The Epic Quest For Oil Money And Power Summary

Colby Rachor
ENTM 40803
Dr. Morgan
12/10/14
The Prize: The Epic Quest for Oil, Money, & Power—Review “The Prize,” by Daniel Yergin articulates the history of how oil, a naturally occurring resource, became one of the most valuable and sought after commodities in the world, and did so as early as the late 19th century. Through drastic advances in technology as the years progressed, the ability to refine and utilize oil commercially became a reality. This widespread extraction led to the wealth of many, and with the wealth, came greed. The modernization of the oil industry has led to many successes and failures, both in business and politically; but today, oil still remains a resource that every country needs and wishes to possess. “The Prize,”

The investors behind the project were two corporate big shots: lawyer George Bissell and banker James Townshend. Upon completion of the project, Silliman awaited his monetary reward, though never received it. “Rock oil” was the term they used to describe a dark and smelly substance found in springs of the hills around Oil Creek in northwestern Pennsylvania. Prior to this project, the rock oil had been used to make medicines. In Benjamin’s findings, he concluded that the group could market and sell this product to be burned as fuel for lamps or lubricate the moving parts of factory machines. Though to do this and become successful, the source would have to be harvested at a significant rate. With scarce and expensive whale oil being used to heat lamps prior, the demand for a cheaper and more readily available resource was

A man by the name of John D. Rockefeller decided to enter the market in 1865. Rockefeller, having the capital funding to support him, took what was already good and made it even better. He improved product quality and took the transportation and distribution concerns into his own hands. In a partnership with Henry Flagler, the two created Standard Oil Company in 1870 with the end goal of controlling the refining market all together through “vertical integration,” or an arrangement in which the supply chain of a company is owned by that company. Rockefeller’s business model could later be classified as a monopoly over the market. The company took advantage of railroad companies by negotiating price advantages on his distribution that would make him better off than his competitors. This, as one could imagine, created turmoil between Standard and its completion. The other independent companies within the marketplace got together to boycott, or shun, Standard refineries and its associated railroads alike. However, their efforts rarely fazed Rockefeller, as his cutthroat mentality was relentless when the profitability of his business was in jeopardy. In response to the boycotts, he would cut prices to where these companies couldn’t survive. By 1879, not only did Standard Oil Company control the pipelines, gathering systems, and