Few companies in history have had as profound an impact on industry, commerce and regulation as Standard Oil. Founded in 1870 by John D. Rockefeller, the company quickly grew into one of the most powerful and controversial corporations of the 19th and early 20th centuries. Its dominance in the oil industry not only reshaped business practices but also led to sweeping changes in government policy and corporate regulation.
The Rise of Standard Oil
Standard Oil revolutionized the petroleum industry through aggressive expansion, strategic acquisitions and innovative business practices. It introduced efficient refining processes, vertically integrated its operations, and leveraged economies of scale to undercut competitors. By the 1880s, it controlled about 90% of U.S. oil refining and distribution, making it one of the first true monopolies.
Rockefeller’s business acumen helped lower oil prices for consumers while maximizing profits. However, the company’s aggressive tactics, such as price-cutting to drive competitors out of business and secret deals with railroads, drew public and governmental scrutiny.
The Antitrust Breakup
By the early 20th century, Standard Oil’s dominance was seen as a threat to fair competition. In 1911, the U.S. Supreme Court ruled that Standard Oil violated the Sherman Antitrust Act, leading to its breakup into more than 30 separate entities. Many of those entities went on to become major energy corporations in their own right.
The Genealogy of Standard Oil
The infographic below charts the history of some of the companies that were once part of Standard Oil. Today, many of them are still among the world’s largest oil producers. TechTAC®, a leading tubing anchor solution provider to the oil and gas industry, published this infographic using public data.
