The Marland Oil Refinery in Ponca City, Oklahoma

In 1908 E. W. Marland came to Oklahoma after losing his fortune in the Pennsylvania oil fields in the panic of 1907 and by 1920 had reestablished himself and started the Marland Oil Company building a refinery in Ponca City with a fortune estimated at $85 million (roughly $910 million in modern dollars). Marland was a visionary and not only pioneered the use of geological techniques in the oil industry but was years ahead of his time as an employer providing housing, loans, medical care, and other benefits for the thousands of employees who worked at his refineries and pipelines. Photo: Hugh Pickens

The Conoco Oil Refinery in Ponca City, Oklahoma circa 1965. Derivative Photo: Hugh Pickens

Ponca City was a thriving community in 1949's and was the headquarters for Continental Oil Company (Conoco) with a huge refinery at Ponca City employing thousands. Photo: Unknown

1920

Marland Oil Company is a holding corporation, organized in October, l920, under the laws of Delaware as a consolidation of Marland Refining Company and Kay County Company and their subsidiaries. By combining the properties and operations of these companies a complete and compact economic unit was formed, which, under the leadership of its president, E. W. Marland, an oil man of long experience and successful record, enjoys a ranking position among the independent oil companies.

Located in the heart of the Mid-Continent oil field, the greatest known light oil field in the world, the company controls, with its subsidiaries, over 200,000 acres of proven and valuable oil land within a radius of 100 miles from Ponca City, the headquarters of the company.

Strong Strategic Position

A study of the map of Marland properties in Northern Oklahoma proves easily the strong strategic position the company holds through its oil resources and large reserves in some of the best pools of this district. Marland oil opened in 1920 the famous Hickman, or now better known as Burbank pool, in the Western Osage; in 1921 the Tonkawa pool in Noble County, within fifteen miles of Ponca City, which promises to produce large quantities of high-gravity crude. It controls almost entirely the Ponca field, one of the oldest and best producing fields in the Mid-Continent, with five producing sands; holds large parcels of oil and gas lands in the Eastern and Western Osage fields, in the Garber, Noble, Newkirk, Deer-Creek and in the Pawnee Payne district. Marland draws its crude from eighteen producing fields with 244 wells and produces, with its affiliated companies, the Comar and Alcorn Oil Companies, over 12.000 barrels per day, sufficient crude for its own refinery demand.

Pipe lines extending 271 miles, with thirteen modern equipped pumping stations, radiate in three directions from Ponca City and connect Marland's two refineries with oil fields which have ample unmined production to supply sufficient crude oil for many years to come.

The company operates in Ponca City a 10,000-barrel complete refinery, and at Covington a 1,000-barrel skimming plant producing a well-known brand of high grade gasoline and lubricating oils. Nearly two million barrels of steel storage for crude and finished products give the company a strong position in the market, and enabled Marland to begin the storage of gasoline when the refinery price was as low as 12-1/2 cents. The recent raise, totaling so far 3 cents per gallon has greatly increased the value of the 250,000 to 300,000 barrels gasoline the company keeps i» storage against the coming summer demand.

Marland was one of the first operators in the Mid-Continent who installed casing head plants. The rich gas from gas leases covering 350,000 acres is converted in four plants into high-grade blending gasoline; over 12,000 gallons of such gasoline are produced in these plants, making Marland's total production 80,000 gallons of blended gasoline per day.

In partnership with the Roxana and Tidal Oil Company, operating as Romarti (gasoline Company, Marland is just completing one of the most modern absorption plants in the Burbank pool, turning out daily 7,000 gallons of gasoline. The Company has greatly strengthened its marketing organization, and is continually increasing sales to jobbers and consumers direct. Forty-eight distributing stations and thirty-seven filling stations are distributed all over Oklahoma; 84' tank cars carry half of the finished oils to the jobbing trade in many states.

Marland's venture into the Mexican oil fields has lately turned out to be a big success. Drilling operations on the 280,000-acre Limon tract of the Marland Oil Company of Mexico, organized in 1920, have opened a new pool fifteen miles west of the present Panuco held. The discovery well came in on April 25th as a 5,000-barrel well; additional wells are being drilled now and great hopes are held for a large production from this property. The Mexican subsidiary holds also large concessions in promising territory on the West Coast of Mexico, in the States of Sonora and Lower California, and in the light oil district on the Isthmus, in the States of Tabasco and Chiapas, a total of over two million acres, acquired at a cost of a little over one million dollars.

Financial Position

Marland's financial position can lie considered as strong. The balance sheet for 1921 shows $4,300,000 of current assets in excess of liabilities, or a ratio of nearly 3-1/2 to 1. Naturally the bad year of 1921 has also its effect on the assets and earnings of this company. The depression in the oil industry reduced the value of stock of crude oil and finished products and is reflected in the balance sheet for 1921. This shrinkage, however, has been more than offset by the increase in value since last December of the one and a half million barrels of crude and finished products stored. Considerable acreage was proved up during the year and increased the value of the holdings at least three million dollars. The stock of subsidiary companies is probably worth double the amount at which it is carried on the books. The deal with the Roxana in March 1921, whereby Marland sold a per cent interest in 480 acres in the Western Osage for one million dollars in cash and $500,000 in oil, is another proof the sane and wise financial policy of the management. It strengthened the ca position of the company without interfering in the least with its operations reducing the value of its oil properties.

Marland is certain to make big profits from its large gasoline stocks during the coming summer season, and should make a good showing during the present year which will permit an early resumption dividends and reflect on the balance sheet for 1922.

There are 2,000,000 shares authorized of no par value, of which about 937,000 are outstanding.

Funded Debt

The funded debt of the company Consists of four million ten-year 8% sinking fund participating gold bonds, series due April 1st, 1931, issued in May, 19 of which $315,000 have been retired through sinking fund; and three million 7-1/2 per cent sinking fund gold bonds, series issued last March, due April 1st, Both issues of bonds yield over 7-1/2 per cent. The series A bonds participate with the common stock in dividends to $4.00, and carry the right to subscribe for twenty-five shares of stock at $40 during the life of the bonds. The quarterly sinking fund of $100,000 on the and $75,000 to $80,000 on the 7-1/2% borrowed will retire almost all bonds before maturity.

Reserves for depreciation, depletion and drilling cost have accrued to $6,503,852.47.

Conclusion

The stock sold in 1921 as low as 12%, and is now selling on the New York Stock Exchange above 30. The stock has not yet fully appreciated the large increase in value of stored oils, oil properties, equipment and holdings in subsidiary companies. For instance, the company owns over 1,500,000 shares of the Marland Oil of Mexico, 81.00 par value, which is selling on the curb now at $6.00, since the new Limon field was opened. It is carried on the books at par value, and the appreciation represents more than $9.00 a share in the parent company's outstanding stock. Marland stock will undoubtedly sell higher and may be considered a good speculative investment.

1922

Petroleum Age reported in 1922 that plans had been completed for improvements to the Marland Refining Co that would increast the capacity of the Ponca City plant from 8,000 to 14,000 barrels per day and add an additional storage capacity of 1,920,000 barrels storage at a total cost of about $1,600,000. "Rights to the Fleming process have been purchased and 18 high pressure stills will be installed. The plant already has 11 continuous stills."

ConocoPhillips Refining

ConocoPhillips Refining

ConocoPhillips is the largest refiner in the United States, with crude oil processing capacity of approximately 2.0 MMBD, and the world’s fourth-largest nongovernment-controlled refiner, with crude oil processing capacity of over 2.4 MMBD globally as of Jan. 1, 2011.

ConocoPhillips Refineries

PADD I (East Coast)

• Bayway Refinery - located on New York Harbor in Linden, NJ - Capacity of 238 MBD - Processes mainly light, low-sulfur crude oil - Produces a high percentage of transportation fuels, such as gasoline, diesel fuel and jet fuel, as well as petrochemical feedstocks, residual fuel oil and home heating oil.
• Trainer Refinery - located in Trainer, Pa. - Capacity of 185 MBD - Processes mainly light, low-sulfur crude oil - Produces a high percentage of transportation fuels, such as gasoline, diesel fuel and jet fuel as well as home heating oil and low-sulfur fuel oil.

PADD II (Midwest)

• Ponca City Refinery - located in Ponca City, Okla. - Crude oil processing capacity of 187 MBD -Processes a mixture of light, medium and heavy crude oil - Poduces a full range of products, including gasoline, diesel fuel, jet fuel, LPG and anode-grade petroleum coke.
• Wood River Refinery (Jointly owned by ConocoPhillips and Cenovus Energy, the Wood River Refinery is operated by ConocoPhillips) - located 15 miles northeast of St. Louis, Mo. - Gross crude oil processing capacity of the refinery of approximately 306 MBD - Processes a mix of light, low-sulfur and heavy, high-sulfur crude oil - Produces a high percentage of transportation fuels, such as gasoline, diesel fuel and jet fuel. Other products include petrochemical feedstocks, asphalt and coke.

Ponca City Refinery

The Ponca City Refinery is located in Ponca City, Okla., and has a crude oil processing capacity of 187 MBD. The refinery processes a mixture of light, medium and heavy crude oil. Most of the crude oil processed is received by pipeline from the Gulf of Mexico, Oklahoma, Texas and Canada. Additional foreign crude is purchased into the Gulf Coast and delivered by pipeline. The Ponca City Refinery is a high-conversion facility that produces a full range of products, including gasoline, diesel fuel, jet fuel, LPG and anode-grade petroleum coke. Its facilities include fluid catalytic cracking, delayed coking and hydrodesulfurization units. Finished petroleum products are shipped by truck, railcar, and company-owned and common-carrier pipelines to markets throughout the Mid-Continent Region.

Community Relations

The Ponca City Community Advisory Council (CAC) was established in 1991. The CAC holds monthly meetings that start with updates on safety and environmental performance followed by information on refinery operations. Many meetings have an educational topic and often focus on environmental topics, such as air quality and groundwater remediation. Other topics of interest include sustainable development and the company’s other operations. The Ponca City CAC’s mission statement is to establish and maintain a dialogue between the community and ConocoPhillips in order to understand community issues and ConocoPhillips issues in an atmosphere of trust and mutual respect, using open, honest communication. With that in mind, members of the CAC conducted a survey in which they asked 10 community members about what issues, questions or suggestions they have for ConocoPhillips. The group used the results in planning the monthly meetings and other events in the community.

External Links

• ConocoPhillips Refineries
• Honor the Legacy of EW Marland
• The Magazine of Wall Street. "A Compact and Successful Oil Property" by E. R. Lederer. 1920.