This commodity had several usesincluding lubricating machines, heating homes, and was refined into gasoline

The awnser is Oil.

it says I need extra words for the awnser but it's just Oil

the answer to fill in the blank in this question would be the word resource, it is defined as the money, material or people (since human resource is a very valuable good) that a company or a person has at disposition (meaning they can use the resource as they see fit), to be able to complete a task or achieve a goal.  

a system of cooperative federalism emerged, as the powers of the federal government expanded.