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Getty Oil

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Getty Oil
FormerlyPacific Western Oil Corporation (1928–1956)
Company typePrivate
IndustryOil and gas
Founded1928; 96 years ago (1928)
FounderJ. Paul Getty
Defunct2012; 12 years ago (2012)
HeadquartersGetty Building,
Los Angeles, California
Number of locations
1,115 (2011)
ProductsGasoline oil and service mart
Total assetsUS$ 50-100 billion (2011)
Number of employees
597 (2012)
SubsidiariesGasway Inc., Getty Terminals Corp., PT Petro Corp.
Websitegettyoil.com

Getty Oil Company was an American oil marketing company with its origins as part of the large integrated oil company founded by J. Paul Getty.

History

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A Getty roadside gasoline station in Cheshire, Connecticut (2011)

J. Paul Getty incorporated Getty Oil in 1942.[1] He had previously worked in the oil fields of Oklahoma along with his father George Getty. When George died, he left J. Paul with $500,000 and a projection that he would destroy the family business.[1]

Starting in 1949, J. Paul Getty negotiated a 30-year concession in the neutral zone between Saudi Arabia and Kuwait. Gordon Getty and his family inherited a 40% interest in the company when J. Paul Getty died in 1976.[2][3]

In 1984, after entering into a binding agreement to sell Getty and its 2.3-billion-barrel stockpile of proven oil reserves to Pennzoil, Gordon Getty struck a dramatic deal to sell the company to Texaco.[4]

On November 19, 1985, in the case of Texaco, Inc. v. Pennzoil, Co., Pennzoil won a US$10.53 billion verdict against Texaco in the largest civil verdict in U.S. history as a result of the violation of the binding agreement.[5] Following extensive litigation seeking to overturn the verdict, Texaco filed for bankruptcy, after which Pennzoil agreed to settle the case for $3 billion.[5]

While the reserves were sold, only some of the refineries changed hands, and Getty continued to exist as a downstream entity. Getty gas stations in the Northeast were sold off as a condition of the buyout. The company became known as Getty Petroleum Marketing Inc.[6]

Getty Petroleum Marketing was sold to Lukoil in 2000, and Lukoil sold it to Cambridge Securities LLC in February 2011. Getty Petroleum filed for bankruptcy protection (Chapter 11) on December 5, 2011.[7]

At one point, Getty Oil owned a majority stake of ESPN, before Getty's purchase by Texaco which then sold ESPN to ABC in 1984.[8]

References

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  1. ^ a b McDonell-Parry, Amelia (20 March 2018). "John Paul Getty III: The True Story Behind 'Trust'". Rolling Stone. Retrieved 5 March 2019.
  2. ^ "Where the Getty family fortune came from". CNNMoney. April 1, 2015.
  3. ^ Wong, Amelia (2016-10-18). "The Never-Boring Life of J. Paul Getty, World's Richest Man". Getty Iris. Retrieved 2022-12-15.
  4. ^ Whitefield, Debra (January 19, 1986). "The Deal: How Getty Ended Up With Texaco". Los Angeles Times.
  5. ^ a b Lewin, Tamar (December 19, 1987). "Pennzoil-Texaco Fight Raised Key Questions". The New York Times. Retrieved March 3, 2013.
  6. ^ Markus, Stuart (2002-03-10). "A New Era at Getty Marketing". The New York Times. Retrieved 2022-12-15.
  7. ^ Brickley, Peg (December 10, 2013). "Getty Petroleum Creditors Sue Former Owners for $6 Million". The Wall Street Journal.
  8. ^ Klienfeld, N.R. (May 1, 1984). "ABC to acquire ESPN as Texaco sells its 72%". The New York Times. Retrieved July 14, 2022.
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