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Henri Deterding, Royal Dutch/Shell and the Dutch Market for Petrol, 1902-46

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  • F. de Goey

Abstract

In 1997, four oil companies dominated the Dutch market for petrol: Shell, Esso, Texaco and Mobil/BP (which includes Aral and Elf). Their market share of 74 per cent is considered very high by European standards. The largest oil company, Shell, had a market share of 31 per cent in 1995. This is much higher than in any other European country. The article addresses the following questions. How did Royal Dutch/Shell organise its petrol distribution? Why did the company reorganise it three times between 1902 and 1946? How was the company able to obtain, and retain, such a large share of the Dutch market? During four successive phases, Royal Dutch/Shell gained complete control of petrol sales in the Netherlands. At first, agents were used, but in 1925 Shell established it own sales organisation. Internal (efficiency, economies of scale) and external pressures (competition, technological developments, increasing consumption) forced the company to reorganise its distribution system. Price agreements with its major competitors and governmental policies (the construction of highways after 1927) permitted Royal Dutch/Shell to gain and maintain a dominant share on the petrol market.

Suggested Citation

  • F. de Goey, 2002. "Henri Deterding, Royal Dutch/Shell and the Dutch Market for Petrol, 1902-46," Business History, Taylor & Francis Journals, vol. 44(4), pages 55-84.
    • Handle: RePEc:taf:bushst:v:44:y:2002:i:4:p:55-84
    DOI: 10.1080/713999290
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