Quaker State
| Company type | Brand |
|---|---|
| Industry | Motor oil, lubricants |
| Founded | 1924 |
| Founder | Eastern Refining Co. (rights acquired from Phinny Brothers Oil Company) |
| Fate | Acquired by Shell USA (via Pennzoil-Quaker State) in 2002 |
| Headquarters | Houston, Texas , United States |
Area served | United States |
| Owner | Shell USA (Shell plc) |
| Parent | Shell plc |
Quaker State is a U.S.-based motor oil brand currently owned by Shell USA, the American branch of Shell plc.
The Quaker State Oil Refining Company was founded in 1924 after Eastern Refining Co. secured the rights to the Quaker State trademark from Phinny Brothers Oil Company. Phinny Brothers had been manufacturing Quaker lubricants since 1912 and gained prominence through a 1914 agreement with automotive producer Franklin. In 1931, following a merger with 18 other oil firms, it was rebranded as "Quaker State Corporation." Shell acquired Pennzoil-Quaker State in 2002 for $1.8 billion in cash, along with $1.1 billion in assumed debt.
The brand’s name is inspired by Pennsylvania’s nickname, reflecting the state’s Quaker roots.
Currently, Pennzoil-Quaker State products are distributed under SOPUS Products, which operates out of Shell’s Houston, Texas headquarters.
Brand origins
The roots of Quaker State lie in Oil City, Pennsylvania, a center of the petroleum industry during the 19th century. The "Quaker State" label was first introduced in 1912 by T.G. Phinny, owner of Phinny Brothers Oil Company, to set its lubricants apart. Early success included an exclusive supply contract with the Franklin Automotive Company located in Syracuse, New York.
By 1915, Quaker State had gained national exposure through advertisements in The Saturday Evening Post, emphasizing the high quality of its oils and their positive impact on engine performance, which helped establish a strong market presence.
Establishment of the company
In 1924, Eastern Refining Company purchased the Quaker State brand and changed its name to Quaker State Oil Refining Company. On July 1, 1931, Charles Pape, a stockbroker from Chicago, merged 19 regional oil companies to form Quaker State Corporation, issuing 55,000 shares. Notable among these were Eastern Refining, Sterling Oil of West Virginia, and Ohio Valley Refining.
Herry Crawford took on the role of president and guided the company to $6.8 million in sales during its inaugural year. In 1936, Quaker State entered into an exclusive sales agreement with Standard Oil to distribute products across 13 Midwestern states and later sold products through Standard filling stations. Initially reliant on purchasing crude oil externally, Quaker State began producing its own crude by acquiring drilling operations from Forest Oil Company in Bradford during World War II to satisfy increasing demand.
Growth and development
By 1960, Quaker State's annual sales had surpassed $50 million. The company expanded its portfolio in 1964 by acquiring Truck-Lite Company based in Falconer, New York. The decade of the 1970s represented a peak period for profitability with earnings reaching $10.7 million and sales climbing to $300 million by 1975 after launching a new refinery in Newell, West Virginia.
Further acquisitions included Valley Camp Coal Co in 1976; automotive parts suppliers such as Corn Brothers (Georgia), National Oil Company (New Jersey), and Texstar Automotive Corporation (Missouri). Additionally, the firm established new corporate offices on Elm Street in Oil City.
During the 1980s, Quaker State continued expanding by acquiring Heritage Insurance Group and Helen Mining Company (coal), along with obtaining stakes in Minit-Lube Inc., thereby broadening its range of automotive maintenance products and services.
Acquisition and bankruptcy
In 1989, the organization restructured into five distinct sectors: refining, automotive maintenance, insurance, trucking, and energy, a move that resulted in declining revenue and profits. By January 1990, the petroleum segment was spun off as "Quaker State Oil Refining Corporation," with certain assets being sold. By 1991, motor oil represented 92% of total earnings, while other divisions faced financial difficulties.
Sales had fallen by more than 25% to $724 million by 1992. In 1994, Quaker State exited the insurance market and purchased Speciality Oil Corp. for $90 million. The company moved its headquarters to Dallas in 1995 and divested its natural gas operations to concentrate exclusively on lubricants.
In 1998, Quaker State was acquired by competitor Pennzoil, leading to the creation of "Pennzoil-Quaker State Company." Later, in 2002, Shell Oil Company, the American branch of Royal Dutch Shell, purchased Pennzoil-Quaker State. At that time, Pennzoil-Quaker was the largest producer of motor oil in the United States; Shell sought to reinforce its dominance in both U.S. and international lubricant markets.
Sponsorship
The Pennzoil-Quaker State Company served as sponsor for the 1988 IndyCar Quaker State 500 (currently known as the ABC Supply 500) and continues to sponsor the NASCAR Cup Series Quaker State 400 held at Atlanta Motor Speedway.
From 1996 through 2013, Quaker State supported Hendrick Motorsports, endorsing drivers including Jeff Gordon, Jimmie Johnson, Dale Earnhardt Jr., and Kasey Kahne. The brand also sponsored Morgan Shepherd and acted as the official lubricants provider for the Italo-American Ferrari factory team Risi Competizione between 2004 and 2008. Moreover, Quaker State backed the Force India Formula One team from 2015 until 2018 and sponsored athlete Allen "Quaker" Ellis during the 2016 US National Olympic Team.
The dining establishment Quaker Steak & Lube is a humorous take on the brand's name.