Standard Oil
Definition
Standard Oil was an American oil producing, transporting, refining, and marketing company established in 1870 by John D. Rockefeller and his associates. It became one of the world's first and largest multinational corporations until it was broken up by the U.S government in 1911 due to antitrust laws.
Analogy
Think of Standard Oil as a giant octopus with its tentacles reaching into every aspect of the oil industry. Just like an octopus controls all parts of its body, Standard Oil controlled all aspects of oil production from drilling to selling.
Related terms
Monopoly: A situation where a single company or group owns all or nearly all of the market for a given type of product or service. In this case, Standard Oil had almost complete control over the American oil industry.
Antitrust Laws: These are regulations that promote competition by limiting monopolistic business practices. The breakup of Standard Oil is one example of these laws at work.
John D. Rockefeller: An American business magnate who is considered one of the richest individuals in history. He co-founded Standard Oil and played a major role in shaping America's early petroleum industry.
"Standard Oil" appears in:
Study guides (2)
Practice Questions (2)
- Who exposed Standard Oil and broke its oil trust?
- Who was responsible for the founding of Standard Oil, a key player in the changing US economy?
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