Beginning in the 1890s, the Whiting refinery of Standard Oil Company of Indiana first produced kerosene for lamps and later gasoline for autos to meet growing consumer demand.
Seventeen miles east of Chicago, Standard Oil Company of New Jersey began construction on a massive refinery complex in May 1889.
Using advanced refining processes introduced by John D. Rockefeller, it will become the largest in the United States. Today, the 1,400-acre complex is owned by BP.
About one month after construction of the then 235-acre refinery began, Rockefeller established a locally based subsidiary by incorporating Standard Oil Company of Indiana on June 18, 1889.
The new company began processing oil at its Whiting refinery within a year. The Indiana refinery processed a sulfurous “sour crude” from the Lima, Ohio, oilfields – transported on Rockefeller controlled railroads.
More Americans put out their tallow candles as lamps fueled with whale oil, lard, or camphene gave way to a new fuel, kerosene; the “rock oil” soon brought skyrocketing public demand (learn more in First American Oil Well).
Rockefeller had earlier purchased considerable amounts of production from the Lima oilfield at bargain prices. Most experts in the new petroleum industry believed the thick oil virtually worthless. It could not be refined for a profit.
The Whiting refinery, using a newly patented method, efficiently processed Ohio sour oil into high-quality kerosene. Although gasoline was a minor by-product, two brothers in Massachusetts were building a gasoline-powered horseless carriage at about the time the refinery produced its first 125 railroad tank cars filled with kerosene. The automobile would soon arrive. See Cantankerous Combustion – 1st U.S. Auto Show.
“By the mid-1890s, the Whiting plant had become the largest refinery in the United States, handling 36,000 barrels of oil per day and accounting for nearly 20 percent of the total U.S. refining capacity” notes historian Mark R. Wilson in the Encyclopedia of Chicago. Initially it consisted of just a single facility, adds a company history on the Amoco website. Crude oil was processed into products that people and business needed: axle grease for industrial machinery, paraffin wax for candles, kerosene for home lighting.
“The company grew. By the early 1900s it was the leading provider of kerosene and gasoline in the Midwest” notes the website. “Kerosene sales would eventually falter. But with car ownership booming across the United States, demand for gasoline would only go up and up.”
By 1910, the refinery is connected by pipeline to oilfields in Kansas and Oklahoma, as well as Ohio and Indiana. The Whiting facility employs 2,400 workers. In 1911, when Rockefeller is forced to break up his oil holdings, Standard of Indiana, with its main offices in downtown Chicago, emerges as an independent company.
Meanwhile, Rockefeller’s Whiting scientists have patented a process they invented called thermal cracking, notes the Amoco website. It doubled the amount of gasoline that could be made from a barrel of oil and also boosted the gasoline’s octane rating. The process, which became standard practice in the refining industry, helped avert a gasoline shortage during World War I. To find its own oil supplies, Standard Oil of Indiana soon began its own exploration and production business, Stanolind.
In 1922, Standard Oil absorbed the American Oil Company, founded in Baltimore in 1910, and began branding products as Amoco, which later would become its company name. By 1952, Amoco was ranked as the largest domestic oil company.
Building Midwest Refineries
During the second half of the twentieth century, the U.S. refining industry became more concentrated in Texas, Louisiana, and California. “The Chicago region became somewhat less important as an oil-processing center than it had been during the previous 60 years,” he concludes. “Still, the area remained home to some large refineries. The largest of these plants was the one at Whiting – the same facility that had brought refining to Chicago in 1890.”
Across the border from Indiana, three major Illinois refineries today also process oil in the Chicago area: the Citgo refinery in Lemont processes 167,000 barrels of oil a day; the Joliet refinery owned by ExxonMobil process 238,000 barrels a day; and the Robinson refinery of Marathon Petroleum Company processes 206,000 barrels a day.
A fourth refinery is in southern Illinois – and is almost as historic as Rockefeller’s Whiting plant. Constructed in 1918 – during WW I – the Wood River Refinery is north of St. Louis on the bank of the Mississippi River.
The Wood River Refinery is owned by ConocoPhillips and is the company’s largest. It processes 300,000 barrels of oil daily into more than nine million gallons of gasoline/fuel and 42,000 barrels of asphalt during peak season. It also has its own museum.
“The Wood River Refinery History Museum is located in front of the Conoco-Phillips Refinery on Highway 111 in Wood River, Illinois,” the museum notes on its website. “There are four buildings in our complex, so to see most of our collection, plan on spending some time.”
Whiting fielded a baseball team in 2012. The Northwest Indiana Oilmen is one of eight teams in the Midwest Collegiate League, a pre-minor league. To learn more about other petroleum history related baseball teams, see Oilfields of Dreams.
By 1982, Standard of Indiana refineries produce 1.2 million barrels of gasoline daily and serve 18,000 domestic gasoline retail outlets. Standard’s two largest refineries are located in Whiting and Texas City, Texas. Standard Oil of Indiana officially became Amoco Corporation in 1985 and merged with British Petroleum (now BP) in 1998. It was the world’s largest industrial merger at the time.
The American Oil & Gas Historical Society preserves U.S. petroleum history. Support this AOGHS.ORG energy education website with a contribution today. For membership information, contact firstname.lastname@example.org. © 2019 Bruce A. Wells.