In Cleveland, Ohio, John D. Rockefeller and his business associates, including William Rockefeller, Henry Flagler, and Stephen V. Harkness, officially incorporated Standard Oil on January 10, 1870. The company was formed to provide a systematic approach to oil production and distribution, which was expanding rapidly due to growing industrialization and demand for kerosene, largely for use in lamps. At that time, the oil industry was decentralized, with many small competitors. Rockefeller's vision was to create a monopoly that would not only control the oil market but also enhance efficiency through consolidation. By establishing Standard Oil, he aimed to reduce costs and improve overall efficiencies, allowing for lower prices for consumers and greater profit margins for producers.

The incorporation of Standard Oil was a key moment in business history, laying the groundwork for the modern corporate structure. Through innovative logistical strategies, including pipeline construction, vertical integration, and aggressive business practices such as underbidding competitors, Rockefeller grew Standard Oil into a dominant force. The company consolidated over 90% of U.S. oil refining by the late 19th century. This immense power raised questions about monopoly practices, competition, and regulation, setting the stage for later antitrust legislation aimed at curbing corporate power.

Additionally, Standard Oil's success in refining crude oil and distributing products like kerosene and gasoline transformed not just the oil industry but also had profound impacts on American industry and economy, influencing everything from transportation to manufacturing processes. Rockefeller's emphasis on efficiency and cost control would serve as a model for modern corporations, demonstrating the power and potential of large-scale industrial operations.