Petroleum and Its Relationship to Society

Petroleum and Its Relationship to Society

Petroleum is king among all fuels used by man. Aptly known as black liquid gold, it is critical to the effective operation of many industries so much so that its absence will mean the collapse of industrial civilization as we know it today. It is then no wonder that blood, sweat and tears have been poured into its exploration and exploitation since its discovery 5,000 years ago.

As we all know by now, petroleum is the naturally-occurring black flammable liquid contained in rock formations. Its molecular structure mainly consists of hydrocarbons with varying molecular weights and smaller amounts of organic compounds. In its unrefined state, petroleum was used to keep fires ablaze in homes as well as used in warfare for destruction.

Petroleum and its by-products’ importance in the world economy was characterized by slow development. Although it was used by man five millennia ago, the dominant fuel sources were whale oil, wood and coal until well into the 20th century. Its use was limited to a few applications in homes and offices.

And then came along the discovery of the extraction process whereby kerosene can be made from crude oil, which changed the game since kerosene was used for lighting, heating and cooking purposes. Other factors that led to the high demand for petroleum were the invention of the internal combustion engine, the increased use for plastic and the rise of commercial flight. Petroleum was soon in demand such that it is the most valuable commodity in the world market today.

Just how important is petroleum oil to living a modern lifestyle? Think about this: Approximately 90% of vehicular fuel needs come from petroleum oil with the rest distributed to solar power and other sources. You will be unable to get to your destination in the manner you were accustomed to if and when oil is absent in public transportation systems and in gas stations for your private vehicle.

Think about this as well: Petroleum provides 40% of the total energy consumption of Americans although only 1% is used for electricity generation. (Coal is the fuel of choice at 90%) If and when petroleum runs out, our lives as we know it will drastically change as well.

This critical importance in human society has given rise to geopolitics wherein each nation guards its vested interests against another nation. Many wars have been fought and even continue to be fought in the name of petroleum although not all of these wars necessarily involve armed conflict.

But those that do involve armed conflict take a toll on the people and the land, of which the Iraqi invasion of Kuwait was the most recent in memory. Other wars may be fought in boardrooms, trading floors and throne rooms of the small and big players of the petroleum industry.

Even the US government provides for a heavy public subsidy to support the petroleum industry along with major tax breaks on virtually all stages of the operation, all in the interest of keeping its oil reserves virtually untouchable by another oil crisis. The top oil-producing countries have banded together to protect their own interests, thus, producing an oligarchy.

And these instances illustrate the importance of petroleum to society.

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