Analysis of the Oil Industry Essay -- Oil Rockefeller Petroleum Busine

Analysis of the Oil Industry I. The Oil Industry The oil industry can not be discussed without mentioning the name John D. Rockefeller. Rockefeller changed the business of oil distribution. In the 19th century Rockefeller began his humble beginnings with a small investment, along with two other partners, in the oil refining business. Eventually Rockefeller upset at the direction of the company bought out his partners. He was now buying into refining and developing kerosene and other petroleum-based products. He later named this company The Standard Oil Company which by 1872 nearly owned all the oil refineries in Cleveland. In 1882, Rockefeller took all his holdings and merged them into the Standard Oil Trust. Through smart business practices and some deception, Rockefeller was able to control three-fourths of the petroleum industry by the 1900’s. After his retirement the company faced problems. (Rockefeller archive) The U.S. government believed that the Standard Oil Trust was a monopoly and ordered its breakup much like the process that is taking place today with Microsoft. With the government eventually breaking up the trust into thirty-eight companies, the world of petroleum products was about to change. Few companies could survive. They lacked focus and sustainability, basically they needed a strategic plan. When first broken up the companies needed to sever from their Standard ties while remaining a brand name that people recognized. With so much competition one company had to find an edge over the other. They needed to be the low-cost leader in the industry. Out of this struggle is where three of the biggest oil companies emerged. They are Exxon, Mobil and Chevron. With the breakup of the Standard Oil Trust also ... ...y be left at the bottom as they are now. In conclusion, of the three, ExxonMobil is the dominant company but must look out for the growing company, Chevron. BIBLIOGRAPHY BP’s Corp., Official Home Page: www.bp.com. BP’s Corp. 1999 Annual Report, BP Corporation, 1999. Chevron’s Corp., Official Home Page: www.chevron.com. Chevron’s Corp. 1999 Annual Report, Chevron Corporation, 1999. ExxonMobil’s Corp., Official Home Page: www.exxon.mobil.com. ExxonMobil’s Corp. 1999 Annual Report, ExxonMobil Corporation, 1999. Haddadin, Haitham. â€Å" Stock Crash Reminds Pros of 1973-74 bear market† U.S. Market News, March 1, 2001. Park, Christopher. â€Å" S. Korea, Russia agree to strengthen oil, gas cooperation† U.S. Market News, Feb. 27,2001. Yahoo: www.rockefeller.edu/archive.ctr/jdrsrbro.html(3-1-01) Yahoo: www.leegallery.com/perjune.html (3-1-01)