The sun was able to provide all energy requirements before the Industrial
Revolution because animals furnished transportation, farming, and food and
wood was a source of fuel for heating and cooking, and provided building materials.
The ultimate source of the energy in wood and animals is the sun.
A civilization requires energy for heating, cooking, transportation,
and industry.
Nations that did not have a source of fossil fuel, specifically coal,
did not participate in the Industrial Revolution.
The shift from wood to coal was caused by a decline in the local supplies
of wood, mainly in Europe and North America. Also, coal has more energy per
unit weight and was more easily transported.
World War II greatly increased the energy demand for manufacturing
and transportation, resulting in the construction of federally financed oil
pipelines from refineries in the southwest to factories in the east. After
the war, the pipelines were sold to private companies which converted them
for the transport of natural gas.
The government encourages the consumption of gas and oil by subsidizing
transportation and storage facilities and by regulating prices.
Initially, 90 percent of the natural gas produced from oil wells was
burned off as waste because there was little demand for the product and a
lack of transportation and storage facilities.
The initial use of oil was to make kerosene or lamp oil. The automobile
dramatically increased the demand.
Civilization uses energy for residential and commercial uses, transportation,
and industry.
The Organization of Petroleum Exporting Countries (OPEC) controls
over 75% of the world's oil reserves. They have the power to fix production
and prices according to their economic and political needs. As the demand
for foreign oil has decreased, OPEC nations have been unable to repay loans
to western banks, thereby causing financial loss to the lending institutions
which in turn "trickles down" through the economy.
The taxes paid on gasoline are low in the United States compared to
other countries. Therefore, gasoline usage is higher in the United States.
OPEC countries control much of the world’s oil and therefore, have the ability
to determine oil prices. Political pressures have been brought to bear on
OPEC to increase production when oil prices rise. Economic downturns result
in less energy use and prices fall.
