Published in Oil & Gas Executive, Volume 1, Number 2, 1998, pages 24-33. In its 116-year life, Standard Oil Co. went through an adventurous adolescence of incredible growth, painful and improbable middle years, and a spectacular rebirth at age 100. The rebirth followed a life-giving trade with British Petroleum (BP) and boom years fueled by massive oil production in Alaska and unexpectedly high oil prices. This was followed by the death of the company after the oil price collapse in 1986. The history of Sohio, which began and ended as Standard Oil, demonstrates the impact outside events can have on business; the importance of integration for an oil company; and the vision, guts, deep pockets, and luck needed for successful oil exploration. It also shows that coping with adversity is easier than managing a massive windfall of cash and investing it prudently. Early Years In February 1865, an aggressive, growth-oriented John D. Rockefeller and his more conservative partner, Maurice Clark, agreed to resolve conflicting business philosophies by holding a private auction between themselves for a jointly owned oil refinery in Cleveland, Ohio. Rockefeller won, igniting the growth phenomenon that was Standard Oil Co. (D. Yergin, The Prize, The Epic Quest for Oil, Money and Power, Simon & Schuster, 1991). The oil refinery in Cleveland was the largest of 30 located in that refining capital of the world, near what was then the center of U.S. oil production, northwest Pennsylvania. The use of kerosene for lighting grew at a rate difficult to conceive today, and Rockefeller grew his business even more rapidly until he dominated refining. He built a second refinery in Cleveland in1866 and, on 10 January 1870, incorporated Standard Oil Co. in Ohio to raise capital for ever-accelerating expansion plans. In 1870, he controlled 10% of all U.S. refining capacity. Just 9 years later, he controlled 90%. Rockefeller introduced improvements to the refining business, increasing efficiency and reducing the refiner's margin (cost difference between kerosene and crude oil) from nearly U.S. $10/bbl in 1866 to U.S. $3.70/bbl in 1875, a two-thirds decrease. He also saw the advantages of integrating the entire oil business. In 1881, he took the first step: "backward integration" into company-owned crude-oil transportation. He then quickly moved downstream into the chaotic marketing business and, by the mid-1880's, controlled 80% of U.S. kerosene marketing and 90% of kerosene exports. By 1890, with production from the oil regions of northwest Pennsylvania declining, Rockefeller completed integration into crude-oil production by investing in the new Lima-Indiana oil boom. By 1891, he controlled one-fourth of all U.S. crude-oil production.