British and French historians of petroleum, viewing the development
of the industry from the standpoint of impartial observers, regard
the year 1883 as an epochal one in its history, because it marked the
initiation of a comprehensive policy with regard to pipe-lines, under
the inspiration of John D. Rockefeller. Mr. Rockefeller, originally a
produce merchant, became interested in the oil business as early as
1862 by the purchase of an interest in a small refinery at Cleveland,
and by 1865, had become so convinced of the possibilities of the
petroleum industry that he devoted himself exclusively to the refining
and shipping business. In 1870 this business became incorporated as the
Standard Oil Company.
Of the events of 1883 Alfred Lidgett, a noted British oil expert and
editor of the _Petroleum Times_ (London, England), says in his book
“Petroleum,” published in 1919: “Then a few master minds came to the
front, and loyally supported by John D. Rockefeller, they undertook
the herculean task of practically girdling the United States with a
system of oil pipe-lines that has no parallel anywhere. They eliminated
the jaded horses, oil boats, wooden tankage and slow freights,
tedious methods, and questionable practice of handling petroleum, and
substituted therefor the steam pump, the iron conduit, the steel tank
storage, and systematic and business-like methods which soon commanded
the confidence and respect of all oil-producers. They extended
their pipe-lines to almost every producing well and established a
transportation system which serves the industry to-day as no other
on earth is served. The advantages of the modern pipe-line to the
oil-producer are obvious.”
The pipe-line connection to the producer’s well and tanks ensures
prompt clearance of the crude and a steady cash market for his output,
under the system defined in the last chapter. The elimination of waste
and the reduction of cost in connection with transportation, of course,
resulted in great material benefits to the consumer of petroleum
products. It is indeed quite clear that without this Napoleonic
organization of the pipe-line service the boon of petroleum could not
have been adequately utilized by humanity at large.
Public-domain text, read in full here on John Shaqi.
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