Executive Search · Headhunter · Oil & Gas · Energy

The History of the Oil & Gas Industry

Early times & antiquity - oil as a natural phenomenon

• Approx. 3000 BC: First use of bitumen (naturally escaping crude oil) in Mesopotamia - for waterproofing, medicine, construction (e.g. the Tower of Babylon).
• Oil was also used as a fuel or for military purposes in ancient Egypt, China and Persia.
• Gas deposits (e.g. in China) were fed through bamboo pipes to cooking stoves - an early form of gas utilization!

19th century - the birth of modern industry

• 1859: The American Edwin Drake drills the first “modern” oil well in Pennsylvania - considered the starting point of industrial oil production.
• Oil gradually replaces whale oil as fuel for lamps.
• The first refineries for the production of kerosene, lubricating oil, tar, etc. are built.
• First gas pipelines are built in the USA.

Early 20th century - motorization & globalization

• Cars, planes, war - the demand for petrol explodes:
  1901: Oil drilling in Texas (Spindletop) leads to a boom in the USA.
  1908: Oil in Persia - birth of BP (British Petroleum).
• Foundation of the “Seven Sisters” - the seven largest Western oil companies dominate the market.
• World War 1 & 2: Oil becomes a strategic resource.
• Establishment of large oil companies: Shell, Exxon, Texaco, Chevron etc.
• First tankers & international pipelines are built.

Post-war period & oil boom (1950s-1970s)

• Oil becomes the fuel of the global economy: energy source for electricity, heating, industry, transportation.
• Development of huge production areas in the Middle East, Russia, Africa and South America.
• 1949: Foundation of OPEC (Organization of the Petroleum Exporting Countries) - counterweight to Western corporations.
• 1973 & 1979: Oil crises (OPEC cutbacks & Iran revolution) - massive price shocks and energy policy upheavals in the West.

Late 20th century - control, conflicts & consumption

• 1980s-1990s: New production techniques (offshore drilling, deep drilling).
• Gulf wars & geopolitical tensions often linked to oil interests.
• Russia & Kazakhstan become new energy powers after the collapse of the Soviet Union.
• Oil price extremely volatile, strong dependence of many countries.
• Natural gas gains in importance: for electricity, heating, chemicals - often “cleaner” than coal and oil.

21st century - technology, fracking & energy transition

• 2000s-2010s:
  Fracking revolution in the USA - Boom in shale oil & gas, USA becomes an energy exporter.
  New offshore giants: e.g. Brazil, Norway, Arctic projects.
• Expansion of LNG (liquefied natural gas) as a more flexible alternative to pipelines.
• Environmental protection & climate change come into focus - protests against pipelines, tankers, drilling.

Today & future - between crisis and transformation

• Coal phase-out, green transformation: oil & gas are under political and social pressure.
• Major oil companies (Shell, BP, Total, Exxon) invest in renewable energies, hydrogen, CCS (carbon capture and storage).
• War in Ukraine (2022) massively changes global gas supply.
• Discussion about energy independence, security of supply & sustainability.
• Oil remains important in the short to medium term, but the future lies in clean energy.

Source (2025): ChatGPT - History of the Oil & Gas Industry