The Seneca Oil Company - 2052 Words

In 1859 Edwin Drake and E. B. Bowditch of the Seneca Oil Company drilled the first commercial oil well in the United States in Titusville, Pennsylvania. The well produces about 500 gallons of oil a day and over time has increased. Soon, similar wells all over western Pennsylvania were providing crude oil for kerosene production that was needed to fuel the nation s streetlights and house lamps. â€Å"The lighter boiling component, gasoline, was discarded, since it had no market. There are historical reports that waste gasoline, which had been dumped into rivers, sometimes caught fire. In 1892 the first gasoline-powered engines, for both car and tractor, were developed: This soon provided a market for the once useless substance, gasoline†Ã¢â‚¬ ¦show more content†¦But the key fact that’s missing from all the ranting and raving is the rate of inflation. â€Å"The simple definition of inflation according to Dictionary.com is: â€Å"A rise in the general level of price s of goods and services in an economy over a period of time†. At the end of World War I, average annual income was only $1,500. Currently, annual income is around $50,000† (Samuel R. Avro 2015). Gas prices in 1917 were $0.17 and fell dramatically over the next few years due to the process of inflation and stock market crashes. In 1931 as nominal prices fell from 30 cents a gallon in 1920 to 17 cents in 1931. In 11 years prices fell 43%. But we have to remember that 1931 was the beginning of the â€Å"Great Depression† and overall prices fell 24% during the same period. More interesting than that, gas prices due to inflation were actually cheaper in January 2015 than they were in the Great Depression. Although the Great Depression left many in debt, foreclosure and struggling from day to day, gas was still one of the most prominent things purchased. Buses, fairies, and taxis gained more publicity but gas still took over. The demand for more vehicles caused the demand for more gasoline. There was a need for new and more unique fuels to go along with the new kinds of vehicles being made at the time. In the 20th century, vehicles that were being accessed by people required some but not many fuels that caused the need for petroleum to be used as a raw material.