Acquired · Sep 21Standard Oil Part I
Started with $4,000 and made a $17,000 trading profit in 1862 from Civil War demand. Rockefeller bought out Clark's half of the oil business at auction for $72,500 in 1865, with bank financing arranged in advance.
Tips
- Rockefeller bet on refining oil in cities, not prospecting for it▶ 51:32The Excelsior Works refinery launched with $4,000 of capital, the same amount the merchant firm started with.
- Rockefeller borrowed heavily to build giant plants and win on scale economies▶ 2:13:13Chernow notes he cut unit costs of refined oil almost in half and never deviated from the gospel of industrial efficiency.
- Rockefeller lined up financing before an auction to buy out partner Clark in 1865▶ 50:15Rockefeller later said it was the day that determined his career, and the war ended two months later, making oil far more valuable than produce trading.
- Rockefeller targeted the strongest credit-rated firms and kept knocking until one hired him▶ 23:00He was given a 50% raise almost immediately and became partner in Clark and Rockefeller in 1858 with $4,000 in capital.
