How Did John D. Rockefeller's Impact On The Petroleum Industry
John D. Rockefeller
The industrialization of America was impacted greatly by John D. Rockefeller. Rockefeller was able to establish a large majority of the petroleum industry with his foundation of Standard Oil. Rockefeller would employ ruthless tactics to make the most money as possible from his oil business. He would create the Standard Oil trust which would influence all big businesses in the country. Following the Civil War, the petroleum business would boom into "black gold." The kerosene derived from petroleum would produce a much brighter light than the currently used whale oil. However, when Thomas Edison's light bulbs were in use, kerosene oil became obsolete to the lighting industry. The invention of the automobile would …show more content…
Rockefeller would found Standard Oil company in 1870. This company was founded in Cleveland, Ohio, which would become the base of all his operations. Cleveland would become a top five refining center and Standard Oil would become the most profitable oil business. Rockefeller had some unorthodox means of doing business with competitors. He was once called "Reckafellow" by Carnegie which symbolizes how far Rockefeller would go to increase the wealth of his business. One of his illegal means of getting a cost advantage came from secret rebates from the railroads bringing oil into Cleveland. Other competing refiners wanted similar rebates but by the time they were recognized, Standard Oil would become one of the largest shippers of oil and kerosene in the country. By 1877, Rockefeller would control 95 percent of all the oil refineries in the United …show more content…
Society started to notice the monopoly Rockefeller had on the oil business. The government had passed laws which made it difficult to own a business in one state and operate in another. Rockefeller and his lawyers would create a behemoth known as the Standard Oil Trust. Rockefeller and his partners owned separate companies spanning multiple states. To maximize profits and centralize their business, they would create a board of trustees which would form a monopoly over the big business of the oil industry. Journalists and politicians would attack the monopoly and would birth the anti-trust movement. In 1892, Ohio anti-trust law would separate the Standard Oil of Ohio from the rest of the company. In 1911, Standard Oil would still hold 64 percent of the market share. The Supreme Court ruled that Standard Oil participated in illegal monopoly practices and was broken up into 34 new
The industrialization of America was impacted greatly by John D. Rockefeller. Rockefeller was able to establish a large majority of the petroleum industry with his foundation of Standard Oil. Rockefeller would employ ruthless tactics to make the most money as possible from his oil business. He would create the Standard Oil trust which would influence all big businesses in the country. Following the Civil War, the petroleum business would boom into "black gold." The kerosene derived from petroleum would produce a much brighter light than the currently used whale oil. However, when Thomas Edison's light bulbs were in use, kerosene oil became obsolete to the lighting industry. The invention of the automobile would …show more content…
Rockefeller would found Standard Oil company in 1870. This company was founded in Cleveland, Ohio, which would become the base of all his operations. Cleveland would become a top five refining center and Standard Oil would become the most profitable oil business. Rockefeller had some unorthodox means of doing business with competitors. He was once called "Reckafellow" by Carnegie which symbolizes how far Rockefeller would go to increase the wealth of his business. One of his illegal means of getting a cost advantage came from secret rebates from the railroads bringing oil into Cleveland. Other competing refiners wanted similar rebates but by the time they were recognized, Standard Oil would become one of the largest shippers of oil and kerosene in the country. By 1877, Rockefeller would control 95 percent of all the oil refineries in the United …show more content…
Society started to notice the monopoly Rockefeller had on the oil business. The government had passed laws which made it difficult to own a business in one state and operate in another. Rockefeller and his lawyers would create a behemoth known as the Standard Oil Trust. Rockefeller and his partners owned separate companies spanning multiple states. To maximize profits and centralize their business, they would create a board of trustees which would form a monopoly over the big business of the oil industry. Journalists and politicians would attack the monopoly and would birth the anti-trust movement. In 1892, Ohio anti-trust law would separate the Standard Oil of Ohio from the rest of the company. In 1911, Standard Oil would still hold 64 percent of the market share. The Supreme Court ruled that Standard Oil participated in illegal monopoly practices and was broken up into 34 new