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Standard Oil Company

Definition

The Standard Oil Company was an American oil producing, transporting, refining, and marketing company established by John D. Rockefeller in 1870. It became the largest oil refinery firm in the world and later was considered a monopoly.

Analogy

Think of the Standard Oil Company like a giant octopus. Just as an octopus has its tentacles reaching out in all directions to catch prey, the Standard Oil Company had its reach in all aspects of the oil industry - from production to transportation to marketing.

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.

John D. Rockefeller: An American business magnate and philanthropist who is best known for his role in establishing the Standard Oil Company.

Oil Industry: The global processes of exploration, extraction, refining, transporting (often by oil tankers and pipelines), and marketing petroleum products.