| Conoco Inc. | |
| Former Name: |
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| Type: |
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| Traded As: | (1998–2002)[1] |
| Fate: | Merged with Phillips Petroleum, remaining as a brand |
| Successors: |
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| Foundation: | in Ogden, Utah |
| Predecessor: |
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| Founder: | Isaac Elder Blake |
| Area Served: | Worldwide |
| Defunct: | (as a company) |
| Owner: | Phillips 66 Company |
| Location: | Westchase |
| Hq Location City: | Houston, Texas |
| Industry: | Petroleum |
Conoco,[2] formerly known as Continental Oil, is an American petroleum brand that is operating under the ownership of the Phillips 66 Company since 2012 and is headquartered in Houston, Texas. One of the several successors of Standard Oil, Conoco was a subsidiary of that company from 1884 until its 1911 divestiture when the U.S. Supreme Court ruled to decouple the monopolized entity.
Alongside Phillips 66 and 76, it operates as one of the major fuel brands of the Phillips 66 Company.[3] Of those two brands, Conoco has a more dominant presence of gas stations in the markets of Colorado, Texas, Montana, Missouri, and Oklahoma, as well as a growing presence in Eastern Pennsylvania following taking over the retail contracts of several Gulf locations, while having a complete absence in states such as California and Florida.[4]
Continental Oil, originally based in Ogden, Utah was founded by Isaac Elder Blake in 1875 and was acquired by the Standard Oil Company in 1884. Eighteen years after Standard Oil’s dissolution, Marland Oil would acquire Continental, moving its headquarters to Ponca City, Oklahoma, in 1929. As the acquisition took effect, Marland favorably phased out its own name and rebranded into the more nationally known Continental and Conoco nameplates. As it became one of the largest oil companies in the United States, Conoco further expanded its operations globally during the 1970s decade.[5]
Similar to other oil companies during the 1970s energy crisis, Conoco’s operations were negatively impacted, and so in 1981 Conoco, the ninth-largest oil company at the time, was embroiled in one of the most expensive corporate takeovers in history when the Mobil Corporation and Seagram attempted to acquire the company. DuPont, who was conjured by Ralph Bailey (the CEO of Conoco at the time) was hired as a white knight[6] and would eventually emerge triumphant defending Conoco from the two vendors.[7] DuPont’s acquisition of Conoco at US$1.5 billion made it the largest merger in U.S. history at the time, surpassing that of Shell Oil’s acquisition of the Belridge Oil Company at USD$3.5 billion in 1979.[8] In 1998, DuPont and Conoco announced their intentions to split which was commenced when DuPont sold 30% that year and the remaining 70% in July 1999, officiating their separation.
For many years, the company would operate its own refineries until 2002 when it was merged with the Phillips Petroleum Company to form ConocoPhillips. A decade later, ConocoPhillips would divest its downstream operations that consisted of its gas stations operations under the brands of Conoco, Phillips 66, and 76. The divestiture would eventually commence and the spin off that contained the downstream operations of ConocoPhillips went under a separate company known as the Phillips 66 Company.
The "Continental Oil and Transportation Company" was founded by Isaac Elder Blake in 1875.[9] [10] Based in Ogden, Utah, the company distributed oil, kerosene, benzene, and other products in the western United States.[11] Continental Oil Company was acquired by Standard Oil Company in 1884, and was subsequently spun off during the Standard Oil divestiture in 1911.
The main office was later moved to Ponca City, Oklahoma, when in 1929, Marland Oil Company (founded by exploration pioneer E. W. Marland) acquired the Continental Oil Company.[10] [12] Marland Oil acquired the assets (subject to liabilities) of Continental Oil Company for a consideration of 2,317,266 shares of stock. The merged company took the more recognizable Continental name along with the Conoco brand. However, it adopted Marland's red triangle logo, which it retained until 1970 the now-familiar capsule logo was adopted.[13] [14]
Dan Moran, who succeeded Marland founder E. W. Marland as president of Marland Oil in 1928, became the first president of the merged Conoco. Moran ran Conoco for twenty years, seeing the company through challenges of the great depression, and retiring in 1947.[15] The company ran into early trouble when, shortly after acquisition, it was hit by the Great Crash of October 1929. Conoco became a key supplier to the United States government during World War II.[16]
Under the leadership of Leonard F. McCollum, Conoco grew from a regional company to a global corporation in the years after World War II. Another rough patch for the company came during the 1970s oil crisis, from which it did not recover until 1981, when Conoco became a subsidiary of former rival DuPont.[17] [18]
In 1981, Dome Petroleum made a tender offer for 20% of Conoco. More than 50% of Conoco shares were tendered, evidence that shareholders were unhappy, and several companies made their own tender offers to take over Conoco.[19] Cash rich and wanting to diversify, Seagram Company Ltd. engineered a takeover of Conoco. Although Seagram acquired a 32.2% stake in Conoco, DuPont was brought in as a white knight by the oil company and entered the bidding war. Mobil Corporation, the nation's second-largest oil company at the time, also joined the bid, and borrowed $5 billion to bid for Cocono.[20] In the end, Seagram and Mobil lost out in the Conoco bidding war.[21] In exchange for its stake in Conoco Inc, Seagram became a 24.3% owner of DuPont. By 1995, Seagram was DuPont's largest single shareholder with four seats on the board of directors.[22]
In 1998, DuPont sold 30% of Conoco,[23] and in 1999, DuPont sold the remaining 70% stake it holds in Conoco Inc.[24] When the independent Conoco went public in October 1998, under a retooled name, Continental Oil Company, it resulted in the largest IPO in history.[25] [26] In 2001, Conoco announced it has agreed to buy Gulf Canada for C$6.7 billion ($4.3 billion).[27] [28] [29] Conoco merged with Phillips Petroleum in 2002 to form ConocoPhillips.[30] [31]
Before the merger, Conoco had its headquarters in what is now the current ConocoPhillips headquarters in the Energy Corridor of Houston; the complex was formerly known as the Conoco Center.[32] [33]
The headquarters of Conoco moved to Houston, in 1949.[10] In 1965, the headquarters moved to Manhattan, New York City. In 1972, the headquarters moved to Stamford, Connecticut; in Stamford Conoco occupied space in the three-story High Ridge Park complex.[34] In 1982, DuPont announced that Conoco's headquarters would move from Stamford to Wilmington, Delaware.[35] The move occurred in 1982.[23] Edward G. Jefferson, the chairperson of DuPont, said that the headquarters relocation was to bring the head workforces of DuPont and Conoco together. DuPont also announced that it was closing the Conoco offices in Stamford; the lease in the Stamford complex was originally scheduled to expire in 1992.[34]
In 1995, Conoco Inc. was awarded a contract by Iran to develop a huge offshore oilfield in the Persian Gulf. It was the first energy agreement involving Iran and the United States since Washington severed relations with Tehran in 1980. The contract was signed after three years of negotiations.[36] However, the company dropped the plan after the White House announced that President Bill Clinton would issue a directive blocking all such transactions on grounds of national security.[37]
The official Conoco museum was completed in 2007 and is located in Ponca City, Oklahoma.[38]
Along with sister brands, Phillips 66, and 76, "Conoco" (properly pronounced CON-oco, not Co-NO-co or CO-noco),[39] is a major American brand of oil and gas station that has been owned by Phillips 66 since 2012 and was originally the brand used by its originator, Conoco Inc., from 1875 to its merger with Phillips Petroleum in 2002. Although the Conoco brand can be used in any state in which the Phillips 66 Company operates, it is very rare to see the Conoco brand in California and Oregon where the 76 brand predominates.[40] [41]
Isaac E. Blake, 1877–1893
Henry M. Tilford, 1893–1907
Edward T. Wilson, 1907–1924
C. E. Strong, 1924–1927
Sidney H. Keoughan, 1927–1929
Daniel J. Moran, 1929–1947
Leonard F. McCollum, 1947–1964
Andrew W. Tarkington, 1964–1969
John G. McLean, 1969–1972
Howard W. Blauvelt, 1974
Dr John E. Kircher, 1974–1977
Ralph E. Bailey, 1977–1987
Constantine S. Nicandros, 1987–1995
Archie W. Dunham, 1996–2002
Edward T. Wilson, 1929–19??
Charles A. Perlitz Jr, 1963–1964
Leonard F. McCollum, 1964–1972
John G. McLean, 1972–1974
Howard W. Blauvelt, 1974–1979
Ralph E. Bailey, 1979–1987
Constantine S. Nicandros, 1995–1996
Edgar S. Woolard Jr., 1998–1999
Archie W. Dunham, 1999–2002