Standard Oil trust

By 1900, other products from petroleum began to take on importance. Lubricants especially became prominent. This was due to the growth of industrialization in the United States, a shortage of naturally occurring lubricants (e.g., vegetable and whale oils), and an intense and creative marketing effort on the part of Rockefeller and his Standard Oil Trust. By 1910, Standard Oil Trust was also marketing coke and asphalt to a variety of manufacturers as well as the construction industry. 

Standard Oil Trust is formed and buys controlling interest in a number of oil companies. 

As of 1998, Exxon was the third largest U.S. corporation in terms of revenues, in excess of 122 billion. It was incorporated in the state of New Jersey in 1898 and became a distinct entity upon the dissolution of the Standard Oil Trust in 1911. In 1997 about 14 billion (10.3% of Exxon s total revenue) was attributed to chemicals, making it the third largest U.S. producer of chemicals. The chemical products include basic petrochemicals, including olefins and aromatics, additives for fuels and lubricants, polyethylene and polypropylene plastics, specialty resins, specialty and commodity solvents, and performance chemicals for oil field operations. 

Both Exxon and Mobil have their roots in the late 19th century with the Standard Oil Trust. Standard Oil Company of New Jersey and Standard Oil Company of New York were the chief predecessor companies of Exxon and Mobil. 

After the dissolution of Standard Oil Trust, the American kerosene output was eclipsed for the first time by a formerly discarded byproduct - gasoline. The growing automotive market ultimately inspired the product trademark Mobiloil, registered by Socony in 1920. Jersey Standard and Socony separately faced rising competition. Both companies were not fully integrated. Over the next twenty years, each expanded across the U.S. and abroad. 

The history of Shell as a real oil enterprise began in early 1890, when Marcus Samuel Junior made a visit to Batum on the Black Sea from where Russian oil from Baku was imported. The businessman was very impressed by the scale of operations. He saw a large market for kerosene in the Far East where it was used for lamps and cooking. Unfortunately, American Standard Oil Trust had a monopoly on the business. So, Marcus had to find a way to undercut prices. Quite separately, the Dutch company, Royal Dutch Petroleum Company, was formed to develop an oilfield in Pangkalan Brandan in Sumatra. Established in the Hague, it enjoyed the support of King William III of the Netherlands. 

Howards previous blocking of crucial industrial developments in the United States was unwitting now he deliberately accepted, in friendly trust, the power to prevent the United States from seizing the Farben patents. Standard Oil even agreed to hold Farben s profits until after the war. This agreement was in a secret memorandum signed by Howard and left with Farben, according to... 

As a result of these agreements, Rockefeller controlled essentially the entire oil industry of the United States by 1878. Government concern at this state within the state resulted in anti-trust proceedings against Standard Oil. In 1911 it was forced to liquidate or surrender control of 33 subsidiary companies. (See Table 2-1)... 

In the literature on Royal Dutch/Shell, and on the petrochemical industry in general, little attention has been paid to the fact that between 1906 and 1919, this oil company was actively engaged in research on, and production of, aromatic intermediates, explosives and synthetic dyes. Most authors emphasize that the Anglo-Dutch oil company entered the world of petrochemicals only in 1927, as a result of an alliance between the powerful German IG Farben trust and Shell s most important competitor. Standard Oil." ... 

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