Lecture2
•
0 likes•368 views
This document discusses the history and development of the oil industry and how it led to modern innovations. It traces the early use of whale oil for lighting and how demand outpaced supply, driving the search for alternatives. The development of the petroleum industry is covered, from early distillations of crude oil in the 1840s, to drilling for oil in 1859 and the founding of Standard Oil in 1870. It also discusses how innovations in electricity, the internal combustion engine, and jet engines were enabled by access to oil and its refined products. Overall it shows how the combination of different types of capital, including financial, physical, human, and intellectual capital, along with cultural and entrepreneurial influences, led to wealth creation through new innovations over
Report
Share
Lecture2
- 2. Questions?
- 3. 1. Where is the iPhone made? 2. Can you drop an exam in this class? 3. What percentage score do you have to earn in order to get a C+ 4. What day is our first exam? 5. Is scarcity the same thing as poverty? 6. How many hours a week will you invest on homework for this class? 7. What does it mean to optimize your tradeoffs? 8. What percent of the working population were farmers in the U.S. in 1800? 9. What is the ultimate resource? 10. How many people were on the planet in 1800? 11. According to Angus Maddison, when did the world change? 12. Where was the iPhone designed ( trick question) 13. Who is Malcom McLean (Google question)
- 5. What does it cost to ship an iPhone from China to the U.S?
- 6. What does it cost to ship an iPhone from China to the U.S.? 54¢ 450,000 iPhones cost about $242,000 to charter Fuel accounting for more than half the expense. 44,700 gallons
- 8. How many miles does an iPhone travel before you get it?
- 10. Two cameras, a video recorder, a digital compass, a satellite- navigation system, a barometer, a fingerprint scanner, a high- resolution color display, an LED flashlight, touch sensors, a stereo system, a motion sensor/ game controller, encryption circuits, an array of radio transmitters that connect via WiFi, Bluetooth and near-field communication bands, and, last and also least, the guts of a cellular telephone.
- 11. How many miles does an iPhone travel before you get it? 500,000 miles https://www.wired.com/2016/04/iphones-500000-mile-journey-pocket/
- 12. Defeat Darkness
- 14. 58 Hours
- 16. 3 Hours 1800
- 17. 2 Hours 1850
- 18. Whale oil for light Demand increases Whales are common property Run out of whales Price of lamp oil goes up Look for substitutes
- 21. Petroleum Latin petra - rock oleum - oil
- 23. Benjamin Stillman Yale University First to distill petroleum into parts or fractions distill is to heat up and capture vapor at different temperatures
- 24. BISSELL REPORT Your company have in their possession a raw material from which, by simple and not expensive process, they may manufacture very valuable products. It is worthy of note that my experiments prove that nearly the whole of the raw product may be manufactured without waste, and this solely by a well- directed process which is in practice in one of the most simple of all chemical processes.”Professor Benjamin Sillman Yale College
- 25. Products Degrees C. Carbon liquified petroleum gas 20 1 - 4 chemical, naphtha 70 5 - 9 gasoline 120 5 - 10 jet fuel, kerosene, paraffin 170 10 - 16 diesel 270 14-20 lubricants, oils, waxes, polishes 320 20 - 50 ships, factories, heating 370 20 - 70 bitumen, roads, roofs 400 >70
- 27. George H. Bissell Needed Financial Capital: incorporation laws and investors Pennsylvania Rock- Oil Company Used Stillman Report
- 29. Colonel Drake August 27, 1859 Colonel Drake Titusville, Pennsylvania USA
- 32. 1883 Innovation Electric Light Bulb 1/4 the the price of Kerosene light
- 35. Rudolph Diesel French - German reads a book by Sadi Carnot 1881 patent ice maker
- 36. At first, his submission is declined as being "not original", however, after an appeal, a patent is granted on February 28, 1892. Has 15 years of protection Receives patents in Germany, United States, and England Financial Capital Maschinefabrik Augsburg
- 37. John D. Rockefeller Buys first refinery 1865 Starts Standard Oil 1870 Controls 90% of U.S. oil market 1890
- 38. Standard Oil Blue Barrel of Oil bbl 42 U.S. gallons 159 liters allow for evaporation and leakage to 40 gallons
- 39. Henry Ford automobile innovator Starts Ford Motor Company 1903
- 43. Henry Ford “If I had asked people what they wanted, they would have said faster horses.”
- 45. Wright Brothers
- 51. Hans von Ohain German 1939 Gas Turbine
- 52. Gas Turbine
- 53. Frank Whittle U.K. May 15, 1941 First Jet Aircraft Flight
- 54. Kerosene Fuel
- 55. Whales to 747s
- 56. Profit attracts Innovation Time $ Innovation drops cost allowing price to also drop Price Innovation Innovation Innovation Innovation Cost
- 57. What is Wealth? What People Want
- 60. Anything that helps you create wealth What is Capital?
- 61. Intellectual Financial Physical Human Culture Entrepreneur trust knowledge skills personality health relationships natural resources time buildings equipment things than make things money and risk savers and borrowers time is money (1+r)n insurance limited liability corporations ideas technology methods
- 63. Entreprenural Capital creates better things by combining capital in new and different ways
- 64. Cultural Capital
- 66. How people view and treat other people Expectations Cultural Capital
- 67. Property Rights Rule of Law Political Stability No peace ... No prosperity Cultural Capital
- 68. Lady Justice Weight of the evidence versus Status of the parties