Unocal Corporation

Unocal Corporation
Union Oil Company of California

File:Unocal Logo.svg
Industry	Petroleum
Founded	October 17, 1890 (1890-10-17)
Founders	Thomas Bard Lyman Stewart Wallace Hardison
Defunct	August 11, 2005 (2005-08-11)
Fate	Acquired by Chevron
Headquarters	Union Oil Center, Los Angeles, California
Brands	76 (1932–97)
Number of employees	6,400 (2005)

Union Oil Company of California, along with its parent entity Unocal Corporation, collectively referred to as Unocal, was a prominent oil exploration and marketing firm operating from the late 1800s into the early 2000s. Based in El Segundo, California, Unocal conducted operations both within the United States and internationally.

Unocal played a significant role in the CentGas consortium, which aimed to develop the Trans-Afghanistan Pipeline stretching from the Caspian Sea area to the Indian Ocean following the Taliban’s capture of Kabul in 1996.

On August 10, 2005, Unocal integrated its entire upstream oil business with Chevron Corporation, becoming a fully owned Chevron subsidiary. After this acquisition, Unocal ceased to function independently but remains recognized as Union Oil Company of California, a Chevron company.

History

Established on October 17, 1890, in Santa Paula, California, by businessmen Lyman Stewart, Thomas Bard, and Wallace Hardison, Union Oil originated from the consolidation of three Southern California oil firms that were not affiliated with Standard Oil. The company moved its headquarters to Los Angeles in 1901. The original Santa Paula facility is now designated as a California Historical Landmark and operates as a museum.

Around 1910, Union Oil collaborated with independent producers to construct pipelines connecting Kern County oil fields to Pacific coast terminals. This infrastructure development improved crude oil distribution while circumventing Standard Oil’s pricing controls and railroad freight limitations, thereby broadening Union’s market reach.

In 1919, the company was incorporated in Delaware as a holding corporation for Union Oil of California and expanded its portfolio by acquiring entities such as Central Petroleum Company in 1920. A holding company was created in 1922 to safeguard against foreign ownership following a merger with Royal Dutch Company.

In 1961, under Vice President Henry L. Brandon’s leadership, Unocal introduced Indonesia’s pioneering "contract of work" production-sharing agreement model, which later influenced global energy contract frameworks.

The acquisition of Pure Oil in 1965 facilitated Unocal’s national expansion. Subsequently, it emerged as a leading oil producer in southern Alaska and a significant natural gas supplier in the Gulf of Mexico. By 1983, Union Oil of California operated as a subsidiary under Delaware-based Unocal Corporation.

In 1985, an attempted takeover by T. Boone Pickens’ Mesa Petroleum prompted Unocal to mount a defense that resulted in the landmark Delaware Supreme Court ruling known as Unocal v. Mesa Petroleum, which strengthened legal protections against hostile corporate takeovers.

In 1977, Unocal diversified its resource base by acquiring The Molybdenum Corporation of America (now Molycorp), including control of the Mountain Pass rare earth mine—at that time the largest rare earth element producer globally.

In 1989, Unocal partnered with Petróleos de Venezuela (P.D.V.S.A.) to establish Uno-Ven Company for refining and marketing operations in the Midwest, including ownership of the Lemont Refinery. This partnership ended in 1997 when P.D.V.S.A. assumed full control; Union 76 branding continued during this period.

In 1997, Unocal divested its western U.S. refining and marketing assets to Tosco Corporation, transferring rights to the Union 76 brand except where Uno-Ven was active. Tosco was subsequently acquired by Phillips Petroleum, which later merged into ConocoPhillips. As of January 2025, Chevron holds trademark rights for Unocal.com and redirects it to its corporate website.

Acquisition

In April 2005, Chevron Corporation proposed acquiring Unocal for $16.6 billion. Following this initial offer, Chinese company CNOOC Limited submitted an unsolicited bid of $18.5 billion in June. Despite CNOOC’s higher proposal, political resistance within the United States prompted the company to retract its offer by August. Subsequently, Unocal shareholders accepted Chevron’s revised $17.9 billion bid on August 10. The U.S. Congress and President George W. Bush evaluated the CNOOC proposal due to concerns over national security, ultimately preventing the transaction from proceeding.

Central Asia

Unocal played a significant role in the CentGas consortium, which sought to construct the Trans-Afghanistan Pipeline running from the Caspian region through Afghanistan to the Indian Ocean. During this time, the company enlisted Zalmay Khalilzad, a former U.S. ambassador and strategic consultant.

Beginning in 1995, Unocal executive Marty Miller engaged in negotiations throughout Central Asia and provided intelligence updates to the CIA. In 1996, the company opened an office in Kandahar, then under Taliban control, strategically positioning itself near key regional stakeholders.

Guided by Robert Oakley, a former U.S. ambassador and advisor to Unocal, the firm invested $900,000 to establish a pipeline training center in Kandahar in partnership with the University of Nebraska. This project involved interaction with Taliban officials and efforts to facilitate their delegation visits to the United States.

Reports emerged alleging that Unocal financially supported the Taliban’s ascent and collaborated with CIA-backed security forces supplying military assistance to Taliban militias. Prominent individuals such as former Secretary of State Henry Kissinger also served as consultants for Unocal during this period.

In 1997, Unocal held pipeline negotiations with Taliban representatives in Texas concerning a route from Turkmenistan to Pakistan, competing against Argentina’s Bridas Corporation. Although no contract was finalized, by August 1998 the Taliban showed preference for Unocal’s proposal.

Following U.S. missile strikes on Afghanistan responding to embassy bombings, Unocal halted and eventually exited the pipeline project by late 1998 due to regional volatility and declining oil prices.

Moreover, Unocal was the third-largest shareholder in the Baku-Tbilisi-Ceyhan pipeline linking the Caspian Sea to the Mediterranean, strengthening its strategic involvement in energy infrastructure projects.

Indonesia

Unocal entered the Indonesian market in 1961, becoming the first American oil company to sign a production sharing agreement with President Suharto under the leadership of Henry L. Brandon, then Vice President of International Development.

Sponsorships

Union Oil sponsored the Major Burnham Bowling Trophy, an annual event in California associated with the Boy Scouts of America.

The 76 brand served as NASCAR’s official fuel and motor oil from its founding in 1948 until 2003, when Sunoco and Mobil 1 assumed those sponsorship roles.

Additionally, 76 was an early sponsor of the Los Angeles Dodgers following their relocation from Brooklyn in 1958. The 76 emblem was prominently displayed within Dodger Stadium, including on scoreboards and batter’s circles. A 76 gas station operated for decades in the stadium parking lot and has since been repurposed as an event venue. The logo continues to appear at other major west coast venues for Major League Baseball and National Football League teams.

Domestic Criticism in the United States

In 1969, a significant blowout occurred near Union Oil's Platform "A" located in the Dos Cuadras Offshore Oil Field, releasing an estimated 80,000 to of oil into the Santa Barbara Channel. This event provoked extensive condemnation of Union Oil and offshore drilling practices, playing a key role in the enactment of the 1970 National Environmental Policy Act.

From the 1950s through 1996, oil seepage beneath Avila Beach, California led to severe soil contamination. Unocal committed to an extensive remediation project that involved excavating an area comparable to a football field filled to a depth of .

Between the mid-1950s and 1994, Unocal was responsible for leaking of diluent underneath the Guadalupe-Nipomo Dunes, marking California’s largest oil spill. The leaks occurred at more than 90 pipeline locations. Although initially denied by the company, state documents later confirmed Unocal’s prolonged awareness of these leaks. Since the mid-1990s, the company has been actively restoring affected habitats and has received commendations from environmental organizations such as the Sierra Club.

Doe v. Unocal

The lawsuit Doe v. Unocal involved Burmese villagers accusing Unocal of involvement in forced labor, sexual assault, torture, and killings. Legal representation for the plaintiffs was provided by EarthRights International, the Center for Constitutional Rights, among others. In 2005, Unocal agreed to a settlement providing compensation to those harmed.

Presidents

1. Thomas R. Bard, 1890–1894
2. D. T. Perkins, 1894
3. Lyman Stewart, 1894–1914
4. William L. Stewart Sr., 1914–1930
5. L. Pressley St Clair, 1930–1938
6. Reese H. Taylor, 1938–1956
7. Arthur C. Rubel, 1956–1960
8. Dudley Tower, 1960–1962
9. Arthur C. Rubel, 1962–1964
10. Fred L. Hartley, 1964–1985
11. Richard J. Stegemeier, 1985–1992
12. Roger C. Beach, 1992–2000
13. Timothy H. Ling, 2000–2004
14. Joseph H. Bryant, 2004–2005

Chairmen of the Board

1. Lyman Stewart, 1914–1923
2. E. W. Clark, 1930–1931
3. Reese H. Taylor, 1956–1962
4. William L. Stewart Jr., 1962–1964
5. Arthur C. Rubel, 1964–1965
6. Fred L. Hartley, 1974–1989
7. Richard J. Stegemeier, 1989–1995
8. Roger C. Beach, 1995–2000
9. John W. Creighton Jr., 2001
10. Charles R. Williamson, 2001–2005

See also

• Unocal Corp. v. Mesa Petroleum Co.

Additional resources

• Welty, Earl M, and Frank J Taylor. The 76 bonanza: The remarkable history and legacy of the Union Oil Company of California (1966) 351 pages