Topic > Comparison of Standard Oil and the Sherman Antitrust Act

John D. Archbold, one of the seven trustees, reacted to the discovery of oil in Oklahoma by saying: “Are you crazy, man? Why, I will drink every gallon of oil produced west of the Mississippi! Obviously, the board of directors did not prioritize the expansion of Standard Oil's infrastructure westward. Two factors have contributed to this lack of enthusiasm for Western oil. One of those factors was the logistical nightmare of redeveloping the infrastructure needed to transport the oil to the refinery. As early as 1881, Standard Oil operated approximately 3,000 miles of pipelines, eventually owning ninety percent of the nation's pipelines. Although transcontinental railroads were an available alternative, pipelines were cheaper, reduced handling and storage expenses, and were more efficient. The fact that modern oil companies invest hundreds of millions of dollars in speculating on sustainable natural oil deposits means that such deposits are rare and difficult to identify with a fleeting glance. If the oil spills had proved to be isolated incidents, the capital invested in building pipelines and re-establishing the monopoly would have been squandered. The expansion of Standard Oil's influence into the western half of America has proven to be an enormous economic risk, a risk that the board of directors