Analysis of the Oil Industry Essay

     Chevron Texaco, or Texaco Shell, is the leading competitor to ExxonMobil. Texaco is in the same areas of business as Exxon. Their petroleum products and lubricants are sold in the same markets, stores, and in many cases opposite street corners from each other. The two companies are very similar, but Exxon’s recent petroleum deals in the Middle East and Africa have allowed its stock price to jump ahead for the time being (1). In the industry, the two companies mainly compete for the ability to negotiate for new production. The competition is not made at the pump or at the local auto store. It seems that it’s more important to control oil than it is to sell it quickly. Because oil has so much value and power in the world, the industry is made of semi-friendly companies. Surviving and making as much profit as possible, is more important than trying to put people out of business.

Over the course of this paper information regarding John D Rockefeller 's creation of the Standard Oil company will be showcased. First, information regarding Rockefeller’s entry into the oil industry will be presented. Second, how Standard Oil became the largest oil company in the United States. Next, the innovative products and procedures that Standard Oil creates to keep the company relevant throughout the era . Lastly, how the dissolution of Standard Oil paves the way for a diverse oil market with companies specializing in different productions. Now, John D Rockefeller may have been a cutthroat businessman; however, Rockefeller’s vision for Standard Oil creates a period of innovation and advancement of the none existent oil industry that remains relevant today.

economy. It happened when the nation was experiencing its fast change from a mostly agrarian culture to the best modern powerhouse the world has ever known. The impacts of Standard Oil on the U.S., and in addition on a great part of whatever remains of the world, were huge, and the lessons that can be gained from this astounding story are perhaps as applicable today as they were a century prior. Standard Oil Company was established by John D. Rockefeller in Cleveland, Ohio in 1870, and, in only barely 10 years, it had accomplished control of about all the refineries in the U.S. This predominance of oil, together with its limbs weaved profound into the railways, different ventures and even different levels of government, persevered and increased, in spite of a developing open clamor and rehashed endeavors to split it up, until the U.S. Incomparable Court was at long last ready to act unequivocally in

The video “Rise of Standard Oil” talks about the world’s largest oil producer company founded in 1870 by John D. Rockefeller

The Sherman Antitrust Act broke apart Standard oil into several pieces in 1911, and one of these pieces, named Standard Oil Co. of California, would later become Chevron. It was a part of the “Seven Sisters”, which dominated the oil industry on a global level in the early 20th century. Standard oil of California could only use the name when it was in California, and so it adopted the name Chevron. In 1933, Saudi Arabia Granted the company a concession to find oil, which led to the discovery of oil in Saudi Arabia, and the world’s largest oil field.

Formed by the merger of two big oil companies in 1999, Exxon and Mobil, the corporation is now the world’s 8th largest by revenue and third largest publicly traded company by market capitalization. Exxon’s history is the story of two groups; both Exxon and Mobil are descendants of John D. Rockefeller 's Standard Oil Company of Ohio, incorporated as Standard Oil Trust in 1882.

John D. Rockefeller founded the Standard Oil Trust in 1870 in Cleveland Ohio, the oil-refining mecca of the time. The trust almost immediately began using a variety of cutthroat techniques to acquire or destroy competitors and thereby "consolidate" the oil industry. Some techniques used by Standard Oil were to temporarily undercut the prices of their competitors, creating secret deals with the railroad companies to gain a cheaper shipping rate for its oil, and acquiring a majority of the pipelines needed to transport the un-refined oil to the refinery. By 1878 Rockefeller and his company had gained control of nearly 90 percent of the oil refined in the United States. The company’s dominance of oil,

One instance, from real life, of the US government acting to promote competition and break-up monopolies occurred in 1911 when the United States Supreme Court ruled that Standard and Oil was an illegal monopoly. Standard and Oil Co Inc. was an American oil company established in 1870 by John D. Rockefeller as a corporation in Ohio which by early 1880 controlled some 90 percent of US refineries and oil pipelines and dominated the oil products market through horizontal integration and later through vertical integration. Standard and Oil gained a monopoly in the oil industry by buying rival refineries and forming several companies for distributing and marketing its products around the globe. In 1882, these various companies were combined into the Standard Oil Trust and It became the largest oil refinery monopoly in the world. Rockefeller became the richest man in the world which consequently made him a target of critics and politicians. These powerful politicians accused him of under-cutting and destroying his competitors by engaging in unethical practices, such as price fixing and colluding with railroads to eliminate his competition and to ultimately gain a monopoly in the industry. Other accusations by critics and politicians included: getting rich on rebates from railroads, bribing men to spy on competing companies, of making secret agreements, of coercing rivals to join the Standard Oil Company under

In 1890, Standard Oil controlled 88% of the refined oil in the United States and as time went along they continued to control more of the market. At one point Standard oil controlled 91% of oil production and 85% of its final sales. The US Department of Justice caught onto their scheme and sued the company under the federal anti-trust law for monopolizing the oil market. John D. Rockefeller, owner of Standard Oil, decided to break into 34 smaller companies and Rockefeller became the richest man in the world.

Standard Oil began as an Ohio partnership incorporated in 1870 by John D. Rockefeller. Using innovative business tactics, it absorbed or destroyed most of its competition in Cleveland in less than two months.

Standard Oil of Indiana, as the company was officially known for many years, took shape in 1899. Initially it consisted of a single facility outside Whiting, Indiana, which refined oil intro products that people and business needed: axle grease for industrial machinery, paraffin wax for candles, and kerosene for home lighting.

• ExxonMobil is the largest non-government owned company in the energy industry and produces about 3 percent of the world's oil and about 2 percent of the world's energy

Exxon Mobil Corporation is a leading company in the world. It is one of American’s best employers and a world leader for valuable brand products. The company markets and operates products throughout the U.S. as well as most countries of the world. Exxon Mobil produces several different products for consumer use. Exxon Mobil is the leader over three different brands: Exxon, Esso, and Mobil. These three different brands are leading producers in the world’s fuels, services and lubricants for both private and commercial sale. The corporation produces different fuels, petrochemical materials, and motor lubricants. According to the corporate Exxon Mobil website, their guiding principles is “Exxon Mobil Corporation is committed to being the world’s premier petroleum and petrochemical company. To that end, we must continuously achieve superior financial and operating results while simultaneously adhering to high ethical standards.” While Exxon Mobil was founded by John D. Rockefeller in 1882, the history of oil began in 1859 in Titusville, Pennsylvania by Colonel Edwin Drake and Uncle Billy Smith. Those two men are credited with drilling the first successful oil well. From that point forward the Standard Oil Company began and started producing oil related products such as gasoline, engine oils, and other motor lubricants. As the years progressed, the company began expanding to several locations in America with different brands such as Esso, Mobil and Exxon. In 1926, the Standard

Exxon Mobil Corp. was formed in 1999 by the merger of two major oil companies, Exxon and Mobil. Both Exxon and Mobil were descendants of the John D. Rockefeller Corporation, Standard Oil which was established in 1870. [1] By 1911, with public outcry at a climax, the Supreme Court of the United States ruled that Standard Oil must be dissolved and split into 34 companies. Two of these companies were Jersey Standard ("Standard Oil Co. of New Jersey"), which eventually became Exxon, and Socony ("Standard Oil Co. of New York"), which eventually became Mobil.[16] [2]

Exxon Oil Company was established on January 1, 1973, in the United States as a result of a merger between Esso, Enco, and Humble oil companies. These three companies were held under Standard Oil of New Jersey, which was John Rockefeller’s company that dissolved during the 1911 Standard Oil Antitrust Settlement. On November 30, 1999, Exxon and Mobil merged to form the Exxon Mobil Corporation. At the time of the merger CEOs Lee Raymond and Lou Noto (1999) proclaimed, “This merger will enhance our ability to be an effective global competitor in a volatile world economy and in an industry that is more and more competitive.” (Exxon Mobil, 2014). Today Exxon Mobile is engaged in exploration, production, refining and marketing of oil and natural gas. The company’s headquarters are located in Irving, Texas and has a total of 75,000 employees globally, operating with a major presence in North America and Europe. In addition the company has an annual revenue of $420,868,000,000 and $32,580,000,000 in net profits (FY13), their NYSE:XOM is totaled at $95.82. (Exxon Mobil, 2014). However, due to new economic threats, oil, an inelastic commodity, may soon become elastic. This paper will discuss some of the economic threats hindering the oil companies, such as Exxon, and reveal the economic factors that are helping insulate the oil industry from those threats.