Question

The market for kerosene in the U.S. and Europe began to weaken, beginning around 1900, primarily because of a prolonged economic depression.

Answer 1

As America became a motorized society, the increasing demand for petroleum was driven by the growth in demand for gasoline. In 1915 gasoline production surpassed kerosene production. The market for kerosene continued to contract as electric lighting replaced kerosene illumination. The development of oil burners in the 1920s began a shift from coal to home heating fuel oil, and this further increased the growing demand for petroleum. The growth in demand for ship engines fuel oil and diesel fuel also increased demand for petroleum. But it was the growth in the demand for gasoline that drove the petroleum market.

When the Civil War interrupted the regular flow to western states of kerosene and other petroleum products, pressure increased to find a better way to use oil found in states like California. But prior to 1900 Standard showed little interest in the West Coast oil industry. It acquired the Pacific Coast Oil Company in that year and incorporated all its western operations into Pacific Oil, now Chevron