Lesson 1 Readings

Reading Assignments for Lesson 1

Students are to read three chapters of the text - The Prize. Sections not listed are optional.

Chapter 1 - Oil on the Brain: The Beginning

Sections to Read

• Introduction
• To "Assuage our Woes"
• Price and Innovation
• The "Colonel"
• "The Light of the Age"
• Boom and Bust

Major Themes to Ponder as You Read

• Idea of switch-point, transition from whale oil to petroleum
• Technological innovation is key
• Boom phenomenon – role of profits
• Backside of a boom is a bust
• Pennsylvania, 1860-1890, the dominant oil producing region in the world

Chapter 2 - "Our Plan": John D. Rockefeller and the Combination of American Oil

Sections to Read

• Introduction
• "Methodical to an Extreme"
• The Great Game
• "Now Try Our Plan"
• "War or Peace"
• New Threats
• The Trust
• "Buy All We Can Get"
• The Upbuilder

Major Themes to Ponder as You Read

• Early oil industry, highly competitive – many players
• Standard Oil (SO) emerged as dominant firm – gained by cost reduction and aggressive but legal tactics
• SO first modern corporation – legal entity with limited liability and bureaucratic structure

Chapter 3 - Competitive Commerce

Sections to Read

• Introduction
• "The Walnut Money"
• The Rise of Russian Oil
• The Son of the Shell Merchant
• The Coup of 1892
• Royal Dutch

Major Themes to Ponder as You Read

• Standard Oil’s dominance eroded with several emerging competitors - Russian oil & later Dutch East Indies, British traders played a key role
• Transportation is critical
• Case study in entrepreneurship - Visionary thinking, Putting the pieces together, Improvising - Changing Priorities
• Recurring attempts to form cartels