One of the most notorious of monopolies was John D. Rockefeller’s Standard Oil, naming him still the richest man in U.S. history. Beginning in 1870, Standard Oil grew by buying out its fellow oil business competitors or lowering prices, choking competition til’ they went bankrupt. Then in 1882, the Standard Oil Trust was created, merging companies into one. Rockefeller’s success became a paradigm for other businesses and trusts were formed among steel (Carnegie’s Steel Company), coal, railroad, and other corporations. Widespread media made the public aware of the growing monopolies that was the cause of their unemployment and the high prices of consumer products.
Enron Corporation was an energy company founded in Omaha, Nebraska. The corporation chose Houston, Texas to home its headquarters and staffed about 20,000 people. It was one of the largest natural gas and electricity providers in the United States, and even the world. In the 1990’s, Enron was widely considered a highly innovative, financially booming company, with shares trading at about $90 at their highest points. Little did the public know, the success of the company was a gigantic lie, and possibly the largest example of white-collar crime in the history of business.
In 1909 due to antitrust laws, the Federal courts ordered the break-up of Standard Oil Company by dividing it into Thirty-four separate companies. Standard Oil went on to dominate the first Twenty years of the oil and gas industry, and the U.S. accounted for more than half of the world 's production until around 1950. As the industry grew and became more global in nature, other world markets in Europe, Russia and Asia, began to play a much greater role. New industry giants arose such as the likes of, Shell, Royal Dutch, and Anglo-Persian, which is now today’s British Petroleum, also known as BP (The Library of Congress, 2011). As the oil and gas industry unfolded over some years, Standard Oil of New Jersey went on to become Esso, and later Exxon, Standard Oil of New York became Mobil, and Standard Oil of California is now Chevron.
The big business people in the late 19th century consisted of top business magnates like rail road barons Vanderbilt, Tom Scott, James Hill, and Jay Gould, Oil baron Rockefeller, and financial baron J.P Morgan; all believed that competition was ruinous and demoralizing, and that competition destroys order. Such was the belief that competition destroyed order that companies sought to control every aspect of business. The period of big business commenced when business visionaries began to combine companies and create powerful corporations. These corporations grew a lot, up to the point in where corporations would dominate a significantly large percentage of a particular market. This significance of this is: the few most capable corporations dictate the prices of certain items in a market!
The world’s first billionaire, John D. Rockefeller Sr. held ninety percent of the world’s oil refineries, ninety percent of the marketing of oil, and a third of all the oil wells. Working methodically and secretly, he did more than transform a single industry. When he formed his feared monopoly, Standard Oil, in 1870 he changed forever the way America did business. Because of the ruthless war he waged to crush his competitors, Rockefeller was to many Americans the embodiment of an unjust and cruel economic system. Yet he lived a quiet and virtuous life.
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. Andrew Carnegie found his fortune in steel.
When many people hear the word Enron, they immediately associate it with the most important accounting scandal of our lifetimes. Enron was an American gas company that began as the Northern Natural Gas Company in 1931. Internorth, a holding company in headquartered in Omaha, Nebraska, purchased the Northern Natural Gas Company and reorganized it is 1979. Enron arose from the 1985 merger of Houston Natural Gas and Internorth. After building a large, new corporate headquarters in Omaha, in 1986 the new Enron named former Houston Natural Gas CEO Kenneth Lay as CEO of the newly merged company, and soon moved Enron's headquarters to Houston, Texas.
Weaknesses: Weaknesses found within XOM were their declining oil reserves, human rights issues, and negative public perception. Declining Oil Reserves: ExxonMobil is a very large corporation. The company recorded on February 19th that they added 1 billion barrels of oil to the reserves. That makes up 67 percent of the production. When building up the reserves most companies want to strive for at least 100 percent of their production for reserves or else it could be viewed as a problem.
It was not until 1956 that they found oil, one of the largest reserves in the world, in the delta region of Nigeria. While Nigeria was still under British rule, in 1958, Shell started oil production, setting up drilling facilities, pipelines and refineries. Nigeria gained freedom from British rule in 1960 and have struggled for identity. Like most eastern countries that rely on one source of income Nigeria has had major economical turmoil. Since 1970 the country has suffered through seven military coups, several of which were bloody.
Introduction: Chevron Corp. (NYSE:CVX) is the second largest energy corporation in the U.S, just falling behind Exxon Mobil and considered as one of the six Super or Big Oil companies in the world. It operates in over 180 countries, having established and using a strong network of retail gas stations which include big brands such as Chevron Corp. itself, Texaco and Caltex. Chevron business integration is a vertical one, with its operations diversifying from producing oil to mining as well manufacturing petrochemical products. Chevron comes under very stringent environmental regulations, having faced very costly litigations on environmental protection and has a pending litigation on it due to the contamination of the Ecuadorian Amazon rainforest, where the plaintiffs have made a claim of over $24 billion. Nigeria’s political instability has also created challenges to Chevron, which is a substantially large oil export in Africa.