Industrial Empires: Oil Industry; horizontal integration (WXT) (apr 1, 1895 – apr 1, 1911)

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After the discovery of oil by Edwin Drake, John D. Rockefeller took this opportunity to erect a billion dollar business in the United States. Rockefeller erected a company that would control the majority of the nation's oil refinery and the way he monopolized the oil industry was by destroying his competition. Rockefeller would extort railroads and undercut prices that would allow for Standard Oil to grow exponentially. This method of cutting prices of Standard Oil kerosene reflects horizontal integration where a company takes control of other companies under their corporate umbrella, essentially creating a monopoly. Rockefeller was able to reduce the waste of kerosene which is what made Standard Oil so profitable and what allowed Rockefeller to cut his prices and demolish his competition.

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