Standard Oil was a dominant American oil company founded by John D. Rockefeller in 1870. It was known for its aggressive business tactics and monopolistic practices in the oil industry.
John Davison Rockefeller was born on July 8, 1839 to William Avery Rockefeller and Eliza Davison in Richford, New York.
The completion of the first successful petroleum well in northwestern Pennsylvania in 1859 sparked a speculative oil boom, leading to the dominance of independent oil producers in the early oil extraction industry.
In 1863, John D. Rockefeller, along with his partners, constructed an oil refinery near Cleveland, Ohio. This marked the beginning of the pre-history of Standard Oil, as the refinery quickly became the largest in the area, leading Rockefeller to focus exclusively on the oil business.
He had married Laura Celestia “Cettie” Spelman in 1864.
Atlantic Refining and Marketing was founded in 1866 and acquired by Standard Oil in 1874.
In 1868, Standard Oil struck a seminal deal with the Lake Shore Railroad, securing a significant discount on shipping rates. This deal allowed the company to expand its operations and increase its dominance in the oil industry.
John D. Rockefeller formed the Standard Oil Company on January 10, 1870 with his business partners and brother. The success of this business empire made Rockefeller one of the world’s first billionaires and a celebrated philanthropist.
Within the first three months of 1872, Rockefeller acquired, shut down, or bankrupted 22 of his 26 Cleveland competitors, aiming to remove 'marketplace inefficiency' and consolidate control over the oil industry. This aggressive acquisition strategy contributed to the rise of Standard Oil's dominance.
Conoco was founded in the state of Utah in 1875.
Standard Oil of California, later known as Chevron, was founded in 1879. It was one of the major companies established by the famous industrialist John D. Rockefeller.
The New York State Legislature's Hepburn Committee investigations uncovered that Standard Oil was receiving substantial freight rebates on all of the oil it was transporting by railroad, crushing its competitors.
By 1880, according to the New York World, Standard Oil was described as 'the most cruel, impudent, pitiless, and grasping monopoly that ever fastened upon a country'.
The Chesebrough Manufacturing Company was acquired by Standard Oil in 1881 and separated from Standard as one of the 34 successor entities during the 1911 divestiture.
In 1882, the Standard Oil Company and its affiliated companies were combined to form the Standard Oil Trust, which was governed by nine trustees, including John D. Rockefeller. This trust allowed for the control of numerous corporations engaged in producing, refining, and marketing oil.
On March 15, 1882, companies under Standard Oil came together to form the Standard Oil Trust, further consolidating Rockefeller's control over the oil industry.
Standard Oil gains control of Continental Oil and Transportation Co., the leading distributor of petroleum products in the Rocky Mountain area. This acquisition allows Standard Oil to expand its influence in the oil industry.
Conoco was acquired by Standard Oil in 1884.
In 1885, the Standard Oil Trust was formed, including the Standard Oil Company of New Jersey (Jersey Standard) and the Standard Oil Company of New York (Socony), marking a significant consolidation in the oil industry.
In 1885, Standard Oil acquired control of Continental, a leading seller of petroleum products in the Rocky Mountain region. However, in 1913, due to antitrust legislation enforced by the U.S. Supreme Court, Standard Oil was forced to relinquish its control over Continental.
Standard Oil of Indiana was founded in 1889 and traded as Standard Oil of Indiana until 1985. It gained control of the Amoco name by purchasing the American Oil Company in 1925.
In 1890, Congress overwhelmingly passed the Sherman Antitrust Act, a pivotal source of American anti-monopoly laws. The act aimed to forbid contracts, schemes, deals, or conspiracies that restrained trade, marking a significant development in the regulation of monopolistic practices.
In 1892, the state of Ohio successfully sued Standard Oil, leading to the dissolution of the trust. However, Standard Oil simply separated Standard Oil of Ohio and retained control of it.
A book seeking to expose the dangers of monopolies, with a focus on Standard Oil.
In 1896, John Rockefeller retired from the Standard Oil Co. of New Jersey, the holding company of the group, while retaining his position as president and a major shareholder. This transition marked a significant change in the company's leadership.
In 1899, the Standard Oil Trust was legally reborn as a holding company, the Standard Oil Co. of New Jersey (SOCNJ), which held stock in 41 other companies, exerting significant control over the oil industry.
In the early 1900s, the United States enacted the Sherman Antitrust laws in response to growing public outcry, aiming to break up a mega company.
The Spindletop field in East Texas yielded a major oil discovery in 1901, leading to the emergence of significant new competitors in the oil market. This discovery marked the beginning of a new era in which petroleum became a primary fuel for industry and transportation.
In 1902, a horse-drawn truck employed by Standard Oil delivers gasoline for the first automobiles and stationary engine use, marking a significant milestone in the history of the oil industry.
President Theodore Roosevelt delivered a speech at Boston’s Symphony Hall in August 1902, highlighting the expansion of corporate power due to the growth of interstate and international commerce. He also expressed concerns about corporations exploiting loopholes in the U.S. federalist system to evade regulatory oversight.
McClure's Magazine begins serializing a detailed history of Standard Oil, authored by investigative journalist Ida Tarbell, spanning 19 installments.
In 1903, the Wright brothers utilized Jersey Standard fuel and Mobiloil lubricants for their historic first flight at Kitty Hawk, North Carolina, demonstrating the importance of quality oil products in aviation history.
In 1904, Ida M. Tarbell published 'The History of the Standard Oil Company,' which critically examined the practices of Rockefeller's Standard Oil. The book played a significant role in exposing the impact of trusts and corporate power on the American public.
On February 20, 1905, Kansas officially declared war on Standard Oil, reflecting the state's opposition to the company's practices.
On February 21, 1905, Kansas Congressman P.P. Campbell actively petitioned against Standard Oil, demonstrating the growing resistance to the company's dominance.
On May 10, 1906, a former employee of Standard Oil confessed to spying on behalf of the company, revealing internal surveillance practices.
On June 9, 1907, the New-York Tribune reported that Standard Oil interests were reportedly attempting to gain control of the turpentine industry. This development could have significant implications for the turpentine industry and the broader business landscape at that time.
On October 31, 1907, the Kansas Supreme Court encountered inconsistent responses regarding Standard Oil's trusts, indicating legal challenges to the company's operations.
In January 31, 1908, President Roosevelt publicly states an attack on Standard Oil and law-defying rich citizens.
In 1909, the U.S. Justice Department sued Standard Oil under federal antitrust law, the Sherman Antitrust Act of 1890, for sustaining a monopoly and restraining interstate commerce through various unfair practices.
In February 16, 1911, the U.S. Supreme Court found Standard Oil guilty of violating the Sherman Antitrust Act. As a result, the government mandated the breakup of Standard Oil into smaller companies due to its monopolistic practices.
In May 1911, the U.S. Supreme Court rules in favor of the government in the case against Standard Oil, leading to the breakup of the company into separate entities, including Chevron, Amoco, Mobil, Conoco, and Exxon, which later dominate the international oil market.
On May 15, 1911, the US Supreme Court upheld the lower court judgment and declared the Standard Oil group to be an 'unreasonable' monopoly under the Sherman Antitrust Act, Section II. It ordered Standard to break up into 34 independent companies with different boards of directors, leading to the formation of Exxon and Mobil.
On May 18, 1911, the US Supreme Court dissolves Standard Oil trusts, giving the company six months to comply.
The U.S. Supreme Court mandated Standard Oil to give up control of Continental Oil and Transportation Co. to avoid monopolistic practices.
The Clayton Act, passed in 1914, expanded the review of mergers that could potentially limit market competition, reflecting the ongoing efforts to tighten antimonopoly provisions during the Progressive era.
Atlantic Refining and Marketing opened the first modern gas station on Baum Boulevard in Pittsburgh in 1916.
Standard Oil of Indiana gained control of the Amoco name by purchasing the American Oil Company in 1925.
After the breakup of Standard Oil, The Ohio Oil Company grew by purchasing the Transcontinental Oil Company in 1930.
On January 16, 1932, Standard Oil introduced a new product to the market. The specifics of the product and its impact on the industry are not mentioned.
In 1933, Jersey Standard and Socony-Vacuum merged their interests in the Asia-Pacific region into a 50–50 joint venture, forming Standard-Vacuum Oil Co., or 'Stanvac', which operated in 50 countries before it was dissolved in 1962.
By 1950, South Penn had acquired all the firms using Pennzoil as a trade name and subsequently renamed itself to Pennzoil.
The Union Tank Car Company (UTLX) formed a Canadian affiliate, Procor, in 1952.
In 1955, Socony-Vacuum changed its name to Mobil Corporation, gradually using Mobiloil and Mobilgas as trade names for its retail products.
The Ohio Oil Company renamed itself to Marathon Oil in 1962.
In 1966, Atlantic Refining merged with the Richfield Oil Company to form ARCO.
In 1973, Jersey Standard announced it would rebrand all of its stations as Exxon and changed its corporate name to Exxon Corporation simultaneously due to legal issues with the use of the Esso brand name.
In 1981, UTLX was acquired by Marmon Group.
In 1984, AT&T, following decades as a regulated natural monopoly, was forced to divest itself of the Bell System. This divestiture mirrored the historical breakup of Standard Oil and marked a significant shift in the telecommunications industry.
In 1985, CalSo purchased Gulf Oil, creating the third largest oil company in the United States and rebranding as Chevron Corporation.
In 1987, Unilever acquired Chesebrough for $3.1 billion USD, or $72.50 per share, in an all-cash deal, beating a $66/share offer from American Brands.
BP continued to sell gasoline under the Sohio brand until 1991, even after the acquisition of Standard Oil Company of Ohio (Sohio). This allowed the Sohio brand to remain in the market for a few more years.
Chevron Corporation, formerly known as Standard Oil of California, rebranded itself as Chevron in June 1993. It has since become one of the largest companies in the world.
Chronicles the companies that sprang up under the Standard Oil umbrella, including Esso, Exxon, Chevron, Sohio, Mobil, Pan-Am, Atlantic, Crown, and several others.
Pennzoil split its energy and motor parts divisions in 1998, with the original Pennzoil company inheriting the energy production facilities and a new company, Pennzoil-Quaker State, inheriting the automobile parts and fluids division.
In November 1999, Exxon and Mobil closed a merger deal with American regulatory approval, resulting in the formation of ExxonMobil, which is now the largest majority investor-owned oil and gas corporation in the world.
In 2001, Chevron acquired Texaco and temporarily renamed itself to ChevronTexaco Corp. between 2001 and 2005.
In his 2008 book, Steve Weinberg described the exposure of Standard Oil as 'arguably the greatest work of investigative journalism ever written'.
In a 2010 column, libertarian-conservative economist Thomas Sowell criticized Ida Tarbell for cherry-picking data in her book, particularly regarding Rockefeller's improvements in the oil industry.
Marathon Oil split in 2012, with upstream operations continuing under the historical Marathon Oil name while downstream and retail operations are handled by Marathon Petroleum.
ExxonMobil successfully lifted the 1930s trademark injunction that banned it from using the Esso brand in some states, allowing universal marketing material for its stations globally and the return of the Esso name to some minor station signage at both Exxon and Mobil stations.
Chevron withdrew from Kentucky in 2010, while BP gradually withdrew from five Great Plains and Rocky Mountain states since the initial conversion of Amoco sites to BP. ExxonMobil has de facto claimed the Standard trademark in these states, though they are still held by their respective rights holders.