Friday, January 23, 2026

History of Oil Production and Crude Oil Products

I also have some notes on the history of the retail side of the oil business.

Pennsylvania History Buff posted
August 27, 1859 - Petroleum is discovered in Titusville, PA, leading to the world's first commercially successful oil well.
** Below is a photo of Edwin L. Drake, right, standing with friend Peter Wilson at the drilling site of the first commercial oil well in Titusville, PA.

That well has been preserved in the Drake Well Museum & Park.
Ronald MacDonald, Mar 2023

The world's largest refinery, Eclipse Oil, was built a little downriver in Franklin, PA.
𝗥𝗲𝗺𝗲𝗺𝗯𝗲𝗿 𝗪𝗵𝗲𝗻: 𝗣𝗲𝗻𝗻𝘀𝘆𝗹𝘃𝗮𝗻𝗶𝗮 and Ohio posted via Dennis DeBruler

1959: Drakes First Oil Well
I knew that Col Edwin Drake drilled the first oil well in 1959 near Titusville, PA. What I did not know is that nearby Pithole City surpassed all the other oil boomtowns in area.
For about 500 days beginning in 1865, Pithole City, named for nearby Pithole Creek, became a town of up to 20,000 drillers, speculators, roustabouts, muleskinners and the usual cast of characters sucked in by the gravitational pull of oil and money.
Hotels, bars, banks, music halls, boarding houses, bawdy houses, even a church or two were thrown up overnight on leased land with the cheapest of materials. The world’s first oil pipeline was built connecting the Pithole oil fields to the new railroad depot a few miles away, putting thousands of muleskinners and wagon drivers out of business (after a few attacks on the pipeline, of course).
The post office was the third-busiest in the state, behind Philadelphia and Pittsburgh. The Pithole Daily Record newspaper kept residents abreast of the latest oil strikes. [www.dispatch.com]
Canvas Art posted
America’s first oil field, Titusville, Pennsylvania. Photograph by John Mather, c.1859. Source: Archive Photos via Getty Images
Did you know Colonel Edwin Drake, a prominent New York entrepreneur, is credited with drilling the first oil well in the United States. This historic event took place in 1859, situated at the intersection of Oil Creek and Pioneer Run, southeast of Erie. Subsequently, during the mid-1860s, numerous other wells began to dot the landscape in that vicinity. Note the signage for the intriguingly named, The Shoe & Leather Petroleum Company.
Emily Weaver: There are some inaccuracies with this post. Drake's Well was drilled alongside Oil Creek in Cherrytree Township, Venango County. It was NOT at the "intersection of Oil Creek and Pioneer Run." The image in this post is of Pioneer, an oil boom town that eventually became a ghost town. Pioneer was located south of Titusville...so to say this is an image of a "Titusville oil field" is not accurate....unless you were just trying to generalize the area and say that anything within 15 to 30 minutes of Titusville was a "Titusville oil field."
Also Edwin Drake was far from a "prominent entrepreneur." His employers could have held that title as they were entrepreneurs - not all from New York though. Drake was a train conductor who was on medical leave and selected by the Seneca Oil Company because he had a free railroad pass (and a few other things). He was sent to Titusville by the company to drill a well on their property. I strongly recommend that you visit Drake Well Museum and Park or go to www.drakewell.org.
Gary McCall: Emily Weaver And the well was drilled by William A. Smith.
Tom Doyle: The well was drilled on the Kingsley Farm below Watsons Flats, Thats not always mentioned much in the History , And Emily is correct on this picture , Pioneer was closer to Petroleum Center than the Drake well.
History Photo's posted
Photograph: America’s first oil field, Titusville, Pennsylvania. Photograph by John Mather, c.1859. Source: Archive Photos via Getty Images
Did you know Colonel Edwin Drake, a prominent New York entrepreneur, is credited with drilling the first oil well in the United States. This historic event took place in 1859, situated at the intersection of Oil Creek and Pioneer Run, southeast of Erie. Subsequently, during the mid-1860s, numerous other wells began to dot the landscape in that vicinity. Note the signage for the intriguingly named, The Shoe & Leather Petroleum Company.

But the oil quickly ran out and the town disappeared. But there is a historical site.

The picture of barrels reminds me that during most of the 1800s, tank cars had not been invented. A shipper could choose boxcars, gondolas, or flatcars.

1901: First Texas Oil Well
In this article pause the video and just read the text. The video, after a painfully long commercial, is about all sorts of things that happened on Jan 10. The article describes the discovery of oil at Spindletop. By 1901, Rockefeller had created his monopoly by buying most of the wells in Pennsylvania, Ohio. etc. But after this Jan 10, 1901 gusher proved there was a lot of oil in Texas, new wells were brought online faster than Rockefeller could buy them. Companies formed in Texas ("Humble (now Exxon), the Texas Company (Texaco) and Magnolia Petroleum Company (Mobil)") that could compete with Standard Oil after it was broke up. In the 1800s, oil was used for kerosene in lamps and refined for lubricants of the many machines that were built in the 1800s as part of the industrial revolution. But the invention of the electric light bulb killed the market for kerosene. Fortunately for the oil companies, the development of the internal combustion engine around the turn of the century created an even bigger market for oil.

By the 1950s, the Spindletop fields had been drained. And foreign companies in the Middle East and elsewhere discovered big reserves. In the 1970s, they organized OPEC and could control the supply of oil. Not only did the price of gas go up, filling stations limited the amount of gas they would pump. I remember sitting in a long line on a street during the few hours that a station was open hoping I would get through the line before the station closed. Thank goodness, at that time, my commute to work was just 1 mile rather than 30 miles to a Chicago office. Portable terminals had yet to be developed so working from home was not an option.

The higher prices that OPEC forced on the world made secondary oil recovery and new exploration economical in US. Russia also started exporting oil in significant quantities. And the Alaska pipeline helped break the OPEC monopoly.

But the booming economy in China and the rest of the world made supplies tight again and we saw gas prices over $4.00. Then we had the recession of 2008, the development of shale oil fracking and Canadian oil sands. But why the prices stayed high for years than collapsed in a time peroid of weeks continues to confuse me because the new production of shale oil and oil sands took at least a couple of years to ramp up. Why didn't the price come down slowly as the additional supplies were put online? Various wars in the Middle East would move the price a few dimes, but they don't account for the price falling 50%. Saudia Arabia refusing to cut output had an impact on the fall. But I assume they kept their output the same as the new wells came online, so that doesn't account for the sudden drop. Maybe the announcement by Saudi Arabia that they won't cut output because they wanted to hold market share spooked the oil traders into realizing the world's oversupply was permanent. 

When we were seeing gas prices over $4, the price-per-barrel of raw crude was over $100 (peaked at $107.95 in June 2014). That price bottomed below $30 in February, 2016. [June, 2016, BlackSwans]

But we may never see the price go above $60 again. One reason is that at $60/barrel, it becomes economic to restart development of most shale fields and oil sands. [Financial Times] The graph below is rather fascinating. I noticed Onshore Opec is $40. But then I noticed that this is an average. Is Saudi Arabia significantly below that or have they already drilled all of the cheaper wells? I also note that the Bakken field is one of the more expensive shale-oil fields, and it is more expensive than oil sands. I wonder where BP's deepwater development  in the Gulf of Mexico would have been on this chart if they did not have the blowout. Also, how deep is Brazil and Angola's wells compared to what BP was trying to drill? I've seen an article about how many wells in the North Sea are going to have to be decommissioned in the upcoming decades. Evidently that field is getting played out and the economics of "Europe shallow water" is becoming worse. I wonder if the North Slope of Alaska is one of the unlabeled offshore dots. And I would like to know which dot(s) represent Russia.
Financial Times

[Peak Oil Demand] did not teach me much. But it did get me to thinking about where does the price of oil go from $50? Saudi and Russia can't let it go back down to $30 again because they were reminded that their economy is now too dependent on oil income. They had to cancel/postpone some of their big-buck projects. If they hold it at $50, they would crush deepwater producers, half the shale fields, Europe shallow water, and oil sands production. But if they put that much production out of business, prices would go way up again. That would drive people to the alternatives such as E85, especially since cellulosic ethanol has been developed; wind (although I have read that most of the good wind locations have already been developed); solar (maybe, I don't think any of the companies that the Federal Government poured money into had any success); more efficient cars; propane and/or LPG locomotives, trucks and buses; people moving back to the city and using public transportation; cities reusing rail infrastructure by adding light-rail lines; ride sharing; an unsustainable global GDP growth [Growth Decline]; reduction of brick-and-mortar activities: working from home with "hotel" space in the office, 3D-printing, not hanging out in a mall, etc. [Third Industrial Revolution]; etc. Too many viable alternatives, would crash the oil industry. Cheap natural gas as an alternative to coal for electric power plants along with another round of environmental regulations has made the coal industry an example of how quickly an industry can collapse. (The last deep-pit mine in England has closed. They still have surface mines, but a big factor in the closure of deep-pit mines was the increase of imports. [BBC] All of the large, publicly listed American coal companies have filed for bankruptcy: Peabody Energy, Arch Coal, Alpha Natural Resources, Patriot Coal and Walter Energy. [WSJ])

I just recently read that sales are down in malls because teenagers are no longer going there to "hang out." They spend their time on social media in their room rather than go to the mall. And how many now stream a movie rather than go to a movie theater? In the 1950s, when gas was really cheap, teenagers used to cruise on Friday and Saturday nights and go to drive-in movie theaters.

Also, Americans have demonstrated that gas prices have some elastic. They switch between buying hulking SUVs and trucks vs.  small and hybrid cars depending on the price of gas. And soon electric cars may be a viable alternative. Florida, Las Vegas, and the airlines learned that Americans will find places to visit that are closer to home when the price goes up. They even coined the term "staycations." That is, skipping the annual travel vacation and finding something different/interesting to do near home.

A couple of years ago, I bought my third minivan, and it has flex-fuel. I started using E85 because gas was around $3 and E85 was just less than $2. But when the price of gas went below $2, E85 still stayed in the $1.90s. I figured out that E85 needs to be less than 80% of the price of gas to be more economical because of the reduced gas mileage. So I quit looking at E85 prices. But when I noticed that E85 was down to $1.40s, I started looking again. At my last fill up, gas was $2.39 and E85 was $1.69. 80% of 2.39 is 1.91, so I bought E85 again. I wonder what percentage of the engines on the road now are flex-fuel. Unfortunately, I just read that using ethanol causes the intake valves to become dirty. When I am in Kentucky, I do buy Shell because it is competitively priced down there. And I got my best gas mileage ever (30 mpg in a minivan travelling a 79 mph) when I had a tank of Shell. Hopefully, its additives will keep my intake valves clean.

I wrote the above several years ago. This draft got kinda lost. Now, Aug 2023, gas is above $4 again. But I don't know why. We have had some general inflation, the past few years, but I don't think accounts for the increase.

Industrial Engineering World posted
Crude Oil Products with Different Temperature 
[Now, if they start with tar sands from Canada instead of liquid crude oil, they get petcoke at the bottom instead of asphalt.]
Dave Durham shared
Chemistry : The Mystery of Molecules posted
Jimmy McCauley posted
Justin Biscoe: They haven't used fractional distillation since before world war 2... Molecular cracking is how it's done now.
Ken Newman: Justin Biscoe distill then crack.
Justin Biscoe: Ken Newman not really, you limit your choices, the reason why we crack is because we get more petrol than the otherwise would and this is become more important over the years, and less black sludge which is only useful for tarmac, the modern solvents are easier to synthesize from methane than wasting it from distilling crude.
Martin Hardy: Justin Biscoe Does the cracking process mean that to obtain a certain amount of petrol you don't need to refine a proportionate amount of diesel as a by-product? I had the understanding that if petrol demand rises faster than diesel demand than the refining process would lead to a glut of cheap diesel? Does the cracking process mean that actual market demands for petrol and diesel can now be met without over-production of diesel as a by-product of petrol ?

Illinois Petroleum Resources Board posted
Did you know? The Texas Independent Producers and Royalty Owners Association's latest State of Energy report shows Illinois ranks 9th in the United States in total oil and natural gas industry jobs. TIPRO projects the Illinois upstream, midstream and downstream oil and gas industries combined to generate $23.7 billion in gross regional product in 2022 and directly employ 20,431 people. TIPRO shows that Illinois added 362 oil and gas industry jobs in 2022, including 93 exploration and production industry jobs (Note: the latter figure does not include independent contractors, which have traditionally accounted for about half of Illinois' exploration and production industry jobs). Check out IPRB's updated Illinois Oil and Natural Gas Industry By the Numbers infographic for more facts on the state's oil and gas industry.

Illinois Petroleum Resources Board posted
Did you know? The United States consumes more than 20 MILLION barrels of oil per day. Here’s a breakdown of how that 20+ Million BPD was consumed in 2022 by refined petroleum product.
 Find out more here: https://iprb.org/industry-facts/petroleum-products/

From Quarks to Quasars posted
North America is sitting on vast oil reserves.
The United States, Canada, and Mexico together control some of the largest proven oil reserves on Earth. Canada alone ranks among the top three globally, largely because of its vast oil sands in Alberta. Those reserves are estimated at about 170 billion barrels of recoverable crude oil.
The United States holds roughly 40 to 50 billion barrels of proven reserves, concentrated in Texas, Alaska, and the Gulf of Mexico. Advances in hydraulic fracturing and horizontal drilling over the past 15 years unlocked shale formations like the Permian Basin, turning the U.S. into the world’s largest oil producer.
Mexico adds roughly 6 to 8 billion barrels of proven reserves, primarily offshore in the Gulf of Mexico. While smaller than its northern neighbors, Mexico’s reserves remain strategically important for regional energy markets.
In total, North America accounts for well over 200 billion barrels of proven oil reserves. For perspective, one barrel contains 42 gallons (159 liters). That means the continent holds trillions of gallons of recoverable crude.
But “proven reserves” does not mean unlimited supply. The term refers to oil that can be economically extracted using current technology and under present market conditions. As prices rise or technology improves, reserve estimates can change.
Oil from these reserves fuels transportation, powers industry, and underpins petrochemical manufacturing. Yet it also sits at the center of climate debates, as burning fossil fuels releases carbon dioxide that drives global warming.
North America’s oil wealth has shaped geopolitics, economic growth, and energy independence. The question now is not just how much oil remains underground, but how long the world will rely on it.

Oil and Gas World posted
🇺🇸⚙️ Key Process Units of an Oil Refinery
An Engineer’s Quick Guide
An oil refinery is a living system of unit operations and chemical reactions — tightly linked by mass, energy, and momentum balances.
From crude oil entry to clean fuels at the battery limit, every process unit exists to separate, convert, treat, or recover value.
This infographic highlights 11 essential refinery units:
CDU, VDU, FCC, RFCC, RHU, SRU, ISOM, ARU, NHT, DHDS, and PRU — with clear descriptions for fast technical recall.
🛢️ What Each Unit Fundamentally Does
• CDU (Crude Distillation Unit): Primary separation using relative volatility
• VDU (Vacuum Distillation Unit): Lowers boiling temperature by operating under reduced pressure
• FCC / RFCC: Catalytic cracking driven by reaction kinetics and heat balance
• RHU / DHDS / NHT: Hydrogen-based impurity removal and feed upgrading
• ISOM (Isomerization Unit): Octane enhancement via molecular rearrangement
• ARU / SRU / PRU: Gas treating, sulfur recovery, and tail-gas cleanup
📐 Core Engineering Equations
1️⃣ Overall material balance (steady state):
Σmᵢₙ = Σmₒᵤₜ
2️⃣ Component balance:
Σ(mᵢₙ · xᵢₙ) = Σ(mₒᵤₜ · xₒᵤₜ)
3️⃣ General energy balance (steady state):
ΣQ − ΣW + Σ(mᵢₙ · hᵢₙ) = Σ(mₒᵤₜ · hₒᵤₜ)
4️⃣ Fenske equation (minimum distillation stages):
Nmin = ln[(xD/(1−xD)) / (xB/(1−xB))] / ln(α)
5️⃣ Dalton’s Law (key for ARU & gas systems):
Ptotal = ΣPi
6️⃣ Reaction rate (FCC / hydrotreating simplified):
r = k · Cⁿ
7️⃣ FCC conversion:
Conversion (%) = [(Fresh Feed − Unconverted Oil) / Fresh Feed] × 100
8️⃣ Hydrogen consumption (hydrotreating – simplified):
H₂ consumed ≈ k × (Sulfur removed + Nitrogen removed)
9️⃣ Heat exchanger duty:
Q = m · Cp · ΔT
🔟 Vacuum distillation principle:
Lower pressure → Lower boiling temperature
⚙️ Why This Matters
✔️ Better troubleshooting starts with strong material & energy balances
✔️ Energy efficiency begins with understanding Q and ΔT
✔️ Yield optimization is rooted in kinetics and thermodynamics
✔️ Every refinery acronym connects back to a balance equation
📘 Whether you're a process engineer, refinery operator, or energy professional, this technical snapshot highlights the systems that turn crude oil into clean, high-value fuels.
Behind every refinery unit is an equation — and an engineer making it work. 💪🔥

Is the Vacuum Distillation Unit in the above process the reason they don't produce the heavier distillants shown in most diagrams like this one?
Tim Byrne posted
I never looked at it from this angle before. Interesting. Not sure of the accuracy but still interesting.
Jason Bristol: If you're going by density or weight the purple part for plastics should be below diesel I'm pretty sure.
Dennis Slodysko: K1 ? [I presume that K1 is kerosene. I also noticed that it was missing. Kerosene is similar to Jet Fuel, but not the same.]
Carl Ballinger: there's also, what's called process gain, a barrel of oil, will produce more than a barrel, combined
Lorne Middleton: Canadian crude can contain up to 3.4 to 3.9 % Sulphur
West Texas crude 0.24%
Tapis crude. 0.03%
So Canadian oil from the oil sands is a lower price and quality than others including Brent
[As some comments indicated, the output products are based on the input crude and the refinery processes.]
Comments on Tim's post

Oil and Gas World posted
🇺🇸🛢️ What’s Made From a Barrel of Crude Oil?
In the United States, one 42-gallon barrel of crude oil doesn’t just stay 42 gallons — refining creates about 44–45 gallons of useful products due to processing gain.
Here’s how it typically breaks down (U.S. EIA data):
⛽ 45% Gasoline (~19–20 gallons)
Powers cars & light trucks across America.
🚛 29% Distillate Fuel Oil (~12–13 gallons)
Includes diesel for trucks, buses, trains & heating oil.
✈️ 9% Jet Fuel (~4 gallons)
Keeps aviation moving.
🔥 4% Liquefied Petroleum Gases (~2 gallons)
Propane & butane for heating, cooking & petrochemicals.
🛣️ 3% Asphalt & Road Oil (~1–1.5 gallons)
Used in paving roads & roofing.
🧪 10% Other Products (~4–5 gallons)
Lubricants, plastics, waxes, solvents, petrochemical feedstocks & more.
From highways to homes, from flights to freight — crude oil fuels modern life in more ways than most people realize.
📊 Source: U.S. Energy Information Administration (EIA)
🌎 Oil Gas World

I had passed up a similar figure, but the temperatures were different. I remember that the maximum temperature on that one was 350.
Engineering & Science posted
Crude oil, also called petroleum, is a thick, dark liquid found underground and is made up of many hydrocarbons, which are molecules of hydrogen and carbon. Since different hydrocarbons have different boiling points, they can be separated using fractional distillation. In this process, crude oil is heated in a furnace until it vaporizes and then enters a tall fractionating column. The column is hottest at the bottom and coolest at the top. Hydrocarbons with high boiling points stay near the bottom, while those with lower boiling points rise to the top. This allows us to collect different products at various levels.
Gasoline, also called petrol, is one of the lightest fractions. It has a boiling range of 40–205°C and is collected near the top of the fractionating column. Gasoline is highly flammable and volatile, making it ideal as fuel for cars, motorcycles, and small engines. Its light nature allows it to vaporize easily, which is important for engine combustion.
Naphtha is slightly heavier than gasoline, with a boiling range of about 60–200°C, and is mostly used in the chemical industry. It is a light liquid that vaporizes easily and is an important raw material for making plastics, synthetic fibers, and other chemical products. Naphtha collects a little lower in the fractionating column than gasoline.
Paraffin, also called kerosene, is collected in the middle of the column. Its boiling range is 150–300°C. Paraffin is used as jet fuel, for lamps, and in heating or cooking. It is less volatile than gasoline and naphtha, burns steadily, and provides a good source of energy for various applications.
Diesel oil is heavier, with a boiling range of 250–350°C, and collects further down the column. Diesel is used as fuel for trucks, buses, trains, and some cars. It is thicker than kerosene and burns with more energy, making it suitable for engines that need high efficiency and torque.
Fuel oil or heavy oil has a boiling range of 300–400°C and is collected near the bottom of the fractionating column. It is thick, viscous, and burns slowly. Fuel oil is mainly used in large ships, power plants, and industrial boilers where high energy output is required.
Lubricating oil is even heavier and has a boiling range of 350–600°C. It is used to reduce friction in machines and engines. Its viscosity allows it to coat surfaces, making engines run smoothly and last longer.
The heaviest fraction is bitumen, which has a boiling point above 600°C. Bitumen is a very thick, sticky substance mainly used for making roads, roofing, and waterproofing. It remains at the bottom of the fractionating column because of its very high boiling point and density.


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