The fleet oiler later had an eventful career, in so far as it was decommissioned four times and twice stricken from the Naval Vessel Register. Kennebec was decommissioned on 4 September 1950 at San Diego, California, and laid up in the Pacific Reserve Fleet for only four months. It was already recommissioned on 11 January 1951, at Oakland, California. On 25 September 1954 it was decommissioned, again at San Diego and laid up in the Pacific Reserve Fleet, San Diego Group. It was recommissioned on 14 December 1956, only to be decommissioned again on 31 October 1957. This time the ship was stricken from the Naval Register on 14 January 1959 and transferred to the Maritime Administration (MARAD) for laying up in the National Defense Reserve Fleet. However, Kennebec was reacquired by the U.S. Navy and recommissioned on 16 December 1961. It served the Pacific Fleet during the Vietnam War up to 1970.
The ship decommissioned for the last time on 29 June 1970 at the Naval Inactive Ship Maintenance Facility, Mare Island, Vallejo, California, and transferred to the Maritime Administration (MARAD) for laying up in the National Defense Reserve Fleet. Kennebec was again stricken from the Naval Register on 15 July 1976. On 6 April 1982 it was sold by MARAD to Levin Metals Corporation for $180,077.00, and subsequently scrapped.
Today, the ship's only propeller sits outside the Building 1503 at the Norfolk Naval Shipyard. It is a 19inchesft8inchesin (ftin) diameter prop with a 18inchesft10inchesin (ftin) pitch. It was made by Bethlehem Steel Co. at the Staten Island plant. The finish weight was 41775lbs.