Tidewater Oil Company

"Veedol" redirects here. For the airplane, see Miss Veedol.
Tidewater Oil Company
Company typePrivately held company
IndustryPetroleum
Founded1887 (1887) in New York City
FounderE. W. Marland
Defunct(original company) 1966 (1966)
FateAcquired by Phillips Petroleum Co., then sold to others
HeadquartersTidewater Building,
Los Angeles, California
Brands
List
    • Tydol
    • Flying A
    • Veedol
OwnerAndrew Yule & Co.
ParentTide Water India

Tidewater Oil Company (rendered as Tide Water Oil Company from 1887 to 1936) was a major petroleum refining company that operated independently from 1887 to 1926, when it was sold to a holding company. Over the decades, it passed through various corporate hands. It sold petroleum and gasoline products and fuel under various brand names, including Tydol, Flying A, and Veedol.

In 2011, Veedol was sold by British Petroleum to Tidewater India. Now it is part of Andrew Yule and Company's Indian group and manufactures automotive oil for the Indian market on the sub-continent of South Asia. Tidewater does not have its own refinery, so it is dependent on base oil suppliers like HPCL and BPCL. It also manufactures a wide range of automotive lubricants. Its corporate headquarters is in Los Angeles, California.

History

The Tide Water Oil Company was incorporated in New Jersey on November 17, 1888.

The company built the world's first long-distance pipeline to bring oil from fields near Coryville, Pennsylvania[1]: a 6-inch, 6,000-barrel-per-day pipeline that brought oil about 100 miles to Williamsport, Pennsylvania, for onward shipment via the Reading Railroad. From Pumping Station No. 1 at Coryville, oil flowed 22.5 miles to Pumping Station No. 2 at Coudersport, and then 77.5 miles to Williamsport. The line rose 1,200 feet to cross a range of mountains near Waterville, then descended by gravity 2,100 feet. The pumping engines at Coryville began operation on May 28, 1879.[2]

The company owned a refinery in Bayonne, New Jersey, next to the larger refinery of the Standard Oil Company. On July 20, 1887, a fire that destroyed the Standard Oil Co. refinery at Constable Hook, also destroyed facilities belonging to the Tide Water Pipe Co., the Polar Oil Co., and the Ocean Oil Co.[3]

In June 1917, the company was listed on the New York Stock Exchange.[4] The company's pipeline system had grown to include 833.69 miles of 6-inch trunk line from Stoy, Illinois, to Bayonne; 304 miles of 6-inch trunk line loops; 2,000 miles of gathering lines; 20 pumping stations with redundant pump engines; and 92 tanks totaling 2,672,900 barrels. On one day that year, the pipe line portion of the company's system held 1,600,000 barrels worth $3,400,000.[4]

Tide Water common stock (par $100)[4]
Date Auth. cap Purpose
Nov 17, 1888 $5,000,000 acquisition of Polar Oil Co, Ocean Oil Co, Chester Oil Co[a], Lombard, Ayers & Co and purchase of real estate in Bayonne
May 15, 1907 $20,000,000 acquisition by exchange for stock of the Tide Water Pipe Line Co; for some time this company was the parent company and owned the entire stock of Tide Water Oil Co. until in 1907 the subsidiary took over the parent in a reorganization.
May 6, 1908 $25,000,000 extension of the pipe line to Illinois and purchase of producing lands in Illinois

Illinois oil production boomed in 1906. For a few years it was 3rd largest producing state behind California and Oklahoma.[5]

Mar 15, 1916 $30,000,000 acquisition oil producing lands in Oklahoma
Feb 20, 1917 $40,000,000 in 1917 $1,900,000 issued for a $2.9 million stock dividend[b] and $8.1m unissued.

June 1919: 11,870 shares listed, new total 330,870.[6]

Dec 15, 1919 $100,000,000 66,174 shares offered at par to existing stockholders (1 new share for each 5 held), 20,000 shares sold to trustee at par and reserved for distribution among employees, bringing the total amount listed on NYSE to $41,704,400 (330,870 + ⁠330,870/5⁠ + 20,000 shares). Proceed were used for cash amount of $7,500,000 in real estate, equipment, tank cars, 1 tanker and 1 self-propelled barge and rest for other plant extensions.[7][8] TWO bought the adjoining property of the General Chemical Co.[c] to dismantle their plant and reuse the land.[9]

In May 1925 the common stock was split 4-for-1. Authorized capital was increased from 1,000,000 to 4,000,000 shares and each outstanding $100 par share was exchanged for 4 new shares of no par value.[10]

In August 1925 a new issue of $25,221,500 of 5% cumulative (par $100) convertible[d] preferred stock was offered, proceeds of which were used to (a) retire $12,000,000 of debt[e] (b) finance the ongoing development program and (c) working capital.[13]

Tide Water Oil Co subsidiaries (1917)[4]
Name Where incorp When incorp Auth. cap. Par Issued Owned by TWO %
The Tide Water Pipe Co. Ltd Pennsylvania[f] Nov 13, 1878 $6,250,000 $100 $6,250,000 $6,218,000 99.49
Associated Producers Co Pennsylvania Nov 5, 1884 $900,000 $100 $800,000 $797,000 99.69
Tidal Oil Co[g] Oklahoma[h] Sep 27, 1907 $1,000,000 $100 $582,000 $495,000 85.05
Platt & Washburn Refining Co[i] New Jersey May 11, 1885 $250,000 $100 $250,000 $250,000 100%
Tide Water Oil Co of Massachusetts[j] Massachusetts Jan 2, 1908 $25,000 $100 $25,000 $25,000 100%
American Oil Co[j] Rhode Island Feb 7, 1902 $100,000 $10 $50,000 $37,300 74.60
Allegheny Pipe Line Co New York Feb 28, 1903 $9,000 $5 $9,000 $5,350 59.44
East Jersey RR & Terminal Co New Jersey Mar 12, 1901 $300,000 $100 $257,000 $257,000 100%
Currier Lumber Corp Virginia June 5, 1908 $225,000 $100 $225,000 $225,000 100%

In 1926, control of Tide Water Oil was sold to a new holding company, Tide Water Associated Oil Company, which also acquired a controlling interest in California's Associated Oil Company. Soon thereafter, Standard Oil Company of New Jersey took control of the company. Flying A became the primary brand name for the company, though the Tydol and Associated names were also retained in their respective marketing areas.

The Tide Water Associated Oil Company (incorporated in Delware, March 6, 1926) offered for each share of Associated Oil stock of which 2,290,412 shares were outstanding (a) 1 share of no-par common and (b) 1⁄3 share of 6% par $100 cumulative preferred. An alternative offer by a syndicate formed by Blair & Co. and Chase Securities Corp offered $58.50 per share of Associated Oil Company. For each share of no-par stock of Tide Water Oil Co. 1+1⁄3 share of TWAO was offered. The preferred stock of Tide Water Oil Co remained unchanged.[17] The Blair/Chase syndicate concurrently offered a block of the 6% convertible preferred of TWAO ("the new $240,000,000 dollar company") to the public.[18] The Justice Department concluded an anti-trust investigation on April 22, 1926 declaring the consolidation legal.[19]

Development of properties of Associated Oil Co[17]
expenditure of $60,000,000 1920 1925 Increase
Lands owned and leased 75,749 acres 173,210 129%
Crude production (gross) 9,027,724 (24,733bpd) 18,211,030 (49,893bpd) 101%
Pipe Line capacity 37,000bpd 165,000bpd 346%
Refinery capacity 24,000bpd 75,000bpd 212%
Marketing stations 130 315 142%
Tanker fleet 203,209bbl 656,955bbl 223%
Storage capacity 12,671,300 24,294,300 91%
...of Tide Water Oil Co
expenditure of $45,400,000 1920 1925
Crude production (net) 4,571,674 (12,525bpd) 5,576,858 (15,279bpd) 22%
Number of wells 4,776 6,734 41%
Refinery capacity 25,000bpd 53,000bpd 112%
Storage capacity 4,480,000 7,336,200 63%
Tanker fleet none 319,000bbl
Tank cars 959 1,453 51%
Refined products 5,240,540 (14,358bpd) 11,337,308 (31,061bpd) 116%

By a board resolution adopted Sep 17, 1936 TWAO acquired all stock of the Terrabella Investment Co (California)[k] in exchange for 230,000 newly issued TWAO shares, which brought the total common stock registered with the NYSE to 8,751,985 shares.[20]

Effective November 30, 1936, the Tide Water Oil Co and the Associated Oil Co were merged into the Tide Water Associated Oil Company.[21] TWAO held 99.13% of TWO and 98.21% of AO stock at the time and had 626,221 of its own 6% convertible preferred outstanding, out of 1.5 million authorized thereof. The no par common stock was exchange for $10 par common to save on taxes. Each residual TWO share not already in the TWAO treasury received 3 shares of TWAO stock, each AO share received 2+1⁄4, causing the issue of 149,698 new TWAO shares.[22] The merger was probably in response to the Revenue Act of 1936 and one of many that occurred in 1936.

Tidewater Oil Company operated a fleet of oil tankers. During World War II, it chartered ships to the Maritime Commission and War Shipping Administration and operated T2 tankers to support the war effort.[23] Ships included: USS Guyandot (AOG-16), SS Byron D. Benson, SS Samuel Q. Brown, Falls of Clyde, and others.

During the 1950s, the Associated and Tydol brands gradually fell into disuse, and were dropped entirely in 1956.

Effective May 4, 1956 the name of the company was changed to Tidewater Oil Company[24] and distribution was continued under the Flying A and Veedol brand names.[25]

In 1966, Phillips Petroleum Company (now ConocoPhillips) purchased Tidewater's western refining, distribution and retailing network. Phillips immediately rebranded all Flying A stations in the region to Phillips 66. On the East Coast that year, American-born British petrol-industrialist J. Paul Getty merged his numerous oil interests into Getty Oil Company, and Tidewater Oil was dropped as a corporate brand. The Flying A brand continued to be used on the East Coast until 1970, when stations and products were renamed Getty.

In 2000, BP acquired the Veedol brand when it bought Burmah-Castrol. In February 2011, BP offered to sell the Veedol brand, which was purchased that October by Tide Water India, part of the Andrew Yule and Company Indian subsidiary.[26]

Tanker fleet

Priscilla: 9,850dwt 3,115,854 gallons cargo capacity bought in 1926.[27]

See also

References

  1. ^ The Prize: The Epic Quest for Oil, Money, and Power, p. 43 (map of pipe line and railroad on p. 44)
  2. ^ "The Tidewater Oil Pipe Line". The Iron Age. Vol. 23, no. 23. 5 June 1879. p. 13.
  3. ^ "Expensive Refinery Fire". The Janesville Daily Gazette. 20 July 1887. p. 1.
  4. ^ a b c d "Tide Water Oil Company - Official Statement to the New York Stock Exchange in Connection with the Listing of its Capital Stock". Commercial and Financial Chronicle. Vol. 105, no. 2715. 7 July 1917. p. 79.
  5. ^
    Oil Production in Illinois
    x1000
    barrels
    <1905 negligible
    1905 181
    1906 4,397
    1907 24,282
    1908 33,686
    1909 30,898
    1910 33,143
    1911 31,317
    1912 28,602
    1913 23,894
    1914 21,920
    1915 19,042
    1916 17,714
    1917 15,777
    1918 13,366
    1919 11,960
    1920 10,774
    1921 10,043
    1922 9,383
    1923 8,707
    1924 8,081
    1925 7,863
    1926 7,760
    1927 6,994
    1928 6,462
    1929 6,319
    1930 5,736
    1931 5,039
    1932 4,673

    Statistical Appendix to Minerals Yearbook 1932-33. U.S. Department of the Interior, Bureau of Mines. 1934. p. 306.

  6. ^ "Tide Water Oil Co, N. Y. - Earnings - Listing". Commercial and Financial Chronicle. Vol. 108, no. 2818. 28 June 1919. p. 2637.
  7. ^ "Tidewater Oil Co. - Capital Increase". The Commercial and Financial Chronicle. Vol. 109, no. 2843. 20 December 1919. p. 2363.
  8. ^ "Tide Water Oil Co. - Listing". Commercial and Financial Chronicle. Vol. 110, no. 2870. 26 June 1920. p. 2664.
  9. ^ "Tide Water Oil Co. - Acquisition". Commercial and Financial Chronicle. Vol. 108, no. 2805. 29 March 1919. p. 1279.
  10. ^ "Tide Water Oil Co. - Par Value Changed". Commercial and Financial Chronicle. Vol. 120, no. 3124. 9 May 1925. p. 2413.
  11. ^ "Tide Water Oil Co. - Bonds Sold". The Commercial and Financial Chronicle. Vol. 112, no. 2902. 5 February 1921. p. 569.
  12. ^ "Tide Water Oil Co. - Listing". Commercial and Financial Chronicle. Vol. 113, no. 2949. 31 December 1921. p. 2828.
  13. ^ "Tide Water Oil Co. - Preferred Stock Offered". The Commercial and Financial Chronicle. Vol. 121, no. 3139. 22 August 1925. p. 989.
  14. ^ "Okla Oil Co. Now Tidal Oil Co". Oil Trade Journal. Vol. 7, no. 7. July 1916. p. 78.
  15. ^ "Tide Water Oil Company - 29th Annual Report for FY ended Dec 31, 1917". Commercial and Financial Chronicle. Vol. 106, no. 2760. 18 May 1918. p. 2134.
  16. ^ "Tide Water Oil Company Unifies its Organization". The Oil and Gas Journal. Vol. 16, no. 37. 14 February 1918. p. 36.
  17. ^ a b "Tide Water Associated Oil Co. - Formed to Affiliate Tide Water Oil Co and Associated Oil Co of California, Exchange of Stock etc". Commercial and Financial Chronicle. Vol. 122, no. 3168. 13 March 1926. p. 1468.
  18. ^ "Tide Water Associated Oil Co. - Stock Offering in Prospect". Commercial and Financial Chronicle. Vol. 122, no. 3169. 20 March 1926. p. 1625.
  19. ^ "Tide Water Associated Oil Co. - Merger Legal". Commercial and Financial Chronicle. Vol. 122, no. 3174. 24 April 1926. p. 2343.
  20. ^ "Tide Water Associated Oil Co. - Listing - Acquisition". Commercial and Financial Chronicle. Vol. 143, no. 3719. 3 October 1936. p. 2228.
  21. ^ "Tide Water Associated Oil Co. - Merger Effective". Commercial and Financial Chronicle. Vol. 143, no. 3729. 12 December 1936. p. 3859.
  22. ^ "Tide Water Associated Oil Co. - Directors Approve Merger". Commercial and Financial Chronicle. Vol. 143, no. 3721. 17 October 1936. p. 2538.
  23. ^ NavSource MS Veedol II
  24. ^ "Tide Water Associated Oil Co. - Name Changed". Commercial and Financial Chronicle. Vol. 183, no. 5531. 7 May 1956. p. 52.
  25. ^ "Tide Water Associated Oil Co". Commercial and Financial Chronicle. Vol. 183, no. 5533. 14 May 1956. p. 55.
  26. ^ Tide Water buys rights to Veedol trademark on Live Mint, 2011
  27. ^ "American Brown Boveri Electric Corp. - Sells Tanker". Commercial and Financial Chronicle. Vol. 123, no. 3202. 6 November 1926. p. 2393.
  1. ^ 1885 map of plant at 39°49′33″N 75°23′45″W / 39.8257°N 75.3959°W / 39.8257; -75.3959, in 1891 (map) belonged to Atlantic Refining Co
  2. ^ $1m of this dividend issued out of authorized but unused capital of 1907 and 1908 increases
  3. ^ depicted on the 1912 Sanborn map
  4. ^ In the order of surrender of the preferred stock:
    • First block of $5,000,000: one share of no-par common for each $37.50 par value of preferred
    • Second block of $5,000,000: one share for each $40
    • Third block of $5,000,000: one share for each $42.50
    • For the remainder: one share for each $45
  5. ^ $12,000,000 of 6.5% 10-year bonds dated Feb 15, 1921 and subsequently listed on the NYSE. At the time of issue was the only funded debt of the company.[11][12]
  6. ^ company was not a corporation, but a Pennsylvania "partnership association" under the act of the General Assembly of the Commonwealth of Penn. of June 2, 1874: "An Act authorizing the formation of partnership associations, in which the capital subscribed shall alone be responsible for the debts of the association, [...]"
  7. ^ formerly Okla Oil Co, until ca. July 1916; producing subsidiary west of the Mississippi, whereas the Associated Producers Co was the production subsidiary east of the Mississippi[14]
  8. ^ originally Indian territory
  9. ^ Marketing subsidiary. Engaged in the selling of oil (mostly lubricants) to the consumer trade. Business was small until 1913 when more concentrated efforts were made to gain market share. The Veedol brand was created. After being part of Tide Water for 29 years, the company was dissolved and as of Dec 31, 1917 the business was continued seamlessly as the Veedol Department,[15] which retained all current personnel and management as well as contracts, orders, accounts, notes, etc. of the former subsidiary.[16]
  10. ^ a b Marketing subsidiary
  11. ^ had interests in oil lands in Fresno and King counties and a 2.6797% interest (corresponding to an estimated 6,300,000 recoverable barrels) in the Kettleman North Dome Association
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