One Man Owned the Oil — Rockefeller and Standard Oil (1870)
In 1870, John D. Rockefeller founded Standard Oil. Twenty years later, he controlled 91% of America's oil. One man held an entire nation's economy in his hands.
Age 26
- John D. Rockefeller was 26 years old.
He started a small oil refinery in Cleveland, Ohio.
The oil age had just begun. The market was chaos — dozens of small refineries, prices swinging wildly by the day.
Rockefeller saw opportunity in the disorder.
Absorption
- Standard Oil founded.
The strategy was simple: buy out competitors or destroy them.
He negotiated secret deals with railroads — far lower shipping rates than his rivals. When competitors used the same railroads, Standard Oil received a rebate.
No competitor could survive.
91%
- Standard Oil controlled 90% of American oil refining.
1880s. 91%.
He acquired 22 of Cleveland's 26 refineries. In six weeks.
He called it "the great massacre."
The Trust
- The Standard Oil Trust.
40 subsidiaries, unified under one structure. Legally separate companies. In practice, one man directed everything.
Government and Congress couldn't touch it. The law didn't exist yet.
Breakup
- The Supreme Court ruled.
Standard Oil violated antitrust law. Forced to split into 34 companies.
Ironically, Rockefeller owned shares in all 34. His wealth doubled after the breakup.
ExxonMobil, Chevron, and BP all trace their origins to Standard Oil.
Founded: 1870 | Peak market share: 91% | Forced breakup: 1911 | Rockefeller peak wealth: ~$400 billion in today's dollars
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