The Evolution of Industrial Energy and Global Economic Growth

The Rise of New Energy Sources

Following the steam engine, the first industrial revolution saw oil and electricity emerge as transformative forces. While electricity was initially confined to laboratory experiments, its industrial adoption relied on low-cost production and efficient long-distance transmission, both of which were achieved in the late nineteenth century.

However, the early application of electricity remained limited. Until 1913, steam power held the primary position. Early power plants were small, serving mainly for lighting and traction. While France initially led in power production due to its central Alpine region, it was soon surpassed by the U.S., Germany, Great Britain, Switzerland, and Sweden.

The Emergence of the Oil Industry

The industrial application of oil began in 1857, initially replacing oil lamps. In 1859, John D. Rockefeller established the first oil refinery in Cleveland. This sparked the "black gold" rush, which helped populate the American southeastern states.

• 1860: World production reached 67,000 tonnes.
• 1900: Production increased to 20 million tonnes.
• 1913: Production reached 52 million tonnes.

Initially used for heating and domestic purposes, oil became the primary fuel for internal combustion engines after 1890.

The Development of National Industries

Since 1870, Western Europe, the U.S., and Japan experienced rapid development driven by technological progress, improved transport, and competitive capitalism. Industrialization became the fundamental basis for creating efficient transport networks and advanced weaponry, essential for national defense and geopolitical influence during an era of rising imperialism.

Countries increasingly sought economic autonomy. To achieve this, states actively protected and stimulated their industrial sectors. While England led industrial progress during the first half of the 19th century, it began to lose ground to competitors like the U.S. and Germany. The British economic boom peaked between 1880 and 1890, after which it began to decline.