The Company's Chemical Plant

The company thrived immediately from the beginning so they started buying out their competitors. The company made very quick moves, so they eventually controlled most of the refineries in Cleveland. Then, they started to make deals with railroads to ship their oil and they started purchasing terminals and pipelines to handle the transportation of their oil. The Standard Oil Company started to buy their own plots of land for drilling and for lumber. By doing this, they started owning every part of the oil business. Standard then started buying out other competitors on the east and west coast. Through this, they established a monopoly, and controlled around 90% of the United States’ oil

ExxonMobil is the largest publicly traded oil and gas producing company. ExxonMobil does business in 200 countries world-wide (1). Some countries are designated for exploring gas and petroleum, and some are designated for manufacturing chemicals, lubricants, and market fuels (1). ExxonMobil's world-class petroleum portfolio gives access to proven reserves of 21.9 billion oil-equivalent barrels of oil and gas, which is the highest in the industry (1). The company's discovered resources consist of 72 billion oil equivalent barrels of oil and gas. On average, each day, they produce 2.5 million barrels of oil and 10.5 billion cubic feet of gas (4). Their asset base, includes more than 60,000 production wells in 1,800 fields in 25 countries.

Rockefeller. Rockefeller is known for being the co-founder of the Standard Oil Company, which dominated all of the oil industry and was labeled as the first great United States business trust. He started by creating an oil refinery and through horizontal integration he bought out his competition. By the 1870’s he started using the vertical integration method and bought the materials used to make the pipes for the use of the oil. The Company grew so much that he set up Headquarters all over the United States to control it. By 1882 a monopoly took over the oil businesses in search of dominance and power over the oil industry. Standard Oil replaced the kerosene distribution with its own vertical system by using tanks cars and wagons; thus improving the quality and availability of the kerosene product and also reducing its price for the public. Standard Oil’s method of beating their competition was by underselling the oil and secret transportation

Rockefeller set up “pools” of multiple businesses that fixed prices and production quotas, and by 1879, had seized 90% of the oil refining capacity. He established the Standard Oil Trust in 1882 creating an umbrella company which controlled forty oil companies, and an arrangement of stockholders who held trust certificates. Through this absorption and cooperative management of rival companies, Rockefeller controlled the petroleum industry horizontally as well as vertically through control of costs and

John D. Rockefeller founded the Standard Oil company, and became one of the wealthiest men in the world, propelling America into a new frontier. In the 19th century, kerosene was highly demanded, and there were small kerosene manufacturing companies all over the United States. Rockefeller’s early life was no near the upbringing of a billionaire. His father began as a peddler working to make ends meet as his mother raised his brothers and sisters. He was given a $100 loan to buy a small boat, but by 1870, he established the Standard Oil company. In only 10 years, Rockefeller owned 90% of the U.S’s oil refineries. During this time, many accused Rockefeller as participating in unethical business practices. He collaborated with major railroads to eliminate his competition and used predatory pricing as well as horizontal integration to monopolize the entire oil industry. In 1886, Rockefeller took out a loan to buy

Standard Oil was the United States’ first monopoly, and it was a rollercoaster of a ride for the company. Standard Oil started from the ground up and grew into a massive enterprise, that would eventually make John D. Rockefeller the richest man in the world. This would come at a price, the demise of Standard Oil, but multiple companies are born out of the demise of Standard Oil that become some of the largest oil companies today. Standard Oil even caused the United States of America to create a federal act to try and control monopolies from eliminating competition in unethical ways, and from becoming so powerful that they can control not just their markets, but other markets too, and from having the ability to change the price on consumers

Rockefeller, 2015) and had a monopoly on fuel in America. “In order to exploit economies of scale, Standard Oil did everything from build its own oil barrels to employ scientists to figure out new uses for petroleum by-products” (John D. Rockefeller, 2015).

The Standard Oil Trust of Ohio was and American oil producing, refining, and transporting company. It was founded in 1863 by John D. Rockefeller and lasted until 1911. During 1868, Rockefeller expanded the oil company to become the largest oil refining company in the world. In 1870, the company was renamed Standard Oil Company. After it was renamed, Rockefeller purchased most of the oil companies that were currently in business to make one large company.

With this idea in mind Rockefeller bought the largest and best refiners and then proceeded to centralize their management in hopes of better efficiency and economy he would come to name this business Standard Oil (“Rockefeller, John D.”). At this point Rockefeller was a successful businessman but nothing in comparison to what he was to become. Rockefeller decided that he would buy out another large shareholder of Standard Oil due to their lack of ambition to want to expand Standard oil further than it currently was. Rockefeller later wrote that buying out the Clark’s “was the day that determined my career (John, D. Rockefeller)”. After further expansion Standard oil was producing 505 barrels of oil a day which was more than twice that capable of any other local competitors (“John Davison Rockefeller.”).

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

(Ironically, the Exxon Mobil merger reassembled the legendary Standard Oil, John Rockefeller’s company. In 1911, antitrust authorities forced Standard Oil to break into two companies: Standard Oil of New Jersey, which later became Exxon, and Standard Oil of New York, which later became Mobil.) Nonetheless, the two companies had very different images in the oil industry. Mobil was seen as having a “combative feistiness,” whereas Exxon had a “relentlessly efficient stuffiness.”5 Because of the size of the companies, the merger was scrutinized by antitrust regulators and, in order to complete the merger, both companies had to get rid of certain operations, including almost 2,500 service stations in the United States and Europe. By the mere fact that a growing population of environmentally concerned people worldwide was skeptical of large oil companies and their promotion of fossil fuel use, both Exxon and Mobil struggled with their public image. Exxon had the most damage to contain, however, because of the 1989 Exxon Valdez oil spill in Alaska’s Prince William Sound, when the single-hulled oil tanker, while dodging icebergs, hit a reef outside the shipping lane. The

Exxon and Chevron are no doubt some of the leading incorporated oil companies on the globe. Exxon Corp. is the second largest oil firm after Royal Dutch Shell, it is respected for getting the biggest revenue return in 2008 which no company in the U.S. have ever reported before. According to Wilson (2009) Chevron has managed to show a lot of profitability in the market despite the decease in its oil production. It graded as one of firms which made a billion dollars profit within a week in the period of July to September 2008. Regardless of profitability trends set by the two oil firms in the U.S. market, they have been facing financial decline like the rest of the companies in other industries. The two firms are like two sailing ships which are taking longer time to sink. In the last few years, the production capacity of Chevron and Exxon has decreased and their listings on the stock market have become weak. The continuation of construction and drilling which requires billions of dollars in expense of oil production might make them experience a bigger financial crisis (Wilson, 2009).

One of the most reputable resources that Exxon Mobil has today is a strong brand name. Exxon Mobil operates all over the world and is recognized in every part of the world (Datamonitor, 2008). When people all over the world know who a company is, what they do, and where they are located, the company gains a unique competitive advantage over

ExxonMobil has several large competitors in this sector, such as Chevron Corp., Royal Dutch Shell, and BP. Chevron is the second largest oil company in the United States, and is often compared side by side with Exxon when performance is being analyzed. Royal Dutch Shell is an enormous oil and gas producer, owning the largest retail fuel network in the world. British Petroleum is headquartered in London, and is also one of the largest oil producers in the world, having a large presence in the United States (“Edwards”). All of these companies compete in the exploration, production, and transportation of oil and its products around the world.

ExxonMobil is an American multinational oil and gas corporation main office in Texas, United States. Founded by John D. Rockefeller 's Standard Oil company, and was formed on November 1999, by the merger of Exxon and Mobil (formerly Standard Oil of New Jersey and Standard Oil of New York), and Now ExxonMobil is the largest refiner in the world. It is associated with Imperial Oil which operates in Canada.