The first technological development that made a huge impact on the demand of oil was the automobile. Before the automobile was invented oil was mainly used for illumination, which was already being replaced by electricity. “The arrival of the motor car turned oil from an illuminant into the fuel of mobility.” New innovations were used in large scale military service like the “tank.” The tank showed up on the battlefield in 1916 for the first time. Oil was going to Europe to support the mobility of allied forces causing a gasoline famine in the U.S. during WWI. 1918 saw the highest gas prices ever recorded in the United States in inflation adjusted terms. Everyone thought we were going to run out of oil because of the surging demand growth between 1914 and 1920.
However, new technologies emerged and the most noteworthy being seismic technology. “Dynamite explosions set off sonic waves, enabling explorers to identify prospective underground formations and map geological features that might have trapped oil and gas.” This led to major new discoveries in the United States and other countries. “By the end of the 1920’s, instead of permanent shortage, the market was beginning to swim in oil. The discovery of the East Texas oil field in 1931 turned the surplus into an enormous glut: oil plunged temporarily to as little as ten cents a barrel.” Between 1978 and 1981 prices doubled and the world was said to be running out of oil again. Between the 1980s-1990s new