History of oil well planned

The earliest known oil wells were drilled in China in 600 B.C. These wells had depths of up to
about 240 metres (790 ft) and were drilled using bits attached to bamboo poles.The oil was
burned to evaporate brine and produce salt. By the 10th century, extensive bamboo pipelines
connected oil wells with salt springs. The ancient records of China and Japan are said to contain
many allusions to the use of natural gas for lighting and heating. Petroleum was known as
burning water in Japan in the 7th century
The history of oil well drilling in United States(US) begins in the mid 1800s,at the time of
industrial revolutiom.it was a time when people need something bether than candles to work and
read by.One of the best oil to burn in the lamp is sperwhale oil.It was clear well,nearly orderless
light in weight and burnt with little smoke.But that whale oil can only offered by wealthy person
so it is time to give something inexpensive and more lastly than whale oil.
At the time 1854 New York professor named George Bissell received a sample of unusual liquid
from creek that flow through woods of Crawford and venango countiesin northwesteren of
Pennsylvania.The liquid was good lubricant and was of course oil.As it flows through rock
people call it Rock Oil.Indeeed so much oil is flowed and settled in creed so named it Oil
Creek.The same sample came from land just southeast of the town of Titusville where oil come
from the rock as spring.
The Drake Well
After studying the sample the Bissell was convineced that this liquid is one of best for lighting
than at that time known.Bissell started collecting money.One beg problem that time was that
from the spring of oil people can only retrived about 1 gallon.It was difficult proposal for
company to drill and go for risk.At that time drilling was not knew for people.They drilled salt
wather well in Titusville that some also produced oil whixh is danger for them as it contaminate
the salt.The company hired Edwin L.Drake to care the project at Titusville.He was unemployed
road conductor and he has a lot time to give to project.
By spring of 1859 Drake employed William A.Smith to be his well driller,an experienced brine
well driller.The first thing Drake and Smith did ,they drive steel pipe through a soft surface to
bed rock,usually running todays drilling called casing,in order to prevent soil come to the
hole.They built a drilling rig,run a drilling tool inside casing and drill a rock.At august 26,1859
Drake and smith had drilled the hole to a depth of about 69ft(21m).Smith noted that the bit
suddenly droped but it was quitting time so they would start wok on Monday.At Sunday Smith
decided to look at the well.When he looked at top of casing the oil comes at the top.It was filled
up with oil.It was first successful oil well in US.Noone sure that how much oil was produced,but
it was probably around 800 to 1200 gallon(about 3000 to 4800liters) per day.News has spread
repeadtly and dozens of well was drilled afther.Soon rock oil used in machinery and as a lamp
source stand longer lastly.
The OPEC Era
Beginning in the 1950s, numerous shifts occurred that transferred control over oil and gas
production and pricing from “Big Oil” and oil-consuming countries to oil-producing countries.
The governments of many oil-producing nations, particularly in the Middle East and South
America, saw the Integrated Oil Companies (IOCs) operating there as instruments of their
countries of origin (usually the U.S. or European countries). For both economical and
geopolitical reasons, the leaders of the producing countries began asserting their authority for
control of their countries’ oil and gas resources (and associated wealth).
To signify their newfound authority, in 1960 the governments of Venezuela, Saudi Arabia,
Kuwait, Iraq, and Iran founded the Organization of the Petroleum Exporting Countries (OPEC)
for the purpose of negotiating with IOCs on matters of oil production, oil prices, and future
concession rights.OPEC had little impact during its first decade of existence. The tide turned in
the early 1970s with the confluence of rising energy demand, re-negotiation of terms of business
in Libya by Muammar al-Qaddafi, and the fourth Arab-Israeli war.
Note that Saudi Arabia has the majority of OPEC reserves, followed closely by Iran and
Venezuela. Outside OPEC there are other large oil reserves, including the North Sea (controlled
by the UK, Norway, Denmark, Germany, the Netherlands), Canada’s oil sands and deepwater
reserves off of Brazil and in the Gulf of Mexico.OPEC, based in Vienna, was created primarily
in response to the efforts of Western oil companies to drive oil prices down. OPEC allows oil-
producing countries to guarantee their income by coordinating policies and prices. Membership
in OPEC gives a country prestige in the eyes of the global community. Today, members of
OPEC are: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia,
United Arab Emirates, and Venezuela.
The National Oil Company Era
Tightening supplies, growing demand, high crude oil and natural gas prices, and a changing
geopolitical climate contributed to the growing dominance of national oil companies. This new
world has become increasingly complex and political, with Venezuela and Russia as
representative examples.Hugo Chavez’s decision in 2007 to abandon production agreements and
other forms of collaboration with IOCs in Venezuela has tightened control of PDVSA’s (The
National Oil Company of Venezuela) current production and access to reserves by the
government.
The same is essentially true in Russia, where the government has strengthened the position of
Gazprom, the state-controlled gas conglomerate, to the point of reneging on contracts with
IOCs.The dramatic change in the balance of control over the global oil and gas business is
illustrated by the two pie charts, The New Leadership – NOCs. In 1972, IOCs and major
independents accounted for 93% of the world’s production, while NOCs accounted for 7%.
Today the balance is all but reversed, with NOCs now controlling 73% of a much larger pie of
world oil and gas production.