The Rise of Oil: How Petroleum Transformed West Asia and the World

In the early 20th century, an oil hunt in Persia marked the beginning of a global transformation. In 1901, British entrepreneur William Darcy an Irish oil tycoon  secured a permit to explore for oil in Persia. Unable to go himself, he dispatched seasoned explorer George Reynolds, who spent seven years searching in vain. Darcy's finances were nearly exhausted, and only one last dig remained.

On May 26, 1908, Reynolds struck oil near Masjed Soleyman A gusher shot 75 feet into the air, marking the first major oil discovery in West Asia. Darcy’s company was named the Anglo-Persian Oil Company, later evolving into the Anglo-Iranian Oil Company in 1935, British Petroleum in 1954, and ultimately BP in 2000. This discovery triggered a global frenzy for oil, cementing petroleum as the world's most valuable commodity.

The Historical Roots of Petroleum

Petroleum usage dates back nearly 5,000 years, with early civilizations utilizing natural oil seeps. In ancient Iraq, locals referred to these seepages as the "Fountains of Pitch," using the resulting asphalt for construction and waterproofing. The Babylonians used it for ship repair, the Ottomans for jewelry setting, and the Egyptians even in mummification and pyramid construction. The Chinese, around 2,000 years ago, transported crude oil through bamboo pipes for heating and lighting. However, crude oil was not yet considered valuable.

That changed in 1854 with the invention of kerosene, which provided light and warmth. This spurred an oil rush in Pennsylvania, USA, where Edwin Drake pioneered a new drilling technique in 1859. His methods revolutionized the industry, enabling deeper and more efficient extraction. By the 20th century, oil had become an essential energy source, surpassing coal.

The Shift to West Asia

Until the 1940s, the United States dominated global oil production, supplying over 60% of the world’s petroleum. West Asia contributed only 5%. However, World War II changed everything. The war effort required vast quantities of oil, and concerns over depleting American reserves pushed Allied nations to explore other regions.

In 1932, oil was discovered in Bahrain, drawing attention to the Arabian Peninsula. By 1933, Saudi Arabia granted American companies drilling rights. Initially, efforts were unsuccessful, but in 1938, a major find at Dammam Well No. 7 changed the landscape. By month’s end, the well produced over 3,800 barrels per day, establishing Saudi Arabia as a key oil producer. This success led to the founding of the Arabian American Oil Company (Aramco) in 1944, backed by major U.S. firms such as Standard Oil.

The Political and Economic Impact

By the mid-20th century, oil had become a geopolitical weapon. During World War II, oil fields became strategic military targets. Italian planes bombed Saudi wells in 1940, while Hitler targeted Soviet oil fields in Baku. The immense value of oil led to growing Western control over West Asian reserves, dominated by seven major companies known as the "Seven Sisters."

However, resentment brewed among oil-rich nations. In 1960, Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela formed OPEC (Organization of the Petroleum Exporting Countries) to counter Western dominance and protect their revenues. In 1973, OPEC wielded its power during the Arab-Israeli War by imposing an oil embargo on nations supporting Israel, causing global prices to skyrocket by 300%. This led to a shift in control, with Saudi Arabia fully nationalizing Aramco by 1980.

The Legacy of Oil and the Future

Oil wealth fueled massive infrastructure projects in West Asia, lifting thousands out of poverty and transforming desert landscapes into bustling metropolises. However, it also brought foreign intervention, political instability, and wars fought over control of resources.

Today, the era of oil dominance is nearing its twilight. Climate change concerns and the push for renewable energy have forced oil-dependent economies to rethink their future. While oil still powers much of the modern world, nations across West Asia are investing in diversification, preparing for a post-oil era.

The story of oil is one of power, wealth, and conflict—an industry that reshaped economies, societies, and global politics. And as the world transitions to new energy sources, the legacy of petroleum continues to shape our future.