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United Refining Company

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United Refining Company
Company typePrivate
IndustryOil and natural gas, Convenience stores
Founded1902
HeadquartersWarren, Pennsylvania, United States
Area served
Ohio, Pennsylvania,
and New York
Key people
John Catsimatidis (CEO)
James E. Murphy (CFO)
Myron L. Turfitt (COO)
ProductsPetroleum and derived products
SubsidiariesKwik Fill
Country Fair, Inc.
Websitewww.urc.com

The United Refining Company is an oil company in Warren, Pennsylvania. The company operates an oil refinery in Warren that can process 70,000 barrels of oil into gasoline, diesel fuel and other petroleum distillates per day.[1] It distributes gasoline under the Kwik Fill and Keystone brands.

History

Kwik Fill sign, January 2013

The United Refining Company was founded in 1902 by Harry Logan, Sr. His son, Harry Logan, Jr., succeeded his father as president and chairman of United Refining in 1957. In 1981, John Catsimatidis acquired United Refining as a subsidiary of his Red Apple Group.

The refinery was expanded from 60,000 barrels per day (9,500 m3/d) to 65,000 barrels per day (10,300 m3/d) in 1982. It was expanded again to have a processing capacity of 70,000 barrels per day (11,000 m3/d) in 2007. The employees of the Warren refinery are represented by the International Union of Operating Engineers.

Citgo

United Refining acquired the rights to use the name Citgo in 2002 when it bought a local gas station and convenience store chain called Country Fair, Inc. in Erie, Pennsylvania[2] which included a license agreement to use "Citgo's brands, trademarks and other forms of identification."[3]

After Venezuelan President Hugo Chávez's speech to the United Nations, there were calls to boycott the Citgo brand.[3] In response, URC began phasing out that brandname,[3] and has been emphasizing that its crude oil supply comes from North America. URC also continued rebranding its product under the Kwik Fill and other local names.[4]

Criticisms

Since United Refining Company supplies the majority of gas stations in Warren County with fuel, they essentially set the price point for every station in the area. Despite the area being economically depressed, with a median household income of approx. $32,000 per year and 14% of the population at or below the poverty line, gasoline prices remain among the highest in the entire state. Gasoline sold in Erie, although being trucked 3-5 times further, is regularly sold at $0.10 to $0.40 cheaper per gallon than within Warren County. Additionally, while PA has an extreme gas tax of $0.50 per gallon, the same gas purchased in Ohio is typically 60-70 cents cheaper than most Country Fairs and Kwik Fills in NW PA. This indicates that United may be pocketing about $0.47 per gallon, just because they can control the pricing. There seems to be no one in a position of authority willing to talk about this. This raises concerns about their willingness to profit at the expense of the greater community.

Alternate energy

United Refining blends ethanol with its gasoline in accordance with the Energy Policy Act.

Convenience stores

United Refining Company distributes its oil through its line of owned-and-operated convenience stores, totaling approximately 375 throughout upstate New York, Pennsylvania, and Northeast Ohio. The stores operate under the names Kwik Fill, Red Apple, or Country Fair. Many Kwik Fill locations, like the one in the photo above, are full-service, meaning they pump your gas for you.

References

The United Refinery in Warren, Pennsylvania
  1. ^ Carroll, Jim (May 10, 2007). "United Refining hikes capacity". Erie Times-News.
  2. ^ Martin, Jim (January 1, 2002). "Warren, Pa.-based United Refining buys convenience store chain Country Fair". Erie Times-News.
  3. ^ a b c Carroll, Jim (October 11, 2006). "Comments spark call for Citgo boycott". Erie Times-News.
  4. ^ Associated Press. "Citgo signs coming down in response to Venezuelan leader's remarks". WSTM-TV. Archived from the original on September 28, 2007. Retrieved July 18, 2007.

[5] http://www.erienewsnow.com/story/39872717/warren-tops-the-list-for-most-expensive-gasoline-in-western-pennsylvania

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