Property as a pillar of oil-based capitalism: the case of the Southern Pacific Company in Southern California, 1865–1926

•Emphasizes resilience of private property as a foundation of American oil-based capitalism.•The Southern Pacific was a pioneering developer of oil-based energy California.•Private property is a major source of inertia that sustains oil-based capitalism.

Focusing on the energy history of Southern Pacific Company in Southern California between 1865 and 1926, this paper emphasizes the resilience of private property as a pillar of oil-based capitalism in the United States. As the western segment of the first transcontinental railroad, and as a consequence of land grants provided by the federal government, the Southern Pacific emerged at the turn of the twentieth century as the largest private owner of proven oil territory in California. Based on this ownership, the Southern Pacific became a major producer, consumer and transporter of oil-based energy in Southern California. Even when the federal government threatened this ownership as part of a strategy to conserve fossil fuels in the first two decades of the twentieth century, the rights of private property remained firm and continued to reinforce the dominance of the Southern Pacific as a major regional developer of oil-based energy. This article contributes to existing literature on the political economy of fossil fuels by emphasizing how the durability of private property has culminated in a strong inertia that sustains the dominance of oil-based capitalism.