WASHINGTON, July 7 — The story of petroleum is one of discovery, power, and profound economic consequence. For patients and families navigating the uncertainties of a cancer diagnosis, the stability of the world around them matters deeply. When oil prices spike or crash, the ripple effects touch everything from the cost of transporting medicine to the price of the plastics used in medical tubing.
Understanding this essential resource, its history, and its current state offers a measure of clarity in a complex world. Petroleum, or crude oil, is a naturally occurring liquid found in geological formations.
Its modern history began in 1859, when Edwin Drake drilled the first commercial oil well in Titusville, Pennsylvania. That single well sparked the Pennsylvania oil rush and set in motion a transformation of industry and daily life that continues to this day. The development of the internal combustion engine in the late 19th century created an enormous demand for gasoline.
This was the fuel that would power the new automobiles, trucks, and eventually the machinery of modern warfare and peace. The engine’s appetite for petroleum reshaped the global economy.
John D. Rockefeller founded Standard Oil in 1870. By 1880, the company controlled about 90% of U.S. refining capacity.
This concentration of power drew legal challenges, and the U.S. Supreme Court ordered the breakup of Standard Oil in 1911 under the Sherman Antitrust Act. The company was split into several smaller entities, many of which — like Exxon and Mobil — became household names. The discovery of vast oil fields in the Middle East shifted the center of global supply.
Major finds in Iran in 1908 and in Saudi Arabia in 1938 established the region as the world’s most important source of crude. This geographic shift would have lasting geopolitical consequences.
A coordinated response to market power
The Organization of the Petroleum Exporting Countries, known as OPEC, was founded in 1960 by five nations: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. The organization’s purpose was to coordinate oil policies among member countries, giving them greater influence over the price and production of crude on world markets. The 1973 oil crisis demonstrated the power of this coordination.
Triggered by the Arab oil embargo against the United States and other supporters of Israel, the embargo caused oil prices to quadruple. The resulting economic recession was felt across the globe, from factory floors to hospital supply chains.
Another major price spike followed the 1979 Iranian Revolution. Political instability in a major producing nation sent shockwaves through energy markets, reinforcing the vulnerability of economies dependent on imported oil.
Oil’s enduring role in the global energy mix
Despite decades of discussion about alternative energy sources, oil remains the world’s primary energy source. According to BP’s Statistical Review of World Energy, petroleum accounted for about 31% of global primary energy consumption in 2022. This is a significant share, though it reflects a gradual diversification of the energy mix over time.
The United States became the world’s largest oil producer in 2018, surpassing both Saudi Arabia and Russia. This achievement was driven by the extraction of shale oil using hydraulic fracturing and horizontal drilling — technologies that unlocked vast reserves previously considered too difficult or expensive to reach.
The COVID-19 pandemic, which began in 2020, caused a historic collapse in oil demand. As lockdowns emptied roads and grounded flights, the market for crude evaporated. In April 2020, West Texas Intermediate crude futures briefly turned negative — meaning sellers were paying buyers to take oil off their hands.
This was an unprecedented event in the history of the commodity. More recently, Russia’s invasion of Ukraine in 2022 caused oil prices to surge above $130 per barrel.
The conflict disrupted supply from one of the world’s largest producers and raised fears of broader energy shortages.
What this means for patients and families
For readers of this column who are managing a cancer diagnosis or supporting a loved one through treatment, the volatility of oil markets may seem distant. But the cost of energy is embedded in nearly every aspect of medical care. It affects the price of pharmaceuticals, the operation of hospital equipment, and the logistics of delivering supplies to clinics and pharmacies.
The encouraging part is that the global oil market, while subject to shocks, has shown a remarkable ability to adapt. New production technologies, shifts in consumer behavior, and policy changes all contribute to a system that, while not perfectly stable, has mechanisms for recovery.
Early findings suggest that the long-term trend toward energy diversification may help buffer some of the most extreme price swings. Patients should not expect dramatic changes overnight, but the gradual expansion of renewable energy sources — driven by energy-security and cost considerations — could contribute to a more predictable economic environment over time. As always, if you have concerns about how economic conditions might affect your access to care or the cost of your medications, talk to your doctor.
They can help you navigate the specific challenges of your situation and connect you with resources that may be available.
