1901–1982 The business that became Gulf Oil started in 1901 with the discovery of oil at
Spindletop oilfield near
Beaumont, Texas. A group of investors came together to promote the development of a modern refinery at nearby
Port Arthur to process the oil. The largest investors were
Andrew Mellon and
William Larimer Mellon Sr., of the Pittsburgh
Mellon family. Other investors included many of Mellon's Pennsylvania clients as well as some Texas
wildcatters.
Mellon Bank and Gulf Oil remained closely associated thereafter. The Gulf Oil Corporation itself was formed in 1907 through the amalgamation of a number of oil businesses, principally the J.M. Guffey Petroleum Company, Gulf Pipeline Company, and Gulf Refining companies of Texas. The name of the company refers to the
Gulf of Mexico where Beaumont lies. Output from
Spindletop peaked at around just after it was discovered and then started to decline. Later discoveries made 1927 the peak year of Spindletop production, but Spindletop's early decline forced Gulf to seek alternative sources of supply to sustain its substantial investment in refining capacity. This was achieved by constructing the 400-mile (640 km)
Glenn Pool pipeline connecting oilfields in
Oklahoma with Gulf's refinery at
Port Arthur. The pipeline opened in September 1907. Gulf later built a network of pipelines and refineries in the eastern and southern United States, requiring heavy capital investment. Thus, Gulf Oil provided Mellon Bank with a secure vehicle for investing in the oil sector. Gulf promoted the concept of branded product sales by selling fuel in containers and from pumps marked with a distinctive orange disc logo. A customer buying Gulf-branded fuel could be assured of its quality and consistent standard. (In the early 20th century, non-branded fuel in the United States was often contaminated or of unreliable quality). Gulf Oil grew steadily in the inter-war years, with its activities mainly confined to the United States. The company was characterized by its vertically integrated business activities and was active across the whole spectrum of the
oil industry: exploration,
production, transport, refining and marketing. It also involved itself in associated industries such as
petrochemicals and automobile component manufacturing. It introduced significant commercial and technical innovations, including the first drive-in service station (1913), complimentary road maps, drilling over water at
Ferry Lake, and the
catalytic cracking refining process (Gulf installed the world's first commercial catalytic cracking unit at its Port Arthur, Texas refinery complex in 1951). Gulf also established the model for the integrated, international "oil major", which refers to one of a group of very large companies that assumed influential and sensitive positions in the countries in which they operated. In 1924, it acquired the Venezuelan-American Creole Syndicate's leases in the strip of shallow water 1.5 kilometers (0.93 mi) wide along the
Lake Maracaibo east shore. In
Colombia, Gulf purchased the
Barco oil concession in 1926. The government of Colombia revoked the concession the same year, but after much negotiation Gulf won it back in 1931. However, during a period of over-capacity, Gulf was more interested in holding the reserve than developing it. In 1936 Gulf sold Barco to the Texas Corporation, now
Texaco, and they would eventually all merge as Chevron. Gulf had extensive exploration and production operations in the
Gulf of Mexico,
Canada, and
Kuwait. The company played a major role in the early development of oil production in Kuwait, and through the 1950s and '60s apparently enjoyed a "special relationship" with the Kuwaiti government. This special relationship attracted unfavorable attention since it was associated with "political contributions" (see below) and support for anti-democratic politics, as evidenced by papers taken from the body of a Gulf executive killed in the crash of a
TWA aircraft at
Cairo in 1950. , c. 1939 In 1927 Gulf Oil obtained an option on an oil concession in Bahrain, which was sold to Standard Oil of California in 1928 and led to the founding of the
Bahrain Petroleum Company. Gulf Oil was also a minor shareholder in the
Iraq Petroleum Company until 1934. In 1934, the
Kuwait Oil Company (KOC) was formed as a joint venture by
Anglo-Persian Oil Company (APOC) now
BP, and Gulf. Both APOC and Gulf held equal shares in the venture. KOC pioneered the exploration for oil in Kuwait during the late 1930s. Oil was discovered at
Burgan in 1938, but it was not until 1946 that the first
crude oil was shipped. Oil production started from Rawdhatain in 1955 and Minagish in 1959. KOC started gas production in 1964. It was the cheap oil and fuel being shipped from Kuwait that formed the economic basis for Gulf's diverse petroleum sector operations in Europe, the Mediterranean, Africa, and the Indian subcontinent. These last operations were coordinated by Gulf Oil Company, Eastern Hemisphere Ltd. (GOCEH) from their offices at 2 Portman Street in London W1. While serving as General Manager and Vice President of Gulf Oil,
Willard F. Jones facilitated the expansion of crude oil import from
Kuwait, a nation that was - at the time - a yet incipient supply region to the United States. This expansion program implemented by Robert E. Garret and Jones consisted of construction of a fleet of supertankers and was meant to "result in a sharp increase in the processing of crude oil and various petroleum products at a time when the domestic demand for (such) products (was) at an unprecedented peak." , refinery,
alkylation area, (1956) Gulf expanded on a worldwide basis from the end of the
Second World War. The company leveraged its international drilling experience to other areas of the world, and by mid-1943 had established a presence in the eastern oil fields of
Venezuela as the
Mene Grande Oil Company (see
San Tomé, Venezuela). Much of the company's retail sales expansion was through the acquisition of privately owned chains of filling stations in various countries, allowing Gulf outlets to sell product (sometimes through "matching" arrangements) from the oil that it was "lifting" in Canada, the Gulf of Mexico, Kuwait, and Venezuela. Some of these acquisitions were to prove less than resilient in the face of economic and political developments from the 1970s on. Gulf invested heavily in product technology and developed many specialty products, particularly for application in the maritime and aviation engineering sectors. It was particularly noted for its range of lubricants and greases. tank farms and tanker docks,
Port of Philadelphia, 1973 Gulf Oil reached the peak of its development around 1970. In that year, the company processed of crude daily, held assets worth $6.5 billion ($ billion today), employed 58,000 employees worldwide, and was owned by 163,000 shareholders. In addition to its petroleum marketing interests, Gulf was a major producer of petrochemicals, plastics, and agricultural chemicals. Through its subsidiary, Gulf General Atomic, Inc., it was also active in the nuclear energy sector. Gulf abandoned its involvement in the nuclear sector after a failed deal to build atomic power plants in Romania in the mid-1970s. In 1974, the Kuwait National Assembly took a 60 percent stake in the equity of KOC with the remaining 40 percent divided equally between BP and Gulf. The Kuwaitis took over the rest of the equity in 1975, giving them full ownership of KOC. This meant that Gulf (EH) had to start supplying its downstream operations in
Europe with crude bought on the world market at commercial prices. The whole GOC(EH) edifice now became highly marginal in an economic sense. Many of the marketing companies that Gulf had established in Europe were never truly viable on a stand-alone basis. In 1976 during the nationalization of Venezuelan oil, the transfer of properties, benefits, equipment of Gulf Oil to
PDVSA was carried out without any setback and with full satisfaction on both parts. Gulf was at the forefront of various projects in the late 1960s intended to adjust the world oil industry to developments of the time including closure of the
Suez Canal after the
1967 war. In particular, Gulf undertook the construction of deep-water terminals at
Bantry Bay in Ireland and
Okinawa in
Japan capable of handling
Ultra Large Crude Carrier (ULCC) vessels serving the European and Asian markets respectively. In 1968, the
Universe Ireland was added to Gulf's tanker fleet. At , this was the largest vessel in the world and incapable of berthing at most normal ports. Gulf also participated in a partnership with other majors, including
Texaco, to build the Pembroke Catalytic Cracker refinery at Milford Haven and the associated Mainline Pipelines fuel distribution network. The eventual reopening of the Suez Canal and upgrading of the older European oil terminals (Europoort and Marchwood) meant that the financial return from these projects was not all that had been hoped for. The Bantry terminal was devastated by the explosion of a Total tanker, the M/V
Betelgeuse, in January 1979 (
Whiddy Island disaster) and it was never fully reopened. The Irish government took over ownership of the terminal in 1986 and held its strategic oil reserve there. In the 1970s, Gulf participated in the development of new oilfields in the UK
North Sea and in
Cabinda, although these were high-cost operations that never compensated for the loss of Gulf's interest in Kuwait. A mercenary army had to be raised to protect the oil installations in Cabinda during the Angolan civil war. The Angolan connection was another "special relationship" that attracted comment. In the late 1970s, Gulf was effectively funding a Soviet bloc regime in
Africa while the US government was attempting to overthrow that regime by supporting the
UNITA rebels led by
Jonas Savimbi. In 1975, several senior Gulf executives, including chairman Bob Dorsey, were implicated in the making of illegal "political contributions" and were forced to step down from their positions. This loss of senior personnel at a critical time in Gulf's fortunes may have had a bearing on the events that followed. Gulf's operations worldwide were struggling financially in the recession of the early 1980s, so Gulf's management devised the "Big
Jobber" strategic realignment in 1981 (along with a program of selective divestments) to maintain viability. The Big Jobber strategy recognized that the day of the integrated, multi-national oil major might be over, since it involved concentrating on those parts of the supply chain where Gulf had a competitive advantage.
Marketing and promotions In the late 1930s, Gulf's aviation manager, Major Alford J. Williams, had the
Grumman Aircraft Engineering Corporation construct two modified biplanes, cleaned-up versions of the
Grumman F3F Navy fighter, for promotional use by the company. Wearing Gulf Oil company colors and logos, the Grumman G-22 "Gulfhawk II", registered
NR1050, was delivered in December 1936, and in 1938 Maj. Williams flew it on a tour of Europe. A second scavenger pump and five drain lines were added to the engine installation that allowed the aircraft to be flown inverted for up to thirty minutes. This aircraft is now preserved in the
National Air and Space Museum in
Washington, D.C. A second airplane, the Grumman G-32 "Gulfhawk III", registered
NC1051, was delivered on May 6, 1938. Impressed by the
Army Air Force in November 1942 for use as a VIP transport and designated a UC-103, it crashed in the
southern Florida Everglades in early 1943. Gulf Oil was the primary sponsor for
NBC News special events coverage in the 1960s, notably for coverage of the U.S.
space program. It also became a sponsor for a program called NBC News Special Report. The logo even appeared on the front cross-shaped desk of every special event and coverage broadcast by the network and it was notably used by
Chet Huntley and
David Brinkley or the other correspondents since the
1964 Republican National Convention. The company used the connection to its advantage by offering giveaway or promotional items at its stations, including sticker sheets of space mission logos, a paper punch-out
lunar module model kit, and a book titled "We Came in Peace," containing pictures of the
Apollo 11 Moon landing. Gulf was also a major sponsor of ''
Walt Disney's Wonderful World of Color'', which also aired on NBC. Disney magazines and activity books were often given away with a gas fill-up. Gulf was also noted for its "Tourgide" road maps. One particularly memorable Gulf advertisement carried by NBC during their coverage of the Apollo missions showed aerial and onboard views of the
Universe Ireland with
Tommy Makem and the
Clancy Brothers singing "
Bringin' Home the Oil" – a tribute to the opening of Gulf's operations in
Bantry Bay. LH raced by
Derek Bell &
Jo Siffert at the
1971 24 Hours of Le Mans, parked outside the
Hotel de France In 1937, Gulf Oil became involved in racing when they purchased the racing car project of Ira Vail and Harry Miller and brought the project into the Gulf Research and Development Company. This produced innovative new cars that were the designs of Miller which became the first mid-engined cars to race in the
Indianapolis 500. The cars also featured four-wheel-drive which was very novel at the time, disc brakes and a supercharged 6-cylinder engine. The only notable restriction was that the engine needed to run on standard Gulf pump fuel. Four of the cars were built with 3-liter engines and one was entered in the 1938 "500" but did not qualify as much testing was needed to get the car to the point of being ready for competition. Three of the Gulf-Miller cars were entered in 1939 with one, driven by George Bailey making the race with a second-row qualifying position. Another of the cars was crashed in practice and the third didn't attempt qualifying. The Bailey car dropped out of the race with a broken valve. In 1940, a fatal practice accident caused the team to withdraw. In 1941, two of the Gulf cars qualified but one was destroyed in a race morning garage fire and the other dropped out of the race early. Gulf sold the car in 1946 to Preston Tucker who ran it as the "Tucker Torpedo Special" that year in its last race appearance. Gulf Oil was most synonymous for its association with
auto racing, as it famously sponsored the
John Wyer Automotive team in the 1960s and early '70s. The signature light blue and orange color scheme associated with its
Ford GT40 and
Porsche 917 is one of the most famous corporate
racing colors and has been replicated by other racing teams sponsored by Gulf. Much of its popularity is attributed to the fact that in the 1971 film
Le Mans,
Steve McQueen's character,
Michael Delaney, drives for the Gulf team. As a result of McQueen's increasing popularity following his death and the increasing popularity of the
Heuer Monaco which he wore in the film,
TAG Heuer released a limited edition of the watch with the Gulf logo and trademark color scheme. In the same era, Gulf Oil also sponsored
Team McLaren during the
Bruce McLaren days, which used a papaya orange color scheme with Gulf blue for lettering. From 1963 to 1980, Gulf Oil had a formal agreement with
Holiday Inn, the world's largest lodging chain, for which Holiday Inn's in the U.S. and Canada would accept Gulf credit cards for food and lodging. In return, Gulf placed service stations on the premises of many Holiday Inn properties along major U.S. highways to provide one-stop availability for fuel, auto service, food and lodging. Many older Holiday Inns still have those original Gulf stations on their properties, some in operation and some closed, but few operate today as Gulf stations. Gulf No-Nox fuel was promoted with a bucking horse leaving an imprint of two horseshoes. Several promotions centered on the two horseshoes. In 1966, bright orange 3-D plastic self-adhesive horseshoes for car bumpers were given away. Another popular giveaway was during the 1968 election season, gold horseshoe lapel pins featuring either a
Democratic donkey or a
Republican elephant. == Demise ==