The Ford Model T
The rise of oil’s big three, part 2: The start of the oil age
In the second part of our history of oil special on the ascent of the US, Russia and Saudi Arabia, we examine the early years of the age of oil
The turn of the 20th century saw intensified market competition. New sources of oil were found in the US, attracting fresh entrants, and demand for petroleum products significantly shifted in favour of mobility and manufacture. The US saw substantial new discoveries of oil in the Gulf of Mexico, Mid-Continent, Illinois and California. The output in the first two decades increased at an astonishing rate of about 45% a year. Growing demand kept the oil prices steady, while the introduction of a rotary drill and increased use of the science of geology significantly increased productivity. In the Gulf area, wells of more than 1,000ft were being drilled in days. It resulted in gushers such as the
Also in this section
4 December 2025
Time is running out for Lukoil and Rosneft to divest international assets that will be mostly rendered useless to them when the US sanctions deadline arrives in mid-December
3 December 2025
Aramco’s pursuit of $30b in US gas partnerships marks a strategic pivot. The US gains capital and certainty; Saudi Arabia gains access, flexibility and a new export future
2 December 2025
The interplay between OPEC+, China and the US will define oil markets throughout 2026
1 December 2025
The North African producer’s first bidding round in almost two decades is an important milestone but the recent extension suggests a degree of trepidation
