/ News & Press / Video / How Rockefeller Built His Trillion Dollar Oil Empire

How Rockefeller Built His Trillion Dollar Oil Empire

WEBVTT
Kind: captions
Language: en

00:00:00.460 --> 00:00:04.900
When you look at the richest men of the living world today, the top of the list is the owners of technology companies
00:00:04.900 --> 00:00:07.380
Such as Jeff Bezos and Bill Gates
00:00:07.380 --> 00:00:13.030
But the truth is, enriching a businessman, history passed away a century ago
00:00:13.030 --> 00:00:18.069
In this video we will look at a very huge businessman's empire to the point even after
00:00:18.069 --> 00:00:24.449
A hundred years of technological development no one has been able to be richer than him
00:00:24.449 --> 00:00:28.479
This is the history of Standard Oil (Standard Oil).
00:00:28.479 --> 00:00:31.300
This video was brought to you by Dollar Shave Club.
00:00:31.300 --> 00:00:37.219
Please visit the link in the description to learn more about the great deal you have to offer.
00:00:37.219 --> 00:00:41.480
The beginnings of the greatest oil monopoly were modest
00:00:41.480 --> 00:00:47.840
It started in 1839 CE at the birth of John Rockefeller in Upstate New York City
00:00:47.840 --> 00:00:53.559
He was the oldest son of a mobile trader who identified himself as a botanist
00:00:53.559 --> 00:00:58.739
But the truth was selling medicine for the stomach from the nineteenth century
00:00:58.739 --> 00:01:02.870
He spent weeks outside the house and had children from another wife
00:01:02.870 --> 00:01:07.490
He decided to bring her home with his first wife, to live together
00:01:07.490 --> 00:01:12.270
In this house, John lived and grew up in it, and he also learned how to negotiate with others to happen
00:01:12.270 --> 00:01:17.399
The best possible deal and how he can benefit from every penny he owns
00:01:17.399 --> 00:01:21.380
His family rarely settled in one place and John lived this way of life
00:01:21.380 --> 00:01:24.420
Since he was three years old
00:01:24.420 --> 00:01:29.250
To help his mother, John used to get any money from raising chickens or doing anything
00:01:29.250 --> 00:01:30.729
For the people of the neighborhood in which they live
00:01:30.729 --> 00:01:36.420
He put his wit to do a good thing when his family moved to Cleveland in Ohio in 1854
00:01:36.420 --> 00:01:39.280
When he had the opportunity to enter a respectable school
00:01:39.280 --> 00:01:43.869
In less than a year, John went out of school to work in a local library
00:01:43.869 --> 00:01:45.539
At a local product broker
00:01:45.539 --> 00:01:50.219
He was earning fifty cents a day, which was little at that time and so he had to
00:01:50.219 --> 00:01:52.439
To work for other companies as well
00:01:52.439 --> 00:01:57.310
But after two years of work there, his manager refused to give him a bonus
00:01:57.310 --> 00:02:02.109
Therefore, he decided to compete with them by starting his own business similar to them
00:02:02.109 --> 00:02:08.610
Thanks to his good reputation, John took out a loan of $ 4,000 and at that time was a large sum
00:02:08.610 --> 00:02:14.110
John started trading many products and meat, and in his first year he achieved estimated sales
00:02:14.110 --> 00:02:19.530
Half a million dollars, however, he got a small portion of it as a bonus, however
00:02:19.530 --> 00:02:21.650
It was a great success
00:02:21.650 --> 00:02:27.320
Every bank in Cleveland would have asked John to take out a loan even though he or she was over 18 years old
00:02:27.320 --> 00:02:32.890
But in 1859 something happened and it will change his life forever
00:02:32.890 --> 00:02:38.490
Just hundreds of miles east of Cleveland, the first US oil was discovered
00:02:38.490 --> 00:02:44.220
This was the first sign of the beginning of the oil era in Pennsylvania and within the first year of 4,500 barrels of
00:02:44.220 --> 00:02:45.970
The oil was taken out
00:02:45.970 --> 00:02:51.760
But at that time, oil was not worth anything like today, and car gas has yet to be extracted
00:02:51.760 --> 00:02:57.430
But the oil could have been treated to extract the kerosene that was used in ancient lighting
00:02:57.430 --> 00:03:02.381
John realized then that the biggest profit was not from drilling oil wells
00:03:02.381 --> 00:03:04.060
From his filter
00:03:04.060 --> 00:03:08.290
He saw a lot of people go bankrupt before they extracted oil and realized then that it was
00:03:08.290 --> 00:03:10.030
High risk for him
00:03:10.030 --> 00:03:14.430
Instead, he let others do the tiring work of extracting oil, and he's just doing it
00:03:14.430 --> 00:03:16.110
Buy it from them
00:03:16.110 --> 00:03:21.450
John had to wait until 1863 for the government to adopt the train line between Pennsylvania
00:03:21.450 --> 00:03:23.190
And oil lands in Cleveland
00:03:23.190 --> 00:03:28.360
But when the line was built, John was ready with a long line of partners and banks
00:03:28.360 --> 00:03:30.300
Ready to support him at any time
00:03:30.300 --> 00:03:35.010
He also equipped a team of chemists and engineers, who not only did
00:03:35.010 --> 00:03:40.990
In liquidation, they discovered new uses of treated oil
00:03:40.990 --> 00:03:46.510
As you can see, the primitive refineries in Cleveland were operating at an efficiency of 60%.
00:03:46.510 --> 00:03:51.291
But John increased the effectiveness of his devices and also sold his products such as
00:03:51.291 --> 00:03:54.440
Paraffin wax, tar and raw gasoline
00:03:54.440 --> 00:03:59.720
Within two years, the Rockefeller refinery was estimated at seventy thousand dollars
00:03:59.720 --> 00:04:01.400
It was the largest in Cleveland
00:04:01.400 --> 00:04:08.660
But it did not end, in 1865 there were 26 oil refineries, but within five years
00:04:08.660 --> 00:04:11.830
John bought it all but 4 of them
00:04:11.830 --> 00:04:16.739
At this point in his life his works were very large in treating him as a partnership and therefore in 1870
00:04:16.739 --> 00:04:20.239
He listed Standard Oil of Ohio
00:04:20.239 --> 00:04:24.509
To persuade the rest of the Cleveland competitors, John invited them
00:04:24.509 --> 00:04:29.250
He showed them his books, and revealed that he could work at a much longer loss than
00:04:29.250 --> 00:04:31.090
Than they can imagine
00:04:31.090 --> 00:04:35.510
In return, he offered them to buy their business at a reasonable price and offer them high positions in his company
00:04:35.510 --> 00:04:40.460
Large in his company and thus put the brightest minds in this industry under his control
00:04:40.460 --> 00:04:46.270
Of course, not everyone will surrender right away, and over time John lowers the price of oil
00:04:46.270 --> 00:04:51.719
And kerosene, sometimes by up to 80%, in order to stifle competitors.
00:04:51.719 --> 00:04:58.150
Unsurprisingly, his strategy succeeded: by 1880 he had attained ranks throughout the northeastern United States.
00:04:58.150 --> 00:05:03.360
He was working to refine more than 90% of the entire country’s oil production.
00:05:03.360 --> 00:05:08.710
At this point John was so strong that he was inviting the owners of large railroad companies
00:05:08.710 --> 00:05:12.150
He personally negotiated rebates to use their trains.
00:05:12.150 --> 00:05:17.530
But this practice of negotiating backroom deals has really made the business world enthusiastic
00:05:18.530 --> 00:05:23.650
At that time (and somewhat still today) most industrial goods are transported by rail,
00:05:23.650 --> 00:05:28.770
Many industrialists are concerned that John's misuse of transportation discounts could
00:05:28.770 --> 00:05:32.680
It leads to a similar monopoly in their industries.
00:05:32.680 --> 00:05:37.819
For the next decade, businessmen, politicians and the media have been attacking Standard Oil with
00:05:37.819 --> 00:05:39.690
Increased ferocity
00:05:39.690 --> 00:05:45.550
Ohio lawmakers began drafting antitrust laws to topple Rockefeller, however
00:05:45.550 --> 00:05:47.430
He was taking them one step further
00:05:47.430 --> 00:05:53.650
In 1882 his company was re-established in New Jersey, this time with the creation of the Standard Oil Trust, which
00:05:53.650 --> 00:05:57.100
In turn, it holds stakes in more than 40 local companies.
00:05:57.100 --> 00:06:02.410
Then, to showcase his successes, John built an impressive headquarters for his company on Broadway
00:06:03.680 --> 00:06:10.409
This moment was the highest point in the Standard Oil of Rockefeller: it owned 20,000 oil wells, 4,000
00:06:10.409 --> 00:06:14.090
Miles of pipeline, employing more than 100,000 people.
00:06:14.090 --> 00:06:19.840
But his grip on the oil industry was waning, both internally and externally.
00:06:19.840 --> 00:06:24.560
Huge oil deposits have been discovered in Russia and in Asia, and are being developed
00:06:24.560 --> 00:06:29.249
From the Rothschilds, who have spared no effort to deliver this oil to America.
00:06:29.249 --> 00:06:35.639
Worse yet, in 1890, the federal government passed the Sherman Antitrust Act, which finally
00:06:35.639 --> 00:06:40.479
It gave politicians teeth to fall into the Standard Oil Trust itself.
00:06:40.479 --> 00:06:45.919
Of course, it was extremely difficult to investigate the complex legal structure behind all companies,
00:06:45.919 --> 00:06:50.680
This is why the government could not actually dismantle Standard Oil until 1911.
00:06:50.680 --> 00:06:55.419
But at that point, John Rockefeller had already received the money and was no longer active
00:06:55.419 --> 00:06:57.090
In managing the company.
00:06:57.090 --> 00:07:02.039
In the last twenty years of his company’s existence, he paid more than half a billion dollars
00:07:02.039 --> 00:07:03.509
Of profits.
00:07:03.509 --> 00:07:09.349
According to some estimates, the standard value of Standard Oil reached a peak of $ 1 trillion, and thus its separation.
00:07:09.349 --> 00:07:12.210
It didn't come as a surprise to most people
00:07:12.210 --> 00:07:18.069
In 1911, the Supreme Court found Standard Oil guilty and anti-competitive practices
00:07:18.069 --> 00:07:21.720
The company into 34 separate companies
00:07:21.720 --> 00:07:25.949
Of course, John Rockefeller kept his stake in those companies until his death
00:07:25.949 --> 00:07:30.389
The truth shows that separation was the most profitable event in his life.
00:07:30.389 --> 00:07:35.189
You see, over time many of those companies have merged with each other.
00:07:35.189 --> 00:07:41.490
As you can see, with the passage of time many of these companies merged with each other.
00:07:41.490 --> 00:07:45.030
Since then they have become incredibly large companies in their own right.
00:07:45.030 --> 00:07:49.789
John Rockefeller ownership of these subsequent companies made him the richest businessman
00:07:49.789 --> 00:07:55.349
He has ever lived, with a net worth of $ 400 billion.
00:07:55.349 --> 00:08:00.659
Even today, no one has defeated Rockefeller from the leaderboard. Even Jeff Bezos himself
00:08:00.659 --> 00:08:02.809
It does not seem likely to achieve this.
00:08:02.809 --> 00:08:07.310
But there is one thing that Jeff Bezos says John Rockefeller never did despite this
00:08:07.310 --> 00:08:11.129
All his money and this is access to a dollar barber club.
00:08:11.129 --> 00:08:15.860
I mean look at him, this guy obviously cares a lot about look and feel.
00:08:15.860 --> 00:08:17.719
At his best
00:08:17.719 --> 00:08:18.729
But guess what?
00:08:18.729 --> 00:08:24.090
You can also try out the amazing Daily Essential Starter collection from Dollar Shave Club,
00:08:24.090 --> 00:08:28.220
By the way, new members can get just $ 5.
00:08:28.220 --> 00:08:32.970
This set includes butter shave, body lotion and one wipe that really charles Charlize

Sales phone