ARCO(/ˈɑːrkoʊ/AR-koh) is abrandofgasoline stationsowned byMarathon Petroleum.BP,which formerly owned the brand, uses it inNorthern California,OregonandWashington,while Marathon has rights for the rest of theUnited StatesandMexico.[1]
ARCO | |
Company type | Subsidiary |
Industry | |
Predecessor | |
Founded | January 3, 1966 |
Defunct | April 18, 2000 |
Fate | Acquired byBP,brand now owned byMarathon Petroleum Corporation |
Headquarters |
|
Number of locations | 1,200 (in 2000) |
Area served | United States |
Owner | Marathon Petroleum Corporation |
Website | arco |
ARCO was established in 1966 as the Atlantic Richfield Company, an independentoil and gascompany formed from the merger ofAtlantic Petroleumand theRichfield Oil Corporation.
History
editFrom 1966 to 2000, the Atlantic Richfield Company,doing business asARCO, was an independent Americanoil companywith operations in the United States, Indonesia, theNorth Sea,theSouth China SeaandMexico.[2]After its acquisition ofAnaconda Copper Mining Companyin 1977, ARCO had owned hard rock mines in several western states, which has created environmental clean-up liabilities to the company to this day even after the mines were closed in the early 1980s.
In 2000,BP Amoco(now BP) acquired ARCO for $26.8 billion.[3][4]ARCO's retail and marketing operations were kept separate while the rest of the company was integrated into BP.
In 2012, BP sold its Carson refinery, 800 ARCO stations in California, Arizona and Nevada, and the ownership of the ARCO brand toTesorofor $2.5 billion while paying Tesoro for an exclusive license for use of the ARCO brand on its stations in northern California, Oregon and Washington which will be continued to be supplied from BP'sCherry Point Refineryin Washington state.[5]
BP has retained the Atlantic Richfield Company as a subsidiary to handle environmental claims against BP for the clean-up of former Anaconda mine properties.[6][7]
Early period
editARCO was formed by themergerofEast Coast–basedAtlantic Refiningand California-basedRichfield Oil Corporationin 1966; the company's name is anacronymof the two companies' names. A merger in 1969, brought inSinclair Oil Corporation.[2]In the 1970s and 80s, ARCO was one of the largest companies in the world, consistently a top 20 company of the Fortune 500.[8]After its subsequent fracture in the late 1980s and early 90s, ARCO became a subsidiary of UK-basedBP plcin 2000 through its BP West Coast Products LLC (BPWCP) affiliate.[9]
- The Atlantic Petroleum Storage Company's heritage dates back to 1866. It became part of theStandard Oiltrust in 1874, but achieved independence again when Standard Oil was broken up in 1911.
- In 1915, Atlantic opens its firstfilling stationon Baum Boulevard inPittsburgh,Pennsylvania.
- In 1917, First Richfield Oil Company of California gas station at Slauson and Central Avenues inLos Angeles,California. Richfield Oil Company of California logo is an Eagle trademark.
- The Atlantic Refining Company was headquartered inPhiladelphia,Pennsylvania.
- In 1966, Atlantic merged with the Richfield Oil Company of California. The first CEO wasRobert Orville Anderson,who had previously led Atlantic. The trademark for the new company, a red diamond shape called the ARCO Spark, was designed byBauhausartist, designer, and architectHerbert Bayer.
- Commercial oil exploration started in Prudhoe Bay, Alaska, in the 1960s, and thePrudhoe Bay Oil Field,North America's largest oil field, was discovered on March 12, 1968, by Atlantic Richfield Company (ARCO) and Exxon with the well Prudhoe Bay State #1. Key employees with ARCO Alaska wereMarvin Mangus,John M. Sweet, and William D. Leake, chief project engineer for the Alaska pipeline. The Richfield Oil Company of California had purchased the drilling rights to the land where the discovery well was located.BPhad drilling rights near the discovery well.
- ARCO acquiredSinclair Oil Corporationin 1969, but later divested certain Sinclair assets during the mid-1970s, resulting in Sinclair returning as a private company.
- In 1978, ARCO opened the first of itsampmconvenience stores inSouthern California.
1980s
editDue to the increasing cost in processing credit card sales, ARCO eliminated its own private credit card program and also the acceptance of all bank credit cards, such as Visa and MasterCard, in 1982. In this way, the company was able to pass the resulting savings on to its dealers, which resulted in the company becoming the only major gasoline retailer to accept only cash at its stations.[10]
In 1985, ARCO's East Coast stations were not doing very well so ARCO sold 400 service stations in eight states and the District of Columbia toShellfor an undisclosed price and also sold 576 service stations inPennsylvaniaand New York plus a refinery in Pennsylvania for $420 million toDutchtraderJohn Deuss,who rebranded the stations to their former nameAtlantic.[11]Deuss later sold the stations plus refinery, pipelines and terminals in 1988 toSunocofor $513 million.[11]
In 1986, ARCO began to accept bank ATM cards (which later became debit cards) at its stations by adding on a transaction fee of initially 10 cents for those sales while maintaining cash-only sales at the previous low price.[12]
1990s
editIn the beginning of the 1990s, a subsidiary, ARCO Power Technologies, later Advanced Power Technologies (APTI), was the primary contractor for theHigh-frequency Active Auroral Research Program(HAARP Project). ARCO having hiredBernard Eastlundled to conspiracy theories about weather control and warfare. In March 1997, ARCO also leased almost all the gas stations of the (now)Santa Fe Springs, California–based independent Thrifty Oil[13]group of 250 stations found throughout California[14]after a damaging price war which the independent Thrifty was unable to win.[15]
On July 5, 1990,an explosionat an ARCO Chemical Co. facility inChannelview, Texaskilled 17 people and injured five others.
2000s
editOn April 18, 2000, ARCO was purchased by BP and completely merged into BP operations. There were two exceptions due to FTC requirements: ARCO Alaska was sold by BP toPhillips Petroleum,and ARCO Pipe Line Company was acquired byTEPPCO,a subsidiary ofEnterprise Products.
Headquarters buildings
editFrom 1972 to 2000, ARCO's global corporate headquarters were in theARCO Plazain Los Angeles at the corner of 5th and Flower Streets, the site ofRichfield's former headquarters.Upon completion in 1972,[17]the ARCO Plaza towers were the tallest buildings in the city for one year before being overtaken byAon Center,and were the tallest twin towers in the world until the completion of theWorld Trade CenterinNew York City.In 1986, joint owners ARCO andBank of Americasold the buildings to Shuwa Investments Corp., the American subsidiary of Shuwa Co. of Tokyo, for $650 million while both remained tenants in their respective named towers.[18]ARCO moved out of the building in 1999.[19]The building was renamedCity National Plazain 2005.[20]
ARCO's Oil & Gas division headquarters were in downtownDallas, Texas.The headquarters' building was a 46-story office building designed by architectI.M. Pei,theARCO Tower.The building is now calledEnergy Plaza.
Research Laboratory
editFrom the 1960s, until the end of the twentieth century, ARCO operated a highly significant research and development center in Plano, Texas, on land purchased in 1964 by the Atlantic Refinery Company.[21]Its golden age was arguably in the early to mid 1980s, when it was led byRobert L. Hirsch.A standout example of ARCO's research at that time was the pioneering study on 4D seismic surveying by Robert Greaves and Terry Fulp. This consisted of repeated 3D seismic surveys which successfully mapped the effects of enhanced oil recovery processes as a function of time.[22]This work was recognized for its seminal importance over 20 years later by theSociety of Exploration Geophysicists.[23][failed verification]Besides Greaves and Fulp, the laboratory produced a number of other distinguished alumni during this golden age, including scientistsJohn Castagna,Michael Batzle, Geoffrey Dorn, andMarius Vassiliou.In later years the laboratory experienced significant contraction. It finally closed shortly after the 2000 acquisition of ARCO by BP.
ARCO Solar
editDuring the 1970s, the United States government and states such as California sought to encourage companies to invest in the development of low-pollution renewable energy sources. Oil companies such as BP, Shell, and ARCO began to look intophotovoltaics.In 1977, ARCO purchased Chatsworth-based Solar Technology International, renamed it ARCO Solar, and moved it to Camarillo.[24]In 1982, ARCO constructed the world's first photovoltaic central utility power plant, a 1-megawatt facility near Hesperia.[25]Unfortunately for ARCO, the solar panel industry was costly and not very profitable, so it was looking for a buyer by 1989.[26]It finally sold the company to the German companySiemensfor $36 million in 1990.[27][28]
ARCO Chemical
editIn 1987, ARCO Chemical Co. was spun off and taken public, with ARCO selling 19.9% to the public.[29]Lyondell Chemical Company (nowLyondellBasell), bought ARCO Chemical in 1998 for $5.6 billion including ARCO's entire 82.2% ownership stake.[30]
Anaconda Copper
editARCO merged withAnaconda Copper Mining CompanyofMontanain 1977. Anaconda's holdings included theBerkeley Pitand theAnaconda, MontanaSmelter. ARCO founderRobert Orville Andersonstated "he hoped Anaconda's resources and expertise would help him launch a majorshale-oil venture,but that the worldoil glutand the decliningprice of petroleummadeshale oilmoot ".[31]The purchase turned out to be a regrettable decision for ARCO. A lack of experience with hard-rock mining and a sudden drop in the price ofcopperto below seventy cents a pound, the lowest in years, caused ARCO to suspend all operations inButte, Montana.By 1983, only six years after acquiring rights to the "Richest Hill on Earth",the Berkeley Pit was completely idle. By 1986, some ARCO properties were sold to billionaire industrialistDennis Washington,whose company, Montana Resources, operates a much smaller open-pit mine east of the defunct Berkeley Pit.
Superfund site
editARCO was the responsible party (by its ownership of Anaconda Copper at the time operations were terminated) for the largest U.S.Superfundsite—a site that takes in the towns of Butte and Anaconda, and 120 miles (190 km) of theClark Fork RiverincludingMilltown Dam.The region's water and soil were polluted by a century of mining and smelting. Chemicals of concern include many heavy metals and arsenic. On 7 February 2008, theUnited States Environmental Protection Agencyannounced that prolonged litigation with ARCO ended when ARCO agreed to pay $187 million to finance natural resource restoration activities.[32]Anaconda Copper still nominally exists, but only as a massive environmental liability for BP.
Atlantic Richfield Co and its then parent BP America agreed to settle a class-action lawsuit brought by about 700 current and former residents of Yerington, Nevada, who lived near the Anaconda mine built in 1941. The company paid in Nevada up to $19.5M for settlement. EPA tested in 2009 wells and found that 79% of the wells north of mine had dangerous levels of uranium and/or arsenic.[33]
Legal issues
editIn September 2010, the staff ofKCST-FMinFlorence, Oregon,noticed that the station'sEmergency Alert System(EAS) equipment would repeatedly unmute as if receiving an incoming EAS message several times a week. During each event, which was relayed fromKKNUinSpringfield,the same commercial advertisement for ARCO/BPgasoline could be heard, along with the words "This test has been brought to you by ARCO". Further investigation by the primary station transmitting the commercial revealed that the spot had been produced using an audio clip of an actual EAS header which had been modified to lower the header's volume and presumably prevent it from triggering false positive alert reactions in EAS equipment. The spot was distributed nationally, and after it had once been identified as the source of the false EAS equipment trips, various stations around the country reported having had similar experiences. After a widespread notification by theSociety of Broadcast Engineerswas issued, ARCO's ad agency withdrew the commercial from airplay.[34][35]
Sponsorships
editSports
editStarting in 1965, ARCO sponsored the ARCO Jesse Owens Games, an annual track meet for children aged ten to fifteen that was started by Olympics gold medalistJesse Owens.[36]
In 1980, ARCO became a sponsor of the1984 Summer Olympicsthat were held in Los Angeles and had helped financed the refurbishing of theLos Angeles Memorial Coliseum.[37]
In 1985, ARCO became a sponsor of the just-movedSacramento Kingsbasketball franchise and had obtained the long-term naming rights for both their temporary and permanent homes,Original ARCO Arenaand the purpose-builtARCO Arena.[38]After BP acquired ARCO in 2000, BP decided not to renew the naming rights to the arena when the sponsorship was due to expire in February 2011.[39]
Music
editDuring the 1980s and 1990s, ARCO had sponsored the annualARCO Concerts in the Skysummer jazz series at theBonaventure Hotelin downtown Los Angeles.[40][41]
Leadership
editPresident
editThornton F. Bradshaw, 1966–1981
William F. Kieschnick Jr, 1981–1985
Lodwrick M. Cook,1985
Robert E. Wycoff, 1986–1993
Michael R. Bowlin, 1993–1998
Michael E. Wiley, 1998–2000
Chairman of the Board
editRobert O. Anderson,1966–1985
Lodwrick M. Cook,1986–1995
Michael R. Bowlin, 1995–2000
ARCO service station brand
editCurrently, the brand name ARCO is being used byMarathon Petroleumas a brand of gasoline service stations in the United States and Mexico. In Northern California, Oregon, and Washington states, the ARCO brand is licensed for exclusive use to BP for the sale of gasoline in those areas.
Any independent station can adopt the ARCO brand in any territory that is covered by the Marathon Petroleum distribution network outside the BP territories of the northwest.
It has more than 1,300 gas stations in the western part of the United States,[42]and recently (as of 2017[update]) five gas stations in northwestern Mexico.[43][44]
History
editAfter the Atlantic Richfield Company acquired Sinclair Oil in 1969, Atlantic Richfield decided to merger their three separate service brands into one and call it ARCO. $60 million was spent in the rebranding effort.[45]
Over the course of 2004 and 2005, ARCO signs were replaced with signs that still had the ARCO spark,[citation needed]but BP'sHelios(BP's new white, yellow, and green "sunburst" mark named after the Greek Sun god, replacing the old British Petroleum shield mark)[46][failed verification][47][failed verification]is also located on the sign. A new tagline "ARCO—part of BP" also appeared on some signs and advertisements. ARCO was known for sponsoring theARCO Arena(nowSleep Train Arena) inSacramento, California,[48]with a license fee of $750,000/year through 2007.[49]
On August 13, 2012, it was announced[50]thatTesorowould 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 (ARCO stations make up more than half of all stations with the lowest fuel prices in California).[51]On June 3, 2013,[52]BP sold ARCO and the Carson Refinery to Tesoro for $2.5 billion. BP sold its Southern California terminals (Vinvale, Colton, San Diego, Hathaway, and Hynes) to Tesoro Logistics LP, including the Carson Storage Facility.[53]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.
ARCO is known for its low-priced gasoline compared to other national brands, mainly because of an early 1980s business decision to emphasize cost cutting (cash/debit-only policy) and alternative sources of income (ampm). ARCO is headquartered inLa Palma, California.[54][55]
Tesoro was renamed Andeavor in 2017, and shortly afterwards introduced the ARCO brand for the first time in Mexico by the opening of ARCO branded stations inTijuana.[56][57]The introduction of the ARCO brand and other American brands in Mexico came after Mexico ended the monopoly of state-ownedPemex.
In spring of 2018, Andeavor began rebranding some SuperAmerica branded stations in North Dakota, South Dakota, Wisconsin and Minnesota to ARCO.[58]
Andeavor was acquired byMarathon Petroleumin 2018. Following the acquisition, Marathon hinted at keeping the ARCO brand name while rebranding Andeavor's other brands either as standard Marathon stations (for franchised locations) orSpeedwaylocations (for company-owned locations); stations still owned by BP may either remain as ARCO or rebranded asAmoco,as BP does not own the rights to the BP name due to licensing-based reasons in the Western United States.[59]Following the merger, ARCO and Marathon began to be marketed together with Marathon stations replacing various Andeavor brands in the Western markets (includingExxon,MobilandShellstations under license withExxonMobilandShell,respectively) while ARCO returned to Eastern markets for the first time since the 1980s. Marathon ultimately sold Speedway to7-Elevenin 2021, including some former Andeavor properties.
In 2021, ARCO reinstituted accepting credit cards, and engaged in an advertising campaign to inform consumers.[60]
See also
edit- ARCO Arena (1985)and successor venue ARCO Arena (currently theSleep Train Arena) inSacramento,California
- Conoco-Phillips BuildinginAnchorage,Alaska,originally the ARCO Tower
- Harold Harby,employee of Richfield Oil and member of theLos Angeles City Councilfor all but one year from 1939 to 1957
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