Analysis of the Oil Industry
I. The Oil Industry
The oil industry can not be discussed without mentioning the name John D. Rockefeller. Rockefeller changed the business of oil distribution. In the 19th century Rockefeller began his humble beginnings with a small investment, along with two other partners, in the oil refining business. Eventually Rockefeller upset at the direction of the company bought out his partners. He was now buying into refining and developing kerosene and other petroleum-based products. He later named this company The Standard Oil Company which by 1872 nearly owned all the oil refineries in Cleveland. In 1882, Rockefeller took all his holdings and merged them into the Standard Oil Trust. Through smart business practices and some deception, Rockefeller was able to control three-fourths of the petroleum industry by the 1900’s. After his retirement the company faced problems. (Rockefeller archive) The U.S. government believed that the Standard Oil Trust was a monopoly and ordered its breakup much like the process that is taking place today with Microsoft.
With the government eventually breaking up the trust into thirty-eight companies, the world of petroleum products was about to change. Few companies could survive. They lacked focus and sustainability, basically they needed a strategic plan. When first broken up the companies needed to sever from their Standard ties while remaining a brand name that people recognized. With so much competition one company had to find an edge over the other. They needed to be the low-cost leader in the industry. Out of this struggle is where three of the biggest oil companies emerged. They are Exxon, Mobil and Chevron.
With the breakup of the Standard Oil Trust also ...
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...y be left at the bottom as they are now.
In conclusion, of the three, ExxonMobil is the dominant company but must look out for the growing company, Chevron.
BIBLIOGRAPHY
BP’s Corp., Official Home Page: www.bp.com.
BP’s Corp. 1999 Annual Report, BP Corporation, 1999.
Chevron’s Corp., Official Home Page: www.chevron.com.
Chevron’s Corp. 1999 Annual Report, Chevron Corporation, 1999.
ExxonMobil’s Corp., Official Home Page: www.exxon.mobil.com.
ExxonMobil’s Corp. 1999 Annual Report, ExxonMobil Corporation, 1999.
Haddadin, Haitham. “ Stock Crash Reminds Pros of 1973-74 bear market” U.S. Market News, March 1, 2001.
Park, Christopher. “ S. Korea, Russia agree to strengthen oil, gas cooperation” U.S. Market News, Feb. 27,2001.
Yahoo: www.rockefeller.edu/archive.ctr/jdrsrbro.html(3-1-01)
Yahoo: www.leegallery.com/perjune.html (3-1-01)
As America’s first billionaire, few individuals in history can compare with John D. Rockefeller Sr. His wealth around the turn of the 20th century would be worth roughly twenty-two billion dollars in modern United States dollars. It is undeniable that Rockefeller changed the landscape of the American petroleum industry by defining the nature of oil production. By 1883, Rockefeller was laying the foundations for what we now know as the vertically integrated company and the modern multinational. The fruit of Rockefeller’s labor, the Standard Oil companies, controlled ninety five percent of petroleum refining and transport by 1880. It would not come as a surprise, given Rockefeller’s opulence, to find Standard Oil and its business practices under close scrutiny by his competition as well as the federal government. Rockefeller’s ruthless and legally questionable business tactics threatened the well-being of the United States’ capitalistic economy. Although the federal government had a prepared response to monopolies, the Sherman Antitrust, it was not enforced to its fullest potential because of the overwhelming influence possessed by Rockefeller due to his wealth. At the time of Standard Oil’s dissolution, their prominence was already waning, providing an entry point for powerful trust busters, such as Theodore Roosevelt and influential writer, Ida M. Tarbell. Standard Oil was allowed to exist for over a decade because of the economical, political, social, and legal complications in separating Rockefeller’s companies and the oil industry. The proper environment for a dedicated antitrust effort existed only after Standard Oil’s initial decline in influence.
Plato, Machiavelli, and Lao-tzu each have varying points of views on government. Plato’s political views have more similarities to that of Lao-tzu rather than Machiavelli. In general, most people believe that in order to have a strong country you must have a good government that cares equally for all of its citizens.
...mpanies, it eventually came to the point where they couldn’t keep up and eventually became a part of Standard Oil. By the time Rockefeller had reached the age of 40, his company had controlled all national oil refining by 90% and about 70% of international export of said oil.
Rockefeller was an industrialist and philanthropist who made his fortune by founding the Standard Oil Company in 1870. Attempting to monopolize the industry and squeeze out the middle man, Rockefeller slowly gained almost complete control of the oil industry. He formed the powerful Standard Oil Trust in 1882, which united all of his companies and secured 95% of oil production in the United States for himself. Rockefeller was an industrialist who stamped out all of his competition with his trust, eventually leading to Congress intervention.
After Rockefeller saw the potential in the oil business, he formed his own company, The Standard Oil Company in 1870. In 1877, Standard Oil Company bought out Colombia conduit Co. which gained them control of lots of pipelines and refineries. (Poole 14) By 1879, Standard Oil Company owned 90% of the oil refineries in the United States. (Poole 14) Every company he bought out, showed the power that had become of him. Rockefeller’s wits bring him to inspire a many of people From 1891-1892 Rockefeller had a partial nervous breakdown from overwork and lost all his hair, suffering from ill health in the early 1890’s. (Poole 15) Rockefeller’s wealth increased and became a problem because he didn’t know what to do with all the money. (Poole 15) Rockefeller had so much money, when he got old, beyond ability to run
Rockefeller was America’s first billionaire, and he was the true epitome of capitalism. Rockefeller was your typical rags-to-riches businessman, and at the turn of the twentieth century, while everyone else in the working class was earning ten dollars max every week, Rockefeller was earning millions. There has been much discussion as to whether Rockefeller’s success was due to being a “robber baron”, or as a “captain of industry”. By definition, a robber baron was an industrialist who exploited others in order to achieve personal wealth, however, Rockefeller’s effect on the economy and the lives of American citizens has been one of much impact, and deserves recognition. He introduced un-seen techniques that greatly modified the oil industry. During the mid-nineteenth century, there was a high demand for kerosene. In the refining process from transforming crude oil to kerosene, many wastes were produced. While others deemed the waste useless, Rockefeller turned it into income by selling them. He turned those wastes into objects that would be useful elsewhere, and in return, he amassed a large amount of wealth. He sold so much “waste” that railroad companies were desperate to be a part of his company. However, Rockefeller demanded rebates, or discounted rates, from the railroad companies, when they asked to be involved with his business. By doing so, Rockefeller was able to lower the price of oil to his customers, and pay low wages to his workers. Using these methods,
A longstanding debate in human history is what to do with power and what is the best way to rule. Who should have power, how should one rule, and what its purpose should government serve have always been questions at the fore in civilization, and more than once have sparked controversy and conflict. The essential elements of rule have placed the human need for order and structure against the human desire for freedom, and compromising between the two has never been easy. It is a question that is still considered and argued to this day. However, the argument has not rested solely with military powers or politicians, but philosophers as well. Two prominent voices in this debate are Plato and Machiavelli, both of whom had very different ideas of government's role in the lives of its people. For Plato, the essential service of government is to allow its citizens to live in their proper places and to do the things that they are best at. In short, Plato's government reinforces the need for order while giving the illusion of freedom. On the other hand, Machiavelli proposes that government's primary concern is to remain intact, thereby preserving stability for the people who live under it. The feature that both philosophers share is that they attempt to compromise between stability and freedom, and in the process admit that neither can be totally had.
In 1870, Rockefeller, along with Samuel Andrews and Henry M. Flager incorporated the Standard Oil Company (The Editors of Encyclopædia Britannica). Rockefeller’s Standard Oil began prospering and soon began buying out competitors. In 1872, the company had almost complete control over all the refineries in Cleveland. With such power, the company could negotiate...
... to the times of kings and princess, however it must be noted that the underlying human emotions and their motivations can only be dealt with decisiveness and deep plotting. The concepts discussed are applicable to all leaders and politicians holding offices. Bottom line is, some things never changes. Even though a lot has changed, principles of Machiavelli’s Prince are adapted and used widely yet secretly in a complex world of growth and prosperity with a greater demography and geography.
Likewise, Plato’s philosopher king also uses the same concept but calls it “Justice” or “Good.” Similarly, to Machiavelli, who needs his Prince to have virtù to lead the people, Plato necessitates that his king use philosophical knowledge and emphasize justice to guide the unenlightened masses towards a just and stable society as well. When Socrates discusses the allegory of the cave, he remarks how when rulers must descend “to the general underground abode” where the masses “reside,” the ruler “will see a thousand times better than [the inhabitants of the cave]…because [the ruler has] seen the truth about things admirable and just and good” (Plato 520c). Plato believes that by seeing beyond the cave, and understanding the situation he exists in, the leader will have the appropriate ability to bring foresight and intelligence when making difficult decisions. While Plato’s and Machiavelli’s means of educating, changing and legitimizing political communities differ, the two philosophers share the same goal of using the benevolent dictators’ attained knowledge to lead the masses and their governments to prosperity and good fortune.
Pratt, Joseph A. “Exxon and the Control of Oil.” Journal of American History. 99.1 (2012): 145-154. Academic search elite. Web. 26. Jan. 2014.
When John D. Rockefeller merged with the railroad companies, he had gained control of a strategic transportation route that no other companies would be able to use. Rockefeller would then be able to force the hand on the railroads and was granted a rebate on his shipments of oil. This was a kind of secret agreement between the two industries. None of the competition knew what the rates were for the rebates or the rates that Rockefeller was paying the railroad. This made it hard for the competition to keep up with the Standard Oil Company. The consequences led to many oil companies getting bought out by Rockefeller secretly. All in all, 25 co...
In a work written by Machiavelli called The Prince, there are many ideas he believes should be part of a government. The United States today is a Federal Republic. This means that it is a “federation of states that have a republican form of government”. Being a republican government means that the power of the country lies with the people and their elected representatives. This essay will be tackling the topic of whether or not the ideas that Machiavelli stated should or should not be implemented into our own system of government today.
That means that they rely on other people to live fully. Although they are born with necessities like food and shelter, their needs are best fulfilled when they interact with others. Machiavelli, on the other hand, does not believe that people need others to survive, especially princes. In fact, Machiavelli states, “Men intrinsically do not trust new things that they have not experienced themselves” So, since men, by nature, are scared of new things, then how would they go out and interact with people they don’t know? It would be impossible for someone scared of new things to interact with new people, so both respective ideas cannot exist at the same time. Also, Plato puts a lot of emphasis of the human soul, and the different parts of someone’s soul. Within the soul, each person has the ability to reason, spiritedness, and his own personal appetites. However, Machiavelli does not directly mention the ability for humans to show their own ability to reason; he believes that they can only truly show their arrogant and greedy side of their nature for a long period of time. Both Machiavelli and Plato have similar thoughts regarding the predetermination of a person, where a certain human being is chosen at birth what they will be, or how they act. It is how they are selected that they both disagree on. With Plato, he believes that humans are chosen at birth regarding what they will be like, but they have the ability to reason and
Plato’s thoughts about power and reason are much different than Aristotle. Plato looked at the meaning of justice and different types of governments. Plato looked into four different types of governments