Ellis Mckay. Gerry Wixted. 01-23-2017. The Standard Oil
Ellis McKay
Gerry Wixted
01 23 2017
The Standard Oil Company
In the mid 1800s, oil became a huge component of American lifestyle, as it was included in a lot of
things including medicine, lubricants, and kerosene for lighting. After Edwin Drake drilled the first
successful oil well in Titusville, Pennsylvania in August 1859 , many small oil companies began to
appear throughout northwestern Pennsylvania to capitalize on the new source of revenue.
By the 1860s, the oil industry consisted of four independent oil industries. These were the
producers, refiners, shippers, and distributors . Talks among the four industries was almost
nonexistent. Due to the lack of talking, John D. Rockefeller and Samuel Andrews saw a great
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Another way by which Standard Oil was able to expand was when Rockefeller became worried
about the overproduction of oil, which would lead to falling prices. Due to his worries,
Rockefeller made up a plan with an alliance of refiners (people who owned the oil processing
plants). By the end of 1872, Standard Oil had acquired 34 former rivals, taken control of
Cleveland, made alliances with several key New York refiners, and secured even lower shipping
rates . Due to such low shipping rates, Standard Oil began to produce other products such as
lubricants, candles, paints, and dyes.
As a result of how powerful Standard Oil was getting, both refiners and producers looked to bring
order to the oil industry. However, nothing was accomplished. Rockefeller took advantage of this
situation, and in August 1872, he became president of the National Refiners Association , an effort
to control the production and prices of oil. However, the refiners association lasted less than a year.
From 1873 1876, Standard Oil expanded drastically as its role in the oil business increased. This
was a cause of Standard Oil entering the pipeline business, as well as acquiring major oil plants in
several places including Philadelphia, Pittsburgh, New York.
In 1877, Standard Oil showed how powerful it was in a huge way. This was done by Standard Oil
defeating a major challenger, The Empire Transportation Company, a partner
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