Marathon Petroleum Corporation

Company information

• Date founded: 1887
• Industry: Petroleum
• Corporate Headquarters: Findlay, Ohio
• Type: Public

Overview

Marathon Petroleum Corporation is a United States-based petroleum-based company that operates and maintains the country’s largest oil refining system. This system includes thirteen refineries that can refine nearly three million barrels of oil per day. The company supports two major retail gas station brands, Marathon and Arco. Marathon operates in more than seven thousand locations and one thousand direct dealer sites, primarily in California. The corporation also runs a midstream segment, which includes MPLX operations. This segment transports, stores, distributes, and markets oil and natural gas products using pipelines, terminals, boats, and other logistic assets. The original company was founded as the Ohio Oil Company in 1887 from the combination of several smaller companies. In the mid-2020s, Marathon Petroleum had over 18,000 employees and was the largest petroleum refinery operator in the United States, with revenues of about $174.3 billion.

History

In 1887, several oil companies in Lima, Ohio merged to form the Ohio Oil Company. Two years later, the industry giant Standard Oil, owned by John D. Rockefeller, bought the company and moved its headquarters to Findlay, Ohio. In 1906, Standard Oil built its first oil pipeline, which ran from Martinsville, Illinois to Preble, Indiana. The pipeline construction facilitated oil transportation for the company. Ohio Oil remained a part of Standard Oil until 1911, when Rockefeller’s conglomerate was broken up by the Supreme Court as part of antitrust legislation. After this ruling, Ohio Oil returned to being an independent oil company.

In 1915, Ohio Oil created the Illinois Pipe Line Company, but spun the new company off on its own almost immediately, since it was expected to be worth more as an independent company. In 1924, Ohio Oil expanded by purchasing Lincoln Oil Refining Company. This included the Robinson refinery in Illinois and seventeen gas stations with the Linco brand in Terre Haute, Indiana.

In 1930, Ohio Oil acquired Transcontinental Oil. The deal included several oil and natural gas wells, refineries, bulk storage plants, and filling stations. It was at this time that Ohio Oil also started using the brand name of Marathon. The name was a reference to the Greek story of Pheidippides, who was said to have run from the battle of Marathon to Athens to bring news of the victory. As a tie-in, the company adopted the slogan, “Best in the Long Run.” The company’s stock was also first publicly traded on the New York Stock Exchange in 1930.

In 1945, Ohio Oil developed a new process of increasing oil refinery yield called catalytic cracking. This process was successfully marketed as beneficial to consumers and was nicknamed Marathon “Cat” Gasoline. In 1946, Marathon-branded gas stations were redesigned to offer drivers more comprehensive vehicle services such as tires, batteries, auto accessories, and maintenance. The service stations began to grow in popularity across the midwestern United States. In 1959, Ohio Oil purchased Aurora Gasoline Company, which included 680 gas stations known for their signature Speedway 79 Statofuel. That same year, another refinery was also purchased in Detroit, Michigan, from philanthropist Max Fisher.

In 1960, Ohio Oil created Marathon Pipe Line Company as a subsidiary. Then, in 1962, in honor of the company’s seventy-fifth anniversary, Ohio Oil changed its name to the Marathon Oil Company and retired the Pheidippides-inspired trademark. Later the same year, Marathon acquired the Plymouth Oil Company, which included a refinery in Texas City, Texas. Further growth occurred in 1976 when Marathon Oil incorporated Emro Marketing to take charge of company-operated gas stations. The name came from adding an “E” at the beginning of Marathon Oil’s New York Stock Exchange symbol (MRO). In 1977, another refinery in Garyville, Louisiana, was purchased and added to the growing list of oil refineries owned by Marathon Oil.

In 1982, Mobil Oil Corporation attempted a takeover purchase of the company, but the board rejected the sale. It instead sold the company to United States Steel Corporation. This resulted in a legal battle between the two oil corporations. In 1990, the corporate headquarters for Marathon Oil moved to Houston, Texas, while the refining subsidiary of Marathon stayed in Findlay, Ohio. In 1991, the corporate headquarters of Emro was moved to Enon, Ohio. In 1997, this subsidiary was awarded Convenience Store Chain of the Year.

In 1998, Marathon Oil and Ashland Incorporated partnered to form Marathon Ashland Petroleum LLC, with refineries in Catlettsburg, Kentucky, Canton, Ohio, and St. Paul Park, Minnesota, in addition to adding a private inland barge fleet for oil transport. The same year, Emro and Super America Group merged to form Speedway SuperAmerica LLC.

In 2003, Marathon Oil finished the construction of the Cardinal Pipeline in central Ohio. In 2004, Ashland Oil transferred its interest in Marathon Ashland Petroleum over to Marathon Oil. In 2009, the Garyville, Louisiana, refinery was drastically expanded at a cost of $3.2 billion. In 2010, the St. Paul Park refinery and Speedway SuperAmerica in Minnesota were sold off.

In 2011, Marathon Petroleum in Findlay, Ohio, became a separate, stand-alone company that included its refining, marketing, and transportation interests. One of the first projects Marathon undertook was an upgrade at the Detroit Heavy Oil refinery. The same year, MPLX LP, a midstream master limited partnership, was formed to transport, store, distribute, and market oil and natural gas products by pipeline, terminals, boats, and other logistics assets. In 2013, the Galveston Bay refinery in Texas City, Texas, was purchased by Marathon Petroleum. The company also purchased a renewable fuels biodiesel facility in Cincinnati, Ohio, the following year. In 2014, Marathon Petroleum also bought Hess gas station operations and assets, which included 1,256 stores in sixteen states.

In 2018, Marathon Petroleum acquired ten more refineries, more than three thousand retail gas stations, and a logistics operation from Andeavor. It extended its operations nationwide with refineries in Anacortes, Washington; Dickinson, North Dakota; El Paso, Texas; Gallup, New Mexico; Kenai, Arkansas; Los Angeles, California; Mandan, North Dakota; Martinez, California; Salt Lake City, Utah, and St. Paul Park, Minnesota. The following year, MPLX LP purchased Andeavor Logistics to create one of the largest diversified midstream oil companies. In 2020, the Gallup refinery acquired from Andeavor was closed, and plans for the Martinez, California refinery to convert to renewable fuels manufacturing moved to by 2023. Due to the decreased demand for fuel during the COVID-19 pandemic, Marathon sold its four thousand Speedway LLC retail gas station chain locations to Seven & I Holdings, which owns the popular convenience store 7-Eleven. The price of the sale was $21 billion.

Impact

In the mid-2020s, Marathon Petroleum controlled interest in around 20,000 miles of oil and natural gas pipelines. It is also responsible for the country’s largest refining system in thirteen refineries that can process almost 3 million barrels of crude oil per day. Its Marathon branded gas stations are found throughout the United States in more than 6,000 locations.

During the process of refining crude oil, serious hazards to workers can occur, such as refinery fires and exposure to toxic chemicals. Fires have caused not only damage to production facilities owned by Marathon Petroleum, but investigations into the safety of working conditions. In 2016, a fire at the Galveston Bay, Texas, refinery burned three workers. The workers claimed their injuries were the result of unsafe working conditions and sued the company for damages. The company eventually settled the lawsuit, awarding millions in damages to the victims. In 2022, an explosion occurred at the Garyville, Louisiana, refinery, with a fire breaking out afterward. Six workers were treated for injuries, but none of them were serious.

Sustainability and environmental impact are also controversial issues for petroleum companies. Conserving the very natural resources the company processes for consumption, such as crude oil and natural gas, requires strict controls. The biodiversity of plants and animals in habitats near refinery sites must be protected, and freshwater used in the refinery process must be managed, along with air quality. Marathon Petroleum has said it is committed to ecologically responsible procedures, including reducing freshwater withdrawal from surrounding environments and reducing emissions to improve air quality.

In addition, the refinement process produces a large amount of waste materials. Marathon Petroleum has innovated methods to recycle refinery waste. Between 2013 and 2024, more than 118,000 tons of refinery waste served as an alternative fuel source for the cement industry. The company estimated this avoided about 230,000 tons of carbon dioxide emissions. Marathon Petroleum also recycles and reclaims metals, such as cobalt, copper, molybdenum, platinum, and vanadium. Sustainability is also a concern for Marathon Petroleum. The company aims to reduce its carbon footprint by reducing greenhouse gas emissions and investing in more renewable energy sources by 2030.

In 2023, Marathon Petroleum announced the acquisition of a 49.9 percent interest in LF Bioenergy, an emerging company specializing in renewable natural gas. Marathon Petroleum partnered with ADM the following year to begin operating the Green Bison Soy Processing Facility, which produces soybean oil for renewable diesel. This was a significant step in meeting the growing demand for renewable fuels and Marathon's renewable energy initiatives.

Despite progress in improving environmental protection measures, Marathon's refinery in southeastern Louisiana experienced a massive toxic fire in 2023, which released flammable hydrocarbons like benzene into the atmosphere. The company’s handling of the incident and its lack of transparency in providing information led to criticism in the media. Many community members filed a class-action lawsuit against the company, alleging significant flaws in its emergency response. They sought over $5 million in damages.

Bibliography

"Conserving Natural Resources." Marathon Petroleum Corporation, www.marathonpetroleum.com/Sustainability/Conserving-Natural-Resources. Accessed 20 Jan. 2025.

“Explosion at Marathon Refinery in Garyville Injures 6 Workers; Cause under Investigation.” Nola, 22 Feb. 2022, www.nola.com/news/business/article‗97e29d10-93f1-11ec-be1f-3700ba54488b.html. Accessed 20 Jan. 2025.

Jagtap, Akshay, et al. “The Antitrust Legacy of Standard Oil in Today’s World.” The Way Ahead, 1 Nov. 2021, jpt.spe.org/twa/the-antitrust-legacy-of-standard-oil-in-todays-world. Accessed 20 Jan. 2025.

Krauss, Clifford. “Marathon Is Selling Speedway Gas Stations to 7-Eleven’s Parent for $21 Billion.” The New York Times, 2 Aug. 2020, www.nytimes.com/2020/08/02/business/marathon-petroleum-speedway-7-11.html. Accessed 20 Jan. 2025.

Laughland, Oliver, and Sara Sneath. "Guardian Investigation Fuels Class-Action Lawsuit against Petro Giant." The Guardian, 27 Jan. 2025, www.theguardian.com/us-news/2025/jan/27/marathon-oil-louisiana-lawsuit. Accessed 30 Jan. 2025.

“The Marathon Petroleum Story.” Marathon Petroleum Corporation, www.marathonpetroleum.com/About/History. Accessed 20 Jan. 2025.

“Standard Oil Company.” Ohio History Central, www.historycentral.com/rec/StandardOilCo.html. Accessed 20 Jan. 2025.

“Sustainability.” Marathon Petroleum Corporation, www.marathonpetroleum.com/Sustainability. Accessed 20 Jan. 2025.

“We Are MPC.” Marathon Petroleum Corporation, www.marathonpetroleum.com/About. Accessed 20 Jan. 2025.