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The Standard Oil Years (1870-1911)
John D Rockefeller founded Standard Oil, which started as a smalll refinery in Cleveland, Ohio, but rapidly expanded into the most powerful and controversial monopoly in U.S. history
Rockefeller revolutionized the oil industry by consolidating refining operations, cutting costs, and ensuring consistent quality. Through aggressive tactics like price wars and strategic partnerships, Standard Oil gained control of nearly every aspect of oil production—from drilling to transportation and refining
By the late 19th century, Standard Oil controlled 90% of the U.S. oil market. It owned pipelines, railroads, and even its own fleet of tankers, making it virtually impossible for competitors to survive. This dominance allowed the company to set prices and dictate terms, leading to accusations of ruthless business practices
Standard Oil’s monopoly drew significant criticism from journalists like Ida Tarbell, whose 1904 exposé, The History of the Standard Oil Company, highlighted its unethical practices. This, combined with growing public outcry, led to the U.S. government’s intervention. In 1911, the Supreme Court ruled that Standard Oil violated antitrust laws and ordered its breakup into 34 smaller companies
The major ones were:
- Standard Oil of New Jersey (later became Exxon)
- Standard Oil of New York, or Socony (later became Mobil, merged with Exxon to form ExxonMobil)
- Standard Oil of California, or SoCal (later became Chevron, Acquired Gulf Oil in 1984 and merged with Texaco in 2001)
- Standard Oil of Indiana (later became AMOCO and was acquired by bp in 1998)
- Continental Oil Company (later became Conoco and then ConocoPhillips, after merging with Phillips Petroleum)
- The Ohio Oil Company (later became Marathon Oil)