From the moment the first drop of oil was discovered in the States until the current political climate of war in the oil-rich Middle East, there have been individuals along the way who have reaped the benefits of the oil industry. One legendary example is John D. Rockefeller. Some consider Rockefeller an entrepreneur who was gifted with genius. Critics over the years, however, have regarded him to be a greedy businessman who played a masterful role as a wealthy philanthropist in order to disguise his otherwise unethical business dealings. Regardless of your take on Rockefeller and his Standard Oil empire there is no doubt that the Rockefeller name will live on in American history.

How Rockefeller Made His Money

Historians have much to say on the subject of how Rockefeller came to rule the oil industry. His humble beginnings as a bookkeeper at an oil company in Ohio ultimately led to his role as one of the world’s most powerful oil magnates. How did he do it? By most accounts, Rockefeller began building his business by purchasing smaller companies, one of which was initially Standard Oil. These smaller companies were often related to the oil industry, such as pipeline companies and engineering firms.

Rockefeller’s smaller companies were well used to diversify his empire, essentially cutting production costs in the overall business of building Standard Oil, which was one of three major oil producers in the world at the time. Perhaps his business trademark was the purchase of competing oil companies, a strategy that served to eliminate many of his competitors, yet brought accusations that he was nurturing a monopoly. There is rampant controversy, still, that weighs the power Rockefeller exerted both politically and socially, during the early decades of the twentieth century.

The Rockefeller Legacy

So what exactly happened to the Rockefeller Empire? As the Standard Oil Company grew in both wealth and influence, so did Rockefeller’s financial standing. In 1911 the Standard Oil Company was legally ruled a monopoly. The company was what is known as a vertical monopoly. In other words, Rockefeller controlled every aspect of the oil production process from the top, down. In the ensuing company split, thirty-four companies were born, including Exxon, ARCO, Amoco, Mobil, and Chevron.