Class 7

Other ways of regulating supply and demand: oil regimes of

John D. Rockefeller (1839-1937) - "Our Plan" - monopoly (1879-1911) exposed by Ida Tarbell in McClure's magazine 1902.

the Cleveland refineries - between many upstream producers and downstream consumers - brought up to "Standard"!
joint stock company: Standard Oil Co established in 1870
the crucial transport link - the railroads and pipelines: the Southern Improvement Association - rebates for full loads of Standard barrels
the independents strike back: Tidewater pipeline opening in May 1879...too late!
getting supply and demand in equilibrium....the monopoly way - Standard had 90% of the refineries by 1879.
Standard Oil Trust Agreement of 1882 = "trust" on behalf of the shareholders
Teddy Roosevelt trust-busting : success in 1909 with dissolution of Standard Oil, supported in 1911 by Supreme Court
the international competition: Henri Deterding, insulted in 1910 by Exxon's offer to buy Royal Dutch Shell for $100 million!

The Seven Sisters oligopoly 1928-1970: how to manage world supply of oil, especially Middle East oil after 1945

Willian Knox d'Arcy discovers oil in Iran 1903-1908 - the Anglo-Persian Oil Co (subsequently BP)
1927 oil struck in Iraq by:
Calouste Gulbenkian's Turkish Petroleum Company - reorganized in 1928 as the Iraq Petroleum Company=Red Line Agreement
- British Petroleum
- Royal Dutch Shell (Henri Deterding)
- Compagnie Francaise des Petroles
- American consortium headed by Exxon (Walter Teagle), included Gulf Oil
- Mr. 5 per cent - Calouste Gulbenkian
"As Is" Agreement, Achnacarry Castle, 1928