Lesson 1 Connection Video

Oil has been one of the most impactful and life-changing substances ever discovered by civilization.

It affects our lives every day, has helped shape the development of nations, influenced the course of world wars, driven regional conflicts, and altered the global economy.

We're talking about oil.

It is so integral to our daily lives and the economy that we often take it for granted—except when it is in short supply or prices rise dramatically. Then we quickly notice how important it is.

Welcome to Oil: International Evolution.

In this course, we will learn about the oil industry and how it has evolved over time. We will do this by working through two books by Daniel Yergin: The Prize and The Quest.

One of the things you may have already noticed in this lesson is that the history of oil is about much more than the resource itself. Unlike any other industry, oil has had a significant influence on the evolution of business and capitalism.

The oil industry has also shaped military strategy, influenced how nations think about national security, and affected how governments regulate industry.

Today, we are accustomed to major corporations such as Amazon, Apple, Microsoft, and Coca-Cola. However, many modern business practices were influenced by the oil industry. Likewise, many of the laws and regulations that govern competition and monopolies developed as a result of experiences during the early years of the oil business.

In this first lesson, we began in the mid-1800s, the birth of the modern oil industry.

We immediately saw how many uses oil has and how those uses have changed over time. During the early 1800s, oil was often discovered almost by accident. Today, we are discussing how renewable energy sources might replace fossil fuels.

In those early days, however, people were trying to replace whale oil, which was commonly used for lighting and lubrication.

As you move through this course, I hope you see it as more than a walk through history. Let me highlight a few key ideas that I hope you will keep in mind throughout the semester.

First, recognize that what happened in the 1800s directly influences the oil industry today and, frankly, our entire economy and way of life. Think about what you read and how it relates to your own experiences.

For example, why do gasoline prices seem to change constantly and fluctuate so dramatically?

Second, the birth of an industry requires perseverance, courage, the ability to accept failure, the determination to overcome seemingly insurmountable obstacles, and a strong entrepreneurial spirit.

Without the efforts of individuals who refused to give up, we would not enjoy the lifestyle we have today.

Third, society advances through innovation and experimentation. If people had accepted the status quo, we might still be lighting our homes with whale oil and traveling by horse.

Fourth, recognize that oil is foundational to national economies, national security, and the success of nearly every major industrial sector.

I have a personal connection to this industry. I am a petroleum geologist, and I began my career working in oil and gas exploration and production for Mobil. Today, you know that company as ExxonMobil.

Throughout this course, we will learn how companies such as Mobil and ExxonMobil came to exist.

I worked in this sector during the 1980s, and in future lessons we will discuss what was happening in the industry at that time. I also hope to share some personal experiences that will help bring the material to life and provide additional context for what you are reading.

I look forward to walking with you on this exciting journey.