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Historical development of oil
The steel industry of 1860-1900
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The oil industry and the steel industry united in about the 19th century. There was a great change in America as the country started becoming more and more industrialized. Oil and steel helped us open new pathways to discover new materials that we could use in our day-to-day life. The oil business blossomed in 1901 when the Spindletop geyser was discovered in Texas. Within a year of this new discovery, over 1500 oil companies were born and turned oil into the most common fuel of the 20th century. Steel was also an important part of our modern history, as it helped us incorporate vital forms of transportation into our lives such as railroads and boats. Many early discoveries of oil have been noted in our history. Early settlers of the 16th
The Gilded Age refers to a period in which things were fraudulent and deceitful; the surface was clinquant while underneath that lustrous coat laid corruption. During the Gilded Age companies recruited to corrupt methods to further increase profits, leading to an increase in power, rapid economic prosperity, and domination of industries, leading to monopolistic corporations. As a result, antitrust laws to regulate business began to emerge in the late 19th and early 20th century known as the Progressive Era. Among these companies was Standard Oil, which was founded in 1870 by John D. Rockefeller; in 1880, Standard Oil was responsible for refining 90 percent of America’s oil and between 1880-1910, dominating the oil industry (Marshall). The lack of intervention from the government and regulations impeding monopolistic practices allowed Standard Oil to
As America’s first billionaire, few individuals in history can compare with John D. Rockefeller Sr. His wealth around the turn of the 20th century would be worth roughly twenty-two billion dollars in modern United States dollars. It is undeniable that Rockefeller changed the landscape of the American petroleum industry by defining the nature of oil production. By 1883, Rockefeller was laying the foundations for what we now know as the vertically integrated company and the modern multinational. The fruit of Rockefeller’s labor, the Standard Oil companies, controlled ninety five percent of petroleum refining and transport by 1880.
After that global oil consumption increased and oil became the main source of energy for many countries. The United States government remained very involved in the relations for the oil industry because of its increasing importance to the global economy and its incredible conversion into international power. Foreign policy reflected their interest in the quest for oil and continues even today.
On January 10th 1901 the discovery of oil at Spindletop would lead to the greatest economy boom the world has ever encountered. The amount of oil that would be discovered across Texas would be more than enough to power America through the next several decades. The effects of having oil would completely change Texas culture, lifestyle, and business tremendously. In the book of Oil In Texas, will prove that America would change completely from agriculture nation to an industrial nation after the discovery of oil in Texas.
This area is known as the Permian Basin. Most of the oil is being produced from rocks
Oil has always been a coveted natural resource. Oil was discovered in the United States in 1859; since it was a young industry, it was without any structure. That is where John Davison Rockefeller stepped in. John Rockefeller was at one point one of the richest men in the world, monopolizing the oil industry which played a major role in shaping the economy.
Oil provided new fuel for transportation and manufacturing, even railroads were able to convert to oil. Oil helped manufacturing plants and farms move to a cheaper source of energy. Another significant factor of oil is that it helped encourage automobile production as well as roads. The production of the Interstate highway led to the movement of people and goods (Champagne, Harpham 13). Rapid industrialization of the Gulf Coast region sparked. By 1929 in Harris County, 27 percent of all manufacturing employees worked in refineries. By 1940 the capacity of the refineries had increased fourfold. The oil and gas industries carried a boom-and-bust mentality (Oliena 1). The economy flourish at times and failed other times, because the prices would rise and fall. When new oil was discovered in a particular place it brought about more people, overcrowding the schools and new housing. Yet a couple years later the town could experience a bust creating poverty and making the town a ghost town. The oil and gas industry transformed the government and its role with the economy. The Texas Railroad Commission was extended to regulate energy and to promote well-spacing rules. Higher education benefitted through the oil and gas industry ( Munch, Francis, and Rundell 604). In 1923 oil was discovered in the West Texas Permian Basin on university land. The Permanent University Fund was split up between the
The booming of industries many farmers found themselves struggling to keep up with the businesses that increased the demands of goods and services. Two of the most influential people of the Gilded Age was a man named, John D. Rockefeller and Andrew Carnegie, symbolisms for corporate power. They revolutionized business Many Americans witnessed the American Dream coming true for John D. Rockefeller was the founder of the Standard Oil Company and the Standard Oil Trust having organized Standard Oil in Cleveland in 1870 before moving his headquarters to New York. Rockefeller’s Oil companies controlled about 90% of the oil business in America and also controlled the oil cars on the Pennsylvania Railroad. During this time, where he was growing and
The growth of industry in the 19th century affected Americans in various ways. Cities grew and developed rapidly, women began to work outside of their homes and farmers felt the impact as rural living developed. Each aspect of American society felt the change in either a positive or negative way. Our country was changing because of industrialization.
The second half of the 19th century introduced a new style of enterprise to America, Big Business. The 19th century values of work and of being an independent business man clashed with the modern 20th century values of extreme expansion with large work forces and of earning the most money possible. The rise of the robber barons and the captains of industry helped the economy by pushing America into first place in the production of several products and by creating many new jobs. Although these new opportunities appealed to the masses, not everyone was satisfied by his new occupation. The creation of labor unions was a reaction to the numerous complaints about working conditions, wages, and work hours. The first unions protested with peace and reason. Once they realized that nothing could be accomplished through negotiation, drastic measures were taken and violence was the answer to their problems. The clashes between management and workforce in the Great Railroad Strike, Homestead Strike, and Pullman Strike emphasize these crises that were resolved through force and destruction.
The final quarter of the 19th century to westward expansion has left both a positive and negative impact on the United States economy, positive because of the developments of technology and business, and negative resulting in all the bloodshed of both Native Americans and U.S. soldiers. Technology and Industry left a positive impact on the ending of the 19th century by advancements in employment opportunities and transportation. The job market thrived with factory positions, oil industry employment, and even women were eligible for certain trades. The economic factor of John D. Rockefeller resulted in his controlling 90% of the oil industry in America by the year 1879. “Rockefeller’s chief contribution to the rise of big business was the invention of two new forms of corporate management: the trust and the holding company”
In the early part of this century was a time when industry was booming with growth around the installation of major railroads. With this growth came the transatlantic cable, the telegraph, and a whole lot of steel. Steel would be needed in the construction of these new transportation systems and communications were now possible between businesses and industries. (Wren, 2005)
East oil seeped through the ground and it was used in many ways. It was
The industrial revolution began in Europe in the 18th century. The revolution prompted significant changes, such as technological improvements in global trade, which led to a sustained increase in development between the 18th and 19th century. These improvements included mastering the art of harnessing energy from abundant carbon-based natural resources such as coal. The revolution was economically motivated and gave rise to innovations in the manufacturing industry that permanently transformed human life. It altered perceptions of productivity and understandings of mass production which allowed specialization and provided industries with economies of scale. The iron industry in particular became a major source of economic growth for the United States during this period, providing much needed employment, which allowed an abundant population of white people as well as minorities to contribute and benefit from the flourishing economy. Steel production boomed in the U.S. in the mid 1900s. The U.S. became a global economic giant due to the size of its steel industry, taking advantage of earlier innovations such as the steam engine and the locomotive railroad. The U.S. was responsible for 65 percent of steel production worldwide by the end of the 2nd World War (Reutter 1). In Sparrows Point: Making Steel: the Rise and Ruin of American Industrial Might, Mark Reutter reports that “Four out of every five manufacturing items contained steel and 40 percent of all wage earners owed their livelihood directly or indirectly to the industry.” This steel industry was the central employer during this era.
In 1968, Americans were continuing to migrate to the west coast and the pipeline industry followed. The increase of import refineries on the Gulf Coast also led to the construction of pipelines that would stretch across the eastern seaboard. 1968 also saw the discovery of large quantities of oil in Alaska. In response, a massive pipeline system was constructed in the span of seven years to transport oil to the contiguous United States.