History Summative Essay Plan (Personal Background (Born in 1839 in…
History Summative Essay Plan
Growth of the Oil Industry
The mid-19th century had heavy demands on kerosene
Edwin Drake discovered oil in 1859, Rockefeller realized the oil industry would make him rich
In 1870 Rockefeller and associates formed the Standard Oil Company
Byproducts are created when crude oil converts to kerosene, these waste are rejected by other companies but Rockefeller saw them as business opportunities; he sold these byproducts such as paraffin to candlemakers, petroleum jelly to medical suppliers, and other “waste” to pave roads.
Rockefeller profited by lowering oil prices and persuading customers to buy his company's products including kerosene. These consumers for a while actually preferred to use kerosene over whale oil and electricity. The cheap oil destroyed other competitors that eventually gave their stocks to his company.
Standard formed trusts with other companies and using his sharp business skills his Standard Oil Company became the largest corporation on land.
Standard bought out other competitors by offering what their refineries were worth, so he could become the richest businessman in the world.
Standard made deals with railroad companies to transport oil around the nation. Railroad companies such as the New York Central, the Erie, and the Pennsylvania Railroad transported Standard's oil, and Rockefeller demanded rebates (discounted rates) on his products.
Set up its own transport system by buying pipelines, even bought acres of forests to block other companies from building their own pipelines
Rockefeller turned oil into a dominating industry in the late 19th century in the U.S. and had major influences abroad
Paid workers well and the labour practices within Standard Oil Company were ethical
Paid chemists well when they discovered new ways to extract kerosene from crude oil
Born in 1839 in Rockford, NY
Moved to Cleveland, Ohio in 1855 to a business school
Went to work as a shipping firm clerk in Cleveland
Saved money to begin own business in product sales
Began earning money due to Civil War demands
Around the early 20th century, Rockefeller donated about half his fortune to churches, universities, centres for arts, and medical research