What counteraction did Rockefeller take against Vanderbilt's alliance?

• A. Increased oil production
• B. Built his own oil pipeline
• C. Lowered oil prices
• D. Invested in new trains

Answer: (B)

Rockefeller built his own oil pipeline as a strategic counteraction against Vanderbilt's alliance. This move was significant because Vanderbilt primarily controlled the transportation of oil through his railroads. By constructing his own pipeline, Rockefeller was able to directly transport oil from his refineries to markets, effectively reducing his dependency on Vanderbilt’s rail services and eliminating the transportation costs associated with them. This not only enhanced Rockefeller’s control over the distribution of his oil but also provided him with the ability to offer more competitive pricing, which in turn allowed him to outmaneuver rivals like Vanderbilt. Building the pipeline represented a proactive step in vertical integration, solidifying Rockefeller's dominance in the oil industry.