The Evolution of Standard Oil.
ROCKEFELLER’S JUGGERNAUT WAS SPLIT INTO 34 COMPANIES.
In today’s chart, we look at the “fragments” of Standard Oil, and who owns these assets today.
At the turn of the 20th century, John D. Rockefeller’s Standard Oil was a force to be reckoned with. In the year 1904, it controlled 91% of oil production and 85% of final sales in the United States.
As a result, an antitrust case was filed against the company in 1906 under the Sherman Antitrust Act, arguing that the company used tactics such as raising prices in areas where it had a monopoly, while price gouging in areas where it still faced competition.
By the time the Standard Oil was broken up in 1911, its market share had eroded to 64%, and there were at least 147 refining companies competing with it in the United States. Meanwhile, John D. Rockefeller had left the company, yet the value of his stock doubled as a result of the split. This made him the world’s richest person at the time.
The company was split into 34 separate entities, mainly based on geographical area.
Today, the biggest of these companies form the core of the U.S. oil industry:
Standard Oil of New Jersey: Merged with Humble Oil and eventually became Exxon
Standard Oil of New York: Merged with Vacuum Oil, and eventually became Mobil
Standard Oil of California: Acquired Standard Oil of Kentucky, Texaco, and Unocal, and is now Chevron
Standard Oil of Indiana: Renamed Amoco, and was acquired by BP
Standard Oil of Ohio: Acquired by BP
The Ohio Oil Company: Became Marathon Oil, which eventually also spun-off Marathon Petroleum
But that’s not all – the Standard Oil asset portfolio also carried some other interesting brands that you’d recognize today:
Yes, even Vaseline was originally a part of Standard Oil. Inventor Robert Chesebrough derived the product from petroleum residue, and the spun-off company (Chesebrough Manufacturing Company) was purchased by Unilever in 1987.
Meanwhile, the Union Tank Car Company is a part of Berkshire Hathaway today – and Pennzoil is owned by Royal Dutch Shell.
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