Origin Of Caltex

In 1935 Standard Oil of California marketed first compounded diesel engine oil (RPM Diesel Engine Lubricating Oil) making high-speed diesel engines feasible.

In 1911, using Sherman Antitrust Act, the federal government broke Standard Oil into several companies. One of those companies, Standard Oil Co. (California), went on to become Chevron.

On July 2, 1936 Caltex Group was form from joint venture between Chevron and Texaco, Inc. which each having equal ownership. The group was established for marketing operation in east of Suez (including Asia, East Africa, and Australasia). The group was founded as outlet for future oil production in Bahrain and Saudi Arabia.

Caltex was renamed as Caltex Petroleum Crop in 1968. In October 2001 Chevron and Texaco was merged to establish new identity known as ChevronTexaco and Caltex became part of the family.

In May 2005 ChevronTexaco Corporation changed its name to Chevron Corporation.
Origin Of Caltex

China National Petroleum Corporation

In 17 September 1988, China National Petroleum and Natural Gas Corporation (CNPC) was established.

The influence of the petroleum industry within the communist government varied significantly over time.

In the early years after establishment of the People’s Republic of China, the industry was under control of the Bureau of Petroleum, a division of the Ministry of Fuel.

In 1955, Ministry of the Fuel was promoted to the Ministry of the Petroleum Industry after merged with Ministry of Coal and Ministry of the Chemistry Industry.

Ministry of Petroleum Industry controlled the production of oil, and the refining was split among the ministry and a number of government bodies.

In 7 July 1998, the Ministry of the Petroleum Industry was dissolved and formed three state-owned companies to oversee and modernize its petroleum-related activities.

This reorganization created two regional firms –CNPC in the north and west, and Sinopec in the south. CNPC took over all onshore exploration and production of oil and gas.  The company is directly under the State Council and is a ministry-level institution.

In June 1997, CNPC acquired a 60 percent share in Kazakhstan’s Aktyubinskmunaigaz Production Association, which controls three large oil fields in northwestern Kazakhstan with combined recoverable reserves of 1 bb.
China National Petroleum Corporation

Petronas Malaysia

Hydrocarbon deposits were first discovered in the Borneo region, which is now under Malaysia territory, in the 1870s.

In 1910, Royal Dutch Shell first drilled for oil in Sarawak, in the northern part of the Island of Borneo.

In August 1974, the Malaysian government under then Tun Abdul Razak established Petroleum Nasional (Petronas) as its national oil company.

It was incorporated on August 17, 1974 under Malaysian Companies Act with the state-owned Ministry of Finance Inc. as its sole shareholder.

Petronas replaced the concessions held by Royal Dutch Shell in Borneo and Exxon on the Malay Peninsula with new production-sharing agreements that came into effect in 1976.

In 1988, Petronas was able to conclude ten new production sharing contracts, the largest number of contracts signed in a year in the history of Malaysian petroleum industry.

Petronas ranks among the top 20 international oil companies, with daily production of more than 750,200 barrels of oil.

The company also holds 4.84 billion barrels of crude oil reserves and 2.5 trillion cubic meters of natural gas reserves.

By early 2000s, Malaysia was competing with Algeria to the world’s second largest LNG exporter.

Petronas has been expanding aggressively into LNG, with Malaysia accounting for 15 percent of total world LNG exports in 2005.

Petronas Malaysia

Early History of oil

Petroleum derivatives have been exploited since the emergence of human civilization, particularly in ancient Mesopotamia and elsewhere in the Middle East.

Oil and its by product have been a useful commodity since around 5000 BC. Its use as a weapon was recorded in the East Roman Empire in 650 AD, while in medieval Europe oil was used for medical purposes, lubricants and paint fabrication.

Up to the beginning of the 19th century no oil seems to have been obtained except from the surfaces of springs and streams.

People were already familiar with oil because some oil deposits were close enough to the surface that oil would sometimes seep into ground. And drillers in search of water would sometimes strike oil by accident.

Early explorer of the Allegheny and its tributes tell of springs and streams the surface of which were found covered with a thick oily substance which burned fiercely when ignited and which the Indians believed to have curative properties.

Naturally the first use made of the oil obtained in qualities from the salt wells was medicinal.

The great revolution occurred in Pennsylvania in 1859, when Edwin Drake first succeeded in extracting oil from its rocky underground prison with a drilling machine.

In August 28, 1859, Drake succeed ins striking oil with the new method of extraction.

His discovery quickly led to the world’s first oil boom. The oil that Drake had uncovered was large and rich, and although his first well was not so productive when measured in barrels produced.

In 1878, the invention of the oil stove was to have an important effect on the petroleum industry, the stove became a commercial success following the World Fair in Pairs, leading to a sharp increase in the demand for fuel oil.
Early History of oil

Beginning History of Oil Industry

The oils seeps to the surface is what people in ancient times first discovered. It is usually found in the form of bitumen.

Around 3,000 BC ancient people Middle East traded bitumen to be used as building mortar, medicine, and lightning fuel.

Starting in 900 BC the Chinese began using natural gas from wells.

Eventually small oil industry began to develop in Eastern Europe around 1854 that focused primary on peasant dug shafts to obtain crude oil.

This oil was then refined to abstract kerosene, which was then used in cheaply manufactured lamps.

The perfection of the oil lamp, at the end of the XVIIIth century by the Chemist Quinquet, led, a few decades later to a sudden increase in demand for oil.

To increase the availability of oil, some American financiers had the idea of using the cable tool technique of drilling, developed from the production of salt from brine wells.

On the 27 August 1859, after several weeks drilling and at depth of 23 meters, Edwin Drake found that the bottom of the well had filled with oil.

Later in the United States, the standard Oil Company, founded by John D. Rockefeller in 1870 as a refining company in Cleveland, dominated the industry for several decades. By 1880 it had a domestic market share in refining of 95 percent.

By that time, Standard Oil had also come to dominate the pipeline, shipping and drilling business.

In the advent of World War II the increasing popularity for automobiles, oil for heating and electric motors in industry made petroleum the dominant element of the American fuel economy.

As the consumption of energy skyrocketed in the post-World War II decades oil continued to grow in importance.
Beginning History of Oil Industry

The formation of OPEC

Organization of Petroleum Exporting Countries is a cartel of 12 nations that’s seek to influence oil prices through control of supply oil to world markets. It initial members including Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

Prior to the formation of OPEC and until the late 1950s, the international oil industry had been characterized mainly by the dominant position of the major concessions granted to the major oil-producing countries.

Attempts by the oil-producing countries at co-coordinating their pricing and output policies go back to the midp1940s, when the Arab League was formed.

OPEC was originally intended by two of its founder –Venezuela’s Juan Pablo Perez Alfonso and Saudi Arabia’s Abdullah Tariki – to play the same role on the international stage.

The official contacts between Venezuela and the Middle East took place in 1949 with a three mission from Venezuela touring the Middle East.

The second came ten years later in April 1959, during the First Arab Petroleum Congress, though apart from it and resulted in the so-called Mehdi Pact that was signed by representative of Iran, Kuwait, Saudi Arabia , the United Arab Republics, Venezuela and the head of the Arab League’s Petroleum Committee, an Iraqi.

In 1959 and 1960 there was the large reduction reductions in oil posted prices. The decrease in income per barrel thus came as a surprise and the first reduction of February 1959 raised a wave of pubic protest in the oil-exporting countries.

Despite the strong position taken by oil-exporting countries regarding any further reductions, the major companies went ahead and cut prices again in August 1960.

The exporting countries responded by founding OPEC one month later after this reduction.

The creation of OPEC represented a major turning point in the relationship between the producing countries on the one hand, and the oil companies and consuming countries on the other. It was the first attempt by the government of oil producing countries to organize themselves collectively.

It was another step in reducing foreign influence in the oil industry. As the 1990s, the oil-rich nations had achieved complete control over their oil.
The formation of OPEC

Chevron Corporation

Chevron Corporation
Chevron Corporation is one of the world’s largest integrated petroleum companies.

It is involved in every aspect of the industry, from exploration and production to transportation, refining and retail marketing, as well as chemical manufacturing and sales.

It operates in more than ninety countries and employs about 28 000 people worldwide.

The company turns crude oil into a variety of products, including motor gasoline, diesel and aviation fuels, lubricants, asphalt and chemicals.

Chevron Corporation started business in Los Angeles in 1879 as the Pacific Coasts Oil Company.

In 1900, the thriving company was acquired by John D. Rockefeller’s Standard Oil Trust.

In the 1920s and 1930s, the company began investing in international exploration and made the first major discoveries in Bahrain and Saudi Arabia.

In 1936, in partnership with Texaco, it formed Caltex, bringing in new markets in Asia, Africa and Europe.

After the Second World War, continued expansion led to major discoveries in Indonesia, Australia, the UK North Sea and the Gulf of Mexico.

In 1984, the company nearly doubled its size by acquiring Gulf Oil Corporation in what then was the largest corporate merger in US history.

That same year, Standard also changed its name to Chevron, the well-known brand name of many of its products.

In 1993, Chevron achieved another milestone when it joined the Republic of Kazakhstan in the largest joint venture between a Western company and a member of the former Soviet Union.

A new company, Tengizchevroil, was formed to develop the Tengiz oil field the largest discovery in past thirty years.

By 1999 Chevron’s net income was $2.070 billion (up to 55 percent from 1998), and opening earnings were $2.3 billion (up from $1.9 billion in 1998).
Chevron Corporation