Andeavor

Last updated
Andeavor
Formerly
Tesoro Corporation
Industry Oil and Gas
FateAcquired by Marathon Petroleum
PredecessorTesoro Corporation, Western Refining
Successor Marathon Petroleum
Founded1968;52 years ago (1968)
FounderRobert V. West Jr.  OOjs UI icon edit-ltr-progressive.svg
DefunctOctober 1, 2018 (2018-10-01)
Headquarters,
Number of locations
10 Oil refineries, [1] 3,000 branded retail gas stations [2]
Area served
Central, Western U.S, Western México.
Products Petroleum products, natural gas and fuel
RevenueIncrease2.svg US$34.975  billion (2017)
Increase2.svg US$1.525 billion (2017)
Increase2.svg US$1.528 billion (2017)
Total assets Increase2.svg US$28.573 billion (2017)
Total equity Increase2.svg US$9.815 billion (2017)
Number of employees
14,300 (2017)
Website andeavor.com
Footnotes /references
[3]

Andeavor (previously known as Tesoro Corporation) was a Fortune 100 [4] and a Fortune Global 500 company headquartered in San Antonio, Texas, with 2017 annual revenues of $35 billion, and over 14,000 employees worldwide. Based on 2017 revenue, the company ranked No. 90 in the 2018 Fortune 500 list of the largest United States corporations by total revenue. [5]

Contents

Andeavor was an independent refiner and marketer of petroleum products, operating ten refineries in the Western United States with a combined rated crude oil capacity of approximately 1,200,000 barrels (190,000 m3) per day. Andeavor's retail-marketing system included approx. 3,000 branded retail gas stations, of which more than 595 were company-operated under its own Tesoro brandname, as well as Shell, ExxonMobil, ARCO, and USA Gasoline brands.

Andeavor was acquired by Marathon Petroleum on October 1, 2018.

History

Tesoro's corporate HQ, completed in 2009, at San Antonio, TX. Tesoro Corporation headquarters, San Antonio.jpg
Tesoro's corporate HQ, completed in 2009, at San Antonio, TX.

Andeavor, formerly Tesoro, was founded in 1968 [6] by Dr. Robert V. West Jr, [7] and was primarily engaged in petroleum exploration and production. Tesoro is the word for treasure (or treasury) in Italian and Spanish. In 1969, Tesoro began operating its first refinery, near Kenai, Alaska. Tesoro became the first Fortune 500 company to be headquartered in San Antonio, Texas.

Beginning in the late 1990s, Tesoro grew through a series of acquisitions and initiatives that created Tesoro Corporation, the company focusing on a single core business: petroleum refining and marketing. Acquisitions expanded refining capacity from 72,000 barrels per day (11,400 m3/d) to approximately 664,000 barrels per day (105,600 m3/d).

Prior to its acquisition by Marathon Petroleum in 2018, Andeavor was the third-largest independent petroleum refining and marketing company in the United States.

Milestones in the company's history are:

Media controversy

Environmental record

Tesoro's Anacortes Refinery at the north end of March Point, southeast of Anacortes, Washington Anacortes Refinery 31911.JPG
Tesoro's Anacortes Refinery at the north end of March Point, southeast of Anacortes, Washington

Having taken over BP installations, researchers at the Political Economy Research Institute identified Tesoro as being the 24th-largest corporate producer of air pollution in the United States, releasing roughly 3,740,000 lb (1,700 t) of toxic chemicals annually. [18] Major pollutants emitted annually by the corporation include more than 400,000 lb (180 t) of sulfuric acid. [19] following which the Environmental Protection Agency named Tesoro a potentially responsible party for at least four superfund toxic waste sites. [20] Tesoro has settled and/or closed each of the superfund sites for which it has been named as one of many responsible parties. Tesoro was listed as a de minimis contributor to a superfund site in Abbeville, LA, and the site has since been closed by the EPA.

Tesoro has given over $1 million in support of California Proposition 23, which aimed to suspend the Global Warming Solutions Act of 2006. [21]

Defenders of the Amazon forest in South America cite Tesoro for sourcing some of their crude oil from the Amazon. Three of Tesoro's refineries- Anacortes (WA), LA (CA) and Golden Eagle (CA), are known to process Amazonian crude oil. [22]

Explosion

On April 2, 2010, there was an explosion at the Anacortes refinery with seven deaths. [23]

Libya

After the overthrow of Colonel Gaddafi, Tesoro bought Libyan crude oil in early April 2011 from the Vitol Group to supply its then-Hawaiian refinery. [24]

See also

Related Research Articles

ARCO American oil company

Atlantic Richfield Company is an American oil company with operations in the United States, Indonesia, the North Sea, the South China Sea, and Mexico. It has more than 1,300 gas stations in the western part of the United States, and recently five gas stations in northwestern Mexico. ARCO was formed by the merger of East Coast–based Atlantic Refining and California-based Richfield Oil Corporation in 1966; the company's name is an initialism of the two companies. A merger in 1969 brought in Sinclair Oil Corporation. In the 1970s and 80s, ARCO was one of the largest companies in the world, consistently a top 20 company of the Fortune 500. After its subsequent fracture in the late 1980s and early 90s, ARCO became a subsidiary of UK-based BP plc in 2000 through its BP West Coast Products LLC (BPWCP) affiliate. On August 13, 2012, it was announced that Tesoro would purchase ARCO and its refinery for $2.5 billion. The deal came under fire because of increasing fuel prices. Many activists urged state and federal regulators to block the sale because of concerns that it would reduce competition and could lead to higher fuel prices at ARCO stations. On June 3, 2013, BP sold ARCO and the Carson Refinery to Tesoro for $2.5 billion. BP sold its Southern California terminals to Tesoro Logistics LP, including the Carson Storage Facility. BP sold the ampm brand to Tesoro for Southern California, Arizona, and Nevada. BP exclusively licensed the ARCO rights from Tesoro for Northern California, Oregon, and Washington.

Mandan, North Dakota City in North Dakota, United States

Mandan is a city on the eastern border of Morton County and is the seventh-largest city in North Dakota. Founded in 1879 on the west side of the upper Missouri River, it was designated in 1881 as the county seat of Morton County. The U.S. Census Bureau estimated the 2019 population at 22,752. Located across the Missouri River from the state capital of Bismarck, Mandan is a core city of the Bismarck-Mandan Metropolitan Statistical Area.

Valero Energy U.S. energy company

Valero Energy Corporation is a Fortune 500 international manufacturer and marketer of transportation fuels, other petrochemical products, and power. It is headquartered in San Antonio, Texas, United States. Throughout the United States and Canada, the company owns and operates 15 refineries, and one in Wales, with a combined throughput capacity of approximately 3 million barrels (480,000 m3) per day, 11 ethanol plants with a combined production capacity of 1.2 billion US gallons (4,500,000 m3) per year, and a 50-megawatt wind farm. Before the 2013 spinoff of CST Brands, Valero was one of the United States' largest retail operators with approximately 6,800 retail and branded wholesale outlets in the United States, Canada, United Kingdom, and the Caribbean under the Valero, Diamond Shamrock, Shamrock, Beacon, and Texaco brands.

Husky Energy Canadian energy company

Husky Energy Inc. is a company engaged in hydrocarbon exploration, headquartered in Calgary, Alberta. It operates in Western and Atlantic Canada, the United States and the Asia Pacific region, with upstream and downstream business segments. Husky Energy is controlled by Hong Kong billionaire Li Ka-Shing.

Sinclair Oil Corporation American petroleum corporation

Sinclair Oil Corporation is an American petroleum corporation, founded by Harry F. Sinclair on May 1, 1916, as the Sinclair Oil and Refining Corporation by combining the assets of 11 small petroleum companies. Originally a New York corporation, Sinclair Oil reincorporated in Wyoming in 1976. The corporation's logo features the silhouette of a large green dinosaur, based on the then-common idea that oil deposits beneath the earth came from the dead bodies of dinosaurs. It is ranked on the list of largest privately owned American corporations. It owns and operates refineries, gas stations, hotels, a ski resort, and a cattle ranch.

Speedway LLC Chain of gas stations and convenience stores

Speedway LLC is an American convenience store and gas station chain headquartered in Enon, Ohio, with locations primarily in the Midwest and the East Coast regions of the United States. Speedway stations are located in 32 states, up significantly from its core seven-state region in the Midwest since 2012. The company is a wholly owned subsidiary of the Marathon Petroleum Corporation and is the largest convenience store chain in central Ohio.

Marathon Petroleum

Marathon Petroleum Corporation is an American petroleum refining, marketing, and transportation company headquartered in Findlay, Ohio. The company was a wholly owned subsidiary of Marathon Oil until a corporate spin-off in 2011.

Atlantic Petroleum

Atlantic Petroleum was an oil company in the Eastern United States headquartered in Philadelphia, Pennsylvania, and a direct descendant of the Standard Oil Trust. It was also one of the companies that merged with Richfield Oil to form the AtlanticRichfield Co. later known as ARCO. After an unsuccessful spinoff from ARCO, Atlantic was acquired by Sunoco in 1988. The remainder of ARCO was later acquired by BP, but BP later sold most of Arco's retail assets and brand name were sold to Tesoro, renamed Andeavor in 2017. The Arco brand is now owned by Marathon Petroleum.

Western Refining, Inc., is a Texas-based Fortune 200 and Global 2000 crude oil refiner and marketer operating primarily in the Southwestern, North-Central and Mid-Atlantic regions of the United States. Western Refining (WNR) has been publicly traded on the New York Stock Exchange since January 2006 and is the fourth largest publicly traded independent refiner and marketer in the nation. Western Refining has been acquired by Tesoro another independent petroleum Refining and marketing corporation.

Mandan Refinery Oil refinery in North Dakota

The Mandan Refinery is the largest oil refinery in North Dakota, partially located within the northeastern corner of the city limits of Mandan, ND just north off of Exit 153 of Interstate 94. Overall, it ranked 83rd in the country as of January 2018 with a nameplate capacity of 73,800 barrels (11,730 m3) per day. The facility is owned by Marathon Petroleum.

USA Gasoline

U Save Automatic is an American oil company which operates in the United States. It was founded as Skypower Gasoline by Peter Moller and his sons Poul, Finn and John and changed the name to USA Gasoline in 1968. USA Gasoline operates in 10 states, including Alaska, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming. It became a subsidiary of Tesoro Corporation in 2007, later renamed Andeavor in 2017, which was, in turn, acquired by Marathon Petroleum in 2018.

The Ferndale Refinery, owned by Phillips 66, has 101,000 b/d capacity, making it, as of 2015, the 64th largest in the United States, and produces predominantly transportation fuels consumed in local markets. The plant is located in the Cherry Point Industrial Zone, west of Ferndale, WA. Its secondary processing facilities include a fluid catalytic cracker, an alkylation unit, hydotreating units and a naphtha reformer. The plant follows a 10-5-3-2 crack spread, meaning that for 10 barrels of crude feedstock the refinery produces 5 barrels of gasoline, 3 barrels of distillate and 2 barrels of fuel oil.

On February 1, 2015, United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union announced that "more than 5,200 USW Oil Workers at 11 refineries in California, Indiana, Kentucky, Ohio, Texas and Washington are on strike against the industry’s unfair labor practices". The list of charges alleged by NSW filed with the NLRB included: bad-faith bargaining over the companies’ refusal to negotiate over mandatory subjects, impeded bargaining for the companies’ undue delays in providing information, threatening workers if they join the ULP strike and others. As of March 3, 2015, about 6,550 workers were on strike at 15 plants, including 12 refineries with a fifth of U.S. capacity. It was the first time since 1982 that U.S. oil workers have walked off their jobs to protest working conditions. The National Oil Bargaining talks began in 1965 and are part of the U.S. oil industry's Pattern bargaining process.

Trainer Refinery

Trainer Refinery is an oil refining facility located in Trainer, Delaware County, Pennsylvania. The facility is about downstream from the Port of Chester and fifteen miles southwest of Philadelphia along the Delaware River. Stoney Creek is along its northern perimeter. The Trainer Refinery is owned by Monroe Energy, LLC, a subsidiary of Delta Air Lines. Monroe Energy acquired the facility in June 2012. Since that time, the company has focused on producing high-quality transportation fuels at the refinery. In addition to jet fuel, the facility also produces gasoline, diesel, and home heating oil.

Petroleum refining in the United States

Petroleum refining in the United States in 2013 produced 18.9 million barrels per day of refined petroleum products, more than any other country. Although the US was the world's largest net importer of refined petroleum products as recently as 2008, the US became a net exporter in 2010, and in 2014 was the largest exporter and the largest net exporter of refined petroleum. As of January 2019, there were 135 operating refineries in the US, distributed among 30 states.

Marathon Anacortes Refinery

The Marathon Anacortes Refinery, prior to October 2018 known as the Andeavor Anacortes Refinery and prior to August 2017 known as the Tesoro Anacortes Refinery, is a petroleum refinery located about 70 miles north of Seattle on March Point, just outside Anacortes, Washington. The refinery has operated in Anacortes since 1955, and has 425 full-time employees. It has a 120,000 barrels per day (bpd) capacity and is operated by Marathon Petroleum.

Shell Anacortes Refinery

Shell Oil Products US, a subsidiary of Royal Dutch Shell PLC, operates the Puget Sound Refinery located on March Point outside of Anacortes, WA. The plant is the largest taxpayer in Skagit County and one of the county's largest employers. The refinery has a 145,000 b/d capacity, making it the 52nd largest in the United States, in 2015, with facilities that include a delayed coker, fluid catalytic cracker, polymerization unit and alkylation units. Based on the secondary processing units in place, the facility likely follows a 3-2-1 crack spread. Shell’s refinery produces three grades of gasoline, fuel oil, diesel fuel, propane and butane. This plant is currently the only refinery in Washington state unable to accommodate tight oil via rail. The permitting process is currently underway for the proposed 60,000 b/d unloading capacity of the East Gate Rail Project.

Washington state has the fifth highest oil refining capacity of any state. As of 2018, there are 5 refineries in Washington state with a joint capacity of 637,700 b/d. They are, in order of greatest b/d capacity, Cherry Point refinery, Shell Anacortes refinery, Marathon Anacortes refinery, Ferndale refinery and U.S. Oil refinery.

Gallup Refinery

The Gallup Refinery, also known as the Ciniza Refinery, is an American oil refinery. It is located in northwestern New Mexico along Interstate 40, approximately 20 miles east of the city center of Gallup and near the town of Jamestown, New Mexico. The facility occupies 880 acres in McKinley County and employs approximately 220 employees as of March 2019. The facility processes approximately 26,000 barrels of crude oil per day and produces gasoline, diesel, heavy fuel oil, and propane.

References

  1. "Andeavor Corporation (ANDV)". Andeavor Corporation. Archived from the original on 2017-09-11. Retrieved 2017-08-31.
  2. "Andeavor Corporation (ANDV)". Andeavor Corporation. Archived from the original on 2019-07-10. Retrieved 2017-08-31.
  3. "Andeavor 2017 Annual Report Form (10-K)". U.S. Securities and Exchange Commission. February 21, 2018. Retrieved October 3, 2018.
  4. Staff, Investopedia (24 October 2010). "Fortune 100" . Retrieved 30 April 2018.
  5. "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved 2018-11-10.
  6. "Andeavor - Company History". www.andeavor.com. Archived from the original on 2 January 2019. Retrieved 30 April 2018.
  7. "Robert V. West Jr., 85; founder of independent oil producer Tesoro". Los Angeles Times.
  8. "www.mysanantonio.com" . Retrieved 30 April 2018.[ permanent dead link ]
  9. "www.tesorologistics.com". Archived from the original on 2015-10-18. Retrieved 30 April 2018.
  10. Daysog, Ian Scheuring, Rick. "Tesoro Corp. announces sale of Kapolei refinery, local operations" . Retrieved 30 April 2018.
  11. "Home". www.par-petro.com. Retrieved 30 April 2018.
  12. Olson, Bradley; Hufford, Austen (2016-11-18). "Tesoro to Buy Western Refining for $4.1 Billion". Wall Street Journal. ISSN   0099-9660 . Retrieved 2016-11-18.
  13. "Tesoro and 76 gas stations to be renamed 'Hele'". 22 July 2016. Retrieved 30 April 2018.
  14. "Andeavor". www.andeavor.com. Archived from the original on 12 February 2018. Retrieved 30 April 2018.
  15. "News Release - Investor Relations - Andeavor". ir.andeavor.com. Retrieved 30 April 2018.
  16. "Marathon Petroleum Corporation - Investor Relations - News Release". ir.marathonpetroleum.com. Retrieved 30 April 2018.[ permanent dead link ]
  17. "Archived copy". Archived from the original on 2018-10-01. Retrieved 2018-10-01.CS1 maint: archived copy as title (link)
  18. "Toxic 100". Political Economy Research Institute. Archived from the original on 2011-10-01. Retrieved August 14, 2007.
  19. "TRI - RTKNet.org: The Right-to-Know Network". rtknet.org. Archived from the original on 2014-12-13. Retrieved 2013-04-12.
  20. "Page not found". Center for Public Integrity. Archived from the original on 2007-10-22. Retrieved 30 April 2018.Cite uses generic title (help)
  21. www.ca.gov
  22. "From Well to Wheel: The Social, Environmental, and Climate Costs of Amazon Crude". Amazon Watch. Retrieved 27 March 2017.
  23. "Renegade Refiner: OSHA says BP has "systemic safety problem"". The Center for Public Integrity. Archived from the original on 2012-08-19. Retrieved 30 April 2018.
  24. Joshua Schneyer, Bruce Nichols and Emma Farge (May 25, 2011). "US refiner Tesoro buys cargo of Libyan rebel oil". Reuters . Retrieved December 15, 2016.