The first rectangular metal tank was built in the USA in 1864.
In 1876 brothers Robert (1829-1896)and Ludvig Nobel (1831–1888) started an oil company called Branobel in Baku, on the Caspian Sea. Robert lived in Baku for some time but had to return to Sweden for health reasons. Ludvig continued to develop the oil industry and made a number of technical innovations in what was then the Russian Empire, today – the territory of the Azerbaijan. Among these were pipelines for the transport of oil and oil tankers.
The world's first cylindrical oil storage tank made of riveted steel sheets was built by Vladimir Shukhov in Baku in 1878, commissioned by the Branobel. Prior to this, oil had been stored at Russian fields in open-air ponds.
In 1883 Shukhov proved in his work ‘Mechanical Structures of the Oil Industry’ that the optimal shape of a tank is a cylinder, covered at the top with a conical or flat roof, with optimal wall thickness by investigation of stress distribution using 4th degree differential equations. Shukhov standardised the main typical dimensions, so over 20,000 oil storage tanks were built in Russian Empire according to his drawings before 1917 alone.
Modern cylindrical oil storage tanks are still built according to the principles developed in the Nobel Oil Company in the XIX century.