George Bissell (industrialist)


George Henry Bissell was an entrepreneur and industrialist who is often considered the father of the American oil industry.

Early life and education

Bissell was born in Hanover, New Hampshire, the son of Nancy and Isaac Bissell. Isaac Bissell was a fur trader and died when George Bissell was twelve years old. George Bissell attended Dartmouth College, paying his way by teaching and writing newspaper articles. He graduated in 1845 having studied literature and languages. Bissell then continued to earn a living as a teacher at Norwich Academy and also traveled, working as a journalist. He settled for a time in New Orleans, Louisiana, where he served as a high school principle and superintendent of schools. He continued to study languages and also took up the study of law in his spare time. In 1853, Bissell relocated to New York City to become a practicing attorney. Concern over the yellow fever epidemic in New Orleans was a reason for Bissell's relocation.

Career

In 1853 during a social visit to Dr. Dixi Crosby, a professor at Dartmouth College in Hanover, New Hampshire, Bissell saw samples of what was then known as "rock oil" which had been obtained from the ground. Bissell was aware of the primitive oil-gathering industry in western Pennsylvania. At the time, oil was gathered by such crude methods as soaking blankets in surface oil and then draining the blankets over barrels. Rock oil in that period of time was used mainly for medicinal purposes. Bissell recognized that the oil could be refined to produce kerosene, then in high demand, especially for lighting. If the rock oil could be obtained inexpensively and properly refined, it could replace such substances as whale oil and coal oil as sources of fuel for illumination.
Recognizing the potential for rock oil, in 1854 Bissell and his law partner Jonathan Eveleth purchased a 105-acre farm, the Hibbard Farm which was owned by timber company Brewer, Watson & Co. Bissell and Eveleth made the purchase for $5000. The timber company had also received a competitive offer from Samuel Kier, who was a pioneer in oil refining. However, Bissell and Eveleth intended to sell stock in their new enterprise through the New York financial markets, and Brewer, Watson & Co. perceived they could therefore develop an equity position in the new business. The sale to Bissell and Eveleth proceeded for that reason, despite a lucrative offer by Kier. In December 1854, Bissell and Eveleth formed the Pennsylvania Rock Oil Co. while transferring ownership of the Hibbard Farm to the new company. The Pennsylvania Rock Oil Co. was the first oil exploration company in the United States. Early in the enterprise, Bissell and Eveleth gained the support of James Townsend, a banker from New Haven, Connecticut, who helped them obtain further support.
Shortly after obtaining the Hibbard Farm, Bissell and Eveleth hired Yale University chemist Benjamin Silliman Jr. and coal oil chemist Luther Atwood of Boston to evaluate the suitability of the rock oil for making a refined oil suitable for illumination. The evaluation included an economic study and a chemical analysis, and Atwood was positive on the prospects from the beginning of the evaluation. Silliman was more cautious, although he issued a promising opinion in May of 1855. Silliman's evaluation cost Bissell and Eveleth $1200. With these expert opinions, Bissell and Eveleth continued with their endeavor.
In 1856, after seeing pictures of derrick drilling for salt, Bissell conceived of the idea of drilling for oil, rather than mining it or digging for it as is done with salt wells. This was widely considered ludicrous at the time. However, Bissell and Eveleth pursued the idea and sought investors. This included a group from New Haven, Connecticut, who eventually formed the Seneca Oil Company. Bissell and Eveleth had a royalty dispute with the investors in Seneca Oil Co., although a business relationship resulted.
On August 27, 1859, the company first succeeded in striking oil, on a farm in Titusville, Pennsylvania. As a result of the business relationship between Pennsylvania Rock Oil Co. and Seneca Oil Co., Edwin Drake became involved in the enterprise through his employment with Seneca Oil Co., and Drake played a critical role in the first successful oil well in the region. Bissell, through Pennsylvania Rock Oil Co., invested heavily in the surrounding region with significant financial success.
With time, Seneca Oil Co. became unable to pay the royalties due to the Pennsylvania Rock Oil Company. The matter was resolved when Bissell and Eveleth agreed to forgive the unpaid royalties in exchange for taking full title to the portion of the Hibbard Farm that Seneca Oil controlled. Additionally, Eveleth died in 1862. As a result of these two events, Bissell had much control over development of this oil-producing region. He continued to attract investors, to develop new oil fields in the region, and built a railroad to carry the oil to markets. In an 1866 economic downturn, Bissell opened a bank in the region, George H. Bissell & Co., to assure continued development of the oil-producing region. In addition to the Hibbard Farm and his bank, Bissell's other investments in the region included various other farms and oil wells, a barrel factory, the Central Petroleum Company, the Farmer’s Railroad, United Petroleum Farms Company, and the George H. Bissell Express Company.

Personal life

As Bissell's oil enterprise began to flourish, he moved from New York City to the Pennsylvania Oil Region, taking up residence at the Franklin Hotel in Franklin, Pennsylvania. He lived in Pennsylvania until 1864, when he returned to New York City. On his return to New York City, Bissell diversified his investments to include insurance.
Bissell's wife was Ophie Bissell, with whom he had two children. Ophie died in 1867. At the time of Bissell's death in 1884, he was living at 16 West 40th Street in New York City. He was interred at the Dartmouth College Cemetery.

Legacy

A residence hall on the campus of Dartmouth University, Bissell Hall of the Choates is named in Bissell's honor and constructed in 1958. Bissell funded the Bissell Hall which was a gymnasium that included a gymnastics center, a bowling alley, and an indoor track. This building was demolished in 1958.
The Pennsylvania Rock Oil Co.'s agent, Edwin Drake, is sometimes credited with the "discovery" of oil, although the success of Drake's efforts is due in part to Bissell's business acumen.

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