The Marathon Ashland Petroleum (MAP) LLC name was officially retired today and we took up the Marathon Petroleum Company (MPC) LLC name showcasing Marathon’s full ownership. I joined Marathon slightly after work on the joint venture with Ashland commenced and created MAP. The upstream Marathon piece and the downstream MAP component always had their own unique cultures and policies.
The upstream and downstream corporate entities have distinct bonus programs. Most times only one entity has a nice pay day. It was always difficult being on the side of the fence with no bonus when your neighbor got a hearty bonus and was jubilating over their next acquisition to keep up with the Jones. When working in IT you do a lot work for both corporate entities and it still was an all or nothing payout.
The 2005 year has been an unusual year in the oil industry. Many describe it as the perfect storm, meaning both the upstream (exploration and production) and downstream (refining, transporting, and marketing) are both solid businesses to be involved in. Usually one side of the house does well at the others expense. Therefore, Marathon’s executing on its decision to become an integrated oil company with full ownership and control of its downstream assets was very wise and quite timely.
An integrated oil company performs the following services:
1) produces crude or natural gas or both
2) refines the produced items into gasoline and other products
3) provides mechanisms to bring that refined product to market
4) is a wholesaler and retailer of refined products