The history of the Standard Oil Company is multifarious and imperative, not just to the oil industry, but to American history. Its history dates back to the late 1800s, when petroleum was first discovered in Pennsylvania. At the time, petroleum was not seen as a necessity or even an applicable substance.
As the industry gradually expanded, a young man named John D. Rockefeller took a job as a bookkeeper. Buy CBD Oil Online Rockefeller was a meticulous and witty worker, who wanted to start a business. After working for a while, he eventually formed his own business. He chose the refining business, a sector of the petroleum industry that was growing hastily.
The company began as a Ohio Partnership with a few investors. These men included Henry Flagler, Jabez Bostwick, Henry H. Rogers, William Rockefeller and Stephen V. Harkness. As time passed, the demand for gasoline and kerosene rapidly increased. Standard Oil’s profits soared and the refiner expanded its operations. By 1880, Standard Oil controlled 90% of the refining capacity in the U.S. Many believed this was an illegal monopoly, in reality, it was not. Standard Oil still had competition from companies such as Shell, Citgo, Texaco, Gulf Oil and some others. Eventually, Standard Oil branched out into many other companies. These companies were Standard Oil of New Jersey, New York, California, Indiana, Ohio and the Continental Oil Company. In 1911, these companies were broken up under the Sherman Antitrust Act. This forced the company to become broken up into different smaller companies, all competing against each other.
In the 1930s, many geologists believed that the Middle East had mammoth oil reserves. In 1933, Standard Oil of California (Socal) received the rights to drill in Saudi Arabia (after outbidding Iraq Petroleum Company). Socal created a subsidiary called California-Arabian Standard Oil Co. (Casoc). In 1944, Casoc officially changed its name to Arabian American Oil Company (Aramco). Eventually in 1948, Standard Oil of New Jersey (Esso) purchased a stake in the company. The Standard Oil companies operating in Saudi Arabia had many Americans working in their facilities. They later decided to erect housing structures near the oil facilities. These homes had white picket fences, green lawns and mailboxes. You would not have known that they were in the middle of a colossal desert. American workers in Saudi Arabia were satisfied with their surroundings and felt at home.
As time passed, the Saudi government was increasingly aggravated with the companies operating in Saudi Arabia. The Saudis felt they deserved the rights to all of the Saudi oil and Aramco should be nationalized. Socal and Esso continued to disagree and felt that the oil fields were their property. During 1973, the U.S. showed support for Israel in the Yom Kippur War and the Saudi government decided to nationalize 25% of Aramco. All throughout the 1970s, Aramco slowly became owned by the Saudi government. In 1980, Aramco was fully controlled by the Saudis and renamed Saudi Aramco.