Commonwealth Oil Refining Company, Inc. (CORCO) was an

oil refinery An oil refinery or petroleum refinery is an industrial process plant where petroleum (crude oil) is transformed and refined into useful products such as gasoline (petrol), diesel fuel, asphalt base, fuel oils, heating oil, kerosene, lique ...

established in the towns of Peñuelas and

Guayanilla Guayanilla (, ) is a town and municipality of Puerto Rico located on the southern coast of the island, bordering the Caribbean Sea, south of Adjuntas, east of Yauco; and west of Peñuelas and about west of Ponce. Guayanilla is spread over 16 ...

Puerto Rico Puerto Rico (; abbreviated PR; tnq, Boriken, ''Borinquen''), officially the Commonwealth of Puerto Rico ( es, link=yes, Estado Libre Asociado de Puerto Rico, lit=Free Associated State of Puerto Rico), is a Caribbean island and Unincorporated ...

in the second half of the 20th century. At one point, the company was ranked among the 500 largest in the United States by Fortune Magazine. In 1978, it supplied 80% of all petroleum products consumed in Puerto Rico and, at 2700 employees, it was Puerto Rico's largest employer. In addition, it was considered "among the largest independent petroleum refiners and petrochemical producers in the world." Abandoned_corco_refinery_in_2005

History

The project started as part of ''

Operation Bootstrap Operation Bootstrap ( es, Operación Manos a la Obra) is the name given to a series of projects which transformed the economy of Puerto Rico into an industrial and developed one. The federal government of the United States together with what is ...

'' with the first unit being constructed in 1954. The company started operations in 1956.Carmelo Rosario Natal. ''Ponce En Su Historia Moderna: 1945-2002.'' Published by Secretaría de Cultura y Turismo of the Government of the Autonomous Municipality of Ponce. Ponce, Puerto Rico. 2003. p. 120. Hugo David Storer Tavarez was one of the men in charge of seeing that CORCO became a reality. The financing for CORCO was provided by

First Boston Corporation : ''For the company after its acquisition by Credit Suisse, see Credit Suisse First Boston (known as CSFB and CS First Boston)'' The First Boston Corporation was a New York-based bulge bracket investment bank, founded in 1932 and acquired by Cr ...

Location and business

The refinery is located in an site. Its proximity to the

bay made it ideal for the bulk import/export of chemicals it produced. By 1965 the company was a major producer of

toluene Toluene (), also known as toluol (), is a substituted aromatic hydrocarbon. It is a colorless, water-insoluble liquid with the smell associated with paint thinners. It is a mono-substituted benzene derivative, consisting of a methyl group (CH3) at ...

benzene Benzene is an organic chemical compound with the molecular formula C6H6. The benzene molecule is composed of six carbon atoms joined in a planar ring with one hydrogen atom attached to each. Because it contains only carbon and hydrogen atoms, ...

, and

xylene In organic chemistry, xylene or xylol (; IUPAC name: dimethylbenzene) are any of three organic compounds with the formula . They are derived from the substitution of two hydrogen atoms with methyl groups in a benzene ring; which hydrogens are sub ...

Regional impact

CORCO represented an investment of $25 million and had the capacity to refine of oil daily. The economic impact in the region was felt immediately, with lower unemployment rate being registered and higher standard of living. The refinery propelled related chemical industries to build in adjacent lands, and Phillips Puerto Rico, Peerless Petrochemicals, Caribbean Gulf Refining Co., and

PPG Industries PPG Industries, Inc. is an American Fortune 500 company and global supplier of paints, coatings, and specialty materials. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe. By revenue it is ...

added large facilities next to CORCO, providing further employment in the region. Caribe Nitrogen,

Union Carbide Union Carbide Corporation is an American chemical corporation wholly owned subsidiary (since February 6, 2001) by Dow Chemical Company. Union Carbide produces chemicals and polymers that undergo one or more further conversions by customers befor ...

were also located there. The company created 8,000 direct jobs.

Demise

The refinery bought most of its oil from

Venezuela Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Venezuela), is a country on the northern coast of South America, consisting of a continental landmass and many islands and islets in th ...

and the 1970s Oil embargo shot up the price of crude oil imports to the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

, and thus

, and made it difficult for the company to compete profitably against oil refineries in the US, as the American refineries were able to soften the blow of higher crude prices by purchasing domestic (American) crude. This reality led to a gradual closing of operations starting in 1974. After operating under bankruptcy laws for several years, the ailing company finally shut down in March 1982, with "devastating" economic results for the region.

Recent developments

Today it functions as a terminal for the marine transportation and land-based storage of

crude oil Petroleum, also known as crude oil, or simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name ''petroleum'' covers both naturally occurring unprocessed crude ...

and

petroleum Petroleum, also known as crude oil, or simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name ''petroleum'' covers both naturally occurring unprocessed crud ...

products. After the refinery ceased operations, an entity called ''Desarrollo Integral del Sur'' (South Integral Development) began developing a long-term plan for the reuse of the lands and properties in the area.

References

External links

Antique stock and bond certificate

EPA report on CORCO
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Union Carbide
Oil companies of Puerto Rico Defunct oil companies Defunct energy companies of Puerto Rico