Jean Baptiste Kessler Dutch entrepreneur and founding father of the oil company Royal Dutch Shell Date of Birth: 15.12.1853 Country: Italy

1. Biography of Jean-Baptiste August Kessler
2. Early Career
3. Transforming 'Royal Dutch'
4. Expanding the Company
5. Legacy

Biography of Jean-Baptiste August Kessler

Jean-Baptiste August Kessler, a Dutch entrepreneur and the founder of the oil company 'Royal Dutch Shell', played a significant role in the growth and development of the Dutch oil company 'Royal Dutch Petroleum', now known as 'Royal Dutch Shell'. He was born on December 15, 1853, in Batavia, Dutch East Indies (now Jakarta, Indonesia), into a family of 12 children, four of whom died in infancy.

Early Career

Kessler became the managing director of 'Royal Dutch' almost from its inception. The first founder of 'Royal Dutch', Aeilko Jans Zijlker, transitioned from the tobacco business to the oil business after accidentally noticing oily liquid seepages. However, in 1890, he suddenly passed away from a tropical disease. The board of directors turned to Kessler for help, who was horrified by the neglected state of the company, but at the age of 23, he dropped out of Delft University to take charge of the oil supply. Kessler, a natural-born leader with iron willpower, built 'Royal Dutch' from scratch, working under challenging conditions in Sumatra. Harsh climate, hostile jungles, impenetrable lalang grass, pirate raids, tropical diseases, fires, and lack of geological expertise were accompanied by financial, regulatory, and procedural difficulties. According to J. Ph. Poley, the company survived mainly due to Kessler's leadership.

Transforming 'Royal Dutch'

After a two-month sea journey, Kessler arrived in Sumatra in October 1891, where he found the drilling site in a terrible state. However, his persistence and ability to miraculously find new credits boosted the morale of his subordinates, despite many considering Jean-Baptiste a difficult and impulsive man. Based on the information from Kessler's letters to his wife, Daniel Yergin described the challenges faced by the bold oil producer in his history: 'Hearts divided in two; ignorance, indifference, semi-ruined condition, disorder, and litigation are evident everywhere.' Kessler wrote to his wife, "If things don't go well, my work and my name will disappear, and perhaps all my sacrifices and extraordinary efforts will be crushed along with condemnation. May the heavens protect me from all misfortunes."

During the endless rainy season, Kessler searched for drilling locations and pipeline routes, while steam boilers arrived through the jungles on rails. A storm interrupted rice supplies, causing a severe food shortage. The initial drilling yielded meager results. Struggling with fever, Kessler worked day and night, constantly improvising instructions to hired workers and managing the entire oil extraction operation. With great difficulty, Kessler and his team managed to acquire the materials for building a second oil well. Fortunately, the well struck oil, and on February 28, 1892, the first oil flowed through the new pipeline to the plant. The Dutch flag soared into the sky. After nearly nine months since the start of his "inspection trip," Kessler returned to the Netherlands, focusing on securing the necessary financing for his highly unstable venture. Within two years, oil production sharply declined, the new production superintendent, who was on-site, left the company, leaving it on the verge of bankruptcy. It was then that Kessler returned to Sumatra to save 'Royal Dutch'. He said, "I demand almost the impossible, but there is no choice; everything rests on my shoulders." In a crisis moment, he increased oil production threefold in a year. Kessler remained in Indonesia until 1895, before returning to the Netherlands to focus on commercial matters.

Expanding the Company

Under his leadership, the company resumed its main production under the brand 'Crown Oil', increasing refining capacity. A fleet of tankers and several oil depots were built. In 1897, 'Royal Dutch' increased its capital to 5 million guilders, while in 1890, the authorized capital was only 1.3 million guilders, and dividends of 52% were paid. Kessler was also responsible for negotiating with Marcus Samuel, an important oil product salesman in London. After the merger of 'Shell' and 'Royal Dutch' in 1907, with some delay, 'Royal Dutch' owned 60% of the shares. Even the mighty 'Standard Oil' became concerned about the emergence of such a strong new competitor in the oil business. Unfortunately, the heavy work in unbearable conditions took a toll on Kessler, and he passed away one day before his 47th birthday. In 1898, the collapse in the oil industry led to a rapid decline in oil production. Kessler obtained a concession for a new oil field from the local king of Sumatra and made his final return to the Dutch East Indies in 1900. Upon arrival, he fell ill and telegraphed the head office in The Hague, requesting time to recover and stating that he would return on the next ship. Jean-Baptiste died of a heart attack when his ship stopped in Naples, the first stop after the Suez Canal.

Legacy

After his death, he was succeeded by Henri Deterding in 1901, who had a significant influence on economic and political processes worldwide, leading 'Royal Dutch Shell' until 1936. Kessler and his wife Margo had four sons and two daughters. One of their sons, Jean Baptiste August 'Guus' Kessler Jr., eventually became the CEO of 'Royal Dutch Shell' after Deterding's resignation. Their eldest son, Geldolph Adriaan Kessler, also worked in the company, helping establish and launch the steel company 'Hoogovens'. Dolph Kessler and his brother Boelie Kessler played football for the Dutch national team.