Everything You Need to Know About the History of the Energy Industry

The energy industry includes everything that turns the wheels of power generation, from the mining and extracting of natural resources to distribution and sales. These resources include renewable alternative fuels and fossil fuels like coal, oil, and natural gas.

In 1882, just as the world was beginning to grasp the importance of electricity. Since then, the industry has witnessed many technological milestones. A brief history of the energy industry is covered in this article.

Coal

Coal is a non-renewable, carbon-based fuel that produces large quantities of greenhouse gases when burned. It produces heat for homes and businesses and is a crucial ingredient in the steel industry. It is the most widely used fossil fuel, accounting for 93 percent of South Africa’s energy production and 45 percent of the United States’ electricity.

Before the Industrial Revolution, people used wood, dried manure, and water mills to power their energy needs. But as demand for heating and cooking food increased, new technologies became available to meet the demand. People began to use coal for these purposes.

In a coal-fired power plant, raw coal is burned to generate electricity. The resulting steam is turned into mechanical power by a turbine. When this happens, it triggers a generator that generates electricity.

Coal still accounts for most US electricity generation, but it is no longer a primary energy source. People are shifting toward cleaner, more sustainable energy sources.

When mining coal, the first step is to remove the overburden—rocks, and vegetation—from a mountaintop. After this is done, explosives expose the underlying coal seam. Once the coal is exposed, it is removed from the mined area and hauled away in large trucks, earning this method the nickname “strip mining.” The land, once covered by vegetation and overburden, is usually returned to a more natural state. However, the process is often messy and labor-intensive.

Oil

In the 19th century, fossil fuels like coal and oil became essential to industry. As machine technology was revolutionized, they needed fuel to power them. Before the Industrial Revolution, people burned wood and specific oils to heat their homes and cook meals. In addition, wind, water, and gravity-powered mills for grinding corn or turning wheels to grind grain.

During the Industrial Revolution, fossil fuels like coal and oil were used to run new machines, such as steam engines and railroad locomotives, that expanded manufacturing and shipping. This expansion also required more home heating and lighting, so coal and oil became the primary energy source.

Initially, the oil was distilled into kerosene for lamps. Still, demand grew when used to power automobiles, and demand increased even more after World War II when car purchases skyrocketed. Thus, it led to the rise of oil field services.

The oil and gas industry has three main processes: upstream, midstream, and downstream. The upstream process includes exploration and production companies, while the midstream and downstream processes include refining, distribution, and sales. The petroleum industry has its trade organization called OPEC, which was formed in 1960.

Alternative Energy

As time has passed, the energy industry has seen some major changes. The most recent and significant one is the rise of alternative energy sources. This encompasses any form of power that does not contribute to the depletion of the world’s ozone layer or increase humanity’s carbon footprint. Some examples are wind, solar and geothermal energy.

Renewable energy’s roots go back a long way. The first recorded solar energy was in ancient Egypt, where a mirror was used to harness sunlight for heat and cooking. Wind power, meanwhile, was utilized as early as the 1800s when Dutch windmills turned water wheels for grinding grain. By the late 1800s, fast-flowing rivers generated electricity using water turbines, and Edison’s dynamo powered 16 arc street lamps with hydropower.

In the modern era, fossil fuels are still the most widely used, but many countries are moving towards alternative energy. The main drivers of this shift are environmental concerns, worldwide ecological disasters (drought, famine, and flooding), and advances in renewable energy technology. It is also being accelerated by the desire to reduce dependence on fossil fuels and to promote energy independence for territories. With this in mind, the energy industry’s future is looking bright. Many companies specialize in one industry section, but most are vertically integrated, and some are known for multiple sections.

Natural Gas

The energy industry has evolved from a handful of monopolies into a competitive field. In the 1990s, energy deregulation opened up new opportunities for power companies, driving down costs and encouraging customer choice.

Coal dominated the energy market through most of the 1800s and was used to power steam engines that powered factories during the Industrial Revolution. It was also a popular domestic energy source for heating and cooking.

Gas production surged in the early 1900s and took over as a transportation fuel after the mass production of automobiles accelerated. It also became a dominant residential energy source after pipelines were introduced.

Until then, natural gas was mainly a localized resource, sold to households through small-bore lead pipes connected to stoves or furnaces. It was also used for lighting, notably through burned carbonized coal to provide town gas for illuminating streets and houses.

Until the 1920s, technological limitations made transporting large quantities of natural gas over long distances impossible. As a result, associated gas (the byproduct of crude oil production) was often flared or left in the ground, and nonassociated gas was produced into town gas that could be delivered to homes and businesses. The long-distance gas transmission breakthrough resulted from leakproof pipeline coupling technology advances.