 | |
| Formerly | |
|---|---|
| Company type |
|
| Industry | Petroleum |
| Founded | 1902; 123 years ago (1902) (as Texas Fuel Company) inBeaumont, Texas,U.S.[1] |
| Founders | |
| Fate | Acquired byChevron Corporation in October 2001,[3] changed to "ChevronTexaco" until 2005, when it became abrand of it[2] |
| Headquarters | Texaco Headquarters, |
Number of locations | 2,000+ (2006)[4] |
Area served | Worldwide |
| Products | Gasoline,natural gas,motor oils, otherpetrochemicals |
| Brands | Havoline (1931–2001) |
| Owner | Chevron Corporation (2001–present) |
| Subsidiaries | Indian Oil Co. (1931–1943) |
| Website | texaco.com |
Texaco, Inc. ("TheTexasCompany") is an Americanoilbrand owned and operated byChevron Corporation.[5] Its flagship product is itsfuel "Texaco withTechron". It also owned theHavolinemotor oil brand. Texaco was anindependent company until its refining operations merged into Chevron in 2001, at which time most of its station franchises were divested toShell plc throughits American division. It was one of the firstgas stations to exist.[6]
Texaco began as the "Texas Fuel Company", founded in 1902[7] inBeaumont, Texas, byJoseph S. Cullinan, Thomas J. Donoghue, andArnold Schlaet upon the discovery of oil atSpindletop. The Texas Fuel Company was not set up to drill wells or to produce crude oil. To accomplish this, Cullinan organized the Producers Oil Company in 1902, as a group of investors affiliated with The Texas Fuel Company. Men such as John W. ("Bet A Million") Gates invested in "certificates of interest" to an amount of almost ninety thousand dollars.[8] Future restructuring would merge Producers Oil Company and The Texas Fuel Company as Texaco when the company needed additional funding, which J.W. Gates provided in the amount of approximately $590,000 in return for company stock.
Texaco was one of theSeven Sisters which dominated the global petroleum industry from the mid-1940s to the 1970s. Its current logo features a white star in a red circle (a reference to thelone star of Texas), leading to the long-running advertising jingles "You can trust your car to the man who wears the star" and "Star of the American Road."[citation needed] The company was headquartered inHarrison, New York, nearWhite Plains, prior to the merger with Chevron.
Texaco gasoline comes with Techron, an additive developed by Chevron, as of 2005, replacing the previous CleanSystem3. The Texaco brand is strong in the U.S., Latin America, and West Africa. It has a presence in Europe as well; for example, it is a well-known retail brand in the UK, with around 980 Texaco-branded service stations.[9]
Texaco was founded inBeaumont, Texas as the "Texas Fuel Company" in 1902,[7] byJim Hogg,Joseph S. Cullinan,John Warne Gates, andArnold Schlaet. On 1 May 1902, the Texas Company was formed from the assets of Texas Fuel assets, and additionalcapitalization.[10] In 1905, it established an operation inAntwerp,Belgium, under the name Continental Petroleum Company, which it acquired control of in 1913.[11] In 1915, Texaco moved to new 13 story offices on 1111 Rusk St., Houston, Texas. In 1928, Texaco became the first U.S. oil company to sell its gasoline nationwide under one single brand name in all of the then 48 states.[12]
In 1931, Texaco purchased theIndian Oil Company, based in Illinois. This expanded Texaco's refining and marketing base in the Midwest and also gave Texaco the rights to Indian'sHavoline motor oil, which became a Texaco product. The next year, Texaco introduced Fire Chief gasoline nationwide, a so-called "super-octane" motor fuel touted as meeting or exceeding government standards for gasoline forfire engines and other emergency vehicles.[13] It was promoted through a radio program over NBC hosted byEd Wynn, called theTexaco Fire Chief.
In 1936, the Texas Corporation purchased theBarco oil concession inColombia, and formed a joint venture with Socony-Vacuum, nowMobil, to develop it. Over the next three years the company engaged in a highly challenging project to drill wells and build a pipeline to the coast across mountains and then through uncharted swamps and jungles.[14] During this time, Texaco also illegally supplied the fascistNationalist faction in theSpanish Civil War with a total 3,500,000 barrels (560,000 m3) of oil.[15] For these illegal sales toFrancisco Franco's fascist forces the company was fined $20,000 for violating theNeutrality Act of 1937, although it continued to sell to Franco on credit until the end of the war.[16]
Also in 1936, marketing operations "East of Suez" (including Asia, East Africa, and Australasia) were placed into a joint venture withStandard Oil Company of California – Socal (nowChevron) – under the brand nameCaltex, in exchange for Socal placing itsBahrain refinery and Arabian oilfields into the venture.[17] The next year, Texaco commissioned industrial designerWalter Dorwin Teague to develop a modern service station design.
In 1938, Texaco introduced Sky Chief gasoline, a premium fuel developed from the ground up as a high-octane gasoline rather than just an ethylized regular product. In 1939, Texaco became one of the first oil companies to introduce a "Registered Rest Room" program to ensure that restroom facilities at all Texaco stations nationwide maintained a standard level of cleanliness to the motoring public.
After the onset ofWorld War II in 1939, Texaco's CEO,Torkild Rieber, admirer of Hitler, hired pro-Nazi assistants who cabled Berlin "coded information about ships leaving New York for Britain and what their cargoes were." This espionage easily enabled Hitler to destroy the ships.[18] In 1940, Rieber was forced to resign when his connections withGerman Nazism, and his illegal supply of oil to thefascist forces during theSpanish Civil War were made public by theHerald Tribune through information produced byBritish Security Coordination.[19][20][21] Life Magazine portrayed Rieber's resignation as unfair, advocating that he only dined withWestrick, and lent him a company car.
During the war, Texaco ranked 93rd among United States corporations in the value of military production contracts.[22] In 1947, Caltex expanded to include Texaco's European marketing operations. That same year, Texaco merged its British operation with Trinidad Leaseholds under the name Regent; it gained full control of Regent in 1956,[23] but the Regent brand remained in use until 1968–9. In 1954, the company added the detergent additive Petrox to its "Sky Chief" gasoline, which was also souped up with higher octane to meet the antiknock needs of new cars with high-compression engines.
The next year, Texaco became the sole sponsor ofThe Huntley-Brinkley Report on NBC-TV. In 1959, the Texas Company changed its corporate name to Texaco, Inc. to better reflect the value of the Texaco brand name, which represented the biggest selling gasoline brand in the U.S. and only marketer selling gasoline under one brand name in all (by then) 50 states. It also acquiredMcColl-Frontenac Oil Company Ltd. of Canada and changes its name to Texaco Canada Limited.[24] Around this time,Paragon Oil, a major fuel oil distribution company in the northeastern U.S., was acquired.
In 1964, Texaco introduced the "Matawan" service station design at a station inMatawan, New Jersey.[25] Two years later, Texaco replaced the long-running banjo sign with a newhexagon logo that had previously been test-marketed with the "Matawan" station design introduced two years earlier. The new logo featured a red outline with TEXACO in black bold lettering and a small banjo logo with a red star and green T at bottom. The following year, the Regent name was replaced by Texaco at British petrol stations.[26] In 1970, in response to increasingly-stringent federalvehicle emissions standards that would induce automakers to installcatalytic converters requiring equipped vehicles to run on unleaded gasoline, Texaco introduced their first regular-octane no-lead gasoline at stations in the Los Angeles area and throughoutSouthern California. Lead-Free Texaco became available nationwide in 1974. On November 20, 1980, theLake Peigneur/Jefferson Island disaster occurred. Two years later, a new service station design was introduced. Several product names were also changed with the advent of self-service, including Lead-free Texaco to Texaco Unleaded,Fire Chief to Texaco Regular, and Super Lead-free Sky Chief to Texaco Super Unleaded.
At the end of 1981 and the beginning of 1982, members of the Medellín Cartel (includingPablo Escobar), the Colombian military, the U.S.-based corporationTexas Petroleum, the Colombian legislature, small industrialists, and wealthy cattle ranchers came together in a series of meetings inPuerto Boyacá, and formed aparamilitary organization known asMuerte a Secuestradores ("Death to Kidnappers", MAS) to defend their economic interests, and to provide protection for local elites from kidnappings and extortion.[27][28][29] By 1983, Colombian internal affairs had registered 240 political killings by MAS death squads, mostly community leaders, elected officials, and farmers.[30]
On November 19, 1985,Pennzoil won a US$10.53-billion verdict against Texaco, the largestcivil verdict in US history up to that date.[31] The court case sprang from Texaco having established a signed contract to buyGetty Oil after Pennzoil entered into an unsigned—yet binding—buyout contract withGordon Getty.[32] In 1987, Texaco filed for bankruptcy. It was the largest in U.S. history until 2001.[33]
In January 1988, Texaco became the first major corporation in the UK to declare compulsory testing forHIV, a decision denounced by the Lesbian and Gay Employment Rights organisation as 'disastrous, irresponsible and pointless.'[34] It was picketed by protesters fromACT UP London in March 1989, who also called for a Britishboycott of its petroleum products.[35]
In January 1989, Texaco andSaudi Aramco agreed to form a joint venture known as Star Enterprise in which Saudi Aramco would own a 50% share of Texaco's refining and marketing operations in the eastern U.S. and Gulf Coast.[36] In 1989, Texaco introduced System3 gasolines in all three grades of fuel, featuring the latest detergent additive technology to improve performance by reducing deposits that clog fuel injection systems. The Toronto-based Texaco Canada Incorporated subsidiary was sold toImperial Oil with all Texaco Canada retail operations converted to theEsso brand.[37][38] Two years later, the company was awarded theNational Medal of Arts.[39] In 1993, several dozen tribal leaders and residents from theEcuadoranAmazon filed a billion-dollar class-action lawsuit against Texaco, as a result of massive ecological pollution of the area and rivers around Texaco's Ecuadorianoffshore drilling sites, causing toxiccontamination of approximately 30,000 residents.[40]
In 1994, Texaco's System3 gasolines were replaced by new CleanSystem3 gasoline, marketed with claims of improved engine performance through additives designed to clean carbon from car-engine intake valves and combustion chambers.[41] In 1995, Texaco merged their Danish and Norwegian downstream operations with those ofNorsk Hydro under the new brand HydroTexaco. This joint venture was sold in 2007 to Norwegian retail interests asYX Energi, following the purchase of Hydro byStatoil. In 1996, Texaco paid over $170 million to settleracial discrimination lawsuits filed byBlack employees at the company. It was the largest racial-discrimination lawsuit settlement in the U.S. at the time, and was particularly damaging to Texaco's public relations when tapes were released of meetings with company executives planning to destroy incriminating evidence.[42]
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In 1999, the company formed the joint venture Equilon withShell Oil Company, combining their Western and Midwestern U.S. refining and marketing.[43] This gave rise to the 2006U.S. Supreme Courtantitrust case ofTexaco Inc. v. Dagher, which cleared both Texaco and Shell of any antitrust liability concerning the pricing of Equilon's gasoline. That same year, another joint venture,Motiva Enterprises, was formed with Shell Oil Company andSaudi Aramco in which the Star Enterprise operations were merged with the Eastern and Gulf Coast U.S. refining and marketing operations of Shell.[43]
In October 2000,Chevron Corporation agreed to buy Texaco forUS$36 billion (equivalent to $62 billion in 2024).[44] The merger was completed October 9, 2001.[3] As required by the FTC consent agreement,[45] Texaco's interest in the Equilon and Motiva joint ventures were sold to Shell.[46][47] Shell began re-branding its Texaco stations as Shell the next year.[48] Around 2003, due to lack of demand, Texaco closed Refineria Panamá, a refinery inColón, Panama.[49] In July 2004, Chevron regained non-exclusive rights to the Texaco brand name in the U.S.[50] The following year, in August, Texaco introduced the Techron additive into its fuels in the U.S. and parts of Latin America.[51] In 2007,Delek Benelux took over marketing activities for Chevron inBenelux, including 869 filling stations, mostly under the Texaco brand.[52] In 2010, Chevron ended retail operations in the Mid-Atlantic US, removing its brand from 450 stations in Delaware, Indiana, Kentucky, North Carolina, New Jersey, Maryland, Ohio, Pennsylvania, Virginia, West Virginia, Washington, D.C.[53]
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Prior to the merger with Chevron, Texaco's headquarters was a 750,000-square-foot (70,000 m2) building inHarrison, inWestchester County, New York, nearWhite Plains.[54][55] In 2002, Chevron Corporation sold the formerTexaco Headquarters toMorgan Stanley. Morgan Stanley bought the building and the surrounding 107 acres (43 ha) for $42 million.[54]
Texaco leased 14 floors of theChrysler Building inMidtown Manhattan,New York City in the 1930s. As part of the leasing agreement with Texaco the building opened theCloud Club, a lunch club for executives. Texaco's move to Westchester County in 1977 contributed to the closure of the Cloud Club in 1979.[56]
Texaco is associated with theHavoline brand of motor oil and other automotive products. It was one of the sponsors ofNASCAR with many drivers, such asDavey Allison,Ernie Irvan,Dale Jarrett,Kenny Irwin Jr.,Ricky Rudd,Jamie McMurray,Casey Mears, andJuan Pablo Montoya. Havoline continuously sponsored a car from the early 1980s to 2008. At the end of the 2008 season, Texaco/Havoline ended their sponsorship with NASCAR andChip Ganassi Racing. This brought a 20-plus-year relationship with the sport to a close.[57]
Texaco was also involved inopen wheel racing, sponsoring theTexaco Grand Prix of Houston along with sponsoring drivers likeIndianapolis 500 winnerMario Andretti and his sonMichael.[58]
InFormula One, Texaco sponsored theTeam Lotus in 1972 and 1973, andMcLaren from 1974 to 1978. The company returned to Grand Prix racing at a smaller scale in 1997, with their brands appearing on theStewartSF01 car. Their association with the team and its successor,Jaguar Racing, continued until the end of 2001, in the same timeline they also sponsoredITV's Formula 1 Coverage.[citation needed]
Texaco sponsored theTom Walkinshaw RacingRover Vitesse factory team at the 1985 and 1986European Touring Car Championship (ETCC) under their Bastos brand, and theFord Sierra RS500 factory cars entered byEggenberger Motorsport in the1987World Touring Car Championship (plus the 1988 ETCC and other European-based championships). Texaco also sponsored cars in the 1987World Rally Championship.[citation needed]
From 1987 to 1993, Texaco was the major sponsor (through its AustralianCaltex offshoot)Colin Bond Racing in Australiantouring car racing, first with theAlfa Romeo 75 in 1987, then the Ford Sierra RS500 from 1988 to 1992 and thenToyota Corollas in 1993. From2000 until2007, it was title sponsor ofStone Brothers Racing withRussell Ingall winning the2005 championship. In2016, Caltex became title sponsor of theTriple Eight Race Engineering car ofCraig Lowndes, having previously been an associate sponsor of the team.[59]
From 1984 to 1998, Texaco were the title sponsors of the mainOne Day International cricket tournament in England, theTexaco Trophy. It also sponsored theTexaco Cup, a football tournament for clubs of the British Isles.[citation needed]
Texaco was long associated with theMetropolitan Opera as sole sponsor of its radio broadcasts for 63 years. It was identified as well with such entertainment legends asEd Wynn,Fred Allen andMilton Berle (many of their shows were originally sponsored by Texaco – seeTexaco Star Theatre, which includes the sponsorship lyrics of the opening theme: "We're the men of Texaco, We work from Maine to Mexico..."). Berle's program was broadcast in the same time slot asFulton J. Sheen's religious program for a while, thus leading to Berle's oft-quoted quip, "We both have the same boss – Sky Chief!"[citation needed]
Texaco was also the sponsor of the weeklyMetropolitan Opera radio broadcasts, which air to this day since its inception in 1931.
In the 1930s, comedianEd Wynn hosted a half hour stand-up comedy/variety show on theNBC Radio Network, billed as "The Texaco Fire Chief", a reference to its regular grade gasoline. This trend continued into the late 1940s, when Wynn was replaced byMilton Berle as television becoming the dominant medium. The title was changed to the 60-minuteTexaco Star Theater, which was also broadcast on NBC.[60]
In a 1983 video for their song, "Cruel Summer", members of girl groupBananarama are depicted as working as mechanics at a Texaco gas station.
From 1965 to 1993, Texaco participated in a consortium to develop theLago Agrio oil field in Ecuador. The company was accused of extensive environmental damage from these operations, and faces legal claims from both private plaintiffs and from the government of Ecuador. The case was widely publicized by environmental activists and was the subject ofCrude, a 2009 documentary film by Joe Berlinger.
In turn, Texaco's owner Chevron claims that it was being unfairly targeted as adeep pocket defendant, when the actual responsibility lies with the government and itsnational oil company,Petroecuador.[61]
Texaco allegedly decided to forgo their standard drilling practices in favor for a minor savings on the cost to produce a barrel of crude oil (approximately $3/barrel). Texaco allegedly dumped toxic wastewater directly into rivers and waste into unlined pits, and created pits that were fitted with overflow pipes to nearby waterways, with pits also never being emptied after the drilling operations were concluded. In total, it is estimated that over 18 billion gallons of toxic waste were released into the Amazon rainforest. In addition to the liquid pollution, it is alleged that workers burned off toxic natural gasses and some liquid waste, thus releasing highly toxic dioxins into the atmosphere.[62]
The NiMH chemistry used in modern hybrid vehicles was invented by ECD Ovonics founder Stan Ovshinsky, and Dr. Masahiko Oshitani of the Yuasa Company[63][64] In 1994, General Motors acquired a controlling interest inOvonics's battery development and manufacturing. On October 10, 2001, Texaco purchased GM's share in GM Ovonics, andChevron completed its acquisition of Texaco six days later. In 2003, Texaco Ovonics Battery Systems was restructured intoCobasys, a 50/50 joint venture between Chevron andEnergy Conversion Devices (ECD) Ovonics.[65]
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