Marquard & Bahls Getting into the Business with Crude Oil
Demand for light petrolium products has risen considerably over the last few years due to growing motorization and new heating methods. Mr. Weisser already signed crude oil delivery agreements with Sojuznefteexport in Moscow, with Gulf Oil in Pittsburg and with Hunt International in Dallas. In future this crude oil is to be processed at two refineries, one in Kalundborg, Denmark and the other in Duisburg. Processing crude oil, however, presents the company with a completely new set of problems. Besides gasoline and gas oil, by-products such as heavy heating oil are created during production. Markets need to be found for these other products.
At the end of 1959, heavy heating oil is still available in the petroleum market in large quantities and at very reasonable prices. At that time, the market is limited to large-scale industry. Since Marquard & Bahls has had difficulties finding customers for heavy heating oil up to that point, the decision is made to set up a heavy heating oil department for the company.