Petroleum, also known as crude oil or simply oil, is a natural resource that appears as a yellowish-black liquid chemical mixture found in geological formations, consisting primarily of hydrocarbons. The term petroleum refers to both naturally occurring unprocessed crude oil, as well as to petroleum products that consist of refined crude oil.
Petroleum is a fossil fuel formed over millions of years from anaerobic decay of organic materials from buried prehistoric organisms, particularly plankton and algae. It is estimated that 70% of the world's oil deposits were formed during the Mesozoic, 20% were formed in the Cenozoic, and only 10% were formed in the Paleozoic. Conventional reserves of petroleum are primarily recovered by drilling, which is performed after studying the relevant structural geology, analysis of the sedimentary basin, and characterization of the petroleum reservoir. There are also unconventional reserves such as oil sands and oil shale which are recovered using methods such as fracking.
Once extracted, oil is refined and separated, most easily by distillation, into numerous products for direct use or use in manufacturing. Petroleum products include fuels such as gasoline (petrol), diesel, kerosene and jet fuel; bitumen, paraffin wax and lubricants; reagents used to make plastics; solvents, textiles, refrigerants, paint, synthetic rubber, fertilizers, pesticides, pharmaceuticals, and thousands of other petrochemicals. Petroleum is used to manufacture a wide variety of materials essential for modern life, and it is estimated that the world consumes about 100 million barrels (16 million cubic metres) each day. Petroleum production played a key role in industrialization and economic development, especially after the Second Industrial Revolution. Some petroleum-rich countries, known as petrostates, gained significant economic and international influence during the latter half of the 20th century due to their control of oil production and trade.
Petroleum is a non-renewable natural resource, and its exploitation is damaging to the natural environment, climate system and human health. Extraction, refining and burning of petroleum fuels counteract carbon sinks by releasing large quantities of greenhouse gases back into the Earth's atmosphere, making petroleum one of the major contributors to anthropogenic climate change. Other negative environmental effects, at almost all stages of use, include direct release—such as oil spills—and secondary pollution of air and water sources.
Proximity to petroleum deposits, and subsequent access to and pricing of oil have historically fueled both domestic and geopolitical conflicts, state-sanctioned oil wars, diplomatic and trade frictions, energy policy disputes and other resource conflicts. While production is estimated to reach peak oil before 2035, global economic focus on climate change mitigation in the transition to renewable energy sources and increased electrification will greatly reduce dependency on petroleum.
The word petroleum comes from Medieval Latin petroleum (literally 'rock oil'), which comes from Latin petra 'rock' (from Greek pétra πέτρα) and oleum 'oil' (from Greek élaion ἔλαιον). The origin of the term stems from monasteries in southern Italy where it was in use by the end of the first millennium as an alternative for the oldest term "naphtha". After that, the term was used in numerous manuscripts and books, such as in the treatise De Natura Fossilium, published in 1546 by German mineralogist Georg Bauer. After the advent of the oil industry during the second half of the 19th century, the term became commonly known for the liquid form of hydrocarbons.
Petroleum in some form has been used since ancient times. More than 4,300 years ago, bitumen was mentioned when the Sumerians used it to make boats. A tablet of the legend of the birth of Sargon of Akkad mentions a basket which was closed by straw and bitumen. More than 4,000 years ago, according to Herodotus and Diodorus Siculus, asphalt (bitumen) was used in the construction of the walls and towers of Babylon; there were oil pits near Ardericca and Babylon and a pitch spring on Zakynthos. In Babylon, petroleum was used for road construction, ship caulking, and medicine.
The use of petroleum in ancient China dates back more than 2,000 years. The I Ching, one of the earliest Chinese writings, cites that oil in its raw state, without refining, was first discovered, extracted, and used in China in the 1st century BCE. In addition, the Chinese were the first to record the use of petroleum as fuel as early as the 4th century BCE. By 347 CE, oil was produced from bamboo-drilled wells in China.
In the 7th century, petroleum was among the essential ingredients for Greek fire, an incendiary projectile weapon that was used by Byzantine Greeks against Arab ships attacking Constantinople. Crude oil was distilled by Persian chemists, with clear descriptions given in Arabic handbooks such as those of Abu Bakr al-Razi.
In the 9th century, oil fields were exploited in the area around modern Baku, Azerbaijan. These fields were described by Abu Bakr al-Razi in the 10th century and by Marco Polo in the 13th century, who describes the output of those wells as hundreds of shiploads. Arab and Persian chemists distilled crude oil to produce flammable products for military purposes. Through Islamic Spain, distillation became available in Western Europe by the 12th century. It was present in Romania since the 13th century, being recorded as păcură.
Sophisticated oil pits, 4.5 to 6 metres (15 to 20 ft) deep, were dug by the Seneca people and other Iroquois in Western Pennsylvania as early as 1415–1450. The French General Louis-Joseph de Montcalm encountered Seneca using petroleum for ceremonial fires and as a healing lotion during a visit to Fort Duquesne in 1750. Early British explorers to Myanmar documented a flourishing oil extraction industry based in Yenangyaung that, in 1795, had hundreds of hand-dug wells under production. Merkwiller-Pechelbronn is said to be the first European site where petroleum has been explored and used.
In the mid-19th century, oil wells developed quickly in various parts of the world, though the title of the "first oil well" depends on the criteria. In 1846, a group of Russian Imperial engineers directed by Major Alexeyev of the Bakinskii Corps of Mining Engineers accidentally struck oil while hand-drilling with a primitive percussion rig in Bibi-Heybat, near Baku (now Azerbaijan), though they were not specifically searching for oil. In 1853, Ignacy Łukasiewicz, who discovered how to distill kerosene from seep crude oil and invented the modern kerosene lamp, hand-dug the first intentional well for commercial oil extraction in Bóbrka, Poland, to supply fuel for lighting (still operational as of 2025). A hand-dug well and another refinery followed in 1857 near Ploiești, Romania. Romania (then a vassal of the Ottoman Empire) was the first country in the world to have its annual crude oil output officially recorded in international statistics – 275 tonnes for 1857.
In 1858, Georg Christian Konrad Hunäus found a significant amount of petroleum while drilling for lignite in Wietze, Germany. Wietze later provided about 80% of German consumption in the Wilhelmine Era. The production stopped in 1963, but Wietze has hosted a petroleum museum since 1970. Oil sands have been mined since the 18th century. In Wietze, natural asphalt/bitumen has been explored since the 18th century. Both in Pechelbronn as in Wietze, the coal industry dominated the petroleum technologies.
Chemist James Young in 1847 noticed a natural petroleum seepage in the coal mine at Riddings, Derbyshire, from which he distilled a light thin oil suitable for use as lamp oil, at the same time obtaining a more viscous oil suitable for lubricating machinery. In 1848, Young set up a small business refining crude oil. Young eventually succeeded (by distilling cannel coal at low heat) in creating a fluid resembling petroleum, which when treated in the same way as the seep oil gave similar products. Young found that by slow distillation he could obtain several useful liquids from it, one of which he named "paraffine oil" because at low temperatures it congealed into a substance resembling paraffin wax. The production of these oils and solid paraffin wax from coal formed the subject of his patent dated October 17, 1850. In 1850, Young & Meldrum and Edward William Binney entered into partnership under the title of E.W. Binney & Co. at Bathgate in West Lothian and E. Meldrum & Co. at Glasgow; their works at Bathgate were completed in 1851 and became the first truly commercial oil-works in the world with the first modern oil refinery.