980
589¢ 619¢ 639¢ 869¢

U.S. Oil Spills
On February 26 1977 the Hawaiian Patriot Off Honolulu, Hawaii. It spilled 29,260,000 gallons (697,000 barrels).

On February 15 1978 the Trans-Alaska Pipeline sabotage by explosives the incident ended up putting 666,000 of gallons of oil on the ground (15,855 barrels).

On November 1 1979 the Burmah Agate In Galveston Bay, Texas. It spilled 2,600,000 gallons (61,893 barres).

From the speech from the white house on Apr 18, 1977 Presdent Carter called for switching from Natural Gas to Coal, and stricter safety standards on Nuclear energy. (President Carter supported Nuclear energy.)

April 1978 President Carter puts a Tariff of $4.62 per barrel on imported oil. Which was supposed to increase the price at the pump by 10¢ per gallon by May.
This was to push the Oil Companies to look for Oil here in the United States.

September 17, 1978 Iran, Israel peace treaty signed.

January 16, 1979 shah of Iran over thrown, and Escapes to Egypt. Iran turns away from the west, and start chanting death to Carter.

March 28. 1979 three mile isle nuclear disaster near Harrisburg, Pennsylvania. This is were many turned against nuclear power.

By June 3 1979 people were sitting in long line at gas stations all across the United States because of the Middle East turmoil.
President Carter wanted to reinstate gasoline rationing that President Nixon instated, but Congress would not let him.

In August 1979 Gasoline hit a $1.00 per gallon at the pump for the first time in a few places in the US.
Gas pumps at that time could not handle more than 99.9¢ per gallon, so the Gas station owners had to add the dollar per gallon to the price until they got new pumps installed.

November 4, 1979 the Iranian take Americans hostage, and start chanting death to America.
November 12, 1979 Persdent Carter orders the stop of purchasing any Iranian oil, because of the Iranian hostage crises.

1979 Iran Nationalized their Oil, and Foreign Oil Corporations where thrown out of the Country.

Ronald Reagan 1981-1989
Yearly average
Gasoline Price
1981 $1.189 1985 1.129
1982 $1.309 1986 $1.119
1983 1.219 1987 859¢
1984 $1.849 1988 909¢

On March 19 1984 The SS Mobil Oil in Longview, Washington spilled from 169,000 gallons (4,033 barrels) to 200,000 gallons (4,767 barrels) into the Columbia River.

On September 28 1985 the Grand Eagle in Marcus Hook, Pennsylvania. It spilt 431,000 gallons (10,266 barrels) of oil into the Delaware River.

On January 2 1988 the Ashland oil spill in Floreffe, Pennsylvania. It split 30,800,000 gallons (733,000 barrels).

By March 15, 1981, gasoline station induce self-serve to reduce prices at the pump.
A lot of service station had both self-serve and full-serve which they would charge us more per gallon for the full-service.
It was nice to have someone check your oil, and wash your windows


October 1981 the New York Mercantile Exchange (NYMEX) launched the first gasoline Future.

March 1983 the New York Mercantile Exchange (NYMEX) launched the first Oil Future. — President Reagan pushed to get Gasoline and Crude oil to be put on the Futures Market.

About 1984 U.S.- Iraq Business Forum, made up of representatives of Texaco, Exxon, Mobil, Hunt oil, and Kissinger Associates.
A Lobbyist group that Lobbied for getting Big Oil into Iraq.
Halliburton Received infrastructure contracts in Iraq, and the other Oil Companies received contracts to market Iraqi Oil.


1984 Reagan opened full economic and diplomatic relations with Iraq.

1984 United States adds Iran to the list of countries that support terrorism.

1986 the Congress pass the US Arms Export Control Act prohibiting Iran from receiving US arms. — Nicaraguan Contra Affair.

1987 an executive order banning imports of Iranian imports including Crude oil imports to the US.


George H.W. Bush 1989-1993
Yearly average
Gasoline Price
1989 1990 1991 1992
899¢ 999 $1.139 1.129
The NYMEX began trading natural gas futures contracts in 1990

August 1 1990 Iraq invaded Kuwait. The first war over oil

U.S. Oil Spills

On March 24 1989 U.S. tanker Exxon Valdez struck a reef spilling some 10,500,000 gallons (250,000 barrels) into Prince William Sound.
During 1989-1992 President Bush order U.S. Military and other Federal agency to take control of clean-up.After many became unhappy with Exxon's clean-up of the oil spill.

On June 24 1989 the Presidente Rivera In Marcus Hook, Pennsylvania. It dumped 306,000 gallons (7282 barrels) into the Delaware River.

On January 1 1990 the Arthur Kill pipeline spill in Sewaren, New Jersey. It split 567000 Gallons (14,000 barrels).

On February 7 1990 the American Trader in Bolsa Chica State Beach, California. It spilt 302,000 gallons (7,179 barrels) to 302,000 gallons (7,194 barrels).

On June 8 1990 the Mega Borg in the Gulf of Mexico, SE of Galveston, Texas. It spilt 5,082,000 gallons (121,000 barrels) to 5,082000 gallons (121,000 barrels).

The Seven Sisters

Standard oil of New Jersey (Exxon), Standard oil of New York (Mobil), and Standard oil of California (Chevron), Gulf, Texaco, BP, and Shell.
Since 1991 will over 2500 U.S. Oil companies have merged.
and the 7 became 5
Starting in 1999 Largest Mergers in in corporate history: 
Exxon with Mobil, Chevron with Texaco, Conco with Phillips, BP with Amoco and Arco
and Shall merger with several smaller oil companies making the corporations the biggest world ever has seen.

William Clinton 1993-2001
Yearly Average
Gasoline Price
All Grades
1993 $1.069 1997 $1.249
1994 $1.079 1998 $1.069
1995 $1.159 1999 $1.079
1996 $1.239 2000 $1.519

Established on January 1, 1996. The Surface Transportation Board (STB) housed within the US Department of Transportation assume some of the regulatory functions that had been administered by the Interstate Commerce Commission when the ICC, was abolished.
The Board is composed of three members nominated by the President and confirmed by the Senate for five-year terms.
It governs economic oversight and regulatory of railroads, including rates, service, the construction, acquisition and abandonment of rail lines, carrier mergers and interchange of traffic among carriers, pipeline carriers, intercity bus carriers, moving van companies, trucking, and maritime carriers.

1996 Iran-Libya Sanctions Act, Impose US sanctions of foreign companies that invested in Iran's energy sector.

Weekly average highest for 1993-1996 was $1.32 for the week ending May 13 1993 

Weekly average lowest for 1993-1996 was $0.992 for the week ending Jan 3 1994 

Weekly average highest for 1997-2000 was $1.711 for the week ending Jul 7 1999 

Weekly average lowest for 1997-2000 was $0.949 for the week ending Feb 22 1999


1997 Marathon merged with Ashland Petroleum which had merged with it 3 smaller companies that us to be a part of Standard oil. 2 Pipe line companies and an Oil Company (Galena-Singel Oil Company)

1998 Iraq Liberation Act, This called for the removal of Saddam Hussein's regime.

In December 2000 Congress pass the Commodity Futures Modernization Act(CFMA). It was suppose be a landmark bill for Clinton. Phil Gramm (R) slipped in what we know today as the Enron Loophole just before Congress pass the Bill (CFMA), and President Clinton signed it into law, Just days before the end of his Presidency..

2000 Mostly the Banks and Oil Companies start the Intercontinental Exchange (ICE) outside of U.S. regulation and the CFTC.

U.S. Oil Spills

On January 19 1996 the North Cape spill in Rhode Island. The spill was some 770,000 gallons (18,333 barrels).

On September 27 1996 Julie N. spill in Portland, Maine. The spill was some 180,000 gallons (4,297 barrels).

February 4 1999 – March 9 1999 MV New Carissa in Coos Bay, Oregon. It spilt 71,000 gallons (1,687 barrels)


George W. Bush 2001-2009
Yearly Average
Gasoline Price
All Grades
2001 $1.469 2005 $2.309
2002 $1.379 2006 $2.619
2003 $1.599 2007 $2.849
2004 $1.889 2008 $3.309

Between 2000 - 2005Valero became the fourth largest Oil company in the United States. — Valero an oil refining and sales company during the 1980.
From all the mergers going on with the oil companies the government required some of these companies to sell off some of their Assets, Valero bought some 350 of them, Some retail operated companies and, a bunch of retail-store, distribution chains from Exxon, in Benicia, California with the refinery.
It purchased Ultramar Diamon Shamrock, marketing, and Premcor Inc., than it pick-up four more refineries in Texas, Tennessee, Delaware,Ohio.

The Pipeline and Hazardous Materials Safety Administration (PHMSA) agency was created, and signed into law on November 30, 2004 under the DOT.

U.S. Oil Spills
On October 4 2001 The Trans- Alaska Pipeline gunshot spill, In Alaska. The gunshot caused 287,000 gallons (6,835 barrels) of oil to leak out.

On April 27 2003 The Bouchard No. 120, in Buzzards Bay, Bourne, Massachusetts. It spilt 98,500 gallons (2,347 barrels).

On August 30 2005 there were 10 oil spills cause by Hurricane Katrina- Bass Enterprises, Cox Bay, Louisiana- Shell, Pilottown, Louisiana- Chevron, Empire, Louisiana- Murphy Oil USA refinery spill, Chalmette, Louisiana- Murphy Oil USA refinery spill, Meraux, Louisiana- Bass Enterprises, Pointe à la Hache, Louisiana- Chevron, Port Fourchon, Louisiana- Venice Energy Services Company, Venice, Louisiana- Shell Pipeline Oil, Nairn, Louisiana- Sundown Energy, West Potash, Louisiana. All together their were some 7,100,000+ gallons ( 169,000+ barrels) of oil spilt.
On June 19 2006 the Citgo refinery oil spill, Lake Charles, Louisiana. It spilt some 2,000,000+ gallons (47,500+ barrels).

On November 7 2007 the COSCO Busan oil spill in San Francisco, California. Spilling some 58,000 gallons (1,400 barrels).

On July 28 2008 the 2008 New Orleans oil spill in New Orleans, Louisiana. Spilling some 2,700,000+ gallons (65,000 barrels).

Weekly average highest for 2001-2004 was $2.104 for the week ending May 24 2001

Weekly average lowest for 2001-2004 was $1.101 for the week ending Dec 17 2001

Weekly average highest for 2005-2008 was $4.165 for the week ending Jul 7 2008

Weekly average lowest for 2005-2008 was $1.670 for the week ending Dec 29 2008


Barack Obama 2009-2017
Yearly Average
Gasoline Price
All Grades
2009 $2.399 2013 $3.549
2010 $2.829 2014 $3.419
2011 $3.579 2015 $2.759
2012 $3.689 2016 $2.249
U.S. Oil Spills

On January 23 2010 the 2010 Port Arthur oil spill in Port Arthur, Texas. It spilt 4,600,000 gallons (11,000 barrels).

On April 20 2010 - July 15 2010 the Deepwater Horizon oil spill in the Gulf of Mexico. It spilt between 152½ Million gallons (3,600,000 barrels) to 193 Million gallons (4,600,000 barrels)

On May 25 2010 the Trans-Alaska Pipeline spill in Anchorage, Alaska. Spilling between 123,000 gallons (2,900 barrels) to some 370,000 gallons (8,800 barrels).



On June 11 2010 – June 12 2010 the Red Butte Creek oil spill in Salt Lake City, Utah. Spilling between 20,000 gallons (477 barrels) to 33,000 gallons (788 barrels).

July 26 2010 the Kalamazoo River oil spill in Kalamazoo River, Calhoun County, Michigan spilling between 862,000 gallons (20,500 barrels) to 1,000,000+ gallons (23,800 barrels) Adding to the problem in the Gulf of Mexico from Deepwater Horizon a second oil spill the Barataria Bay oil spill on July 27 2010 – August 1 2010 spilling more oil into the Gulf 7,000 gallons (169 barrels) to 14,000 gallons (330 barrels) more.

On July 1 2011 the 2011 Yellowstone River oil spill in Billings, Montana. Yellowstone River. It spilt from 32,000 gallons (770 barrels) to 43,000 gallons (1027 barrels).

On October 29 2012 the Arthur Kill storage tank spill in Sewaren, New Jersey caused by Hurricane Sandy. It spilt 336,000 gallons (7993 barrels) to 348,000 gallons (8,287 barrels).

On March 9 2013 the Magnolia refinery spill in Magnolia, Arkansas. It spilt 209,000+ gallons (4,987 barrels) to 234,000 gallons (5,573 barrels).

On March 30 2013 the 2013 Mayflower oil spill in Mayflower, Arkansas. It spilt 209,000+ gallons (4,987 barrels) to 293,000 gallons (6,969 barrels).

On May 18 2013 the Cushing storage terminal spill in Cushing, Oklahoma. It spilt 105,000 gallons (2,493 barrels).

Weekly average highest for 2009-2012 was $4.018 on the week ending May 9 2011

Weekly average lowest for 2009-2012 was $1.737 on the week ending Jan 5 2009 
Weekly average highest for 2013-2016 was 3.851 on the week ending Feb 25 2013

Weekly average lowest for 2013-2016 was $1.834 on the week ending Feb 15 2016 

How many is to many? → Oil Spills?
&
How much is to much? → Gas Price?

Gallons and barrels have been rounded off, and are only estimates.
Gasoline price are figured off the weekly average of all Grades from 1993 on, and are rounded to the nearest .9 of a cent.



To be Continued




What do we get out of crude oil?

  1. Solids:

    1. Fuel (coke and briquettes)
    2. Lubricants (greases and graphite)
    3. Industrial products (asphalt, carbon, waxes, and rust preventatives)
  2. Gases:

    1. Fuel (natural gas)
    2. Organic chemicals (fertilizers)
  3. Liquids:

    1. Fuels (liquid petroleum gas (LPG), Jet fuel, gasoline, diesel fuel, kerosene, and grease)
    2. Lubricants (motor oil, industrial oils, and grease)
    3. Industrial Products (insecticides, munitions, absorption oil, organic chemicals, polishes, wood preservatives, coolants, power transmission oils, quenching oils, plasticizers, cleaners, solvents, medicinal oils, rust preventatives and insulating oil)
Coal-tar pitch:
Coal tar —
a thick, black, viscid liquid formed during the distillation of coal, that upon further distillation yields compounds, as benzene, anthracene, and phenol, from which are derived a large number of dyes, drugs, and other synthetic compounds, and that yields a final residuum (coal-tar pitch) which is used chiefly in making pavement.

 




Books that I have read and took notes from:

The American Petroleum Industry; Vol. 1 & Vol. 2,
Publish by Northwestern University Press.

Bible
The Tyranny of oil
Black Gold
The Age of Oil
Encyclopedias
Check the Oil
News papers and the Internet.

 

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