Origins of the Industry
The American chemical engineer and the American petroleum industry
developed side by side over the past century. The petroleum industry began
when Edwin L. Drake drilled a successful oil well at Titusville
Pennsylvania in 1859. Others quickly followed his lead, and before long oil
wells covered the countryside. Just ten years after California's Gold Rush,
Pennsylvania had developed its own brand of "gold fever". Some, like
John D. Rockefeller, accumulated vast fortunes from this "black
gold", while others like Mr. Drake died broke. The difference between
success and failure was often a fine line.
Ancient, and Less Ancient, Times
Small amounts of petroleum have been used throughout history. The
Egyptians coated mummies and sealed their mighty Pyramids with
pitch. The Babylonians, Assyrians, and Persians used it to
pave their streets and hold their walls and buildings
together. Boats along the Euphrates were constructed with woven reeds and
sealed with pitch. The Chinese also came across it while digging holes
for brine (salt water) and used the petroleum for heating. The Bible even claims
that Noah used it to make his Ark seaworthy.
American Indians used petroleum for paint, fuel, and medicine.
Desert nomads used it to treat camels for mange, and the Holy
Roman Emperor, Charles V, used petroleum it to treat his gout.
Ancient Persians and Sumatrans also believed petroleum had medicinal
value. This seemed a popular idea, and up through the 19th
Century jars of petroleum were sold as miracle tonic able to cure
whatever ailed you. People who drank this "snake oil" discovered that
petroleum doesn't taste very good!
The Search for Oil
Yet despite its usefulness, for thousands of years petroleum was
very scarce. People collected it when it bubbled to the surface or seeped
into wells. For those digging wells to get drinking water the petroleum was seen
as a nuisance. However, some thought the oil might have large scale economic
value. George Bissell, a lawyer, thought that petroleum might be
converted into kerosene for use in lamps. An analysis by Benjamin
Silliman, Jr., a Yale chemistry and geology professor, confirmed his hunch.
In 1854 Bissell and a friend formed the unsuccessful Pennsylvania
Rock Oil Company. Not one to be easily dismayed, in 1858 Bissell and
a group of business men formed the Seneca Oil Company. They hired an
ex-railroad conductor named Edwin Drake to drill for oil along a secluded
creek in Titusville Pennsylvania. They soon dubbed him "Colonel" Drake to
impress the locals. But the "Colonel" needed help so he hired Uncle Billy
Smith and his two sons who had experience with drilling salt wells.
In 1859 this motley crew found oil at a depth of 69 � feet.
Pennsylvania's "Black Gold"
Drake's well produced only thirty-five barrels a day, however he could
sell it for $20 a barrel. News of the well quickly spread and brought
droves of fortune seekers. Soon the hills were covered with prospectors
trying to decide where to dig their wells. Some used Y-shaped devining rods
to guide them. Others followed Drake's lead and drilled close to water, a
technique that was dubbed "creekology". Many found oil, but usually at
4 or 5 hundred feet below the surface. Drake had just been lucky to find oil
so high up!
To dig the wells six-inch wide cast iron pipes were sunk down to
the bedrock. A screw like drill was then used to scoop out dirt and
rock from the middle. Many discovered to their dismay that once they hit oil
they had no way to contain all of it. Until caps were added to the wells
vast quantities of oil flowed into the appropriately named Oil Creek.
The First Pipeline
Transporting the oil was also a problem. In 1865 Samuel Van Syckel, an
oil buyer, began construction on a two-inch wide pipeline designed to
span the distance to the railroad depot five miles away. The teamsters,
who had previously transported the oil, didn't take to kindly to Syckel's plan,
and they used pickaxes to break apart the line. Eventually Van Syckel
brought in armed guards, finished the pipeline, and made a ton-o-money.
By 1865 wooden derricks were bled 3.5 million barrels a year out
of the ground. (Giddens) Such large scale production caused the price of crude
oil to plummet to ten cents a barrel.
How Much Oil?
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