Monday, July 26, 2010

Biz - Standard Oil saved the Sperm Whales?

I’ve been very slowly reading “The Prize” by Daniel Yergin which chronicles the development of oil. In the 19th century, lighting was provided by whale oil and not petroleum. There was no electricity at this point. Sperm Whales were being hunted to extinction.



Specifically, “Abraham Gesner saved more whales than Green Peace ever will. In 1849, Gesner devised a method to distill kerosene from petroleum. In 1846 there were 735 ships in the whaling fleet. Thirty years later, in 1876, the fleet was down to 39 ships. Kerosene had taken over the whale oil market.” (See the link below.)

Abraham Gesner

But kerosene was far more dangerous than whale oil. It was prone to be as explosive as gunpowder and was responsible for many injuries and fires. John D. Rockefeller addressed this problem by developing a standardized from of kerosene that was safe and reliable. Hence, the name “Standard” Oil. Consumers knew it was safe. Rockefeller made a fortune on kerosene. That pesky by-product, gasoline was discarded or sold as a lubricant.

Rockefeller developed the refining and distribution systems both domestically and internationally. He was so efficient and ruthless he created a monopoly which was eventually broken up by the United States Government.

Thomas Edison developed electricity that replaced kerosene for lighting but Henry Ford mass produced automobiles that began an insatiable thirst for gasoline.

[Picture credit to itsnature.org]

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