Irving Oil
Encyclopedia
Irving Oil is a gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...

, oil
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....

, and natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...

 producing and exporting company. It is also one of the few energy companies in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 to publicly support the Kyoto Accord. Irving Oil operates one large oil refinery
Irving Oil Refinery
The Irving oil refinery, located in Saint John, NB is the largest oil refinery in Canada, producing more than of energy products per day.-History:...

. Irving Oil is a wholly owned subsidiary of holding company Fort Reliance Company Ltd.; both the holding company and Irving Oil are headquartered in Saint John
Saint John, New Brunswick
City of Saint John , or commonly Saint John, is the largest city in the province of New Brunswick, and the first incorporated city in Canada. The city is situated along the north shore of the Bay of Fundy at the mouth of the Saint John River. In 2006 the city proper had a population of 74,043...

, New Brunswick
New Brunswick
New Brunswick is one of Canada's three Maritime provinces and is the only province in the federation that is constitutionally bilingual . The provincial capital is Fredericton and Saint John is the most populous city. Greater Moncton is the largest Census Metropolitan Area...

.

History

Kenneth Colin (K.C.) Irving established Irving Oil Limited in 1924, when he was 25 years old. The first retailing location was in Bouctouche, New Brunswick
Bouctouche, New Brunswick
Bouctouche is a Canadian town in Kent County, New Brunswick and in 2006 Census the population was 2,383.The town is located at the mouth of the Bouctouche River on the coast of the Northumberland Strait, approximately 40 kilometres northeast of Moncton....

. Irving moved to Saint John to open a Ford
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...

 dealership and lubricants plant in 1924. The company expanded across the Maritimes through the 1930s, to Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....

 in 1940, Newfoundland
Newfoundland and Labrador
Newfoundland and Labrador is the easternmost province of Canada. Situated in the country's Atlantic region, it incorporates the island of Newfoundland and mainland Labrador with a combined area of . As of April 2011, the province's estimated population is 508,400...

 in 1949, and to Maine
Maine
Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...

 in 1972. Irving is opening a station in Torrington, CT (April 2011), which is approximately 100 miles (160.9 km) from New York City.

In 1977, Irving became the first Canadian oil company to offer unleaded gasoline at its retail outlets. In the late 1990s it became the first oil company in Canada and one of the first in North America to offer gasoline with very low sulphur content, a fact which was recognized by many automobile manufacturers.

Refining

In 1960 the company built an oil refinery
Oil refinery
An oil refinery or petroleum refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas...

 at Saint John in partnership with Chevron
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...

. Irving bought out Chevron's share of the refinery in the late 1980s and expanded the facility to become Canada's largest refinery, processing over 250000 oilbbl/d. In the late 1990s, the refinery was upgraded to create some of North America's lowest-emission petroleum.
The refinery is served by the Canaport Marine Terminal at Mispec, southeast of Saint John. The terminal was constructed in 1970 to handle crude oil, and in 2009 was expanded to handle liquefied natural gas
Liquefied natural gas
Liquefied natural gas or LNG is natural gas that has been converted temporarily to liquid form for ease of storage or transport....

 (LNG).

Irving Oil announced in fall 2006 that it had purchased more land near Canaport and was examining the feasibility of constructing another 300000 barrels (47,696.2 m³) refinery in the area to complement the modernized 1960s-era facility. The company announced on July 24, 2009, that they will be indefinitely putting off the plans to build the second refinery.

Distribution

Marine
Irving Oil's core retail area is in northeast North America and is well served by a network of regional ports and harbours in Atlantic Canada, Quebec and New England - an area that is underserved by pipelines.

Consequently the company economically transports much of its petroleum products to regional distribution terminals at ports throughout the region using its own fleet of coastal tankers.

In the 1990s, Irving Oil also took delivery of several Ultra Large Crude Carriers to deliver crude oil to the Saint John refinery from production locations in Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...

, the Persian Gulf
Persian Gulf
The Persian Gulf, in Southwest Asia, is an extension of the Indian Ocean located between Iran and the Arabian Peninsula.The Persian Gulf was the focus of the 1980–1988 Iran-Iraq War, in which each side attacked the other's oil tankers...

 and the North Sea
North Sea
In the southwest, beyond the Straits of Dover, the North Sea becomes the English Channel connecting to the Atlantic Ocean. In the east, it connects to the Baltic Sea via the Skagerrak and Kattegat, narrow straits that separate Denmark from Norway and Sweden respectively...

.

Road
Irving Oil operates a large fleet of company-branded tanker trucks to deliver petroleum from its Saint John refinery as well as the marine distribution terminals to retail locations. Since the 1970s these semi-trailer tanker trucks have been painted a distinctive golden yellow but the fleet has undergone a paint scheme change in the 2000s to use white for both cab and trailer. Irving Oil's home heating fuel delivery truck fleet was similarly coloured and is undergoing a paint scheme change.

Sister company J.D. Irving Limited owns and operates RST Industries which provides road tanker transport services for Irving Oil's wholesale deliveries, as well as for jet fuel, marine fuel, liquid asphalt, and other products.

Rail
Irving Oil once made extensive use of rail service to deliver petroleum from the Saint John refinery to rail-side distribution terminals throughout Atlantic Canada and Quebec. The decline in rural branch rail lines operated by CN Rail
Canadian National Railway
The Canadian National Railway Company is a Canadian Class I railway headquartered in Montreal, Quebec. CN's slogan is "North America's Railroad"....

 and CP Rail
Canadian Pacific Railway
The Canadian Pacific Railway , formerly also known as CP Rail between 1968 and 1996, is a historic Canadian Class I railway founded in 1881 and now operated by Canadian Pacific Railway Limited, which began operations as legal owner in a corporate restructuring in 2001...

 in the 1980s and 1990s, combined with the increase of 4-lane highway construction, has seen Irving Oil eliminate practically all retail petroleum delivery by rail and the closure of many of its rail-side distribution terminals in favour of newer highway-served terminals or direct deliveries.

Irving Oil continues to make extensive use of rail service for wholesale petroleum deliveries from its Saint John refinery. Products such as propane, liquid asphalt and diesel are delivered daily to locations in Quebec and New England via New Brunswick Southern Railway
New Brunswick Southern Railway
The New Brunswick Southern Railway and Eastern Maine Railway form a 189-mile railway system operating a former Canadian Pacific Railway mainline between Saint John, New Brunswick and Brownville Junction, Maine....

, owned by sister company J.D. Irving Limited as well as by CN Rail.

Retail network

Irving Oil operates bulk furnace oil and propane outlets in most major centres across Atlantic Canada
Atlantic Canada
Atlantic Canada is the region of Canada comprising the four provinces located on the Atlantic coast, excluding Quebec: the three Maritime provinces – New Brunswick, Prince Edward Island, and Nova Scotia – and Newfoundland and Labrador...

, New England
New England
New England is a region in the northeastern corner of the United States consisting of the six states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut...

 and Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....

 as well as select locations in eastern Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....

, almost all of which are supplied from its Saint John refinery.

Irving Oil also operates 769 gas stations in these jurisdictions. In recent decades, smaller stations have been closed and consolidated as newer, larger facilities are constructed - Irving owns many choice real estate locations in communities across northeastern North America, some of which are no longer used for gas retailing, and others being held in speculation of some future need. Older stations are typically franchise operations and still have automobile service and repair shops, which in recent years are branded by Meineke
Meineke Car Care Center
Meineke Car Care Centers, Inc. is a franchise-based automotive repair chain.In 1972 in Houston, Texas, Sam Meineke and Harold Nedell began with only one store and a single product line. Between 1972 and 2003 Meineke was owned by a multinational British company and grew rapidly...

.

Convenience stores

Most of Irving Oil's corporate owned-and-operated stations also contain convenience store
Convenience store
A convenience store, corner store, corner shop, commonly called a bodega in Spanish-speaking areas of the United States, is a small store or shop in a built up area that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, and may also offer money order and...

s. These locations operated as simply "Irving" stores until the late 1990s, when the "Mainway" banner ("Marché Mainway" in Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....

), appropriated from one of Irving's U.S. acquisitions, was introduced. By the early 2000s, the company's Quebec locations had been leased to the Couche-Tard chain and rebranded accordingly. At the same time, Irving began to renovate and rebrand its old "Mainway" stations under the name "Bluecanoe" as part of the company's modernization plan. The Bluecanoe brand was first introduced in New England and was spread to stores in Ontario and the Atlantic provinces; however, many other were not upgraded and retained the older name.

On May 8, 2008, Irving announced that they would lease its remaining retail sites in Canada and New England to Alimentation Couche-Tard
Alimentation Couche-Tard
Alimentation Couche-Tard Inc. or simply Couche-Tard is one of the largest company-owned convenience store operators in the world with up to 6,000 stores across Canada, the United States, Mexico, Japan, China, Indonesia and Guam....

, which is now the process of rebranding all of the stores as Circle K
Circle K
Circle K is an international chain of convenience stores, founded in 1951, in El Paso, Texas, United States. It is owned and operated by the Canadian-based Alimentation Couche-Tard.-Overview:...

. Irving will continue to own the stations and supply their fuel, and the gasoline brand at these stations will remain "Irving". Irving locations in Quebec are expected to retain the "Couche-Tard" banner.

Irving Bluecanoe locations in New England
New England
New England is a region in the northeastern corner of the United States consisting of the six states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut...

 often contain an Amato's eXpress
Amato's
Amato's Sandwich Shops, Inc., is a chain of sandwich and pizza shops in northern New England, United States. Founded in 1902 by Giovanni Amato, Amato's owns and operates 12 stores. Recent expansion has been in the form of franchising, most notably in Irving Oil/Circle K locations in Maine and New...

, Subway
Subway (restaurant)
Subway is an American restaurant franchise that primarily sells submarine sandwiches and salads. It is owned and operated by Doctor's Associates, Inc. . Subway is one of the fastest growing franchises in the world with 35,519 restaurants in 98 countries and territories as of October 25th, 2011...

, or Quiznos.

Big Stops

Irving Oil also operates several "Big Stops", which are truck stops featuring family restaurants, facilities for truck drivers, and convenience stores. These large stations are located at strategic locations throughout New England
New England
New England is a region in the northeastern corner of the United States consisting of the six states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut...

, the Maritimes
Maritimes
The Maritime provinces, also called the Maritimes or the Canadian Maritimes, is a region of Eastern Canada consisting of three provinces, New Brunswick, Nova Scotia, and Prince Edward Island. On the Atlantic coast, the Maritimes are a subregion of Atlantic Canada, which also includes the...

, Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....

 and Newfoundland
Newfoundland and Labrador
Newfoundland and Labrador is the easternmost province of Canada. Situated in the country's Atlantic region, it incorporates the island of Newfoundland and mainland Labrador with a combined area of . As of April 2011, the province's estimated population is 508,400...

.

They occupy several hectares near important highway interchanges and junctions and have been developed since the 1970s; some of the oldest Big Stops are still in operation with the interiors being evocative of that era. These locations, aside from their convenience store operations, continue to be operated by Irving Oil.

In the past decade, Irving Oil has opened several new Big Stops in New Brunswick to reflect the modernized and realigned arterial highway network in that province, and these facilities contain restaurants that have their own name and identity which are often reflective of the local area. The first modern Big Stop is in Salisbury
Salisbury, New Brunswick
Salisbury, New Brunswick is a Canadian village located in Westmorland County, New Brunswick.The village's population meets the requirements for "town" status under the Municipalities Act of the Province of New Brunswick; however, its municipal status has not been changed.-History:Salisbury first...

, and its restaurant is called "The Silver Fox"; the second one to open was in Lincoln
Lincoln, New Brunswick
Lincoln is a Canadian suburban community in Sunbury County, New Brunswick.Located on the west bank of the Saint John River between Fredericton and Oromocto, Lincoln was one of the original United Empire Loyalist settlements established in the province following the American Revolution.The current...

 and has a restaurant called "The Blue Canoe"; and the newest one is in Grand Falls
Grand Falls, New Brunswick
Grand Falls is a Canadian town located in Victoria County, New Brunswick.Situated on the Saint John River, the town derives its name from a waterfall created by a series of rock ledges over which the river drops 23 metres.-Geography:Grand Falls is located in the valley of the St...

 with a restaurant called "The Back Forty".

Criticisms

Irving Oil and J.D. Irving Ltd. are private companies that are closely held by the Irving family. As a result, there isn't as much public information available on the company as there would be for a publicly traded organization. Like most oil companies, Irving Oil has a vertically integrated
Vertical integration
In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to...

 structure, although its structure isn't as comprehensive in its vertical integration as other oil businesses, such as ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...

.

Examples of vertical integration within the "Irving Group of Companies" (as the Irving family refers to their holdings) include the acquisition or formation of businesses along the entire chain of production, from the Irving refinery (an Irving Oil subsidiary) and its retail outlets, to the transportation subsidiaries of J.D. Irving (RST, Midland, NB Southern, Sunbury), to various construction and engineering companies that assist in building, maintaining and expanding the conglomerate's facilities. Further examples of vertical integration within the conglomerate include Industrial Security Ltd. (ISL), the wholly owned security company that guards facilities, as well as industrial suppliers such as Thornes, Universal Sales and Commercial Equipment Ltd. which provide specialty goods and services to its companies.
J.D. Irving, the sister firm to Irving Oil, is a dominant forestry company in northeastern North America, growing trees, harvesting trees and producing lumber, pulp and paper, and various enhanced value products such as newsprint, tissue, and personal care products. JDI also owns Brunswick News
Brunswick News
Brunswick News Inc. is a Canadian newspaper publishing company based in Moncton, New Brunswick. It is privately owned by James K. Irving.-Newspapers:...

 which controls most English-language newspapers in New Brunswick, as well as Acadia Broadcasting
Acadia Broadcasting
Acadia Broadcasting Limited is a commercial radio broadcasting company with its headquarters located on historic King Street in Saint John, New Brunswick, Canada. Its owner is Ocean Capital Investments, New Brunswick Limited. The focus is providing local radio for the communities it serves,...

 which owns several radio stations in the Maritimes.

The Dominion
The Dominion (newspaper)
The Dominion is a monthly newspaper and web site in Canada.The Dominion is published by the Dominion Newspaper Society, a non-profit organization...

newspaper, an independent Canadian newspaper, has criticized Irving's ownership of the New Brunswick Papers, as well as the papers' journalistic integrity, particularly when reporting on companies controlled by the Irving family such as Irving Oil.

The city of Saint John
Saint John, New Brunswick
City of Saint John , or commonly Saint John, is the largest city in the province of New Brunswick, and the first incorporated city in Canada. The city is situated along the north shore of the Bay of Fundy at the mouth of the Saint John River. In 2006 the city proper had a population of 74,043...

, where Irving Oil is located, is closely tied to the Irving Group of Companies which are mostly headquartered there. In 2005, Irving Oil received a controversial tax break from the municipality to develop the Canaport LNG (liquid natural gas) terminal; it was apparently negotiated one-on-one with the city's then-mayor Norm MacFarlane. However, this is a very common practice across North America and Europe. Municipalities often negotiate directly with major tax payers such as corporations in order to ensure that these businesses don't move to other cities with more favorable tax conditions.

There was also conflict in Saint John over the proposed construction of a natural gas pipeline that was to cross through a major municipal park. However, it is unknown if there would be any health risks to the community.

There have also been accusations of Irving family political patronage, notably involving Allan Rock
Allan Rock
Allan Michael Rock, PC is a lawyer, former Canadian politician, diplomat and now the President of University of Ottawa. He was Canada's ambassador to the United Nations and had previously served in the Cabinet of Jean Chrétien, most notably as Justice Minister and Health Minister .Rock was...

 and Claudette Bradshaw
Claudette Bradshaw
Claudette Bradshaw, PC, ONB is a former Canadian politician who served as Member of Parliament for the riding of Moncton—Riverview—Dieppe, New Brunswick. She was first elected on June 2, 1997 and served until 2005...

 of the Liberal Party of Canada
Liberal Party of Canada
The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative...

.

Incidents

The Irving Whale, an oil barge owned by Irving Oil's sister firm J.D. Irving Ltd., was carrying a cargo of 4300 tons of No. 6 fuel oil
Fuel oil
Fuel oil is a fraction obtained from petroleum distillation, either as a distillate or a residue. Broadly speaking, fuel oil is any liquid petroleum product that is burned in a furnace or boiler for the generation of heat or used in an engine for the generation of power, except oils having a flash...

 for Irving Oil when it sank in the Gulf of St. Lawrence in September 1970, causing a large initial oil spill and subsequent leaks for the next 26 years until it was salvaged by the federal government.

In 1998 an experienced worker at the Irving Oil Refinery was killed when a pressurized vessel exploded. In 2000 a contractor was killed at the Irving Oil Refinery when he fell out of a cherry picker bucket.

In 2008 a construction worker died at the Canaport LNG facility after falling inside a tank; Canaport LNG is a joint venture between Irving Oil and Repsol YPF
Repsol YPF
Repsol YPF, S.A. is an integrated Spanish oil and gas company with operations in 29 countries...

.

External links

  • Official website
  • Canaport LNG
  • http://archives.cbc.ca/IDC-1-70-525-2610/disasters_tragedies/irving_whale/clip6
  • http://www.cbc.ca/money/story/2006/10/04/nb-newrefinery.html
  • http://www.cbc.ca/money/story/2005/06/07/irving-050607.html
The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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