Success Story
$90,000,000
Conversion Makes Fast Transition To Peace
Requirements
The war's sudden end
exploded a hectic scramble to adjust to the oil
products needs of a changed world. Two weeks
after V-J Day, Sinclair's military deliveries
were cut 75,000 barrels a day--about one-fifth
of capacity. By the end of 1945, only six
percent of Sinclair business was in war
contracts.
Fortunately,
the slack was absorbed by civilian demand. By
1947, the use of oil burners had vaulted 41
percent, natural gas 28 percent, space heaters
112 percent, compared to pre-war figures.
Airplanes would soon begin to convert to jet
propulsion and railroads to diesel engines. All
this made prime commodities of such former
Sinclair marginal products as diesel fuels,
kerosene, natural gas and liquid petroleum
gases. Millions of families moved to
the
suburbs. Farm mechanization swelled tractor energy by 59 percent. Motor
boat service became a major industry. Sinclair
had to adjust its refinery runs and its sales
areas to the needs of a new age.
A further
complication was the change in the refined
products themselves. Due to war-developed
capacity to make 100-octane fuels, aromatics and
alkylates, aviation gasoline components lifted
the octane numbers of automobile gasolines to a
new high. Military-required research of the time
had created such novelties as all-weather
lubricants, climate-tailored
gasolines and
long-lasting oils. These developments were
harbingers of the petrochemical industry. At the
same time, Sinclair's old pre-war friends had to
be re-won and an entire new generation wooed to
the virtues of 1,200 products which now ranged
from rocket lubricant to micro-crystalline wax.
Sinclair's
management reacted quickly to the crisis.
Five
months after the war's end, a $90 million renovation
was budgeted to adjust to the new conditions. Of
this, $40 million was allocated to give the
refineries greater flexibility, improved yields
and the quality needed to meet competition.
Another $40 million was set aside for new
service stations and terminals in the new
suburbias. Extension of products pipelines to
the areas of rapid population growth was
estimated to cost $10 million.
In the Thirtieth
Anniversary year--1946--all this revitalization
was under way. The company's name also was back
on stream. During the war, the name for the
holding company was changed once again to
Sinclair Oil Corporation.
[ Previous |
Index
| Next
] |