|Predecessor||South Penn Oil Co.|
|Founded||1913Los Angeles, Californiain|
|Fate||Acquired by Shell Oil Company in 2002, becoming a brand of it, along with Quaker State|
Pennzoil is an American motor oil brand currently owned by Royal Dutch Shell. The former Pennzoil Company had been established in 1913 in Pennsylvania, being active in business as an independent firm until it was acquired by Shell in 2002, becoming a brand of the conglomerate.
Origins of the company can be traced to the "South Penn Oil Company", an oil business started in Oil City, Pennsylvania by Michael Late Benedum and Joe Trees in May 1889 as an unit of Standard Oil.It became the largest oil producer in the region, becoming independent when Standard Oil was split in 1911. By those times, two companies, one on the East Coast and another on the West (founded in 1908 and 1913 respectively) started to market their motor oils under the brand Pennzoil. Their refineries and distributors would be later incorporated as "The Pennzoil Company" in 1925. In 1955, South Penn Oil acquired complete ownership of Pennzoil Co.
In 1963, South Penn Oil merged with Zapata Petroleum and Stetco Petroleum to form a new "Pennzoil Copmpany", heartquartered in Houston an appointing Hugh Liedtke as president. By 1965 Pennzoil marketed its petroleum products worldwide.In 1968, United Gas Corporation was purchased by Pennzoil, through a leveraged buyout, which was necessary because Pennzoil did not have enough assets to buy United outright.
During the 1970s, the company moved its offices to the Pennzoil Place in Downtown Houston, Texas.
In 1977 a spin-off company was formed called POGO, an acronym for Pennzoil Offshore Gas Operators.
In 1984, Pennzoil made an informal but binding contract with Getty Oil to purchase a large portion of Getty Oil to give Pennzoil rights to Getty's oil deposits.Following the deal, the Texaco oil company, operating under the belief the deal was not yet final, encroached on the complex merger in an attempt to acquire Getty for itself.
Pennzoil sued Texaco in Texas state court, alleging that Texaco tortiously induced Getty to breach the contract with Pennzoil. At first it was adjudicated by Judge Anthony J.P. Farris; it was finished by visiting Judge Solomon (Sol) Casseb of San Antonio. A jury awarded Pennzoil, represented by Joe Jamail and Baine Kerr, $7.53 billion in compensatory damages and $3 billion in punitive damages. Under Texas law, Pennzoil could secure a lien on all of Texaco's property in the state, unless Texaco posted a bond that covered the judgment, interests and costs of the lawsuit (estimated to be $13 billion).
Before judgment could be entered in the Texas court and Pennzoil could obtain a lien, Texaco filed a suit in the U.S. District Court for the Southern District of New York, alleging that the Texas proceedings violated Texaco's constitutional rights. The District Court found for Texaco, and the Second Circuit affirmed.Pennzoil appealed the federal court case to the United States Supreme Court. Laurence H. Tribe argued for Pennzoil, whereas David Boies argued for Texaco. The Supreme Court reversed the circuit court decision, on the grounds that the federal court in New York should have abstained from interfering with the decision of a state court.
Texaco also appealed the Texas state court decision. The Texas Court of Appeals upheld the jury verdict, but found that the trial court had abused its discretion by not suggesting a remittitur (reduction of damages). It would allow the verdict to stand if Pennzoil filed a remittitur of two billion dollars, making the punitive damages award $1 billion.Compensatory damages of $7.53 billion remained unaffected. Pennzoil paid Mr. Jamail $335 million and Mr. Kerr $10 million for the victory.
After Texaco filed for bankruptcy, Pennzoil agreed to settle the case for $3 billion.
In 1998, Pennzoil's motor oils, products and services divisions were spun off as an independent company, which then acquired rival Quaker State Corp., becoming "Pennzoil-Quaker State Company". In 1999 Pennzoil's E&P business (known as PennzEnergy) was acquired by Oklahoma City-based Devon Energy and the business now known as the Pennzoil-Quaker State Company was purchased by Royal Dutch/Shell Group to form SOPUS (an acronym for Shell Oil Products US).
Shell Oil Company (the US-based subsidiary of Royal Dutch Shell) acquired Pennzoil-Quaker State company in 2002 to incorporate it as two separate motor oil brands, Pennzoil and Quaker State.
Though not much emphasis has ever been placed on gasoline, Pennzoil does sell gasoline.In the early parts of the company's history, the gas stations were branded as Pennzip, though they were later changed to Pennzoil. For decades, Pennzoil gas stations were mostly marketed in western Pennsylvania, western New York, northern and eastern Ohio, and northern West Virginia.
In the 1990s, Pennzoil gas experienced a bit of a revival when Pittsburgh area convenience store chain Cogo's began co-branding themselves with Pennzoil. The co-branding lasted only a few years, and Cogo's switched brands to BP and Exxon in 2001.
After Shell's purchase of Pennzoil, there was the possibility that the remaining Pennzoil stations—mostly in western Pennsylvania—would be converted to Shell as part of the company's aggressive movement to expand nationally. This hasn't happened, but the three company-owned Pennzoil gas stations in the New Castle, Pennsylvania, area began co-branding themselves with 7-Eleven in 2003, with more emphasis placed on the 7-Eleven brand name than Pennzoil itself.
As of June 2009, only one Pennzoil/7-Eleven combination remains, as another converted to BP in 2006 while retaining 7-Eleven (a Pennzoil in Ambridge, Pennsylvania, also converted to BP at the same time). On June 8, 2009, the other Pennzoil/7-Eleven was sold to private owners and became an independent, unbranded location. There is also a surviving Pennzoil station in Ashtabula, Ohio, right off of Ohio State Route 11.
Pennzoil is an official long-term recommended motor oil of all Fiat Chrysler Automobiles companies (including all of brands and subsidiaries), BMW, Mini, Rolls-Royce, Hyundai, Chevrolet (shared with Mobil 1 and Valvoline), Ferrari, Iveco and Opel (shared with Mobil 1) for automobiles in United States. Pennzoil is also an official long-term recommended motorcycle engine oil of BMW Motorrad and Ducati for motorcycles in United States.
USAC National Championship drivers Al Unser and Johnny Rutherford were sponsored by Pennzoil in the Chaparral team. Rutherford won the Indianapolis 500 and the championship in 1980. From 1983 to 1990, Pennzoil sponsored the Team Penske driver Rick Mears during his CART World Series campaign, winning the 1984 and 1988 Indianapolis 500. IndyCar Series driver Sam Hornish Jr. drove for Pennzoil-sponsored Panther Racing from 2001 to 2003. Since 2011, Team Penske driver Hélio Castroneves has been sponsored part-time by Pennzoil, most notably at the Indianapolis 500. Pennzoil's yellow car livery has been nicknamed the "Yellow Submarine".
In the NASCAR Cup Series, Dale Earnhardt, Inc. had a Pennzoil sponsorship for Steve Park in their No.1 car from 1998 to 2003. Richard Childress Racing driver Kevin Harvick had a Pennzoil sponsorship from 2007 to 2010. Penske Racing took over the Pennzoil sponsorship in 2011 with Kurt Busch and in 2012, it was moved over to A. J. Allmendinger and to Joey Logano in 2013. Starting in 2018, Pennzoil has sponsored the Las Vegas Monster Energy NASCAR Cup Series spring race, Pennzoil 400.
Pennzoil was the title sponsor of the Grand Prix of Houston in 2013. Pennzoil also has been the official motor oil of German-American GTLM team BMW Team Rahal Letterman Lanigan Racing since 2015 season and also American Formula One team Haas F1 Team since 2016 season. Pennzoil sponsors NHRA's Don Schumacher Racing and drivers Matt Hagan (Funny Car) and Leah Pruett (Top Fuel). They also sponsor driver Ken Block, best known for his Gymkhana series on YouTube.
Pennzoil also partnered Formula One giants Scuderia Ferrari and MotoGP giants Ducati Team due to Shell partnership.
Exxon is the brand name of the former oil company Exxon Corporation which was, prior to January 1973, known as "Standard Oil Company of New Jersey". In 1999, Exxon Corporation merged with Mobil to form ExxonMobil. The Exxon brand is still used by ExxonMobil's downstream operations as a brand for certain gas stations, motor fuel and related products. Standard Oil Company of New Jersey was one of the Seven Sisters that dominated the global petroleum industry from the mid-1940s to the 1970s.
Mobil was a major American oil company that merged with Exxon in 1999 to form a parent company called "ExxonMobil". It was previously one of the Seven Sisters that dominated the global petroleum industry from the mid-1940s until the 1970s.
Standard Oil Co. was an American oil-producing, transporting, refining, and marketing company. Established in 1870 by John D. Rockefeller and Henry Flagler as a corporation in Ohio, it was the largest oil refiner in the world at its height. Its history as one of the world's first and largest multinational corporations ended in 1911, when the U.S. Supreme Court ruled that Standard Oil was an illegal monopoly.
Gulf Oil was a major global oil company from 1901 until March 15, 1985. The eighth-largest American manufacturing company in 1941 and the ninth-largest in 1979, Gulf Oil was one of the so-called Seven Sisters oil companies. Prior to its merger with Standard Oil of California, Gulf was one of the chief instruments of the Mellon family fortune; both Gulf and Mellon Financial had their headquarters in Pittsburgh.
Texaco, Inc. is an American oil brand of the Chevron Corporation. Its flagship product is its fuel "Texaco with Techron". It also owned the Havoline motor oil brand. Texaco was an independent company until its refining operations merged into Chevron Corporation in 2001, at which time most of its station franchises were divested to the Shell Oil Company. It began as the "Texas Fuel Company", founded in 1902 in Beaumont, Texas, by Joseph S. Cullinan, Thomas J. Donoghue, Walter Benona Sharp, and Arnold Schlaet upon the discovery of oil at Spindletop.
The Standard Oil Company (Ohio) was an American oil company, a successor of the original company established in 1870 by John D. Rockefeller. It was established as "Standard Oil Company of Ohio" as one of the separate entities created after the 1911 breakup.
Sunoco LP is an American master limited partnership organized under Delaware state laws and headquartered in Dallas, Texas, that is a wholesale distributor of motor fuels. It distributes fuel to more than 7,300 Sunoco-branded gas stations, almost all of which are owned and operated by third parties. The partnership is controlled by Energy Transfer Partners.
Chevron Corporation is an American multinational energy corporation. It was founded in 1984 and is the third largest oil company in America. One of the successor companies of Standard Oil, it is headquartered in San Ramon, California, and active in more than 180 countries. Chevron is engaged in every aspect of the oil and natural gas industries, including hydrocarbon exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. Chevron is one of the world's largest companies; as of March 2020, it ranked fifteenth in the Fortune 500 with a yearly revenue of $146.5 billion and market valuation of $136 billion. In the 2020 Forbes Global 2000, Chevron was ranked as the 61st-largest public company in the world. It was also one of the Seven Sisters that dominated the global petroleum industry from the mid-1940s to the 1970s.
Shell Oil Company is the United States-based wholly owned subsidiary of Royal Dutch Shell, a transnational corporation "oil major" of Anglo-Dutch origins, which is amongst the largest oil companies in the world. Approximately 5.000 of the 72.000 Shell employees globally are based in the U.S. Its U.S. headquarters are in Houston, Texas. Shell Oil Company, including its consolidated companies and its share in equity companies, is one of America's largest oil and natural gas producers, natural gas marketers, gasoline marketers and petrochemical manufacturers.
Getty Oil was an American oil marketing company with its origins as part of the large integrated oil company founded by J. Paul Getty.
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.
The Phillips 66 Company is an American multinational energy company headquartered in Westchase, Houston, Texas. It debuted as an independent energy company when ConocoPhillips executed a spin-off of its downstream and midstream assets. Its name dating back to 1927 as a trademark of the Phillips Petroleum Company, the newly-reconfigured Phillips 66 began trading on the New York Stock Exchange on May 1, 2012, under the ticker PSX. The company is engaged in producing natural gas liquids (NGL) and petrochemicals. The company has approximately 14,000 employees worldwide and is active in more than 65 countries. Phillips 66 is ranked No. 23 on the Fortune 500 list and No. 67 on the Fortune Global 500 list as of 2018.
Havoline is a motor oil brand currently commercialised by Chevron. The brand had been previously owned by Texaco, until the company was acquired by Chevron in 2001.
William C. Liedtke Jr was an American petroleum executive, best known as the co-founder of Pennzoil with his older brother J. Hugh Liedtke.
Skelly Oil Company was a medium-sized oil company founded in 1919 by William Grove (Bill) Skelly, Chesley Coleman Herndon and Frederick A. Pielsticker in Tulsa, Oklahoma. J. Paul Getty acquired control of the company during the 1930s. It became defunct when fully absorbed by Getty Oil Company in 1974, and the disused Skelly brand logo was revived by Nimmons-Joliet Development Corp. in 2012.
Quaker State is an American brand of motor oil produced by Shell Oil Company, the US-based division of Royal Dutch Shell since 2002, when Shell Oil Co. acquired Pennzoil-Quaker State Co. for $1.8 billion in cash and $1.1 billion in debt.
United Gas Corporation was a major oil company from its inception in 1930 to its hostile takeover and subsequent forced merger with Pennzoil in 1968. Headquartered in Shreveport, Louisiana, United and its major subsidiaries, Union Producing Company, United Gas Pipeline Company, Atlas Processing, UGC Instruments, and Duval Mining, performed integrated exploration, production, processing, and distribution of oil and natural gas and other raw materials. Second only to Gulf Oil in size and scope, United Gas was one of the first natural gas transmission companies. In 1968, United was merged into Pennzoil, and the firm was renamed Pennzoil United, Inc. The retail gas distribution assets of United were spun off into Entex Energy in 1970. United Gas Pipeline stock was distributed to Pennzoil shareholders in 1974, and that company was eventually restructured as United Energy Resources, Inc., which was, in turn, acquired by Midcon Corporation.
John Hugh Liedtke was an American petroleum executive.
In 1965 the Liedtke brothers achieved the dramatic takeover of United Gas Corporation, a company five times the size of Pennzoil. Among United Gas Corporation's affiliates were the United Gas Pipeline Company of Shreveport, [...] Union Producing Company; Duval Corporation, [...] and Atlas Processing Company. In 1968 United Gas was merged into Pennzoil, and the firm was renamed "Pennzoil United, Incorporated".
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