Clarence P. Cazalot Jr.
Clarence Peter Cazalot Jr. | |
|---|---|
| Born | 1950 New Orleans, Louisiana, U.S. |
| Occupation | Business executive |
| Years active | 1972–2012 |
| Known for | President and CEO of Marathon Oil Corporation (2002–2012) |
Clarence Peter Cazalot Jr. (born 1950) held the positions of president and chief executive officer at Houston-based Marathon Oil Corporation from 2002 until 2012. During his tenure, Marathon broadened its global footprint by investing in the developing natural gas sector in Equatorial Guinea as well as oil ventures in Gabon, Libya, and Norway. This international emphasis led to a threefold increase in upstream earnings from foreign operations while simultaneously prompting the sale of smaller assets.
Cazalot, a geologist by training without a background as an industrial magnate, spent much of his professional life in technical capacities at Texaco, where he developed expertise in offshore drilling and pipeline infrastructure. After joining Marathon in 2000, he strengthened the company's market stance by focusing on technological innovation and collaborative energy market strategies instead of competing primarily through price reductions.
His approach to funding acquisitions relied heavily on maintaining robust relationships with research institutions and implementing cost-saving measures rather than depending on foreign borrowing. The core of his corporate vision emphasized natural gas commercialization and the advancement of pioneering technologies, building upon earlier achievements in oil completion techniques. Marathon Ashland Petroleum, a subsidiary under his leadership, ranks as the fifth-largest petroleum refiner within the United States.
Cazalot also enhanced Marathon's debt profile and earned $6.5 million in 2008, placing him among Houston's top-compensated executives. He holds board memberships at Baker Hughes and participates in the Oil and Natural Gas Industry Labor-Management Committee. Additionally, he remains engaged with industry groups such as the Council on Competitiveness and the All-American Wildcatters Association.
Early life
Born in New Orleans, Cazalot completed his undergraduate studies in geology at Louisiana State University. In May 2007, LSU awarded him an Honorary Doctorate of Humane Letters.
Texaco
Shortly after graduating, Cazalot began his career in the oil sector by joining Texaco in 1972 as a geophysicist, concentrating on offshore drilling projects in the Gulf of Mexico. Over nearly twenty years, he advanced through various roles within Texaco’s exploration division.
In 1992, he was elevated to vice president and president of the Latin America/West Africa (LA/WA) division headquartered in Coral Gables, Florida, taking over from C. Robert "Bob" Black. From this leadership role, Cazalot spearheaded oil export agreements targeting European markets.
Between 1994 and 1997, he gained experience across marketing and exploration before resuming management duties amid Texaco’s organizational restructuring. In March 1994, he was appointed president of the exploration division with responsibility for its reorganization and workforce reductions—approximately 2,500 positions company-wide—including consolidating domestic exploration and production offices from seven to four regional centers. The Houston office became a hub for support functions previously scattered among multiple field sites.
By December 1997, Cazalot had advanced to "President for international production in Europe, Eurasia and the Middle East." Following a corporate restructuring in 1999, he received another promotion to "President of international production operations," reflecting broader oversight across global markets.
President of Marathon
Following his departure from Texaco in late 1999, Cazalot took on roles at USX Corporation and Marathon Oil, ultimately serving as president of Marathon from March 2000 until 2001. His first significant investment focused on acquiring oil and gas assets in Equatorial Guinea. To fund this purchase, Marathon secured $1 billion in long-term debt through a group of underwriters at favorable interest rates. This marked the company's largest borrowing to that point, and the swift repayment of the debt further solidified Marathon's image for prudent financial stewardship.
CEO of Marathon
On January 1, 2002, after USX separated its steel and energy divisions, Cazalot was appointed CEO of Marathon. Within his inaugural year, he increased net income more than fourfold by enhancing production levels and reducing exploration and production expenses by $150 million.
In September 2003, Marathon underwent a restructuring that involved eliminating approximately 265 positions and merging its domestic offices into two main divisions: Northern and Southern.
William Schwind, who served as vice president and general counsel for 34 years, retired in August 2009. Cazalot acknowledged Schwind’s crucial role in the company’s achievements.
For 2009, Cazalot's total compensation amounted to $6.57 million, which included a base salary of $1.4 million, a $2.1 million bonus, stock options valued at $2.85 million, along with additional benefits.
Cazalot stepped down from his role in 2012.
Industry associations
- In April 2002, Cazalot was appointed to the board of directors at Baker Hughes.
- He holds membership in the All-American Wildcatters Association, a private organization founded by Duke Rudman in 1969, recognized for its prominent oil sector membership.