To make the artifacts we must have, and those that we want, for living happy lives we rely on production technology.
It is the knowledge, tools, machines and systems that we use to manufacture products. The extent to which people use production technology to adapt makes us unique among living creatures, and understanding production technology is fundamental to understanding humans.
Oil production has been at the forefront of many news stories lately, so let’s look at oil production in the world and see if we can make some sense of it.
Crude oil is the foundational energy commodity for the global economy which feeds a complex supply chain that spans continents and industries. At its core, crude oil is a mixture of hydrocarbons extracted from underground reservoirs. Once produced, crude travels via pipelines, ships and rail to refineries, where it is processed into fuels and petrochemicals. From there, refined products are distributed to industries and consumers, powering transportation, heating, electricity generation and industrial manufacturing worldwide.
The supply chain’s efficiency and resilience depend on oil quality, infrastructure, geopolitical relationships and market dynamics. Understanding these elements requires examining the types of crude oil, their geographic sources, and how global production has evolved.
Crude oil is categorized based on density (light vs. heavy) and sulfur content (sweet vs. sour). These two qualities determine how complex the refining process needs to be, and the oil’s economic value.
Light crude oil has a higher API gravity, meaning it is less dense and flows more easily. Examples include West Texas Intermediate (WTI) (also known as “Texas Tea”) from the United States and Brent from the North Sea.
Light crude yields a larger proportion of valuable products, like gasoline, diesel and jet fuel, with less energy input needed for refining. This makes it economically advantageous and often priced at a premium. However, its higher cost and regional price volatility can be disadvantages for buyers.
Heavy crude oil is denser and more viscous, typically containing larger hydrocarbon molecules. Heavy crude is cheaper but harder and more costly to refine. Refineries must have advanced processing equipment, which increases costs and emissions — which pollute the atmosphere in the refining process.
The sweet vs. sour distinction revolves around sulfur content. Sweet crude contains less sulfur, reducing corrosive impacts on refining equipment and extensive desulfurization during refining. This benefits environmental compliance and operating costs, especially in regions with strict emissions standards.
Sour crude has higher sulfur levels which require additional refining steps that increase energy use and emissions so sour crude typically trades at a discount.
The global oil market features many blends. For instance, Urals oil from Russia is a medium, sour blend traded widely in Europe, while Arabian crude offers a range of grades with varying density and sulfur profiles.
Crude oil’s primary value comes from its conversion into refined products. The largest categories include: 1) Transportation fuels like gasoline, diesel, and jet fuel. 2) Heating and power generation, particularly in regions where natural gas is scarce. 3) Industrial feedstocks for petrochemicals that make plastics, fertilizers, and synthetic materials. 4) Byproducts such as asphalt and lubricants that are essential for infrastructure and manufacturing.
Different crude types yield different product mixes — light, sweet crude maximizes high-value fuels, while heavier oils can produce diesel and specialized products.
Over the past decade, global crude oil production has shifted significantly. Traditionally, major producers like Saudi Arabia, Russia and members of the Organization of the Petroleum Exporting Countries (OPEC) dominated global output. However, the rise of U.S. shale oil from fracking, and other non-OPEC sources has transformed the landscape.
Today, the United States has become the largest oil producer globally, driven by hydraulic fracturing (fracking) and horizontal drilling methods that unlocked vast shale resources. It is interesting to note that there are many mining companies operating in the Illinois River Valley, as well as in other cities in north central Illinois (such as Oregon) which provide the unique sand used for these fracking operations.
This boom allowed the U.S. to transition from a major importer to a net exporter, reshaping global trade flows. U.S. light sweet crude now competes internationally, especially in Europe and Asia, though demand fluctuates with OPEC+ supply changes and refinery preferences.
Non-OPEC producers such as Brazil, Guyana and Canada now contribute to a more diversified supply base. But production in traditional exporters like Venezuela remains suppressed due to underinvestment, infrastructure decline and geopolitical constraints — despite Venezuela’s enormous reserves. These changes mean global oil supply is more diversified but also more competitive, with price volatility influenced by both OPEC decisions and non-OPEC output variations.
OPEC, originally founded in 1960, coordinates oil production among member states to influence global supply and stabilize prices. With Russia now in the OPEC+ framework, the group periodically adjusts production targets in response to market conditions to manage price levels and market balance.
For example, OPEC+ has made strategic shifts in recent years — cutting output to support prices during downturns and increasing supply when demand outlooks improve. These decisions help stabilize markets but can also contribute to oversupply if demand weakens. In 2025, increased OPEC+ production helped push prices lower and expanded global supply, causing decreased demand for U.S. light sweet crude.
The United States has adapted to changing global markets through technological innovation and policy shifts. The shale revolution dramatically increased U.S. production, supporting energy exports and reducing reliance on imports from OPEC nations. U.S. refineries, particularly on the Gulf Coast, have also adapted to handle heavier crude grades, a legacy of past import patterns.
Kurt Wolter of Rochelle has studied and taught technology — including production, transportation, energy and communication — for over 30 years. He enjoys trying to better understand technology’s past, present and future while also attempting technical journalism and the use of artificial intelligence. He can be reached at technohistory100@gmail.com.
