Phillips Refinery in Phillips, Texas

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Conoco and Phillips 66 announced on November 18, 2001 that their boards of directors had unanimously approved a definitive agreement for a "merger of equals". The merged company, ConocoPhillips, became the third-largest integrated U.S. energy company based on market capitalization and oil and gas reserves and production. On November 11, 2011 ConocoPhillips announced that Phillips 66 would be the name of a new independent oil and gasoline refining and marketing firm, created as ConocoPhillips split into two companies. ConocoPhillips kept the current name of the company and concentrated on oil exploration and production side while Phillips 66 included refining, marketing, midstream, and chemical portions of the company. Photo: Hugh Pickens all rights reserved.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations


Contents

Master Index of Articles about Phillips 66

The 587 foot tall Mammoet PTC 140 crane, seen here from North First Street, towers over the Refinery Complex in Ponca City. The supercrane was used to move two new 232 ton coker reactor units within the refinery on September 29, 2013. Phillips was willing to invest $70 million in the two new coker reactor units because the Ponca City Refinery is one of the best run, safest, and most profitable of Phillips' fifteen worldwide refineries and Garland wants the refinery in Ponca City to continue to run smoothly and profitably. This photograph of the supercrane in Ponca City was taken from almost two miles away from the crane. Photo: Hugh Pickens All Rights Reserved.
Hugh Pickens, an analyst who closely follows Phillips 66, speaks with Phillips CEO Greg Garland (right) about the disposition of the North Tower, South Tower, and Research West at Phillips' Ponca City Refinery after Garland's speech to the Bartlesville Chamber of Commerce on August 13, 2014.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations


Phillips Refinery

January 21, 1980: 34 Injured in Explosion at Phillips Refinery in Phillips Texas

The Pittsburg Post-Gazette reported on January 21, 1980 that explosions rocked Borger Refinery sending flames 300 feet into the air and damaging dozens of nearby homes and forcing 200 persons to flee the area. At least 34 persons were injured in the explosions which heavily damaged houses in the nearby community of Phillips and shattered windows 4 miles away in Borger. "There was a big tremble and a roar; it was more like an earthquake,"said Ada Westbrook. "All the stuff on the walls just shot right off and landed on the floor. We opened the door and saw a big ball of fire and black smoke. There are a lot of shook people here. It's just unbelievable." Dick Robinson, a spokesman for Phillips, said 29 persons were treated at a nearby hospital for minor injuries and released. Four persons were admitted for treatment but the seriousness of their injuries was unknown. Officials said the blast roared through two cracking units used to manufacture high octane gasoline. Officials had feared the blaze would spread to a third unit before it was brought under control.[1]

Officials estimated the damage would soar to millions of dollars at the plant and in Phillips and Borger. Al Hadberg, a spokesman for the Red Cross, said most of the homes close to the plant suffered heavy damage. "Most of the wood framed houses shifted on their foundation. A lot of the garage doors were torn off and a couple of ceilings collapses." Phillips officials said debris from the explosion could be coated with an acidic substance and advised residents not to pick u any of the material that landed in their yards.[2]

February 23, 1986: Phillips Decides to Tear Down the Town

Phillips Petroleum Company created the town of Phillips, Texas in the 1920s to refine oil pumped from the Texas Panhandle, building houses for its workers, a park and the swimming pool at the school, and fixing the streets. In 1986 Phillips told the 1,500 residents of the town that it needed the land it owned under their houses and that they had until August 31 to move somewhere else.

The NY Times reported on February 23, 1986 that Phillips Petroleum Company which created the town of Phillips, Texas in the 1920s to refine oil pumped from the Texas Panhandle, building houses for its workers, a park and the swimming pool at the school, and fixing the streets, told the 1,500 residents that remain in the town that it needs the land it owns under their houses and that they have until Aug. 31 to move their homes somewhere else. "Behind the dispute lies some changed realities in the struggling oilfields of Texas, wrote Robert Reinhold. "Phillips is one of the last company towns remaining from the great boom years, and the company, which has just emerged alive but wounded from a bruising takeover fight, no longer resembles the close family enterprise started by Frank Phillips." After a powerful hydrocarbon explosion at the plant leveled the town's two churches, blew in all the windows on the north side of the school and damaged almost every house in town, the explosion prompted company officials to worry about people living so close to the huge tanks, which hold 55,000 to 100,000 barrels of refined gasoline and other products. If the refinery were being built today, houses would not be built there, said Art Austin, Phillip's spokesman at its office in Borger. Besides, he said, Phillips needs the 140 acres for possible expansion, although it has made no specific plans yet.[3]

The hydrocarbon explosion at Phillips refinery in Phillips, Texas in 1980 obliterated part of the industrial area and some nearby homes with damage estimated in the millions of dollars. The town was permanently evacuated at the request of Phillips 66 Oil Company in 1987. The homes themselves were owned but the land they sat upon was property of two local ranchers who leased the land originally to the Oil Company and later to the home owners. After the explosion, the Oil Company purchased the land from the ranches and forced the homeowners to move. Most would say the real reason the plant wanted the homeowners out of the area was not based on safety, but the fact the oil company was paying close to a million dollars a year in school taxes and wanted the school closed. Therefore, many homes were moved to areas nearby (Borger, Stinnett, , and Fritch, Texas|). The homes that were not moved were leveled.[4]

"Phillips 66 oil company made everyone move after that big explosion," wrote one former resident. "There is nothing there but the old high school and the refinery. The churches were leveled, the homes that were not moved out were leveled. It was one of the most tragic stories of small town life being overtaken by business. People lost everything. No one has a hometown to go back to....it's all leveled and you can't even drive in to look at your old school....armed security guards come after you."

References



Master Index of Articles about Phillips 66

The North Tower and the South Tower, part of Phillips 66's Refinery Complex in Ponca City, contain over 250,000 square feet of Class A office space that is essentially unused. Research West contains another 230,000 square feet of unused Class A office space. Photo: Hugh Pickens
Ponca: A Core Asset. Phillips CEO Greg Garland told members of the Bartlesville Chamber of Commerce on August 27, 2013 that the refinery at Ponca is a 'core asset' of Phillips 66. The refinery in Ponca City "is making very good money for us," Garland told his Bartlesville audience. Garland added that he expects gas demands in the U.S. to decline by 20 percent in the next 10 years, but that demand for refined products in South America and Africa will more than offset that decline.

by Hugh Pickens, Ponca City Oklahoma


The purpose of this report is to provide a comprehensive overview of Phillips 66 that documents and explains the company's business strategy and execution of that strategy.

Major Sections of this report on Phillips 66 include:

Safety, Environment, Legal


Corporate


Strategic and Financial


Business Segments


Stock Market


Reference

Refining Business Segment


Increasing Profitability in Refining Business Segment


Detailed Look at Ponca City Refinery


Other Phillips Refineries


Other Locations

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