How did the spread of automobiles increase petroleum production during the 20th century?

The spread of automobiles in the early 20th century was the primary catalyst for the massive expansion of global petroleum production. Before this period, the oil industry focused largely on producing kerosene for lighting, while the more volatile gasoline fraction was often considered an unwanted waste product.123

The rise of the internal-combustion engine and the subsequent mass production of automobiles transformed gasoline into a highly valuable commodity, creating an unprecedented demand for fuel. This shift forced the industry to evolve in several ways:145

• Increased Extraction: To meet the surging demand for automotive fuel, global production grew rapidly, surpassing one billion barrels annually by 1925 and two billion by 1940.1
• Refining Innovation: Refiners developed thermal cracking and later catalytic processes to convert heavier, less valuable oil fractions into high-quality gasoline.6
• Technological Advancement: The need for better engine performance spurred further refining improvements, such as alkylation and hydrocracking, which allowed for the efficient production of diverse transportation fuels.6

Ultimately, the automobile turned petroleum into the world's most vital energy source, driving the industry's transition from a niche supplier of lamp oil to a global economic powerhouse.5