American Petroleum

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Bitumen

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think, hunky, steaky oil.

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Naphtha

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220-215.(boiling temp) distilled bitumen.is what comes out. Could be used as an industrial solvent. It could be used as paint thinner, furniture polish. It could be substituted for turpentine. Depending on the type of oil, paraffin can be made.It is valuable.

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Oil and Arabs

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The Arabs were great chemist before the European. They perfected the art destillement. They experimented with bitumen, they came up with a flammable substance. They called it it Naphtha.

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Earliest Petroleum

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Oil in the ancient world was used in different ways. In the middle east, Bitumen was used the Babylonians. They use it as a building material, they also used it for roads, they covered up the seams of the ships. The most popular used for it was for medicine; they treated soar eyes, skin problems, they mixed it with beer for digestive problems. Toture, poured hot on other people. They did not used it for lighting and they did not use it for fuel. There was still some small trade in it.

In Greece and in Italy there really wasn’t much oil, so they did not really use it. Because of this the trade in Bitumen died out.

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Greek Fire

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It was Naphtha used in wars. It was most often in fighting at sea. They set the ships on fire.

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Seneca Oil

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oil used by the Seneca’s closed to New York.The Native Americans all over the continent used it for medicine, art, or water proofing.

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Oil Creek

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In western Pennsylvania, close to the river people put blankets and stuff. They made a barrier to catch the oil using fabrics and other materials.

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Thomas Murdock

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A British inventor. He looked for a better source of light. He used the vapor from coil as light. GAS. 1802 manufacturing gas from coal. First efficient street lighting. It took of in London. In Boston and New York, there were places manufacturing this for street lights, it was still too expensive for private homes.

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Camphene

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In 1830. People came up with Camphene mixture of alcohol and turpentine. It provided more light, and it wasn’t smokei or stinky, but it could explode very easily. Less expensive than whale oil.

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Abraham Gesner

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Canadian doctor, he came up with kerosene. Medical doc, he wasn’t really interested in medicine. He was out in the country. He got interested in coal and asphalt. He mixed those and he invented Kerosene. He moved to New York to produce Kerosene. A dollar a gallon. It was expensive. His company went belly up. He showed that mixing those things might make something good.

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Kerosene

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The mixture of coal and asphalt creating a flammable liquid with he ability to give light.

Boiling Temp 315-350 F.

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Samuel Downer

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Made money with whales form Boston. Kerosene made him think. In 1852 they set up a plant, coltar and he wanted to make lubricants out of it. He hired and worked with Joshua.

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Joshua Merrill

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he was a Bostonian chemist. Friend with Samuel. He experimented and discovered that you could make Kerosene from coal. They set up a plant to produce the kerosene. They called it Coal oil. Later on they used the same coal to produce another oil. After this there was an oil boom, kerosene.

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Rock oil

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Another name for crude oil.

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Samuel Kier

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a doc. He wanted to make rock oil, and sell it as medicine. His enterprise showed that if you drill for brine you might get rick oil. And that people could use drilling technology to get crude oil. He knew that they needed better sources for lighting. He tried to burn it as light but it smelled bad.

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Francis Brewer

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a physician, he inherited a lumber company in Titusville. He went to his property to check it out. The farm had a spring, and the water had tons of oil. He took a sample back to Vermont, and he talks about it to a stock broker.

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Titusville

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the town in the middle of nowhere in Pennsylvania. The creeks and well had large amounts of oil. Where oil was discovered by pumping.

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George Bissell

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a new York steak broker, he wanted to make money of Brewers oil. He set of a company so that he could sell stock in New Heaven. After the oil was found, they decided to find more.

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Pennsylvania Rock oil Company

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set up by George Bissell. They bought the farm in Titusville to produce oil. They started to make trenches in order to get tons of oil, but obvi not enough. That idea sucked. They decided to send someone to get the rock oil better and faster. Month 1857 in December, no one wanted to go.

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Benjamin Stillman, Jr

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most famous chemist in the United States at the time who taught in Yale. He was hired to study the oil for the Pennsylvania rock oil company. He analyze it and he found out that 50% could be turned into a source of good lighting. GOOD NEWS.

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Edwin Drake

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he didn’t know anything about western Pennsylvania or rock oil. Railroad conducted and son of farmer. He went to Titusville, called Colonel Drake. Nothing happened during the winter, he goes back in May (1858). He did near the creek and filled with water. He kept asking for money. After the oil stuff, he left. His thing burnt and lost a lot of it. He used his money is stocks. He was given a small pension, died sick an poor in 1880.

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Uncle Billy Smith

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from Titusville. He had worked for a while in the brines drillings. He told Drake to drill a hole instead to make a hole.

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Casing

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metal roll to prevent the wall to come down.

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On august 28th, 1859

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at 69 Ft. Drake got oil. In 24 hrs he got 8 to 10 barrels of crude oil. He used all of the wash tubs, whiskey barrels. 42 gallons is what a barreled hold.

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The meaning of Drakes discovering.

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1. you could drill and get it

2. if you drill you got much more than anything else.

3. A lot of people got interested in oil, and they tried they’re luck.

4. 1859, Titusville first oil boom.

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"Creekology"

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Finding the wells”. They drilled randomly, near creek beds.

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Dowsers

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people that looked for water underground.

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May 1861

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The US. Was in Civil War, but that did not bother there were 105 wells in Pennsylvania, producing 13 hundred barrels a day.

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1860

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First Gusher

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Allegheny River

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the oil was floated down in barrels. In the winter time the creeks get to freeze up, and in the summer if there wasen’t any rain, there was no motion. People who dam up a creek, collecting the water and then setting free to more the barrels. Since the river took them to Pittsburg.

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Corry

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nearest railroad around. There was mud everywhere including on horses. Up and down hills. 27 miles.

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Pittsburgh

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The oil from the creeks was taken to the city, since it was the closet and the rivers headed to the city. is closer to the oil. The oil was shipped there through the river. The city produced things that refiners needed and could use, like labor, plants, barrels, sulfuric acid, alkaline, bottle or jars that could be used for crude oil. Energy, provided by coal close to Pittsburg. Transportation, Pittsburg had a railroad. Disadvantage 1 railroad

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Amos Densmore

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1865- railroad flatcar, build two bats, the first tank car. Invented by him.

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Samuel Van Syckle

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pipelines. By 1865, the railroad had reaches Titusville. He could ship 2 thousand barrels in a day. He also discovered that it was way cheaper than anything else. He put his pipe on top of the ground, they were vandalized. He started to put them underneath. He discovered this efficient way, but only for short distance. Other people began to build pipelines too.

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John W. Steele/ “coal oil Johnny”

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he was the adopted son of a local farmer in Titusville. His parents died before the oil boom, and he leased the farm. By 1864 he was getting 2 thousand dullards a day. He was known as “coal oil Johnny” if you got it use it. He went to Philadelphia, lived in hotels, had parties, he bought a theater, he lighted his cigars with 100 dollar bills. This lasted for 2 years, after he was 2 thousand dollards in debt. After we became a farmer in Nebraska.

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Pithole

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Jan 1865. 2 men made tons of money, and people moved there founded the town and tried to make money. By May, some retail promoter wanted to start the town, by septemeber there were 2 banks, 2 churches, over 50 hotels, a newspaper, 2 telegraph offices, a post office, 15 thousand people lived there. The first hotel were built in a day. There were more salon and brothels than hotels.

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Ben Hogan

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was the biggest brothel owner. He made 1 thousand dollards a day. Most widest men alive. French Kate, famous prostitute, never came close to france.

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Law of Capture

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since people didn’t know where it came from. If you got it, its yours. Oil belongs to the person who produces it.

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Common Characteristics of boom towns.

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1. boom town emerges fast. Sometimes there is already a town, other nothing.

2. As people move in, all of the sudden housing a public services can’t keep up. clean water, sewage. The roads are unpaved, and full of holes. Post offices are swamped. Banks.

3. The majority of people who come in are young single men. Family stayed at their homes while the men left.

4. When the bust happens, the people leave.

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Why is the oil economy so volatile?

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1. when you drill a well you cannot be sure of what you get. a lot of times, well are strong, but over time the production will drop. You never know how much oil you’ll get.

2. petroleum engineering is not invented yet. More and more oil is on the market. The prices go down.

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Options to avoid bust.

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A. lets try to produce more oil, somehow(what the Saudis are doing right now). But how with less money.

B. lets cut back, keep oil in the ground, not drill anymore. List of problems.

1. No income. 2. Oil moves underground in rock, it’s a fluid, it moves depending on pressure.

C. not everyone is gonna shot down.

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Westmoreland Natural Gas Company v. Dewitt-

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The lawsuit in which the Law of capture was established.

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Hydrocarbons

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hydrogen, carbon

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Petroleum

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A is a mixture of chemical compound, of hydrocarbons.

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Gasoline

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The first thing to boil of from crude oil at 90 up to 200 degrees F

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Specific Gravity

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is how the thickness in oil is measure.

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American petroleum institute.

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The exam of thickness, was invented or set up by the institute.

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Low Gravity (180)

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The oil i very fluid

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High gravity (430)

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Thicker oil ( more gasoline)

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Sour Crude

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If it has 1% or more surfer in it

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Sweet Crude

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oil that does not have sulfer in it

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cracking

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heating up the residue. The hydrocarbon molecule would explode under the temperature.

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Catalytic cracking

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Adding something to the oil to produce more.

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Paraffin Wax

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sticky stuff. It was useful. Jelly cover of grandmas . lubricant. Used in making candles, water proofing, chewing gum.

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New York

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There were coil oil plants In the city. The market was important. There was a fabulous harbor. Transportation was easy and exporting was easy. Railroads. Rivers was also available. There was more than one railroad there was a lot of competition about the price of shipment. There were a lot of places around New York that made raw material needed along with labor. Far from the oil field

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Cleveland

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the dark horse. It was closer to the oil fields than New York. There were more than one railroad, and competition. Shipment through water was also possible. Railroads also lead to the East of the U.S unlike New York and Pittsburg. An American Market. Labor is also there, and raw materials get there after John D rockafeller. Does not have everything needed and a small town.

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Natural gas

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It is a mixture of hydrocarbon atoms. Propane, butane, methane and others.

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Refining

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1. it did not take much money or skill to set up a refinery 1500 just to set one up. Distilling. Right on the oil field.

2. The refineries early one were very inefficient. Inconsistent.

3. they were set in the oil field, but wells stop working. Supply unstable

4. In order to make money, one had to control transportation.

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Methane

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one atom of carbon and four atoms of hydrogen

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Natural gas liquids

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Ethane, propane, butane. Liquids that can make a lot of money.

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Brine

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is very salty and mineralized. If it touches the ground it makes it impossible for plants to grow.

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How did petroleum originate?

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1. petroleum originated from ancient sea life. Organic matter, dead stuff that sank to the bottom. Or…. The cray cray

2. petroleum is contained in rock. The rock that contains the oil, it cout be Sandstone, Limestone, Shale

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Sandstone

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sand compressed> Marine acticion

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Limestone

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dead fishie bodies. Marine action

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Shale

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marine action. movement of water and sediemnts

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Granite

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- It probably does not contain oil. Not marine action like Basalt, Obsidian.

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Porosity

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Little grains and hole on the rock, that is where the oil moves around in.

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Permeability

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Its changes the way that oil moves within the rock. Sponge is very porous and permeability.

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Statigraphic Traps

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- Sand bars.

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Faults

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Middle change on the 1,4.

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Salt Dome

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when the oil is trapped because of the slat.

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Anticlines

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- oil has gotten trap over or under slat, and the rock has been folded.

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How to find oil by just looking.

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1. gas around the environment.

2. signs of oil, oil seeping to well or rivers.

3. look for where people have ffound oil and gas.

4.”Yardstick geology”- lining up rule on a map around places where oil has been found. Also called “trendology”

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Random Drilling

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example. 1926 Roy westbroke. He gained lands near wink. 500 acres. He convinced people that there was oil underneath. He got investors to by a lease or two, then he drilled and got tons of oil. Luckiness. Nothing signaled to oil under the earth.

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Israel C. White

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Lived in Western Pennsylvania. Scientist. He wanted to know why oil was where it was. He lookedfor anticlines underground. He did his speculation on what he was able to see.Maybe there is a fold or maybe there isn’t a fold. A geologist, he wanted to find a scientificway to get oil.

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Coil Oil.

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is a shale oil obtained from the destructive distillation of cannelcoal, mineral wax, or bituminous shale, once used widely for illumination.

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John D. Rockerfeller

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He built the first major oil company. A company that does itall.He was a loving husband and father.He was a philanthropist- he gave away millions of dollars.He was not a racist- gave money to black school and highschools.Became on of the richest men in America.He got his bad reputation because he monopolized the oilcompany. Born in 1849, first child of a Baptist mother. She wasmarried to a guy who was really bad. William Every Rockefeller.2 brother and 3 sisters.His father made his living against the law, he was a conmen. He called himself a doctor. His fathers mistress was living the same household, hisfather married a second wife. He was almost always away from home. He grew up in a dirt poorhouse.

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Why rotary drillingis more popular.

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1. Much quicker

2. Can go deeper.

3. it can handle all kinds of rock including Shale. 4. it’s cheaper

5. you can drill horizontally.

6. Overall more efficient.

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Standard Oil

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was an American oil producing, transporting, refining, and marketing company. Established in 1870 by John D. Rockefeller as a corporation in Ohio, it was the largest oil refiner in the world of its time.

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John D Rockerfeller

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He was devote Sunday. Gave a tenth of his income, generousto charities. Anti-slavery, anti-drink. Anti-gambling. He is 18 years old he goes into partnershipwith the commodity businesses in ohio. Then the civil war started. Because ofthe war there was a great demand in food.

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Advantages of beingin Cleveland for a refinery

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1. 2 railroads going in and out of Cleveland.

2. Cleveland was right on Lake Erie, the refinery on acreek, which made it easy to take the product NY city.

Rockerfeller bought his partners. In 1864 he was well on hisway to make a the biggest refinery in Cleveland.

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Rockefeller secret tosuccess.

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1. He was always looking to grow.1865, he got his brother and opened another refinery. CalledStandard works was what it was called. 2. He was obessed about cost.He tried to keep his transportation cheap. He started tothink about the fact that sometimes oil was expensive and sometimes very high.He wanted to buy oil when it was cheapest and then when it was high, he couldmake the best profit. Build giant tanks for storage. He decided that he shouldmake his own barrels instead of going to someone’s to make them. 1866. He sent his brother to NY City to set up a firm, sothat they could begin to send the oil/kerosene across the Atlantic to Europe. 3. He was good at raising money.He linked up with wealthy men in Cleveland.Stephen Harkness- wealthy in Cleveland, banker and otherstuff. Hi son in law, Henry Flagler. They became buddies.Rockerfeller like Flagler a lot better. Flagler had the samedrive as Flagler.Rockerfeller had aces to their money, they’re friends andtheir investors. They were partners, they even shared a desk. Flagler focused his attention to the cost of transportation.

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Standard Oil Trust

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Atrust is an organization run by trusties. first company kinda

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Henry Flagler

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Son in law of a wealthy banker in Cleveland Stephen Harckness.

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Herman Frasch

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achemist hired by Rockefeller. To make the Ohio oil less stinky. He successfullytook the stinky out of the oil.

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Rebates

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likea coupon, you pay and you get money back. Railroad gave rebates to anyone youasked, the more you shipped the better the rebate you would get.

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Tom Scott

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the leader of the Pennsylvania railroad, he created theSouth Improvement company. His plan, 4 railroads to get tag ether, and agree onwhat they would charge people.

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South Improvement Company

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Set up by Tom Scott. was a Pennsylvania corporation in 1871-1872. It was created by major railroad interests, but was widely seen as part of John D. Rockefeller's early efforts to organize and control the oil and natural gas industries in the United States which eventually became Standard Oil.

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Predatory Pricing

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reducingthe price so others in the industry would also.

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Henry Demarest Lloyd

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asocialist that wrote a book in Chicago, he saw standard oil as the worst ofcapitalism. The book was named WealthAgainst Common wealth. He added the New York investigation and anything badthat was said about standard oil. He also made up things. he said that Standardhad hired people to burn plants down.

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Ida Tarbell

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the daughter of an oil man that went broke after the southcompany thingies. Her dad went busted. She was a journalist, very important fora women at the time. She went to college, school of teaching, hated it, went toFrance and wrote things. She was into investigative journalism. McClure Magazine wanted her to writeabout the oil industry. Ida wrote as serious of articles that became incrediblysuccessful. She wrote A book, History ofthe Standard Oil company. She got her info from opponents, friends, andstatistics. It is not reliable, but it believed to be so. Nothing good is eversaid good about standard oil. She made Rockefeller look evil.

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John Sherman

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-senatorfrom Ohio that played along the opponents of Standard oil. He is the author ofthe Sherman antitrust act.

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J.F. Hudson

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wrote a book in 1886 against the standard oil company. Itwas the first one to come forward and insist that because Rockefeller was sosuccessful, because he got rebates from the railroad, he called it a corruptionbetween the two.

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Americans were scaredof big companies back then because

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1. big merchandisers would put the small business out ofbusiness.

2. they feared monopolies.

3. People were afraid not only of big business, but theyalso were afraid of big business controlling politics.

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How Rockefellerbecame a business target?

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1. it didn’t takelong for Standard oil to becomes the biggest company in the industry. Becauseof this a lot of people sold a lot of oil to standard oil and sometimes peoplewere affected.

2 . Standards involvement with the railroads became anotherproblem. He got a lot of rebates and he shipped a lot all year long. He otherpeople tried to ship he always got the better deal.

3. people always wondered if they could of gotten more moneyfor selling Rockefeller something. A lot people felt that they were cheatedjust because

4. he sold his stuff way cheaper in order to get morecostumers. Causing other people to reduced their prices.

5. Rockefellers’ own public image. His family had a lot ofbad reputation. By 1880s he had accumulated a lot of enemies. Many people madehim a bad reputations, but his response was to ignoring it.

6. at the times there weren’t many regulations, he did whatother people did. If it isn’t against the law, what is wrong with it.il.

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Major Companies vs. Independents.

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-Independent- it usedto mean that it had no connection to the Rockefeller group.

-Now a days the maindifferent is that independents only do one or two things in the field. Like Pioneer or Apache. They are only focused on one thing. They don’t try to do itall.

- Major Companies are the ones that do it all. They work ina lot of different places.

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Rockerfeller’sweakeness.

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He doesn’t understand public relations. Image. He starts working with the lube industry, lamps, in 1880 hebuyouts European kerosene distributors. He eventually got into Asia.