If coal fueled the machinery of the Industrial Revolution, oil powered the internal combustion engine and opened up unprecedented possibilities for humanity. The reach of oil’s capabilities in the 21st century is vast, enabling everything from moon landings and space exploration to a multitude of everyday products—from cosmetics and CDs to motorcycle helmets and aspirin tablets, all derived from petrochemical innovations. Oil has also boosted agriculture, supplying fertilizers and fueling tractors that increase crop yield, resulting in cheaper food. Beyond this, oil products have created the plastic materials we see in countless forms, colors, and applications.

Oil has reshaped history and the global economy. Over the past century, oil has sparked major economic shifts, even wars. The sheer diversity of oil-derived products has made industries worldwide heavily reliant on this valuable resource, solidifying oil’s role in the world economic system. Economies rich in oil reserves depend on its export, while oil-importing nations are affected by fluctuating oil prices. While the basic supply and demand principles in economic theory influence the oil market, geopolitical policies and strategic alliances play a significant role. Although it seems that global oil prices are primarily driven by supply levels due to high demand, various political and economic factors often shape oil pricing beyond simple market mechanics.