The U.S. Geological Survey predicted America’s oil supplies would run out in 20 years. It was not the first nor last false alarm. Warnings of shortages were made for most of the 20th century, according to A Case History of Oil-Shortage Scares, a 1950 report that documented six claims prior to that year alone. (more…)
In a sign of the growing power of John D. Rockefeller at the end of the 19th century, Standard Oil Company brought a decisive end to Pennsylvania’s highly speculative — and often confusing — trading markets at oil exchanges.
On January 23, 1895, the Standard Oil Company’s purchasing agency in Oil City, Pennsylvania, notified independent oil producers it would only buy their oil at a price “as high as the markets of the world will justify” and not necessarily “the price bid on the oil exchange for certificate oil.” The action would bring an end to the “paper oil” markets of brokers and buyers.
Every year in densely wooded Cherry Grove, Pennsylvania, community members celebrate a 19th-century oil well and its place in American petroleum history. Led by local and visiting oil patch historians in June 2024, the Cherry Grove Old Home and Community Day featured tours of the well that once shook global petroleum markets.
When daily oil production from the “Mystery Well” was revealed in 1882, oil prices plunged worldwide. The discovery well drilled on lot 646 in the wilderness of Warren County had been a closely guarded secret. (more…)
