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)