The Oil Business
How and Why it grew
- The Oil Business grew in the late 1800's
- Edwin Drake produced 15 Barrels of petroleum a day.
- As the word spread, People began to rush to Pennsylvania.
- "Oil rush" towns with names such as oil city sprang up over night.
- The oil boom grew as prospectors struck oil in Ohio and West Virginia.
John D. Rockfeller
- Born in Rich ford New York 1839.
- Made a fortune from oil.
- When he was 26 he and four partners set up an oil refinery in Cleveland Ohio.
- in 1870 he organized the standard oil company of ohio and set out to dominate the oil industry.
Why the government began to restrict it
- He formed a trust.
- He received stock from many oil companies
- Then the shareholders of these companies traded their stock for a higher stock.
- This gave Standards Oil's board of directors ownership of the other companies stock.
- So as a result he created a monopoly. (Almost total control by a single producer)