American Oil Vs Standard Oil Essay

The relationship between the United States and the oil industry is long and complex, spanning decades of history and actions characterized by shifting interests, goals, and relationships between politics and economics. It is best exemplified through the history of Standard Oil and the Arabian American Oil Company ARAMCO, telling a fascinating tale of economic ambition intertwined with geopolitical strategy in the context of the American State. Dating from the late 19th century to the mid-20th century, the American relationship with both of these companies details the American search for and control of oil, a resource that has influenced the political and economic landscape of the modern era. Most importantly, this history represents an intricate flag-commerce relationship, characterized by major political challenges, such as World

In this period, aligning with principles of market liberalism and industrial capitalism, the United States government employed a laissez-faire attitude toward Standard Oil. Standard Oil greatly benefitted from this minimal government intervention, growing into a monopoly. In terms of the flag-commerce relationship of this time, the American state acting as a flag, was largely nonexistent. As a result, Standard Oil was given the opportunity to act as both a flag and commercial entity, establishing a political and legal system of its own to retain its economic success, namely through the Standard Oil Trust, created in 1882. This Trust insulated the company from any legal challenges to their monopoly, demonstrating the company’s ability to act as a political actor due to the lack of the US government’s political influence. But, Standard Oil’s monopoly did not last. In the late 1890s, increased public outcry against the company’s monopoly led to various legal challenges and increased