Assets
Refineries
When Canadian Oil Companies formed in 1908, its main asset was the Petrolia Refinery that the Canadian Oil Refining Company had built in 1901. Canadian Oil closed the Petrolia Refinery in 1952. Concurrent with the closure of the Petrolia facilities, Canadian Oil built a new refinery at Corunna, Ontario, just south of Sarnia. On 25 September 1952, Liberal Member of Parliament C. D. Howe opened the new $23 million Sarnia facility.[6]
In 1955, Canadian acquired the Anglo-Canadian Oil Company, Limited, headquartered in Calgary. With the acquisition of Anglo-Canadian, Canadian Oil obtained a fully developed exploration and development department in Western Canada. Canadian Oil continued to expand in the prairies when on 20 June 1961 it opened a new combined oil refinery and gas processing plant near Bowden, Alberta. The facility was officially opened by Premier Ernest Manning.[7]
Ships
During Canadian Oil Companies' life, it owned three oil tankers. In 1906, the Canadian Oil Company purchased a tanker that it named W. S. Calvert. It used the ship to transport oil from Toledo, Ohio to Froomfield, Ontario, where the oil was then transported by pipeline to the Petrolia Refinery. After the National Refining Company created Canadian Oil Companies in 1908, it renamed the ship the En-Ar-Co. Canadian continued to use the ship until 1934, when she was scrapped.
Canadian purchased its second ship in 1945. This ship, the Eglinton Park, had been built by Marine Industries Limited in Sorel, Quebec in 1944 for the Park Steamship Company. After the purchase, Canadian renamed her the John Irwin. In 1956, she was again renamed, this time the White Rose. In 1970 she was renamed the Fuel Marketer, and in 1979 was sold to Forand Marine Canada. She was scrapped in 1991.[8]
In 1960, Canadian commissioned a new ship to complement the White Rose. This ship, the W. Harold Rea was built by Collingwood Shipbuilding and was Christened on 25 August 1962. After Canadian's acquisition by Shell in 1962, the Harold Rea was renamed the Eastern Shell II. Shell sold her in 1991 after which time she carried the names Le Crede, Colon Trader, and Cypress Point. She was scrapped in 2014.[9]
Refineries
When Canadian Oil Companies formed in 1908, its main asset was the Petrolia Refinery that the Canadian Oil Refining Company had built in 1901. Canadian Oil closed the Petrolia Refinery in 1952. Concurrent with the closure of the Petrolia facilities, Canadian Oil built a new refinery at Corunna, Ontario, just south of Sarnia. On 25 September 1952, Liberal Member of Parliament C. D. Howe opened the new $23 million Sarnia facility.[6]
In 1955, Canadian acquired the Anglo-Canadian Oil Company, Limited, headquartered in Calgary. With the acquisition of Anglo-Canadian, Canadian Oil obtained a fully developed exploration and development department in Western Canada. Canadian Oil continued to expand in the prairies when on 20 June 1961 it opened a new combined oil refinery and gas processing plant near Bowden, Alberta. The facility was officially opened by Premier Ernest Manning.[7]
Ships
During Canadian Oil Companies' life, it owned three oil tankers. In 1906, the Canadian Oil Company purchased a tanker that it named W. S. Calvert. It used the ship to transport oil from Toledo, Ohio to Froomfield, Ontario, where the oil was then transported by pipeline to the Petrolia Refinery. After the National Refining Company created Canadian Oil Companies in 1908, it renamed the ship the En-Ar-Co. Canadian continued to use the ship until 1934, when she was scrapped.
Canadian purchased its second ship in 1945. This ship, the Eglinton Park, had been built by Marine Industries Limited in Sorel, Quebec in 1944 for the Park Steamship Company. After the purchase, Canadian renamed her the John Irwin. In 1956, she was again renamed, this time the White Rose. In 1970 she was renamed the Fuel Marketer, and in 1979 was sold to Forand Marine Canada. She was scrapped in 1991.[8]
In 1960, Canadian commissioned a new ship to complement the White Rose. This ship, the W. Harold Rea was built by Collingwood Shipbuilding and was Christened on 25 August 1962. After Canadian's acquisition by Shell in 1962, the Harold Rea was renamed the Eastern Shell II. Shell sold her in 1991 after which time she carried the names Le Crede, Colon Trader, and Cypress Point. She was scrapped in 2014.[9]
Acquisition by Shell
In July 1962, Royal Dutch Shell, through a subsidiary called Hesper Oil Company Limited, submitted an offer to purchase Canadian Oil Companies, Limited for $39 per share. The board of directors rejected this offer. In September of that year two more purchase offers came to Canadian. The first was from the Hudson's Bay Oil and Gas Company, which offered shareholders two common shares and one 5.5 percent cumulative convertible share in the continuing company. The second offer was from Shell, this time through another subsidiary called Shell Investments Limited, and proposed a purchase at $52.20 per share. On Tuesday, 25 September the board of directors recommended proceeding with the Shell offer. The offer was ultimately accepted by Power Corporation, the controlling shareholder. On 12 October, Shell Investments mailed its formal offer to shareholders. Shell's acquisition included Canadian's refineries in Sarnia and Bowden, two tanker ships, 150 storage tanks, and 3,000 White Rose gas stations. The company's value at the time was around $125 million.[10]
The takeover of Canadian by Shell followed several other American acquisitions of major domestic oil companies. Earlier in 1962, British American Oil, which was controlled by Gulf Oil, acquired the Anglo American Exploration Company and the Royalite Oil Company, both based in Calgary. The purchase of Canadian elicited considerable anxiety throughout the country.
