History of the Multinational Oil Market Literature review

History of the Multinational Oil Market - Literature review Example This research will begin with the statement that there are many relates to oil discoveries from American explorers. They encountered oil deposits in some forms. Also, there is the early discovery of oil in the Middle East. On a 1775s map of the English Middle Colonies, Louis Evans located deposits along the eastern seaboard. The oil was used for many purposes. Before the Industrial Revolution, the main usage was for kerosene. The regular oil lamps were upgraded to kerosene lamps and in 1859 Samuel Downer, Jr. patented â€Å"kerosene† as a trade name and licensed its usage. In the same year, a 69 feet deep was drilled at Titusville, Pennsylvania ( U.S.) to tap oil. This was the beginning of the operations of the first oil corporation. As whale oil increased in price because of the scarcity of that mammal, the rock oil industry boomed in the United States. The success of the Titusville’s oil-well stimulated consumers to increase the use of oil. The purpose of this article is to provide a historical overview of the multinational oil market and explain how it influences the political relationships between countries. Standard Oil Company Montague, in the article â€Å" The Rise and Progress of the Standard Oil Company† relates this discovery with the production of crude and explain it contributed to the rise of the first oil corporation. In the next years, many successful oil wells were discovered. In 1865 Mr. Rockefeller was constructing a refinery in oil exploitation ( Pithole Creek). The demand for petroleum products was increasing exponentially and so the wells. Mr. Rockefeller saw the exigency to secure the business and increase their capital. And in 1870 he promoted the Standard Oil Company with the union of Rockefeller, Andrews & Flagler the refineries of William Rockefeller & Co., Rockefeller & Andrews, Rockefeller & Co., S. V. Harkness, and H. M. Flagler ( Montague, 1904). As Mr. Rockefeller said the reasons for this union were: â€Å" The cause leading to the combination was the desire to unite our skill and capital, in order to carry on a business of some magnitude and importance in place of the small business that each had separately heretofore carried on.† With the Standard Oil Alliance, Mr. Rockefeller controlled not only the oil production but also the transportation system ( better rates were granted for them). In those years the Standard Oil Alliance achieved the monopoly of the oil industry ( Montague, 1904). The Spindletop Oilfield There was an important oil discovery near Beaumont, Texas in 1901 that modified the course of the oil industry in those days. It was the Spindletop Gusher one of the largest oil strikes rise up. With this discovery, many oil companies have been founded ( more than fifteen hundred) and others moved to Beaumont. Robert Wooster and Christine Moor Sands in their article â€Å"Spindletop Oilfield† relates the Spindletop Gusher with the start of many oil companies.