Posts Tagged: "Standard Oil Company"

Although it’s not illegal to earn a profit, unfair business practices in the pursuit of holding a monopoly over an entire industry led to the breakup of Standard Oil, especially the rebates from railroad companies for oil shipments which substantially lowered Standard Oil’s transportation costs relative to its much smaller competitors. Recent academic research has suggested that, while the U.S. government acted appropriately to stop the cartelization of an industry, Standard Oil was engaging in typical capitalist activity in securing better deals which optimized oil shipments. This would seem somewhat less nefarious than an outright copying technologies from smaller competitors in an effort to stave off competition.

Between 1882 and 1906, this market dominance reportedly brought Standard Oil a total of $838,783,800 in net income. On an annual basis, that would mean that Standard Oil earned nearly $35 million in net income each year, which equals approximately $969 million in 2017 dollars when adjusted for inflation… To some of the tech super giants of today, $1 billion in profits is nothing more than pocket change… If Standard Oil remains the benchmark for what it means to be a monopoly, which many believe it does, it is difficult to understand why U.S. Antitrust regulators are not at least asking very serious questions about the market dominance of the tech super giants and the associated suppression of smaller, truly innovative enterprises.

Nearly 150 years of development in the field has been supported by both the commercial success of the pipeline concept as well as the incredible importance that fossil fuels have in powering our modern world… With fossil fuel pipeline construction projects back in the news, now seems a good time to revisit the Evolution of Technology series to take a long view look at the history of oil pipeline development… Much of America’s history in domestic oil production and distribution goes back to Edwin Drake, the American who was the first person to turn an oil drilling operation into commercial success. In the late 1850s, Drake was hired by Seneca Oil Company to explore the potential of collecting oil from known deposits in the Titusville, PA area. Drake rejected the notion of digging trenches and instead decided to drill for oil, an unproven method at that time.

William Sparks and Robert Thomas were inducted into the National Inventors Hall of Fame earlier this year for inventing butyl rubber, which was patented on August 22, 1944. Starks and Thomas mixed Vistanex with a small amount of butadiene in a washing machine. When the spin cycle concluded they were left with the first batch of butyl rubber which the world has ever seen. Compared to other synthetic rubbers, butyl rubber offered a similar strength and flexibility to natural rubber. It could be used in low-temperature settings without cracking and its high impermeability to air and gases made it a good solution as an airtight sealant.