Persian Empire 1845

Chapter 227 Baku Oil Industry
"Shah, look, this is the newly built oil refinery. It can refine 100 million barrels of kerosene a year."

The oil company's general manager, Mirza Nasrallah Khan, briefed Naserdin on the company's construction progress, explaining that the company was forced to accelerate capacity expansion due to soaring kerosene sales. Baku is surrounded by refineries and oil wells under construction.

"Besides kerosene, what else do you process?"

"If the temperature rises, we can also produce lubricating oil, which will extend the service life of machinery and weapons."

As Naserdin waited expectantly for something else, the other person fell silent.

"Gone?"

"Gone"

After receiving an affirmative answer, the Shah was somewhat disappointed. He thought Iran would have more inventions, but it seemed that a powerful hand was still needed to regulate them.

Naserdin saw a group of workers carrying out barrels and asked Mirza, "What are these?"

"These are all byproducts of kerosene production. Because they are flammable and polluting, we haven't thought of a better solution yet."

Looking at the colorless and odorless substance, Nasser al-Din was reminded of the internal combustion engine and the incendiary bomb. These two things, which would change industry and warfare in the future, had not yet been invented, and Iran could be the first to do so.

"Perhaps these can replace coal as a better fuel. This could be a world-changing place, to see if we can develop more efficient machines."

This is actually one of the directions of the petroleum research institute. Steam engines using coal as raw material are indeed very efficient, but if Iran had more efficient machinery than steam engines, wouldn't the factories produce a lot of goods and thus occupy a share of world trade?

"This is something that can change the world. Since it's in Baku, it's a gift to Iran. It would also be a good option if it could be used on the battlefield."

Shah pointed out two paths for this byproduct: one was to invent more efficient machinery, and the other was for battlefield consumption. He believed the company could provide satisfactory results. After all, after handing over profits to the government, the company still had a very large surplus. Apart from building factories and other facilities, research and development became the main expenditure.

This money wasn't simply spent; every expenditure required government approval. However, with the money, the company began improving the workers' quality of life. This was not only to establish the company as a leading government enterprise, but also to achieve the wealth distribution and prosperity for all mentioned in the Quran. Oil workers' wages were among the highest in Baku, and the company contributed to the construction of streetlights, mosques, schools, and roads.

However, having only one oil company felt a bit monotonous. It's said that you shouldn't put all your eggs in one basket, so why not establish another oil company? However, the government could only hold a relative stake, as the main extraction sites were in the Arabian Peninsula, and it had to cede some profits to the tribes. Historically, before the discovery of oil, the Gulf Arab states were primarily engaged in agriculture and pastoralism. After the British and Americans discovered oil fields, they partnered with local tribes for development, but at that time they only received land rent and a small share of dividends. It wasn't until the first oil crisis that their income skyrocketed, and the concept of "oil tycoons" truly emerged.

However, at this juncture, Iran cannot reveal that Arab tribes possess oil, otherwise, the intervention of Britain, the United States, and France would disrupt its plans. The current strategy is to seize the land before they are aware of it, and then focus on strengthening its military, so that it will have the capability to fight back when the enemy opens fire.

Of course, this is all to divert attention. Besides Baku and the US, there's oil in other parts of the world, such as Venezuela and the Gulf of Guinea in West Africa. Otherwise, why cooperate with France to explore inland along Lagos Island in West Africa, and why invest in land in Ohio and Texas in the US? It's all about oil. Any report about oil can be immediately reported to the Shah. This shows how important it is to him.

Because Iran's kerosene accounts for the largest share of world trade, Iranian kerosene barrels are often used by others to calculate oil reserves, since kerosene is a liquid and not as easy to calculate as a solid like coal.

Iran's success in the oil industry has made Russia envious. Baku was originally theirs, and oil extraction had even begun, only to be snatched away by Iran – how could this not be infuriating? Not to mention, Russia still has over 200 billion rubles in debt to repay, and lacking resources in the South Caucasus and part of the North Caucasus, Russia can only try to compensate for its losses by developing Siberia.

At this time, kerosene lamps also became popular in Eurasia, and candles quickly disappeared from the lighting market. Except for churches and other institutions that continued to use them, most people bought kerosene lamps for lighting.

The widespread use of kerosene lamps opened up a market for kerosene, but because production was limited, the price was still relatively high, which is why the company expanded its operations.

The discovery of petroleum undoubtedly saved whales, seals, walruses, and other marine mammals that were hunted for their blubber. Before the development of the petroleum industry, whale wax was the most common raw material used in candles, household lamps, streetlights, even lighthouses, and various mechanical lubricants. This is a very refined oil extracted from the head of sperm whales and was once considered "the oil of kings."

In the United States, the whaling fleet reached its peak size in 1846, almost coinciding with the peak of whale wax production, after which it began to decline. Whalers could extract up to 2000 liters of whale wax from the massive head of a sperm whale; while an oil well could produce up to 3000 liters of crude oil per day.

The development of the global oil industry has gradually changed the world, but Britain has not witnessed this change and continues to prioritize the coal industry because it is abundant in the country. Britain's rise from a small, isolated Western European nation to a global superpower is inextricably linked to its rich coal resources.

Britain's coal resources are widely distributed and easy to mine, found almost throughout the entire country. From Glasgow in the north to Manchester in the midlands and Birmingham in the south, abundant coal reserves are found everywhere. Moreover, its main coal-producing areas are located near rivers or close to the sea, which makes it very convenient for the British to transport coal throughout the country.

In contrast, France, on the other side of the strait, produced less than one-eighth of the coal of Britain. Moreover, French coal was of lower quality, making it difficult to refine into coking coal, which hindered its efficient use in the metallurgical industry. Consequently, France had to import expensive coal from major coal-producing countries like Britain and Belgium, further restricting its development and putting it at a disadvantage in competition with Britain.

Having more efficient energy was one of the reasons Britain embarked on the Industrial Revolution. However, technological development is rapid, and the demand for new energy sources and new machinery is also huge. In this new race, Britain fell behind.

(End of this chapter)