Hubbry Logo
ARCOARCOMain
Open search
ARCO
Community hub
ARCO
logo
7 pages, 0 posts
0 subscribers
Be the first to start a discussion here.
Be the first to start a discussion here.
ARCO
ARCO
ARCO
View on Wikipedia
from Wikipedia

ARCO (/ˈɑːrkoʊ/ AR-koh) is a brand of gasoline stations owned by Marathon Petroleum. BP, which formerly owned the brand, uses it in California, Oregon and Washington, while Marathon has rights for the rest of the United States and Mexico.[1]

Key Information

ARCO was established in 1966 as the Atlantic Richfield Company, an independent oil and gas company formed from the merger of Atlantic Petroleum and the Richfield Oil Corporation.

History

[edit]

From 1966 to 2000, the Atlantic Richfield Company, doing business as ARCO, was an independent American oil company with operations in the United States, Indonesia, the North Sea, the South China Sea and Mexico.[2] After its acquisition of Anaconda Copper Mining Company in 1977, ARCO had owned hard rock mines in several western states, which has created environmental clean-up liabilities to the company to this day even after the mines were closed in the early 1980s.

In 2000, BP Amoco (now BP) acquired ARCO for $26.8 billion.[3][4] ARCO's retail and marketing operations were kept separate while the rest of the company was integrated into BP.

In 2012, BP sold its Carson refinery, 800 ARCO stations in California, Arizona and Nevada, and the ownership of the ARCO brand to Tesoro for $2.5 billion while paying Tesoro for an exclusive license for use of the ARCO brand on its stations in northern California, Oregon and Washington which will be continued to be supplied from BP's Cherry Point Refinery in Washington state.[5]

BP has retained the Atlantic Richfield Company as a subsidiary to handle environmental claims against BP for the clean-up of former Anaconda mine properties.[6][7]

Early period

[edit]

ARCO was formed by the merger of East Coast–based Atlantic Refining and California-based Richfield Oil Corporation in 1966; the company's name is an acronym of the two companies' names. A merger in 1969, brought in Sinclair Oil Corporation.[2] In the 1970s and 80s, ARCO was one of the largest companies in the world, consistently a top 20 company of the Fortune 500.[8] After its subsequent fracture in the late 1980s and early 90s, ARCO became a subsidiary of UK-based BP plc in 2000 through its BP West Coast Products LLC (BPWCP) affiliate.[9]

  • The Atlantic Petroleum Storage Company's heritage dates back to 1866. It became part of the Standard Oil trust in 1874, but achieved independence again when Standard Oil was broken up in 1911.
  • In 1915, Atlantic opens its first filling station on Baum Boulevard in Pittsburgh, Pennsylvania.
  • In 1917, First Richfield Oil Company of California gas station at Slauson and Central Avenues in Los Angeles, California. Richfield Oil Company of California logo is an Eagle trademark.
  • The Atlantic Refining Company was headquartered in Philadelphia, Pennsylvania.
  • In 1966, Atlantic merged with the Richfield Oil Company of California. The first CEO was Robert Orville Anderson, who had previously led Atlantic. The trademark for the new company, a red diamond shape called the ARCO Spark, was designed by Bauhaus artist, designer, and architect Herbert Bayer.
  • Commercial oil exploration started in Prudhoe Bay, Alaska, in the 1960s, and the Prudhoe Bay Oil Field, North America's largest oil field, was discovered on March 12, 1968, by Atlantic Richfield Company (ARCO) and Exxon with the well Prudhoe Bay State #1. Key employees with ARCO Alaska were Marvin Mangus, John M. Sweet, and William D. Leake, chief project engineer for the Alaska pipeline. The Richfield Oil Company of California had purchased the drilling rights to the land where the discovery well was located. BP had drilling rights near the discovery well.
  • ARCO acquired Sinclair Oil Corporation in 1969, but later divested certain Sinclair assets during the mid-1970s, resulting in Sinclair returning as a private company.
  • In 1978, ARCO opened the first of its ampm convenience stores in Southern California.

1980s

[edit]

Due to the increasing cost in processing credit card sales, ARCO eliminated its own private credit card program and stopped accepting any bank credit cards, such as Visa and MasterCard, in 1982. In this way, the company was able to pass the resulting savings on to its dealers, which resulted in the company becoming the only major gasoline retailer to accept only cash at its stations.[10]

In 1985, ARCO's East Coast stations were not doing very well so ARCO sold 400 service stations in eight states and the District of Columbia to Shell for an undisclosed price and also sold 576 service stations in Pennsylvania and New York plus a refinery in Pennsylvania for $420 million to Dutch trader John Deuss, who rebranded the stations to their former name Atlantic.[11] Deuss later sold the stations plus refinery, pipelines and terminals in 1988 to Sunoco for $513 million.[11]

In 1986, ARCO began to accept bank ATM cards (which later became debit cards) at its stations by adding on a transaction fee of initially 10 cents for those sales while maintaining cash-only sales at the previous low price.[12]

1990s

[edit]

In the beginning of the 1990s, a subsidiary, ARCO Power Technologies, later Advanced Power Technologies (APTI), was the primary contractor for the High-frequency Active Auroral Research Program (HAARP Project). ARCO having hired Bernard Eastlund led to conspiracy theories about weather control and warfare. In March 1997, ARCO also leased almost all the gas stations of the (now) Santa Fe Springs, California–based independent Thrifty Oil[13] group of 250 stations found throughout California[14] after a damaging price war which the independent Thrifty was unable to win.[15]

On July 5, 1990, an explosion at an ARCO Chemical Co. facility in Channelview, Texas killed 17 people and injured five others.

2000s

[edit]

On April 18, 2000, ARCO was purchased by BP and completely merged into BP operations. There were two exceptions due to FTC requirements: ARCO Alaska was sold by BP to Phillips Petroleum, and ARCO Pipe Line Company was acquired by TEPPCO, a subsidiary of Enterprise Products.

Headquarters buildings

[edit]
At one time, ARCO had its headquarters in what is now the City National Plaza complex in Downtown Los Angeles[16]

From 1972 to 2000, ARCO's global corporate headquarters were in the ARCO Plaza in Los Angeles at the corner of 5th and Flower Streets, the site of Richfield's former headquarters. Upon completion in 1972,[17] the ARCO Plaza towers were the tallest buildings in the city for one year before being overtaken by Aon Center, and were the tallest twin towers in the world until the completion of the World Trade Center in New York City. In 1986, joint owners ARCO and Bank of America sold the buildings to Shuwa Investments Corp., the American subsidiary of Shuwa Co. of Tokyo, for $650 million while both remained tenants in their respective named towers.[18] ARCO moved out of the building in 1999.[19] The building was renamed City National Plaza in 2005.[20]

ARCO's Oil & Gas division headquarters were in downtown Dallas, Texas. ARCO Tower, the company's headquarters, was a 46-story office building designed by architect I.M. Pei. The building is now called Energy Plaza.

Research Laboratory

[edit]

From the 1960s, until the end of the twentieth century, ARCO operated a highly significant research and development center in Plano, Texas, on land purchased in 1964 by the Atlantic Refinery Company.[21] Its golden age was arguably in the early to mid 1980s, when it was led by Robert L. Hirsch. A standout example of ARCO's research at that time was the pioneering study on 4D seismic surveying by Robert Greaves and Terry Fulp. This consisted of repeated 3D seismic surveys which successfully mapped the effects of enhanced oil recovery processes as a function of time.[22] This work was recognized for its seminal importance over 20 years later by the Society of Exploration Geophysicists.[23][failed verification] Besides Greaves and Fulp, the laboratory produced a number of other distinguished alumni during this golden age, including scientists John Castagna, Michael Batzle, Geoffrey Dorn, and Marius Vassiliou. In later years the laboratory experienced significant contraction. It finally closed shortly after the 2000 acquisition of ARCO by BP.

ARCO Solar

[edit]

During the 1970s, the United States government and states such as California sought to encourage companies to invest in the development of low-pollution renewable energy sources. Oil companies such as BP, Shell, and ARCO began to look into photovoltaics. In 1977, ARCO purchased Chatsworth-based Solar Technology International, renamed it ARCO Solar, and moved it to Camarillo.[24] In 1982, ARCO constructed the world's first photovoltaic central utility power plant, a 1-megawatt facility near Hesperia.[25] Unfortunately for ARCO, the solar panel industry was costly and not very profitable, so it was looking for a buyer by 1989.[26] It finally sold the company to the German company Siemens for $36 million in 1990.[27][28]

ARCO Chemical

[edit]

In 1987, ARCO Chemical Co. was spun off and taken public, with ARCO selling 19.9% to the public.[29] Lyondell Chemical Company (now LyondellBasell), bought ARCO Chemical in 1998 for $5.6 billion including ARCO's entire 82.2% ownership stake.[30]

Anaconda Copper

[edit]

ARCO merged with Anaconda Copper Mining Company of Montana in 1977. Anaconda's holdings included the Berkeley Pit and the Anaconda, Montana Smelter. ARCO founder Robert Orville Anderson stated "he hoped Anaconda's resources and expertise would help him launch a major shale-oil venture, but that the world oil glut and the declining price of petroleum made shale oil moot".[31] The purchase turned out to be a regrettable decision for ARCO. A lack of experience with hard-rock mining and a sudden drop in the price of copper to below seventy cents a pound, the lowest in years, caused ARCO to suspend all operations in Butte, Montana. By 1983, only six years after acquiring rights to the "Richest Hill on Earth", the Berkeley Pit was completely idle. By 1986, some ARCO properties were sold to billionaire industrialist Dennis Washington, whose company, Montana Resources, operates a much smaller open-pit mine east of the defunct Berkeley Pit.

Superfund site

[edit]

ARCO was the responsible party (by its ownership of Anaconda Copper at the time operations were terminated) for the largest U.S. Superfund site—a site that takes in the towns of Butte and Anaconda, and 120 miles (190 km) of the Clark Fork River including Milltown Dam. The region's water and soil were polluted by a century of mining and smelting. Chemicals of concern include many heavy metals and arsenic. On 7 February 2008, the United States Environmental Protection Agency announced that prolonged litigation with ARCO ended when ARCO agreed to pay $187 million to finance natural resource restoration activities.[32] Anaconda Copper still nominally exists, but only as a massive environmental liability for BP.

Atlantic Richfield Co and its then parent BP America agreed to settle a class-action lawsuit brought by about 700 current and former residents of Yerington, Nevada, who lived near the Anaconda mine built in 1941. The company paid in Nevada up to $19.5M for settlement. EPA tested in 2009 wells and found that 79% of the wells north of mine had dangerous levels of uranium and/or arsenic.[33]

[edit]

In September 2010, the staff of KCST-FM in Florence, Oregon, noticed that the station's Emergency Alert System (EAS) equipment would repeatedly unmute as if receiving an incoming EAS message several times a week. During each event, which was relayed from KKNU in Springfield, Oregon the same commercial advertisement for ARCO/BP gasoline could be heard, along with the words "This test has been brought to you by ARCO". Further investigation by the primary station transmitting the commercial revealed that the spot had been produced using an audio clip of an actual EAS header which had been modified to lower the header's volume and presumably prevent it from triggering false positive alert reactions in EAS equipment. The spot was distributed nationally, and after it had once been identified as the source of the false EAS equipment trips, various stations around the country reported having had similar experiences. After a widespread notification by the Society of Broadcast Engineers was issued, ARCO's ad agency withdrew the commercial from airplay.[34][35]

Sponsorships

[edit]

Sports

[edit]

Starting in 1965, ARCO sponsored the ARCO Jesse Owens Games, an annual track meet for children aged ten to fifteen that was started by Olympics gold medalist Jesse Owens.[36]

In 1980, ARCO became a sponsor of the 1984 Summer Olympics that were held in Los Angeles and had helped financed the refurbishing of the Los Angeles Memorial Coliseum.[37]

In 1985, ARCO became a sponsor of the just-moved Sacramento Kings basketball franchise and had obtained the long-term naming rights for both their temporary and permanent homes, Original ARCO Arena and the purpose-built ARCO Arena.[38] After BP acquired ARCO in 2000, BP decided not to renew the naming rights to the arena when the sponsorship was due to expire in February 2011.[39]

Music

[edit]

During the 1980s and 1990s, ARCO had sponsored the annual ARCO Concerts in the Sky summer jazz series at the Bonaventure Hotel in downtown Los Angeles.[40][41]

Leadership

[edit]

President

[edit]
  1. Thornton F. Bradshaw, 1966–1981
  2. William F. Kieschnick Jr, 1981–1985
  3. Lodwrick M. Cook, 1985
  4. Robert E. Wycoff, 1986–1993
  5. Michael R. Bowlin, 1993–1998
  6. Michael E. Wiley, 1998–2000

Chairman of the Board

[edit]
  1. Robert O. Anderson, 1966–1985
  2. Lodwrick M. Cook, 1986–1995
  3. Michael R. Bowlin, 1995–2000

ARCO service station brand

[edit]

Currently, the brand name ARCO is being used by Marathon Petroleum as a brand of gasoline service stations in the United States and Mexico. In Northern California, Oregon, and Washington states, the ARCO brand is licensed for exclusive use to BP for the sale of gasoline in those areas.

Any independent station can adopt the ARCO brand in any territory that is covered by the Marathon Petroleum distribution network outside the BP territories of the northwest.

It has more than 1,300 gas stations in the western part of the United States,[42] and recently (as of 2017) five gas stations in northwestern Mexico.[43][44]

History

[edit]
An ARCO filling station off Slauson Avenue in Los Angeles, California circa (2005)

After the Atlantic Richfield Company acquired Sinclair Oil in 1969, Atlantic Richfield decided to merge their three separate service brands into one and call it ARCO. $60 million was spent in the rebranding effort.[45]

Over the course of 2004 and 2005, ARCO signs were replaced with signs that still had the ARCO spark,[citation needed] but BP's Helios (BP's new white, yellow, and green "sunburst" mark named after the Greek Sun god, replacing the old British Petroleum shield mark)[46][failed verification][47][failed verification] is also located on the sign. A new tagline "ARCO—part of BP" also appeared on some signs and advertisements. ARCO was known for sponsoring the ARCO Arena (now Sleep Train Arena) in Sacramento, California,[48] with a license fee of $750,000/year through 2007.[49]

On August 13, 2012, it was announced[50] that Tesoro would purchase ARCO and its refinery for $2.5 billion. The deal came under fire because of increasing fuel prices. Many activists urged state and federal regulators to block the sale because of concerns that it would reduce competition and could lead to higher fuel prices at ARCO stations (ARCO stations make up more than half of all stations with the lowest fuel prices in California).[51] On June 3, 2013,[52] BP sold ARCO and the Carson Refinery to Tesoro for $2.5 billion. BP sold its Southern California terminals (Vinvale, Colton, San Diego, Hathaway, and Hynes) to Tesoro Logistics LP, including the Carson Storage Facility.[53] BP sold the ampm brand to Tesoro for Southern California, Arizona, and Nevada. BP exclusively licensed the ARCO rights from Tesoro for Northern California, Oregon, and Washington.

ARCO is known for its low-priced gasoline compared to other national brands, mainly because of an early 1980s business decision to emphasize cost cutting (cash/debit-only policy) and alternative sources of income (ampm). ARCO is headquartered in La Palma, California.[54][55]

Tesoro was renamed Andeavor in 2017, and shortly afterwards introduced the ARCO brand for the first time in Mexico by the opening of ARCO branded stations in Tijuana.[56][57] The introduction of the ARCO brand and other American brands in Mexico came after Mexico ended the monopoly of state-owned Pemex.

In spring of 2018, Andeavor began rebranding some SuperAmerica branded stations in North Dakota, South Dakota, Wisconsin and Minnesota to ARCO.[58]

An ARCO station in St. Clairsville, Ohio in 2021, well out of ARCO's traditional marketing territory and in the home state of Marathon.

Andeavor was acquired by Marathon Petroleum in 2018. Following the acquisition, Marathon hinted at keeping the ARCO brand name while rebranding Andeavor's other brands either as standard Marathon stations (for franchised locations) or Speedway locations (for company-owned locations); stations still owned by BP may either remain as ARCO or rebranded as Amoco, as BP does not own the rights to the BP name due to licensing-based reasons in the Western United States.[59] Following the merger, ARCO and Marathon began to be marketed together with Marathon stations replacing various Andeavor brands in the Western markets (including Exxon, Mobil and Shell stations under license with ExxonMobil and Shell, respectively) while ARCO returned to Eastern markets for the first time since 1985. Marathon ultimately sold Speedway to 7-Eleven in 2020, including some former Andeavor properties.[60]

In 2021, ARCO reinstituted accepting credit cards, and engaged in an advertising campaign to inform consumers.[61]

See also

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

ARCO

View on Grokipedia
from Grokipedia
Atlantic Richfield Company (ARCO) was an independent American energy corporation headquartered in Los Angeles, California, specializing in the exploration, production, refining, and marketing of oil and natural gas. Formed in 1966 through the merger of the Atlantic Refining Company—established in 1866 as one of the earliest U.S. refineries—and the Richfield Oil Corporation, which traced its origins to 1915, ARCO rapidly expanded into major domestic and international operations. ARCO achieved prominence through pivotal discoveries in , including Richfield's 1957 Swanson River field—the state's first commercial oil production—and ARCO's co-leadership in the 1968 Prudhoe Bay find, North America's largest oil field with reserves estimated at 5 to 10 billion barrels. These successes positioned ARCO as a 21% stakeholder in the , operational from , enabling vast crude oil transport despite environmental opposition that delayed development into the 1970s. The further diversified via mergers with Sinclair Oil in and Anaconda in , becoming the leading gasoline retailer in five western U.S. states and pioneering integrated gas station-convenience store models like . In 2000, following a $26.8 billion acquisition by , ARCO transitioned into a brand focused on West Coast retail, though it inherited substantial environmental liabilities, including ongoing remediation at sites like the Anaconda smelter, where ARCO has paid millions in cleanup costs amid litigation over contamination from legacy mining operations.

History

Formation and Early Expansion (1966–1970s)

The Atlantic Richfield Company was formed in January 1966 through the merger of the Atlantic Refining Company, an East Coast-based refiner headquartered in Philadelphia, and the Richfield Oil Corporation, a West Coast marketer and producer based in California. This combination created an integrated independent oil company with complementary operations in refining, marketing, and exploration, positioning it to compete more effectively against larger integrated majors. The merger endowed ARCO with a network of refineries, service stations primarily on the West Coast under the Richfield brand, and exploratory capabilities, setting the stage for aggressive expansion in domestic oil production. A pivotal moment in ARCO's early growth occurred on March 12, 1968, when the company, in partnership with (later Exxon), discovered the on Alaska's North Slope through the Prudhoe Bay State No. 1 well. This find, the largest oil accumulation ever in with initial estimates of over 9 billion barrels of recoverable reserves, dramatically expanded ARCO's resource base and fueled its transition from a regional player to a major independent producer. The discovery prompted intensified leasing and drilling on the North Slope, with ARCO investing heavily in seismic surveys and additional wells to delineate the field, though full development awaited pipeline construction amid regulatory and environmental hurdles. Further consolidation came in 1969 with ARCO's acquisition of , completed via a stock-for-stock merger valued at approximately $3.7 billion, which added substantial Midwestern refining capacity, pipelines, and proven reserves outside . This deal, one of the largest in the industry at the time, integrated Sinclair's assets—including refineries in and —and expanded ARCO's marketing footprint, enhancing its and reserve profile to over 1 billion barrels by the early . These moves, coupled with rising global oil demand and domestic , propelled ARCO's revenues from about $1 billion in 1966 to over $5 billion by 1973, establishing it as a leading U.S. independent amid the era's exploration boom.

Growth and Diversification (1980s)

During the early 1980s, Atlantic Richfield Company (ARCO) benefited from high oil prices and expanded production, particularly from Alaska's North Slope, where crude oil output rose 17 percent in 1980 compared to 1979 levels. Company assets doubled to $16 billion by 1980 from $8 billion in 1976, reflecting robust financial growth amid the post-1970s . Quarterly profits surged, with fourth-quarter earnings increasing 54.1 percent in late 1979 into 1980, and nine-month net income reaching $1.25 billion on $16.77 billion in revenues for the period ending September 1980. This period marked peak performance before oil market softening later in the decade prompted strategic shifts. ARCO pursued diversification beyond core hydrocarbons, building on prior ventures like the 1977 Anaconda acquisition for exposure, though the minerals segment incurred losses of $43 million in 1980, escalating to $315 million in 1982. In , the company consolidated olefins operations in 1985 by forming Lyondell Petrochemical Company as a subsidiary, enhancing production capacity through merged assets from ARCO Chemical. Renewable efforts advanced via ARCO Solar, which captured 45 percent of the photovoltaic market by mid-decade; a key investment included $25 million paid to Energy Conversion Devices in January 1980 to accelerate development and construction. These moves aimed to hedge against oil volatility but highlighted risks, as non-core units like strained overall profitability despite core gains.

Challenges and Restructuring (1990s)

In the early , ARCO confronted declining profits amid low oil and prices coupled with a U.S. economic , with falling from $1.95 billion in 1989 to $709 million in . Production from key Alaskan fields, which had driven earlier growth, began to wane, dropping from 459,000 barrels per day in 1989 to projected levels around 400,000 barrels per day by decade's end, exacerbating reserve replacement challenges in a low-price environment. To address these pressures, the company implemented cost reductions, including the elimination of 2,100 jobs in and the divestiture of approximately 1,100 domestic oil and properties. These measures aimed to streamline operations and preserve amid industry-wide reserve replacement costs that averaged higher than peers for some majors, reflecting ARCO's difficulties in sustaining upstream viability. Environmental liabilities inherited from the 1977 acquisition of Anaconda Company imposed substantial ongoing costs, including Superfund-mandated cleanups at contaminated mining sites in and elsewhere, with ARCO committing $260 million in 1998 alone for remediation across multiple facilities such as the Anaconda smelter and related areas. These expenditures, stemming from , , and , strained finances as federal regulations intensified scrutiny and required long-term outlays estimated in the hundreds of millions during the decade, diverting capital from core oil and gas activities. In , ARCO initiated litigation against over 70 insurers to recover portions of these cleanup expenses, highlighting the scale of the burden. By the late , persistently low crude prices—ranging from $13 to $16 per barrel, down 30% year-over-year—and flat international revenues at about $3.4 billion from 1995 to 1997 compounded internal missteps, such as underinvestment in domestic assets and high-risk overseas ventures like a $340 million stake in Russia's . Earnings plunged 57% in the first half of 1998, prompting a second major restructuring that targeted $500 million in cost savings over two years through 900 job cuts, closure of 20 foreign offices, and sales of non-core assets including a majority interest in ARCO Chemical and U.S. operations. This retrenchment refocused ARCO on , particularly domestic and select international opportunities to offset Alaskan declines, but underscored vulnerabilities as a mid-sized player amid industry consolidation.

Acquisition by BP and Brand Transitions (2000s–Present)

BP Amoco announced its agreement to acquire Atlantic Richfield Company (ARCO) on April 1, 1999, in a stock swap valued at approximately $26.8 billion, aiming to bolster its position in Alaskan oil reserves and global energy assets. The deal, which included ARCO's significant proven gas reserves of 9.8 trillion cubic feet, faced antitrust scrutiny due to the combined entity's dominant share of Alaskan crude production, estimated at 74%. To address these concerns, the U.S. (FTC) required divestitures, including ARCO's standalone oil and gas interests, pipelines, and storage facilities in key markets like , prior to approval. The merger completed on April 18, 2000, with ARCO becoming a wholly owned subsidiary of (subsequently rebranded as ). Post-acquisition, integrated ARCO's upstream operations, particularly in Alaska's , while initially maintaining separation for downstream refining and marketing activities to preserve market competition. also divested non-core assets, such as ARCO Aluminum Inc., to streamline its portfolio toward oil and gas exploration. In the retail sector, BP retained the ARCO brand for its Western U.S. service stations and Carson refinery operations through the 2000s, operating over 1,000 ARCO-branded sites focused on low-price, high-volume fuel sales. By 2012, facing strategic shifts toward upstream focus and capital needs, BP sold the Carson refinery and ARCO retail network in the U.S. Southwest—including , , and —to for $2.5 billion. As part of the transaction, BP transferred ARCO retail brand rights to Tesoro but secured an exclusive license to use the brand in , , Washington, and Nevada, allowing continued ARCO presence under BP's limited operational footprint in those regions. Since the 2012 divestiture, the ARCO brand has persisted in the Western U.S. retail market primarily under Tesoro's successors—following mergers into Andeavor and then —while 's involvement has diminished to licensed usage in select areas. has prioritized ARCO's legacy upstream assets, contributing to its Alaskan production, with no major brand-wide transitions reported through 2025. This shift reflects 's broader strategy of asset optimization post-acquisition, retaining high-value exploration interests while exiting retail to specialized operators.

Business Segments

Oil and Gas Exploration and Production

ARCO's oil and gas exploration and production operations were predominantly focused on upstream activities in , where the company pioneered major developments on the North Slope. The predecessor discovered oil at the Swanson River field in 1957, establishing the first commercial production in at rates initially exceeding 220,000 barrels per day across early fields. This was followed by the transformative discovery of the Prudhoe Bay field on March 12, 1968, through ARCO's Prudhoe Bay State No. 1 well drilled in partnership with Exxon, uncovering an estimated 25 billion barrels of recoverable oil and making it the largest oil accumulation in . ARCO held substantial interests in the field, operating the eastern area and controlling key leases acquired during federal sales, which positioned the company as the largest leaseholder in the region. Commercial production from Prudhoe Bay began on June 20, 1977, enabled by the , with initial output reaching about 2 million barrels per day from the field. ARCO's share contributed significantly to its production profile, alongside developments in adjacent fields like the Greater Kuparuk area, where the company initiated output in the early 1980s using advanced horizontal drilling techniques to access viscous oil reserves. By the late , ARCO's Alaskan assets encompassed multiple North Slope fields, accounting for a substantial portion of the state's total crude output, which peaked at over 2 million barrels per day industry-wide. The company's exploration efforts also extended to enhanced recovery methods, such as miscible gas injection, applied in Alaskan reservoirs to sustain yields. Internationally, ARCO pursued exploration in regions including the , , and the , though these yielded fewer large-scale developments compared to . In 1982, ARCO identified a field containing 85 billion cubic meters off southeast , culminating in the Yacheng project's first gas flows in 1996 via a 480-mile subsea completed under at $1.13 billion, with ARCO holding a 34.3% stake. In , ARCO achieved the Tangguh gas discovery in 1994 within Paleocene-Jurassic formations, marking a major pre-Tertiary find in the region. Additional ventures included stakes in Russian assets via a 1995 investment in targeting potential and production boosts in Algeria's Rhourde El Baguel field to 17,000 additional barrels per day using gas injection. Following BP's $26.8 billion acquisition of ARCO in 2000, most upstream assets, including Alaskan holdings, were divested—such as the $7 billion sale of North Slope interests to Phillips Petroleum—to resolve antitrust issues, effectively concluding ARCO's independent exploration and production era.

Refining, Marketing, and Service Stations

Atlantic Richfield Company (ARCO) operated several refineries as part of its downstream operations, with the Carson refinery in serving as a key facility. Located in Carson, this refinery had a crude capacity of 266,000 barrels per day and produced approximately 5 million gallons of daily, accounting for more than one-fourth of the area's supply as of 1989. ARCO also maintained a refinery in , along the Indiana Harbor and Ship Canal, supporting regional processing. These assets enabled ARCO to refine crude oil into , diesel, and other products from the 1960s through the 1990s, integrating with its upstream production in and elsewhere. ARCO's marketing emphasized low retail prices through cost-cutting measures, such as operating no-frills service stations without attached convenience stores in many cases and discontinuing acceptance to avoid processing fees. This high-volume, low-margin strategy increased market share, particularly in , where ARCO became the largest distributor with over 20% of the market by the early . The approach relied on efficient supply chains from ARCO's refineries and Alaskan crude, allowing consistent undercutting of competitors' prices while maintaining fuel quality standards. ARCO's service station network expanded rapidly post-1966 merger, focusing on the with unbranded or minimally branded outlets to prioritize affordability. By 2000, the company operated around 1,200 stations, primarily in , where density supported . Stations featured pumps and basic amenities, aligning with the discount model, though some integrated convenience stores for additional revenue. Following 's 2000 acquisition of ARCO, the brand persisted in select markets, transitioning to operators like Tesoro (later ) after BP divested assets including 800 stations in 2012. As of the early 2020s, ARCO-branded stations numbered over 1,800 across the West Coast, , and Midwest, continuing the legacy of value-oriented fueling.

Chemicals and Petrochemicals

The chemicals and petrochemicals operations of Atlantic Richfield Company (ARCO) were primarily conducted through its subsidiary ARCO Chemical Company, formed in 1966 as a division shortly after the merger of Atlantic Refining Company and Richfield Oil Corporation that created ARCO. This segment leveraged ARCO's upstream oil and gas resources to produce intermediate petrochemicals for industrial and consumer applications, including propylene oxide (PO), a key building block for polyurethanes, propylene glycols, and glycols used in antifreeze and detergents. ARCO Chemical also manufactured derivatives such as butanediol for plastics and solvents, emphasizing proprietary processes like co-production of PO with styrene monomer to improve efficiency over traditional chlorohydrin methods. In 1985, ARCO restructured by separating its olefins production—focused on and crackers—from ARCO Chemical, establishing Lyondell Company as a new subsidiary with facilities along the , including a major plant operational by 1987 capable of producing over 1 billion pounds annually. This spin-off allowed ARCO Chemical to concentrate on oxygenated chemicals and derivatives, while Lyondell handled basic feedstocks; the move reflected ARCO's strategy to streamline operations amid volatile oil prices and antitrust scrutiny. ARCO Chemical expanded globally, investing $1 billion in the late and early to build PO facilities in , (opened 1990, capacity exceeding 200,000 metric tons per year), and Chiba, (joint venture, operational by 1992). Domestically, it broke ground in 1988 on a derivatives plant near , with initial capacity of 170 million pounds per year to supply for fibers and coatings. By the mid-1990s, ARCO Chemical generated approximately $4 billion in annual revenue, positioning it as a leader in PO with about 20% global market share through cost-competitive technology. However, ARCO's broader corporate shift toward core exploration and production led to the 1998 sale of ARCO Chemical to Lyondell Petrochemical for $5.6 billion in stock, enabling ARCO to divest non-upstream assets ahead of its 2000 acquisition by BP. The transaction integrated ARCO Chemical's PO assets with Lyondell's olefins capabilities, forming a vertically integrated petrochemical powerhouse, though it drew regulatory review for potential market concentration in glycols. Post-sale, ARCO's direct involvement in chemicals ceased, with BP inheriting minimal residual operations focused on refining byproducts rather than standalone petrochemical production.

Mining Operations (Anaconda Copper)

Atlantic Richfield Company (ARCO) acquired the , a prominent producer, in January 1977 through a merger valued at approximately $700 million, aiming to diversify beyond into nonferrous metals amid volatile oil markets. 's core assets included extensive underground mines in , the Berkeley Pit open-pit operation, and a large smelter in , which had historically produced significant output, peaking at over 300,000 tons annually in earlier decades. Under ARCO's ownership, these operations faced immediate pressures from declining global prices, which fell below $0.60 per pound by the late 1970s, eroding profitability despite Anaconda's reserves estimated at billions of pounds of . ARCO initially continued mining activities, including development of reserves at Carr Fork in , but prioritized cost-cutting amid rising labor and energy expenses. By 1980, ARCO halted production at the Anaconda smelter due to inefficiencies and environmental compliance costs, followed by the closure of underground mines in . Mining operations fully ceased in 1982 when ARCO discontinued pumping at the Berkeley Pit, allowing to flood the site and rendering it inoperable; this decision was driven by unviable economics, as prices remained suppressed and extraction costs exceeded market values. The closures resulted in thousands of job losses in , contributing to economic decline in the region, while ARCO dismantled much of the smelter infrastructure, leaving only the iconic 585-foot stack standing. Post-closure, ARCO retained substantial environmental liabilities from Anaconda's legacy operations, including and heavy metal contamination at sites like the Berkeley Pit, which became a U.S. location in 1983. The company has since invested billions in remediation, including a 2025 EPA settlement exceeding $21 million for past costs at the Anaconda Smelter site, underscoring the long-term financial burdens of the acquisition that outweighed anticipated diversification benefits. ARCO's management of Anaconda exemplified challenges in integrating high-cost assets during a commodity downturn, leading to asset sales and operational wind-down rather than expansion.

Renewable Energy Ventures (ARCO Solar)

ARCO Solar, a of Atlantic Richfield Company (ARCO), was formed in through the acquisition and rebranding of Solar Technology International, a firm focused on photovoltaic (PV) panel production. The venture represented ARCO's entry into amid the 1970s oil crises, aiming to diversify beyond fossil fuels by developing silicon-based solar cells for commercial and utility-scale applications. Under ARCO Solar's leadership, the company pioneered advancements in PV manufacturing scale and deployment. In 1980, it became the first firm to produce more than 1 megawatt of PV modules in a single year, establishing dominance in technology where cells were grown in laboratories, sliced into wafers, and assembled into panels. In 1982, ARCO Solar commissioned the Lugo photovoltaic plant near —a 1-megawatt facility that marked the world's first grid-tied, utility-scale central PV , capable of generating for approximately 200 homes. This project, developed in partnership with , demonstrated early feasibility of large-scale solar integration into power grids, though output was intermittent and dependent on . ARCO Solar expanded production capacity with facilities in , and invested in research for improved efficiency, including early thin-film explorations, positioning it as the global leader in PV output during the early 1980s. The subsidiary achieved milestones such as the first Underwriters Laboratories (UL) listings for solar panels and contributed to subsequent utility projects, including a 5-megawatt phase of a larger solar field. However, high costs relative to fossil fuels—ARCO Solar panels priced at around $10 per watt—and limited market demand hindered profitability, as solar remained a niche technology subsidized by government incentives rather than competitive on unsubsidized merits. By the late 1980s, persistent financial losses prompted ARCO to divest. In February 1989, the company announced plans to sell ARCO Solar, citing unviable prospects for widespread solar adoption amid falling prices and technological hurdles like low conversion efficiencies (typically under 10% at the time). In 1990, ARCO offloaded its three solar plants, including the facility and the world's then-largest PV array, to a small Arizona-based firm for $2 million, effectively exiting operational generation. Following ARCO's 2000 acquisition by , no solar operations were retained, as divestitures had already occurred; later pursued separate renewables but did not revive ARCO Solar's assets. These efforts underscored early corporate experimentation with solar, yielding technical precedents but limited commercial viability until cost reductions decades later.

Research and Innovation

ARCO Research Laboratory

The ARCO Research Laboratory, located in , functioned as a central hub for Atlantic Richfield Company, emphasizing advancements in , , and fuels technology. Situated on a 40-acre complex at 400 E. Sibley Boulevard, the facility supported downstream operations through experimental work on process improvements and detection systems for industrial applications. It employed scientists, engineers, and technicians, some with decades of experience in laboratory-based innovation, contributing to ARCO's technical capabilities in and . Operational from the post-merger era of the onward, the laboratory built on predecessor facilities from Atlantic Refining and Richfield Oil, focusing on practical solutions for energy production efficiency. Researchers at the site developed technologies such as enhanced monitoring systems for operational reliability, though some implementations faced reliability challenges in field deployment. The laboratory's work aligned with ARCO's broader diversification into chemicals, supporting divisions like ARCO Chemical through targeted R&D in downstream processes. In 1985, Atlantic Richfield closed the Harvey facility as part of cost-cutting and relocation efforts amid industry downturns, transferring select units to other sites including . The closure impacted local and prompted subsequent attempts, while the site later required due to historical industrial activities, earning designation on the . Post-closure, ARCO consolidated R&D elsewhere, but the Harvey laboratory exemplified the company's mid-20th-century commitment to in-house technical research before trends intensified.

Key Technological Contributions

ARCO's subsidiary ARCO Solar advanced photovoltaic manufacturing by becoming the first company to produce more than 1 megawatt of PV modules annually in 1980, marking a milestone in scaling production for commercial viability. In 1982, ARCO Solar constructed the world's first utility-scale central photovoltaic power plant, a 1-megawatt facility near , demonstrating the feasibility of large-array solar electricity generation integrated into utility grids. The company further contributed to thin-film solar technology by developing and scaling proprietary processes for large-area copper indium selenide (CIS) modules, improving efficiency and cost-effectiveness in alternative photovoltaic materials. In petrochemicals, ARCO Chemical introduced innovative processes for oxygenates, including the construction of the world's first dedicated plant for methyl tertiary-butyl ether (MTBE) production in 1979, which enabled its use as a high-octane gasoline additive to meet emerging clean-air standards. This facility, leveraging a reaction of isobutylene and methanol, positioned ARCO as a leader in fuel additives that reduced carbon monoxide emissions when blended into gasoline at up to 15% by volume. ARCO enhanced oil recovery techniques through miscible gas injection at the Prudhoe Bay field, applying solvent processes to mobilize heavy crude and boost extraction rates beyond conventional waterflooding methods, with field-wide implementation by the late 1990s yielding incremental recoveries estimated at several percentage points of original . The company also pioneered cost-saving innovations in sensitive wetlands, using lightweight mats and directional techniques to minimize environmental disturbance while reducing well costs by over $1.2 million per site in operations during the .

Leadership and Corporate Governance

Presidents and CEOs

Robert O. Anderson served as the founding chairman and of Atlantic Richfield Company (ARCO) following its formation in 1966 from the merger of Atlantic Refining Company and , holding these positions until 1986. Under Anderson's leadership, ARCO expanded significantly, including the discovery of the in in 1968 and the completion of the Trans-Alaska Pipeline in 1977, which transformed the company into a major energy producer. Thornton F. Bradshaw was appointed president of in 1966, a role he maintained until 1981, working closely with Anderson to integrate operations post-merger and navigate early challenges in Alaskan resource development. William F. Kieschnick Jr. succeeded Bradshaw as president from 1981 to 1985, overseeing a period of strategic adjustments amid fluctuating oil markets. Lodwrick M. Cook assumed the presidency in 1985 and became later that year, while also serving as chairman from 1986 to 1995; his tenure involved aggressive cost reductions, including the elimination of approximately 12,000 jobs between 1985 and 1987, to improve profitability during low oil prices. Robert E. Wycoff held the presidency from 1986 to 1993, focusing on operational efficiencies. Michael R. Bowlin became president in 1993 and chief executive officer on July 1, 1994, succeeding Cook in the CEO role while Cook retained the chairmanship until 1995; Bowlin led international expansions, such as acquiring a stake in Russia's in 1995, before ARCO's acquisition by BP Amoco in 2000. In 1998, William E. Wade Jr. was named president, streamlining reporting structures under Bowlin.
ExecutiveRole(s)Tenure
Robert O. AndersonChairman and CEO1966–1986
Thornton F. BradshawPresident1966–1981
William F. Kieschnick Jr.President1981–1985
Lodwrick M. CookPresident (1985), CEO (1985–1994), Chairman (1986–1995)1985–1995
Robert E. WycoffPresident1986–1993
Michael R. BowlinPresident (1993–1998), CEO (1994–2000), Chairman (1995–1999)1993–2000
William E. Wade Jr.President1998–2000

Chairmen of the Board

Robert O. Anderson served as the inaugural chairman of the board of Atlantic Richfield Company (ARCO) from its formation via the 1966 merger of Atlantic Refining and Richfield Oil until December 1985. During his 20-year tenure, ARCO grew into a major integrated oil company, highlighted by the 1969 acquisition of Sinclair Oil and the discovery of the in in 1968, which significantly boosted reserves and revenues. Lodwrick M. Cook succeeded Anderson as chairman in 1986 and held the position until 1995, while also serving as president and from 1985. Under Cook's leadership, ARCO earned recognition as one of the best-managed U.S. companies, with emphasis on and strategic divestitures amid fluctuating oil markets. Michael R. Bowlin became chairman in 1995, concurrent with his role as from 1994, and continued until ARCO's acquisition by in April 2000. Bowlin's term focused on adapting to industry consolidation and environmental pressures, culminating in the merger that integrated ARCO's assets into BP's global operations.
ChairmanTenure
Robert O. Anderson1966–1985
Lodwrick M. Cook1986–1995
Michael R. Bowlin1995–2000

Facilities and Infrastructure

Headquarters Evolution

The Atlantic Richfield Company (ARCO) was initially headquartered in following its formation in 1966 through the merger of the Atlantic Refining Company and . This location reflected the Eastern operational focus of the Atlantic Refining Company, which traced its roots to Philadelphia-based petroleum activities dating back to the . In 1972, ARCO relocated its corporate headquarters to , , aligning with the company's growing emphasis on Western U.S. oil exploration and refining, particularly influenced by Richfield's legacy in the region. The move coincided with the construction of ARCO Plaza, a pair of 52-story twin towers at 515-555 South Flower Street in , completed in 1972-1973 and designed by A.C. Martin & Associates as the company's global headquarters. This development symbolized ARCO's expansion and commitment to the West Coast, housing executive offices and supporting the firm's diversification into Alaskan oil fields and other ventures. The headquarters remained in Los Angeles through the and , with some divisional relocations, such as the 1988 shift of ARCO International Oil and Gas to , but the core corporate functions stayed at ARCO Plaza. ARCO's independent headquarters era ended with its $26.8 billion acquisition by BP Amoco in April 2000, after which the Los Angeles corporate offices were eliminated as operations integrated into BP's structure. BP retained the ARCO brand for marketing in the Western U.S., particularly California, but centralized oversight under its own global framework, with no distinct ARCO headquarters reestablished. In August 2012, BP agreed to sell its ARCO retail network—encompassing approximately 800 dealer-operated stations, the Carson refinery, pipelines, and terminals in the Southwest—to Tesoro Corporation for $2.5 billion, a deal completed in June 2013 following regulatory approvals. Tesoro, headquartered in San Antonio, Texas, integrated ARCO's marketing assets into its downstream operations, maintaining the brand's low-cost fuel positioning in California and adjacent states. Tesoro's acquisition of ARCO was short-lived in terms of ownership structure; in 2018, Marathon Petroleum Corporation acquired Andeavor (Tesoro's parent post-rebranding) in a $23 billion deal, bringing ARCO under Marathon's portfolio. Marathon, headquartered in Findlay, Ohio, continues to operate ARCO as a retail fuel brand primarily on the U.S. West Coast and in Mexico, with marketing and franchising managed from its Ohio base rather than a dedicated ARCO facility. This shift marked the final evolution from ARCO's standalone corporate presence to integration within larger integrated energy conglomerates, prioritizing operational efficiency over distinct branding headquarters.

Major Operational Sites

ARCO's primary operational sites encompassed major oil production fields and downstream refining facilities, with a strategic emphasis on Alaskan crude extraction and West Coast processing to capitalize on North Slope discoveries. These assets underpinned the company's , enabling efficient transport via the completed in 1977. The Prudhoe Bay field on Alaska's North Slope stood as ARCO's flagship production site, where the company, in collaboration with and Refining Company, confirmed a major oil discovery on March 13, 1968, through the Prudhoe Bay State No. 1 well. This supergiant field, spanning approximately 213,543 acres, held initial estimates of 5 to 10 billion barrels of recoverable reserves, marking it as a cornerstone of U.S. domestic energy supply. ARCO maintained significant ownership stakes and operational roles, contributing to peak production exceeding 1.5 million barrels per day in the early . In refining, the Carson Refinery in —acquired through the 1966 merger with Richfield Oil and operational under ARCO from that year until 2000—processed up to 5 million gallons of daily by the late 1980s, accounting for over one-fourth of Southern California's supply. Spanning 650 acres near the ports of Long Beach and , the facility handled diverse crudes and supported ARCO's marketing network. The near , constructed by ARCO between 1971 and 1973, represented a key response to Alaskan oil inflows, with design capacity around 225,000 barrels per day to refine North Slope heavy crude. As one of the newest U.S. refineries at the time, it bolstered regional fuel distribution across the Pacific Northwest. These sites, alongside ancillary pipelines and terminals, drove ARCO's output until its acquisition by in 2000, after which operations transitioned under new ownership.

Environmental Impacts and Superfund Remediation

Atlantic Richfield Company's (ARCO) most significant environmental impacts stemmed from its 1977 acquisition of the Anaconda Company, which exposed it to liabilities from over a century of and that dispersed heavy metals such as , lead, , , and across soils, sediments, , and in Montana's Upper Basin. These contaminants posed risks to human health through , , and dermal contact, as well as ecological damage to aquatic life and wildlife via in the . The Anaconda Smelter, operational from the until 1980, alone affected more than 200 square miles in the Deer Lodge Valley, with airborne emissions and waste discharges contaminating residential, agricultural, and recreational areas. The Anaconda Co. Smelter site was added to the EPA's (NPL) as a site in September 1983, becoming one of the largest and most complex in the program due to the scale of contamination and interconnected operable units spanning multiple municipalities. ARCO, identified as the primary potentially responsible party (PRP) through its Anaconda ownership, has conducted remediation under EPA consent decrees and oversight, including excavation of over 6 million cubic yards of contaminated soil, construction of landfills and caps for waste containment, installation of treatment systems, and restoration of wetlands and stream channels. Total expenditures by ARCO on cleanups in the region have exceeded $1 billion since the 1980s, with specific settlements including a 1998 agreement for $260 million in cleanup costs and a $1.8 million for response actions at Anaconda-related sites. Remediation efforts extended to the broader Silver Bow Creek/Butte Area and Milltown Reservoir Sediments operable units within the Upper Clark Fork complex, where ARCO funded sediment removal, riverbank stabilization, and repository construction for 6.6 million cubic yards of dredged material by 2010. A 2022 consent decree finalized ARCO's obligations for the Anaconda Smelter, mandating completion of principal threat waste removal and institutional controls by 2027, alongside payments for past EPA costs exceeding $21 million. In 2020, the U.S. in Atlantic Richfield Co. v. Christian ruled 5-4 that private landowners could seek state-law restoration damages beyond EPA remedies but required EPA contribution approval for any "remedial action" to preserve federal primacy under CERCLA, rejecting claims that such suits were preempted. Beyond mining legacies, ARCO faced impacts from operations, including from leaking underground storage tanks at thousands of branded gas stations, releasing , , and MTBE into aquifers; a 2002 settlement in , required ARCO to fund assessments and cleanups at over 300 sites. ARCO also remediated smaller Superfund-eligible sites, such as the Eureka Mills area in , addressing lead and from historic via soil removal and land use restrictions under a 2003 EPA . These efforts reflect ARCO's role—post-2000 acquisition by —as a PRP in at least a dozen NPL sites, primarily legacy industrial, with remediation emphasizing containment over full restoration due to technical and cost constraints.

Antitrust Issues and Mergers

In 1966, Atlantic Richfield Company (ARCO) was formed through the merger of Atlantic Petroleum Company and , a combination that expanded ARCO's refining and marketing operations primarily on the West Coast without significant antitrust challenges at the time. Three years later, in 1969, ARCO acquired , adding substantial crude oil reserves and refining capacity, which further solidified its position in the U.S. sector but did not trigger notable federal antitrust intervention. ARCO faced antitrust litigation in the and unrelated to mergers, including a 1990 U.S. case, Atlantic Richfield Co. v. USA Co., where the Court ruled 5-4 that a competitor (USA ) could not claim antitrust injury under Section 1 of the Sherman Act merely from ARCO's below-cost pricing intended to match a rival's prices, as such conduct did not demonstrably harm competition overall. The decision affirmed for ARCO, emphasizing that antitrust standing requires injury reflecting the anticompetitive effects the laws aim to prevent, rather than mere lost profits from legitimate price competition. In another instance, a 1992 federal court dismissed antitrust claims by Rebel Oil Company against ARCO in , finding insufficient evidence of predatory practices in gasoline marketing. The most significant antitrust scrutiny arose from BP Amoco's proposed $26.8 billion acquisition of ARCO, announced in April 1999 and valued at approximately $30 billion including debt. The U.S. , joined by , , and Washington, challenged the deal in February 2000, alleging it would violate Section 7 of the Clayton Act by enhancing BP's in Alaskan North Slope (ANS) crude oil production—a key input for West Coast refineries producing about 15% of U.S. —and potentially increasing gasoline prices through reduced competition. Post-merger, BP/ARCO would control roughly 50% of ANS output (or up to 74% of economically recoverable reserves), raising concerns of coordinated output restrictions or withholding supply to refiners. Critics, including Senator , argued the merger risked monopolistic control over a non-substitutable crude stream piped solely to refineries. To resolve these issues, the FTC accepted a consent order on April 13, 2000, requiring to divest ARCO's ANS production assets—including the Prudhoe Bay Unit interest and related infrastructure—to for $7 billion, preserving competition by maintaining multiple ANS producers. The states and FTC suspended their injunction efforts in March 2000, allowing the merger to close on , 2000, after the divestiture commitments addressed the core competitive harms without broader asset sales. This outcome reflected empirical post-merger data showing minimal price impacts in Alaskan crude markets, with concentration increases offset by the divestiture reducing the Herfindahl-Hirschman Index rise to about 0.8%.

Other Business and Franchise Disputes

Atlantic Richfield Company (ARCO) faced multiple lawsuits from gasoline station franchisees alleging breaches of contract, misrepresentations regarding profitability, and violations of state franchise investment protection statutes during the 1980s and early 1990s. These disputes often centered on ARCO's obligations under franchise agreements for supplying branded , maintaining facilities, and imposing fees upon termination. Franchisees, including operators of ARCO-branded stations and am/pm mini-markets, claimed that changes in ARCO's supply practices or failure to refurbish sites led to reduced customer traffic and profits. In AM/PM Franchise Ass'n v. Atlantic Richfield Co. (1990), members of the AM/PM Franchise Association sued ARCO in state court, asserting breach of warranty, breach of implied duty, and misrepresentation after signing agreements to lease sites and purchase ARCO gasoline. The plaintiffs sought for lost profits, alleging ARCO's actions diminished station viability, but the Supreme Court held that such damages were precluded by the franchise agreements' limitation clauses, affirming dismissal of those claims. The case highlighted tensions over ARCO's and dealer dependencies in its retail network. Another significant action, Thompson v. Atlantic Richfield Co. (W.D. Wash. 1986), involved franchisees challenging ARCO's imposition of a $20,000 franchise termination fee as an unfair penalty under Washington law. The plaintiffs sought permanent injunctive relief to prevent enforcement, arguing the fee violated franchise statutes by extracting payments unrelated to actual damages incurred by ARCO. The district court evaluated the fee's reasonableness in light of ARCO's investments in branded infrastructure and dealer training. In Harris v. Atlantic Richfield Co. (Cal. Ct. App. 1993), an am/pm mini-market franchisee alleged ARCO breached the agreement by neglecting repairs and refurbishments, mistreating the operator, and ultimately terminating the franchise. The Court of Appeal reviewed claims of and failure to honor covenants, underscoring ARCO's discretion in managing its dealer network amid competitive pressures in retail petroleum. Similar grievances appeared in Little Oil Co. v. Atlantic Richfield Co. (9th Cir. 1990), where former distributors contested ARCO's 1981 decisions to alter supply terms and franchise statuses. Additional suits, such as Avramidis v. Atlantic Richfield Co. (D. Mass. 1985), involved groups of dealers operating under ARCO franchise agreements, raising issues of enforcement and potential discriminatory practices in allocation. In Washington, 12 convenience store operators filed under the Franchise Investment Protection Act against ARCO for alleged investment recovery shortfalls. These cases collectively reflected broader industry challenges for oil majors like ARCO in balancing corporate control with franchisee autonomy, often resolved through contractual limitations and judicial deference to negotiated terms.

Economic and Societal Impact

Achievements in Energy Innovation and Supply

ARCO's most prominent achievement in energy exploration was the discovery of the on Alaska's North Slope in June 1968, in partnership with Exxon (then ). This confirmed the largest conventional oil accumulation in , with an estimated 25 billion barrels of oil originally in place, fundamentally enhancing U.S. domestic production capacity and contributing to by offsetting imports during the oil crises. The field has yielded over 13 billion barrels of recoverable oil to date, with peak production exceeding 1.5 million barrels per day in the early 1980s. To facilitate extraction and supply, ARCO held a 21% ownership stake in the (TAPS), completed in 1977 at a cost of $8 billion and spanning 800 miles from Prudhoe Bay to Valdez. Operational from June 20, 1977, TAPS enabled the transport of up to 2 million barrels per day at peak, delivering Alaskan crude to refineries and markets nationwide, which accounted for about 25% of U.S. oil production in the late 1970s and early . This infrastructure breakthrough reduced transportation bottlenecks in Arctic conditions, leveraging insulated piping and elevated design to minimize environmental disruption while accelerating efficiency. In and , ARCO introduced one of the first lead-free gasolines in the U.S. in 1970, ahead of federal mandates, and marketed the nation's initial low-emissions gasoline formulation by 1976, improving combustion efficiency and reducing pollutants. These advancements supported cleaner downstream supply for automotive and aviation sectors, with ARCO expanding high-octane production by 150% during II-era demands, demonstrating scalable adaptations. ARCO diversified into alternative energy with the formation of ARCO Solar in 1977 through the acquisition of Solar Technology International. The subsidiary delivered a 1 MW photovoltaic array to in 1980 and installed a pioneering 5.2 MW utility-scale system at Lugo, California, in 1982, among the earliest large-grid integrations of . By the mid-1980s, ARCO Solar captured 45% of the U.S. photovoltaic , advancing thin-film and technologies for scalable renewable supply. These efforts positioned ARCO as an early hybrid player in fossil and solar supply chains, though solar remained a fraction of its core hydrocarbon output.

Criticisms and Regulatory Burdens

ARCO has faced significant criticisms for its environmental impacts, particularly from legacy mining operations acquired through its 1977 purchase of the Anaconda Company, which left extensive contamination from , lead, and other in sites like the Anaconda Smelter and mining areas in . Environmental advocacy groups and local landowners have accused the company of insufficient remediation efforts beyond mandated cleanups, leading to lawsuits seeking restoration damages under state for , , and . In the 2020 Supreme Court case Atlantic Richfield Co. v. Christian, landowners near the Anaconda site argued that federal CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) remedies were inadequate, though the Court ruled that additional state-imposed cleanups require EPA approval to avoid conflicting with authority. These disputes highlight criticisms that ARCO prioritized cost minimization over proactive restoration, exacerbating long-term health risks in affected communities. Regulatory burdens under CERCLA have imposed substantial financial liabilities on ARCO, with the company incurring hundreds of millions in cleanup costs for sites. By 2020, ARCO had spent approximately $450 million on remediation at the Anaconda Smelter site alone, with projections for continued work through at least 2025. Notable penalties include a $1.8 million fine as part of a $260 million settlement in 1998 for Anaconda cleanup liabilities, a $21 million to EPA in 2013 for past costs at the same site, and a $150 million settlement in 2020 for Butte mining contamination requiring further soil and water remediation. In 2023, ARCO agreed to a $2.2 million cleanup for community soils at the ACM Smelter and Refinery site in , underscoring ongoing successor liability for pre-1970s operations despite ARCO's divestiture of most mining assets by the . These obligations, transferred to after its 2000 acquisition of ARCO, illustrate how under CERCLA burdens current operators with indefinite, successor-based costs that can exceed operational profits from acquired assets. Beyond environmental issues, ARCO has drawn business-side criticisms for what former Chairman Lodwrick Cook described in as overly burdensome government regulations contributing to industry contraction, including policies that discouraged domestic exploration and refining amid falling oil prices. Antitrust enforcement added to regulatory pressures; in 1984, ARCO settled a for $22.5 million over allegations of conspiring with other producers to underpay for heavy crude oil, reflecting scrutiny on pricing practices during the . The 2000 FTC challenge to BP's ARCO merger, which alleged potential price increases for crude used in production, further delayed integration and imposed divestiture requirements, highlighting how merger reviews can constrain consolidation in a capital-intensive sector. Safety-related fines, such as the $3.48 million record penalty in 1991 against ARCO Chemical for violations following a Channelview, Texas, plant explosion that killed 17 workers, underscore additional compliance costs from OSHA and EPA oversight. Critics from industry perspectives argue such regulations, while addressing real hazards, often retroactively apply stringent standards to historical practices, elevating operational uncertainty and long-term liabilities for firms like ARCO.

References

  1. https://www.fundinguniverse.com/company-histories/atlantic-richfield-company-history/
  2. https://pei.org/wiki_pei/arco/
  3. https://aoghs.org/old-oil-stocks/richfield-oil-corporation/
  4. https://akoghs.org/march-13-1968-oil-discovered-on-alaskas-north-slope/
  5. https://pubs.geoscienceworld.org/aapg/aapgbull/article/54/10/1969/554335/Geology-and-Discovery-of-Prudhoe-Bay-Field-Eastern
  6. https://arcoampmfranchisingsouth.com/who-we-are
  7. https://www.epa.gov/enforcement/case-summary-atlantic-richfield-pay-over-21-million-past-costs-anaconda-smelter-site
  8. https://www.company-histories.com/Atlantic-Richfield-Company-Company-History.html
  9. https://mergr.com/transaction/atlantic-richfield-company-acquires-sinclair-oil
  10. https://www.washingtonpost.com/archive/business/1980/10/28/arco-shell-tenneco-gain/138e1592-4e0d-4918-b6be-9c136cdf11e4/
  11. https://www.nytimes.com/1980/01/29/archives/arco-profits-rise-541-in-quarter-shell-oil-posts-722-increase.html
  12. https://www.nytimes.com/1980/10/28/archives/company-news-earnings-arco-net-up-216-shell-climbs-205-atlantic.html
  13. https://www.latimes.com/archives/la-xpm-1985-05-26-fi-6041-story.html
  14. https://www.nytimes.com/1980/01/16/archives/arco-pays-25-million-to-speed-solar-plan.html
  15. https://www.latimes.com/archives/la-xpm-1990-03-05-fi-1460-story.html
  16. https://www.joc.com/article/arco-selling-properties-in-continental-us-5488065
  17. https://www.sciencedirect.com/science/article/abs/pii/S1062976902001345
  18. https://www.justice.gov/archive/opa/pr/1998/November/544enr.htm
  19. https://cumulis.epa.gov/supercpad/SiteProfiles/index.cfm?fuseaction=second.cleanup&id=0800402
  20. https://www.latimes.com/archives/la-xpm-1990-12-03-fi-4365-story.html
  21. https://www.latimes.com/archives/la-xpm-1998-oct-18-fi-33652-story.html
  22. https://www.cbsnews.com/news/bp-amoco-acquires-arco/
  23. https://www.latimes.com/archives/la-xpm-1999-apr-01-mn-23311-story.html
  24. https://www.deseret.com/1999/4/1/19437628/bp-amoco-to-buy-arco-in-26-6-billion-deal/
  25. https://faculty.haas.berkeley.edu/shapiro/alaska.pdf
  26. https://www.ftc.gov/news-events/news/press-releases/2000/04/ftc-clears-merger-bp-amoco-atlantic-richfield-company
  27. https://www.ftc.gov/sites/default/files/documents/cases/2000/04/bpamstatepitthomp.htm
  28. https://www.sec.gov/Archives/edgar/data/775483/000109238800500269/arco_10q-v7.htm
  29. https://www.ogj.com/general-interest/companies/article/17215216/bp-amoco-signs-deal-with-ftc-acquires-arco
  30. https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/investors/listing-particulars-for-bp-amoco-arco-combination.pdf
  31. https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-agrees-sale-of-arco-aluminum.html
  32. https://cspdailynews.com/company-news/tesoros-transformative-acquisition-arco
  33. https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-agrees-to-sell-carson-refinery-and-arco-retail-network-in-us-southwest-to-tesoro-for-25-billion.html
  34. https://csnews.com/tesoro-buys-bps-arco-network-carson-refinery
  35. https://www.bp.com/en/global/corporate/who-we-are/our-history.html
  36. https://www.ogj.com/home/article/17215557/company-news-new-bp-plans-global-retail-revamp-rebranding
  37. https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-celebrates-40-years-production-prudhoe-bay.html
  38. https://dec.alaska.gov/spar/ppr/response/sum_fy06/060302301/factsheets/060302301_factsheet_PB.pdf
  39. https://www.ogj.com/home/article/17223203/arco-starts-up-north-slope-field
  40. https://www.petroclub.net/history
  41. https://pubs.geoscienceworld.org/aapg/books/book/1276/chapter/107114249/TangguhThe-First-Major-Pre-Tertiary-Discovery-in
  42. https://journalrecord.com/2000/03/16/phillips-offers-to-buy-arco39s-alaskan-assets-for-up-to-7-billion-2/
  43. https://www.ogj.com/general-interest/companies/article/17230313/bp-amoco-arco-merger-hits-snags-in-alaska-concessions-required
  44. https://calisphere.org/item/ark:/21198/zz0002qv15/
  45. https://www.bp.com/en/global/corporate/news-and-insights/press-releases/bp-one-step-closer-to-completion-of-carson-refinery-and-southwes.html
  46. https://explore.chicagocollections.org/image/uic/59/w08wm22/
  47. https://www.energy.ca.gov/data-reports/energy-almanac/californias-petroleum-market/californias-oil-refineries/california-oil
  48. https://www.latimes.com/archives/la-xpm-1990-08-24-fi-1091-story.html
  49. https://cspdailynews.com/fuels/arco-analysis
  50. https://smart.dhgate.com/why-is-arco-gas-so-cheap-quality-location-more/
  51. https://www.latimes.com/archives/la-xpm-1997-03-04-fi-34569-story.html
  52. https://www.xmap.ai/blog/number-of-all-arco-gas-stations-in-the-u-s-a
  53. https://www.fundinguniverse.com/company-histories/arco-chemical-company-history/
  54. https://www.encyclopedia.com/books/politics-and-business-magazines/arco-chemical-company
  55. https://pubs.acs.org/doi/10.1021/cen-v076n025.p007a
  56. https://www.fundinguniverse.com/company-histories/lyondell-chemical-company-history/
  57. https://portarchive.com/1988/10-October%2520Page%252019%2520to%252040.pdf
  58. https://www.chemicalonline.com/doc/lyondell-to-acquire-arco-chemical-for-56-bill-0001
  59. https://www.latimes.com/archives/la-xpm-1998-jun-19-fi-61411-story.html
  60. https://www.nytimes.com/1977/01/13/archives/arco-acquires-anaconda-after-court-refuses-to-bar-tie.html
  61. https://utahrails.net/mining/anaconda.php
  62. https://www.mininghistoryassociation.org/ButteHistory.htm
  63. https://www.scribd.com/presentation/161341577/Arco-Solar-Company-BE
  64. https://www.masterresource.org/solar-power-history/big-oil-early-solar/
  65. https://www.energy.gov/eere/solar/solar-achievements-timeline
  66. https://www.sandiegouniontribune.com/2011/04/17/how-big-oil-had-controlled-the-solar-industry/
  67. https://www.latimes.com/archives/la-xpm-1985-04-02-fi-19490-story.html
  68. https://seia.org/our-history/
  69. https://www.linkedin.com/pulse/arco-solars-lugo-plant-copper-mountain-solar-shane-sterling-yi1fe
  70. https://www.latimes.com/archives/la-xpm-1989-03-07-fi-233-story.html
  71. https://www.pv-tech.org/wp-content/uploads/legacy-publication-pdfs/7fdb9a5b97-from-arco-solar-to-the-gigawatt-age-past-present-and-future-of-photovoltaic-manufacturing-reside.pdf
  72. https://www.fluor.com/projects/arco-power-solar-renewable-epc
  73. https://www.latimes.com/archives/la-xpm-1989-02-25-fi-101-story.html
  74. https://www.latimes.com/archives/la-xpm-1990-01-12-fi-323-story.html
  75. https://www.chicagotribune.com/1992/04/09/harvey-tries-to-gain-control-over-center/
  76. https://static.ewg.org/files/164_002.pdf
  77. https://www.nrc.gov/docs/ml0037/ml003781799.pdf
  78. https://engineering.purdue.edu/ChE/aboutus/publications/100_years/6_Chapter_6.pdf
  79. https://www.latimes.com/archives/la-xpm-1985-10-11-fi-17239-story.html
  80. https://www.chicagotribune.com/1987/07/10/arco-site-reopens-in-south-holland-er-harvey/
  81. https://cumulis.epa.gov/supercpad/CurSites/allsppsiterslt.cfm?Start=3001&sortby=site
  82. https://www.nrc.gov/docs/ML0037/ML003781993.pdf
  83. https://seia.org/blog/solar-century-landmark-moments-history-solar-energy/
  84. https://journals.law.harvard.edu/elr/wp-content/uploads/sites/79/2019/07/28.2-McGarity.pdf
  85. https://www.ogj.com/home/article/17237750/innovative-techniques-cut-costs-in-wetlands-drilling
  86. https://www.nytimes.com/2007/12/06/business/06anderson.html
  87. https://www.latimes.com/archives/la-xpm-1994-03-29-fi-39683-story.html
  88. https://www.latimes.com/archives/la-xpm-1998-jan-28-fi-12796-story.html
  89. https://www.latimes.com/archives/la-xpm-1985-12-17-fi-30186-story.html
  90. https://www.investors.com/news/management/leaders-and-success/robert-anderson-founded-arco/
  91. https://www.latimes.com/archives/la-xpm-1992-01-28-fi-1057-story.html
  92. https://www.legacy.com/us/obituaries/nytimes/name/lodwrick-cook-obituary?id=13054965
  93. https://www.latimes.com/archives/la-xpm-1998-nov-10-fi-41107-story.html
  94. https://www.crunchbase.com/person/mike-bowlin
  95. https://labusinessjournal.com/news/arco-2/
  96. https://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/businesses-and-occupations/atlantic-richfield-company
  97. https://www.latimes.com/archives/la-xpm-2007-dec-05-me-anderson5-story.html
  98. https://www.pbssocal.org/shows/lost-la/the-downtown-los-angeles-buildings-that-oil-built
  99. https://www.upi.com/Archives/1988/03/04/ARCO-International-Oil-and-Gas-Co-a-division-of/3548573454800/
  100. https://www.nytimes.com/1999/04/02/business/it-s-official-bp-is-planning-to-buy-arco.html
  101. https://labusinessjournal.com/retail/tesoro-completes-purchase-carson-facility/
  102. https://researchcouncil.org/wp-content/uploads/2016_refinery_report_010417.pdf
  103. https://www.sightline.org/2021/09/22/the-history-of-northwest-refineries/
  104. https://nbcmontana.com/news/local/atlantic-richfield-to-complete-cleanup-of-anaconda-superfund-site
  105. https://storyofbutte.org/items/show/3516
  106. https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0800403
  107. https://www.klgates.com/scotus-requires-epa-approval-of-state-law-remedy-for-extra-cleanup-at-arcos-anaconda-smelter-cercla-superfund-site-04-27-2020
  108. https://anacondasuperfund.com/press2/overview/
  109. https://deq.mt.gov/cleanupandrec/Programs/superfundfed
  110. https://www.courthousenews.com/arco-agrees-to-pay-28-million-to-clean-up-montana-mining-town/
  111. https://montanafreepress.org/2022/09/30/feds-arco-announce-anaconda-smelter-clean-up-agreement/
  112. https://www.law.cornell.edu/supct/cert/17-1498
  113. https://www.latimes.com/archives/la-xpm-2002-dec-18-me-arco18-story.html
  114. https://www.epa.gov/archive/epapages/newsroom_archive/newsreleases/ca4b1471f9393bc9852570d900462bad.html
  115. https://www.epa.gov/superfund-redevelopment/region-8-superfund-sites-reuse
  116. https://supreme.justia.com/cases/federal/us/495/328/
  117. https://www.law.cornell.edu/supremecourt/text/495/328
  118. https://www.upi.com/Archives/1992/10/20/ARCO-wins-antitrust-suit-in-Las-Vegas/6659719553600/
  119. https://www.wsj.com/articles/SB941503857384157135
  120. https://www.ftc.gov/news-events/news/press-releases/2000/02/ftc-challenge-bp-amocoarco-merger-alleging-deal-would-raise-prices-crude-oil-used-produce-gasoline
  121. https://www.nytimes.com/2000/01/04/business/from-the-pipeline-to-the-courtroom-gap-on-bp-amoco-arco-deal-is-wide.html
  122. https://www.nytimes.com/2000/03/16/business/us-and-3-states-halt-effort-to-block-bp-amoco-arco-deal.html
  123. https://www.ftc.gov/sites/default/files/documents/reports/petroleum-industry-mergers-structural-change-and-antitrust-enforcement-report-staff-federal-trade/040813mergersinpetrolberpt.pdf
  124. https://law.justia.com/cases/pennsylvania/supreme-court/1990/526-pa-110-1.html
  125. https://www.quimbee.com/cases/am-pm-franchise-association-v-atlantic-richfield-co
  126. https://caselaw.findlaw.com/ca-court-of-appeal/1771797.html
  127. https://law.justia.com/cases/federal/district-courts/FSupp/649/969/1632505/
  128. https://www.courtlistener.com/opinion/8971160/little-oil-co-v-atlantic-richfield-co/
  129. https://law.justia.com/cases/federal/district-courts/FSupp/623/64/1514629/
  130. https://case-law.vlex.com/vid/corp-v-atlantic-richfield-886488362
  131. https://www.courtlistener.com/opinion/1916009/ampm-franchise-assn-v-atlantic-richfield-co/
  132. https://library.seg.org/doi/10.1190/1.1442159
  133. https://www.petroleumnews.com/products/Prudhoe40yrs.pdf
  134. https://www.hartenergy.com/ep/exclusives/prudhoe-bay-once-lifetime-discovery-175011
  135. https://supreme.justia.com/cases/federal/us/590/17-1498/
  136. https://www.law.cornell.edu/supremecourt/text/17-1498
  137. https://www.jw.com/news/insights-supremecourt-prp-anaconda-smelter-superfund/
  138. https://19january2021snapshot.epa.gov/enforcement/case-summary-atlantic-richfield-pay-over-21-million-past-costs-anaconda-smelter-site_.html
  139. https://violationtracker.goodjobsfirst.org/violation-tracker/-atlantic-richfield
  140. https://www.epa.gov/newsreleases/atlantic-richfield-company-agrees-22-million-cleanup-acm-smelter-and-refinery
  141. https://www.reuters.com/legal/government/atlantic-richfield-drops-superfund-scotus-case-against-asarco-2021-06-10/
  142. https://www.upi.com/Archives/1992/04/03/ARCO-chief-blasts-regulators/4947702277200/
  143. https://www.nytimes.com/1984/12/14/business/arco-pays-22.5-million-to-settle-suit.html
  144. https://www.latimes.com/archives/la-xpm-1991-01-04-fi-8024-story.html
  145. https://www.upi.com/Archives/1981/04/29/Atlantic-Richfield-has-been-hit-by-the-Environmental-Protection/1890357364800/
Add your contribution
Related Hubs
User Avatar
No comments yet.