Phillips Petroleum Company
| Company type | Public |
|---|---|
| Industry | Petroleum, natural gas, petrochemicals |
| Founded | 1917 in Bartlesville, Oklahoma, U.S. |
| Founder | Lee Eldas ("L.E.") Phillips, Frank Phillips |
| Defunct | August 30, 2002 |
| Fate | Merged with Conoco Inc. to form ConocoPhillips |
| Headquarters | Bartlesville , United States |
Area served | United States, Canada, Venezuela, Colombia, North Sea |
Key people | Frank F. Phillips (president 1917–1939), Kenneth S. Adams (president 1939–1951), James J. Mulva (president 1994–2002) |
| Products | Oil, natural gas, refined petroleum products, chemicals |
Number of employees | Approximately 750 (Pasadena plant operations and maintenance staff as of 2000s) |
| Parent | ConocoPhillips (from 2002) |
Phillips Petroleum Company was an American oil enterprise established in 1917 by siblings Lee Eldas ("L.E.") Phillips and Frank Phillips in Bartlesville, Oklahoma. The company diversified its operations into refining, marketing, transportation, natural gas gathering, and chemical production. A significant milestone was the 1969 discovery of oil at Ekofisk in the North Sea.
On August 30, 2002, Phillips merged with Conoco Inc., creating ConocoPhillips, which became the third-largest integrated energy firm and the second-largest refining company in the United States, with headquarters relocated to Houston. In 2012, ConocoPhillips separated its midstream and downstream segments into Phillips 66, thereby reinstating the original Phillips Petroleum brand.
History
Founded in 1917 by brothers Lee and Frank Phillips, the company rapidly evolved into a fully integrated oil corporation encompassing production, pipelines, refining, and marketing activities. By 1925, it had become the leading U.S. producer of natural gas liquids (NGL). The company’s inaugural refinery commenced operations in Borger, Texas, in 1927, producing gasoline and other petroleum derivatives. The "Phillips 66" trademark was introduced in 1930 following a road test on U.S. Highway 66.
Frank Phillips held the presidency until 1938 before transferring leadership to Kenneth S. "Boots" Adams while maintaining his role as chairman until 1949. During the 1940s, Phillips expanded its natural gas assets within the Texas Panhandle and Kansas Hugoton fields but later divested pipeline interests after a landmark Supreme Court decision concerning federal regulation of natural gas pricing.
World War II increased demand for high-octane aviation fuels; in response, Phillips developed an HF alkylation process in 1940. After the war, it founded Phillips Chemical Co., entering the petrochemical and fertilizer industries with plants located along the Houston Ship Channel.
The 1960s saw accelerated international growth through exploration activities in Canada, Venezuela, Colombia, and notably the North Sea discovery at Ekofisk. In 1966, Phillips acquired Tidewater Oil Co.’s West Coast operations and rebranded its "Flying A" service stations under the Phillips 66 name.
In 1983, Phillips strengthened its portfolio by acquiring General American Oil Company—a prominent independent firm with worldwide operations. Originally established as General Finance Company in 1928 by Algur H. Meadows and associates, General American possessed extensive oil wells and refineries across North America along with drilling activities overseas.
During the mid-1980s, hostile takeover bids from Mesa Power LP (led by T. Boone Pickens Jr.) and Carl Icahn compelled Phillips to restructure its finances through substantial borrowing. This increased debt led to asset divestitures including refinery sales and ultimately paved the way for its merger with Conoco.
In 2000, Phillips Petroleum joined forces with Chevron Corporation to merge their chemical divisions into Chevron Phillips Chemical Corp., based in The Woodlands, Texas—further consolidating their position within the petrochemical sector.
1980 North Sea accident
On March 27, 1980, the drilling platform Alexander L. Kielland, operating in the Ekofisk gas field of the North Sea, capsized resulting in 123 fatalities. Owned by Stavanger Drilling and leased by Phillips Norway—a subsidiary of Phillips Petroleum—the tragedy led to legal actions against Phillips Petroleum. Nevertheless, U.S. courts dismissed these lawsuits due to jurisdictional limitations.
Phillips Explosion of 1989
In 1989, the Pasadena facility suffered a catastrophic explosion that resulted in the deaths of 23 employees and contractors, with an additional 314 individuals injured. The force of the blast was comparable to 2.4 tons of TNT and inflicted severe damage extending up to six miles from the site. This event brought to light the dangers linked to cost-reduction strategies implemented at the refinery.
Phillips Explosion of 1999
On June 23, 1999, an explosion occurred at Phillips Petroleum’s K-Resin plant located in Pasadena, Texas, claiming the lives of two contractors and causing injuries to three others. The incident took place during a hydrostatic pipe test and triggered a fire that burned for more than an hour before being controlled. The two fatalities, Juan Martinez and Jose Inez Rangel, were working for Zachry Construction Corp. This tragedy emphasized persistent safety issues within Phillips’ chemical manufacturing operations.
Phillips Explosion of 2000
The Pasadena plant experienced another blast in 2000 at the K-Resin facility, which led to one fatality. In 2016, Phillips divested the K-Resin brand to INEOS Styrolution. Presently, the Pasadena complex specializes in producing high-density polyethylene (HDPE) and employs roughly 750 personnel, including about 150 staff dedicated to operations and maintenance, with a focus on specialty chemical production.
Presidents
- Frank F. Phillips, 1917–1939
- Kenneth S. Adams, 1939–1951
- Paul Endacott, 1951–1962
- Stanley F. Learned, 1962–1967
- William W. Keeler, 1967–1968
- John M. Houchin, 1968–1973
- William F. Martin, 1973–1980
- William C. Douce, 1980–1982
- Cecil J. Silas, 1982–1985
- Glenn A. Cox, 1985–1991
- W. Wayne Allen, 1991–1994
- James J. Mulva, 1994–2002
Chairmen of the Board
- Frank F. Phillips, 1939–1949
- Kenneth S. Adams, 1951–1968
- William W. Keeler, 1968–1973
- John M. Houchin, 1973–1974
- William F. Martin, 1974–1982
- William C. Douce, 1982–1985
- Cecil J. Silas, 1985–1994
- W. Wayne Allen, 1994–1999
- James J. Mulva, 1999–2002
See also
- Chevron Phillips
- Phillips 66
- Phillips Disaster of 1989
- Phillips explosion of 2000
- 2001 Humber Refinery explosion