Farwell Marathon. You will be missed

The Gist: This post is a history and farewell tribute to Marathon Oil.

Programming Note: I will be out next week due to the Thanksgiving holiday and returning on Tuesday, December 3rd. In the interim, I hope to have something to you next Tuesday. Stay tuned!

There were 34 companies that emerged from the breakup of Standard Oil, most of which were midstream pipeline and storage companies.

Most people are familiar with ExxonMobil and Chevron as direct descendants of Standard Oil. Some may know that Standard of Ohio (SOHIO) and Standard of Indiana (Amoco) are now part of BP. A smaller cohort recognizes that Conoco continues as part of ConocoPhillips, and even fewer are aware of Marathon Oil’s place in the lineage.

With the impending merger of ConocoPhillips (COP) and Marathon Oil (MRO) set to close any day now, another legacy Standard Oil company is poised to fade into the pages of history.

Marathon Oil traces its origins to Ohio Oil, established in 1887 as a competitor to the Trust. Its formation coincided with a boom in Ohio oil production fueled by the discovery of the Lima Oil Fields.

By the early 20th century, Rockefeller's hold on the oil industry began to diminish as the epicenter of U.S. oil production moved westward—first to Ohio, then to California, and eventually to Texas and Oklahoma.

Known as "The Ohio," the company rapidly became the largest oil producer in the state. Recognizing its importance, Standard Oil acquired it in 1889, making it a key upstream production asset until the Trust's dissolution in 1911.

However, Lima crude had a high sulfur content, resulting in a significant price discount compared to the lighter crude from Oil City, Pennsylvania. This created strong economic incentives to overcome the refining challenge

With the help of a German chemist named Herman Frash they figured out how to refine the “skunk crude” of Ohio.

Much of Ohio’s production would be refined at then Standard of Indiana’s Whiting Refinery (HERE), which has a long history of processing heavier crudes, ranging from these early Ohio grades to today’s Canadian crudes.

Shortly after the breakup of Standard Oil, ‘The Ohio’ acquired the U.S. producer Transcontinental.

For much of its early history, Marathon was primarily a domestic producer. However, in the early 1960s, through its participation in a consortium called the Oasis Group—which included Conoco, Amerada Hess, and Royal Dutch Shell—oil was discovered in Libya in 1958.