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Ellis Mckay. Gerry Wixted. 01-23-2017. The Standard Oil

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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 financial opportunity
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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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