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Black Gold: The History of the Oil Boom

Black Gold: The History of the Oil Boom

July 26, 2024

Oil, known as “black gold”, represents a significant wealth of our country. Oil extraction in Northern Azerbaijan began at a modest level, but soon there was a period of "oil boom" in Baku and its surroundings in the 1870s. The first industrial oil well was drilled in Bibi-Eybat in 1848 using mechanical drilling, which made it possible to extract oil from deep wells instead of manually dug pits. This growth began after the lands owned by peasants were leased to oil industrialists. From 1864, the government prohibited the use of forced labor of peasants in oil fields.

 

Gradually, the number of wells increased and the demand for Azerbaijani oil grew, which was then transported by rail and sea in tankers. At that time, the wells were wooden structures with mechanisms for extracting oil. Due to the high number of oil rigs, the city was nicknamed the "Black City". Later, the "White City" project was launched, which aimed to restore the eastern part of the center known as the Black City. During the oil boom, the entire Black City was dotted with wooden rigs, leading to residents' complaints about clouds and oil vapors complicating breathing. Workers engaged in oil production often faced harsh working conditions, heat, and dangerous gas emissions, which led to strikes. In 1903, at the Second Congress of the Russian Social Democratic Labour Party (RSDLP), a split occurred, and the party divided into two groups: the Bolsheviks, led by Lenin, and the Mensheviks, led by Martov. Lenin believed that the party should be strictly organized and active, demanding that all members actively participate in its activities. Martov, on the other hand, took a more lenient stance, seeking to attract more supporters. He proposed that anyone who supported the party's charter and provided financial assistance could become a member. As a result of this event, the first trade union was formed in Azerbaijan in 1920. In response, improved working conditions were established, including a 9-hour workday, wage increases, and paid leave.

 

During the oil boom, Baku became a place of architectural masterpieces, attracting architects and artists. This period also transformed the city into the most modern and cultural center in the Ancient East, thanks to famous buildings such as the "Palace of Happiness" and "Ismailiyya". Today, in the city, one can see rusting "nodding donkeys" among modern skyscrapers, reminding of the rich oil history of this region.

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