With Oil Through Generations - PKN Orlen

with oil
through
generations
1

ODDZIA STOWARZYSZENIA INYNIERÓW I TECHNIKÓW PRZEMYSU CHEMICZNEGO W POCKU
with oil
through
generations
text
ALEKSANDER PUCHOWICZ
archive postcards
COLLECTION OF JERZY ZIELISKI
POCK 2006
3

causative institution
BRANCH OFFICE OF THE SOCIETY OF CHEMICAL INDUSTRY ENGINEERS IN POCK
09-411 Pock, ul. Chemików 7
MAIN SPONSOR OF THE ALBUM
THE SPONSOR OF THE ENGLISH VERSION EDITION
ISBN 83-915827-4-4
translation from Polish
WOJCIECH JÓWIAK
proofreading
ANDRZEJ DOROBEK, JERRY TEMANSON, ALEKSANDER PUCHOWICZ
graphic design
typography and editing
JACEK CZURYO i ZBIGNIEW CHLEWISKI (jzc)
illustrative materials
archive postcards from JERZY ZIELISKI’S collection (pp. 8-120)
archive photographs from PIOTR GSIOR’S collection (p. 6)
JERZY FALL (p. 134)
M. SOKOOWSKI (p. 130)
HALINA PUCIENNIK (p. 138, bottom of pp. 142, 144, 146)
collections from SITPChem Pock archives
printed and bound in
Olsztyskie Zakady Graficzne SA
editor
SAMIZDAT ZOFII O
mobile: [+48] 695 602 157; e-mail: samizdat@go2.pl
First English edition
Number of printed copies: 1500

The present album was published to commemorate
the 150 th anniversary of the oil industry establishment
on the territory of Poland.
This book was written thanks to the interest shown
by a group of long standing employees of the Production Complex
of the Polish Oil Company ORLEN SA,
and thanks to the initiative and engagement
of Mr Eugeniusz Korsak–President of the Association
of Pock Oil Industry Employees
and Vice-president of the Pock Branch
of the Polish Society of Chemical Industry Engineers,
and Mr Aleksander Puchowicz, ORLEN’s retired engineer
and the author of the text.
The album “With Oil Through Generations” is a collection of unique
photographs as well as a peculiar compendium of historical knowledge
about the Polish oil industry presented through the prism of its worldwide
development.
This work is also to be a sign of our memory of all heroes of the pioneer
times of oil production and processing, among others of the founder of the
Polish oil industry–Ignacy ukasiewicz.
We also included materials and documentation belonging
to Mrs Alina Klocek, Mr Jerzy Zieliski’s private archive postcards
as well as contemporary photographs of PKN ORLEN SA
belonging to Mrs Halina Puciennik.
The remaining pictures were included by courtesy
of the Polish Oil Company ORLEN SA.
We do hope that every reader, regardless of his/her age
or professional interests, will find in this book the spirit of revolutionary
changes accompanying the use of crude oil for the benefit of man in which
the Poles have had their considerable share.
PUBLISHER
5

Ignacy ukasiewicz in his last
years of life
(Piotr Gsior’s collection).
Honorata ukasiewicz, born
Stacherska, Ignacy’s wife
(Piotr Gsior’s collection).
PREFACE
We hereby hand over to our dear Readers an album to stop in time some moments
from the past oil industry. We think we owe this to all those who, most frequently
nameless, founded, developed and devoted their strength to that industry and
sometimes made an offering of their lives.
The year 2003–the year of ukasiewicz–was a good opportunity to remind the
unparalleled accomplishments of this man, of his contemporaries and experts who
grew up in the climate of innovation and hard work. Poland, being deprived of its
independence and statehood, was a cradle of this industry and mattered much in the
world of oil. Unfortunately, that world gradually began to disappear from us. However,
some efforts undertaken in recent years to reduce our distance toward the avantgarde
of the oil industry seem to augur well for the future.
Out of the splendid history of the Polish oil industry we managed to protect and
present only several photographs within this text. We tried to replenish them with
texts based on studies drawn up by people coming from the Polish Society of Chemical
Industrial Engineers as well as borrowed from the museum–a heritage park in Bóbrka
and particularly from Historia polskiego przemysu naftowego [History of the Polish Oil
Industry] edited by Professor Ryszard Wolwowicz and published in 1994 in Brzozów
and in 1995 in Cracow. We took pains to present our history against the background
of our geopolitical history and to sketch it in the context of that industry position at
a given time. We had a double, well-founded right in the post-war, modern history to
write mainly about the Pock Refinery–the largest one in Poland and one of the biggest
in Central and Eastern Europe. We entangled its history in the world trend. Thus, we
wanted to avoid the suspicion of glorifying the Polish achievements or overestimating
their meaning. Such an approach definitely made the task more difficult and therefore
sometimes the narration may seem uneven and in many cases the author had to use
professional jargon.
Now Poland is coming back to the free world and faces the fate which we
experience together with other European nations as one great family. However, while
writing and illustrating the history of the Polish oil industry we cited much data and
some information from the United States of Northern America because this is the
country in which the oil business places itself as an undeniable leader and it is still
supposed to take the lead of the great world oil and petrochemical industry. Whereas
here, in Europe and in Poland, we do our best to keep pace with that powerful country.
Every day writes a new history. It has already been 150 years since Ignacy
ukasiewicz began the oil industry. This liquid means the future wealth of the country, it
means the prosperity and success for its citizens, it is the new source of earnings for the poor people
and a new branch of the industry which is going to bring abundant fruit. In this liquid
ukasiewicz saw the wealth of his motherland and the people’s welfare. These prophetic
words might not fully come true. History is a teacher, thus let its lessons help all of us
to accomplish this task–a spiritual testament of this Great Pole. Looking forward to a
friendly reception of this album, we do not run away from criticism. We wish all the
Readers much satisfaction during its reading.
I. TIMES OF OIL INDUSTRY PIONEERS
Crude oil has been well-known since the oldest times
The saga of petroleum which we celebrate here goes back to the most ancient
epochs of 3000 B.C. to the Sumerians, as well as some other nations like Mesopotami,
the Egyptians, the population of many Asian areas, of Europe and America all of
whom have left evidence testifying to their use of oil which can be seen in the pyramids,
in the famous processional road in Babylon, in notes about holy fires in some beliefs
from the Caucasus. The walls of Jerycho and Babylon and, probably Noah’s Ark and
Moses’ basket, contained the binding material in a form of bitumen. In the first
7

Script placed under ukasiewicz’s
statue together with
a corner-stone in Krosno on
September 30, 1928.
Krosno–unveiling of
ukasiewicz’s statue
on October 23, 1932.
century before Christ, the Greek historian Diodor described with enthusiasm the
bitumen industry of the ancient Babylon. And the Roman naturalist Plinius in the
first century A.D. mentioned the healing influence of mineral pitch in the treatment
of wounds, cataracts, toothaches, rheumatism, fever and other ailments. In Homer’s
Iliad there is a note about fire used by the Trojans. The Persian king Cyrus, before the
occupation of Babylon, warned its defenders against the use of quickly spreading
flames; probably the burning gases near Kirkuk came from that burning pit into
which the Babylonian king Nabuchodonozor ordered the Israelis to be thrown.
According to Plutarch the local population greeted Alexander the Great with
illuminations. Many prominent literary works mention bitumen, including those by
Aristotle, Herodot and Strabon before Christ or Dioskurides and Tacyt in the first
centuries after Christ. Supposedly, oil was already being distilled in Alexandria in the
early Christian epoch. The horrendous Greek fire–oleum incendiarum–had been used
and the recipe for its production had been diligently guarded in Byzantium since the
seventh century. The Middle Ages brought news about petroluem from the Arab
cultural circle. We know such names as Masudi, Tabari or Karafi who wrote about it.
In 1272 the famous traveller Marco Polo saw burning oil lamps in Baku. Prominent
modern philosophers like F. Bacon, B. Ramazzini, A. Libavius, Macquer, de Saussure,
Claire–Deville, J. Dumas and others wrote about oil. As early as in the beginning of
the 18 th century, Burma had a blooming oil industry. At that time an amazed British
ambassador reported about 500 oil wells providing product for the needs of about
7 million consumers.
Unfortunately, there is no equally ancient Polish written evidence about the
occurence and use of oil as one can find in Babylonian, Egyptian, Jewish, Persian,
Greek, Roman, Arabic or mediaeval European sources. There is, however, information
from the 13 th century. The more recent data come from Jan Dugosz, and still more
recent information, from ukasiewicz’s times, can be found in works by Stefan
Falimierz, Hieronim Spiczyski, Marcin Siennik, Marcin of Urzdów (16 th century),
Erazm Syxt, Konrad Archiatr, Wojciech Tylkowski, Stanisaw adowski, Jan Jonston
(17 th century), Gabriel Rzczyski, Krzysztof Kluk, Baltazar Hacquet, in almanacs
by Jakub Niegowiecki and Stanisaw Duczewski (18 th century). The writings of
these authors contain a lot of information about exploration, production and even
about processing and the use of oil in many localities of Podkarpacie–the Polish region
near the Carphatian Mountains. Stanisaw Staszic in his work entitled O ziemiorodztwie
Karpatów i innych gór i równin Polski [Earth Treasures of the Carpathian Mountains and
other Polish Mountains and Plains] published in 1815 writes: ...on the very surface there is
yellowish grey oil. The one collated from the top is used for lamps and candles. It lights easily,
gives thick lampblack and burns out without leaving any remainders. It is the species called
“naphta bitumen fluidissimum, levissimum, naphta...” In 1813 Joseph Hecker began crude
oil distillation tests and in 1817 delivered distillate to illuminate the streets of
Drohobycz, the barracks in Sambor and the salt mines in Truskawiec. In 1837, in
Paris, the Frenchman Joseph Pelletier and the Pole Filip Walter performed the
fractioned distillation of oil. The books by Franciszek Siarczyski of 1828 and
J. B. Pusch’es of 1836 write about rock oil from the Galicia land. Numerous Polish
scientists had already expressed their interest in oil by the beginning of the 19 th century.
Why then count the “oil era” since ukasiewicz? Crude oil in Galicia, often selfactively
streaming out to streams and rivers, was at that time used for oiling carts
axis. When it was burnt its greasy remains were called maziuga. Soon ukasiewicz’s
activities contributed to the situation that the outflow quantities were not sufficient
and explorers started to reach to deeper geological layers. Poland, at that time being
partitioned, did not have, unfortunately, such possibilities and capital as the mighty
powers of the contemporary world.
But let us eventually introduce that great personality. Let Jerzy Zieliski, a
connoisseur and expert, speak with his colourful text.
9

Krosno–a keepsake from the
ceremony of unveiling of
ukasiewicz’s statue
on October 23, 1932.
“Father” Ignacy ukasiewicz (1822-1882)
On July 31, 1853 kerosene lamps were to flare up for the first time in the Lvov
hospital. The makers of the new type of lighting were the local drugstore employees: a
pharmacist Ignacy ukasiewicz and a tinsmith Adam Bratkowski. Their invention
was to make the work of the hospital staff independent on the time of day–the hitherto
existing operations were carried out exclusively in daylight. There came the moment
of tests.
ukasiewicz and Bratkowski, not too much domesticated with hospital, trod
after a male nurse Bazyli tiptoeing and trying to make as little noise as possible.
Bratkowski, who found himself in hospital for the first time in his life, looked around
with curiosity. In the darkness of the evening he saw two rows of beds on which
patients were lying or sitting. The beds were situated with their heads towards walls,
out of which only one had several windows. The setting sun cast red glimmers on the
white bedding and the sick people’s pale faces.
–Mr Bazyli–ukasiewicz said with a whisper–have your old cressets lit. When doctors
come we will blow them out and we will light the two olive cressets which are hanging on the hall
walls.
Both these flickers were hardly visible by the evening twilight.
–What kind of light do you use when you operate here?–the pharmacist asked the nurse.
–Operations are made only during the day.
–And if you have to operate at night?
–It hardly happens. We usually wait till the morning.
–And if it is really necessary? Sometimes human life depends on an hour, a moment...
–Ah, in such a case the doctor cuts a patient by candlelight but it is very uncomfortable.
ukasiewicz did not ask any more questions because at that moment one could
hear steps in the corridor and suddenly several persons stood on the threshold...
–This is Mr ukasiewicz–the hospital director introduced the inventor.
–Nice to meet you–the president reached out to ukasiewicz–I know from the director that
you wish to offer your invention to the hospital. It is very nice, very nice... then show us please
these wonders.
–No wonders, Sir–ukasiewicz bowed modestly–it is a simple result of work and logical
reasoning. Rock oil has such a property that by means of distillation it is possible to get light and
clean liquid out of it. Let’s call it kerosene. That kerosene, when closed in a tank, from which a
linen wick sticks out, burns wonderfully. As you see, gentlemen, the wick is located in a metal
burner with which you can fix the flame. Here you are, I am lighting–he reached out for a
burning dip with one hand, and with a second one he removed a transparent mica cylinder from
the lamp. He adjoined the burning dip to the protruding wick and placed the cylinder back on
the device.–Light the other one–he told Bratkowski, handing him the dip.–And let Mr Bazyli
put out the cressets. Let’s wait a moment now until the lamps light up–he said fixing the flame
height.
Doctors and councillors looked at the scene curiously and with admiration. After
a while the lamplight became brighter and lit up the whole great hall. ukasiewicz
looked around and saw several pairs of sick people’s eyes gazing intently at him and
the lamplight...
Thirty minutes later the first night operation took place by the bright lamplight
of ukasiewicz. This was on July 31, 1853. The operated patient was rescued.
That scene from the Lvov hospital was described in the book Nafta... nafta...
nafta [Kerosene... kerosene... kerosene] by Jerzy Kossowski. Who was that great inventor
of an oil-lamp which saved Wadysaw Holecki’s life, the first patient operated on by
such light?
Ignacy ada ukasiewicz was born in 1822 in the village of Zaduszniki which is
located by the Vistula river, about twenty kilometres from Mielec. Little Igna was
baptized in the church in Padwa Narodowa. His parents–father Józef (court clerk)
11

Kuryer Lteracko Naukowy–
a supplement to Ilustrowany
Kuryer Codzienny No. 295
of October 24, 1932, about
unveiling of ukasiewicz’s statue
in Krosno.
and mother Apolonia born wietlik (they got married in Gawuszowice)–lived on a
lease in Zaduszniki village. However the lease did not bring them enough earnings to
live on. Ignacy was sent out to take his first school lessons in Rzeszów. Having
completed the fourth class of high school at the Piarists’ school in 1836 and after his
father’s premature death (the same year), the family began wondering over Ignacy’s
further education or whether to train him for an occupation. It turned out that the
ukasiewicz family could not afford paying for Ignacy’s further education and he
eventually was sent to a drugstore in acut (at Antoni Soboda’s) on apprenticeship
which he completed in Rzeszów. Young ukasiewicz applied himself very much to
learning the vocation. In 1841 he took up his first job in Hubla’s drugstore in Rzeszów.
At that time, Ignacy engaged himself in national activity and actively took part in
activities aimed at preparation of the peasants’ uprising. In 1846 he was arrested by
the police in Rzeszów. However, he did not give in and despite drastic measures used
by the police he refused to testify. He was transported to Lvov and put into the local
prison where he behaved similarly. His comrades, Teofil Winiowski–a leader of the
uprising in eastern Galicia–and Józef Kapuciski from Pilzno, were hanged in 1847.
The fate turned out more gracious for ukasiewicz–during the so called Spring of
Nations of 1848 he managed to leave the Lvov prison and began to work at Peter
Mikolascha’s municipal drugstore. Being a novice pharmacist he decided to study
more in the chosen occupation. In 1850 he set out for Cracow where he took up
studies at the Faculty of Pharmacy at the Jagellonian University. It was there that for
the first time he encountered the oil issues. Already at that time, lab experiments on
crude oil had been made in order to produce clean kerosene. In order to investigate
the problem further, ukasiewicz moved to Vienna and took up pharmaceutical studies
at the University. In 1852 he graduated from the University and was granted the
degree of Master of Pharmacy. Having completed those thorough studies, Ignacy
ukasiewicz came back to Lvov and took the position of a dispenser in Peter Mikolasch’s
drugstore Under Golden Star. Together with another pharmacist, Jan Zeh, he occupied
himself with the distillation of petroleum which the Galician terrains from Krosno to
Drohobycz were abundant in. Ludwik Tomanek wrote about those facts in his book
commemorating the 75 th anniversary of the lighting of the first oil-lamp:
When ukasiewicz was occupied with his chemist’s ordinary work, a Jew named Schreiner,
an owner of a tavern from neighbouring Borysaw, turned up in Mikolasch’s drugstore. Schreiner
noticed that local peasants boiled petroleum in large pots to thicken it and to make it more useful
to lubricate carts. During boiling some yellowish liquid gathered on the pot lid and the barkeeper
came upon an idea whether it would be possible to receive... vodka from it. Thus he brought
samples of this liquid along with crude oil with a request to help him and give advice. Then
ukasiewicz experienced something like a revelation. He decided to deal with distillation.
Naturally, not in order to get spirits out of it but to explore it for other practical objectives.
As a result of the research and experiments performed in the pharmaceutical
laboratory, ukasiewicz and Zeh produced a product which the Galician pharmacists
had already been importing from Italy and using for the production of medicines and
cosmetics. The drugstore owner got interested in the received liquid from a
pharmaceutical point of view. But the produced distillate did not enjoy much interest
among other pharmacists and Mikolasch withdrew from further co-operation in its
production. Hence ukasiewicz and Zeh engaged themselves in lab work out of the
drugstore. This time they directed their interests towards the utilization of oil for
lighting. After initial unsuccessful tests in this direction the two pharmacists entered
into co-operation with a Lvov tinsmith, Adam Bratkowski, and working together
they developed a new model of a lamp. The effect of that co-operation was the
inflammation of the first oil-lamps in hospital in Lvov-yczakow in 1853. Soon
afterwards the partnership of ukasiewicz–Zeh broke up. After that, at the beginning
of 1854, Ignacy ukasiewicz moved to Gorlice. There, close to sources of petroleum,
he leased a drugstore which was run by Tomanowicz.
13

At the same time he distilled crude oil produced in the closest neighbourhood.
However, still his main activity was running the drugstore: in 1856 he leased another
drugstore, in Jaso, where he moved in 1858 and in 1859 he established a pharmacy
near Brzostek. During his short stays in Gorlice and Jaso, ukasiewicz was very warmly
welcomed by the local societies. When he decided to leave Gorlice, the local Jewish
community expressed their readiness to pay for the lease of his drugstore–just to make
ukasiewicz stay in the town. On June 12, 1861, Jaso granted “The Honourable
Gentleman Ignacy ukasiewicz” the Honourable Citizen’s Diploma for the fact that
he was always with faultless zeal and civil devotion and was always ready to be up to the
confidence expressed towards him. Jerzy Kossowski, in his book Kerosene... keresene... kerosene,
presented a scene of Karol Klobassa and Tytus Trzecieski meeting Ignacy ukasiewicz–
an essential event for the history of the Polish oil industry:
Klobassa was walking ahead. On the way he prepared a beautiful oration and from the
threshold just wanted to start it but he disconcerted himself when in the dark shop [in ukasiewicz’
drugstore in Gorlice–J. Z.] he perceived nobody. He started to grunt and to purr, surprised that
the bell ringing at the door did not call out anybody from other rooms but he yet lost countenance
when he spotted a small, grey-haired woman standing on the threshold with a black cap on.
–Can I help you?–she asked with a silent and wafer-thin voice.
–We would like, honourable lady, to see master ukasiewicz–said Klobassa bowing gallantly.
–My son is busy now–the old lady replied–I will serve you myself if you want some readymade
medicines. Unless you have some difficult recipe so please leave it and when you come in an
hour it will be ready.
–We came here not for any medicines, honourable madam–Karol bowed again. We would
like to talk with mister ukasiewicz about important issues...
–What kind of issues if I may know? My son has no secrets in front of me.
–But these are gentlemen’s matters, dear madam...–mister Klobassa hesitated.
–Surely again that politics!–sighed the old woman.–Please save him, at least with
regard to my person! The boy was locked up in prison in Rzeszów and at the Carmelites in Lvov
the whole two years... and then in Cracow...
–Please calm down, madam–Trzecieski joined the discussion–We came here rather
with a trade matter...
At that moment behind the old woman’s back did stand a tall man with a slim
face and a shaggy long beard. He had a tall forehead and his long hair was backcombed.
–What can I do for you, gentlemen?–he asked in a deep, gentle voice.
–My name is Klobassa–Karol bowed.
–And my name is Trzecieski–Tytus echoed.
–ukasiewicz–the newcomer introduced himself...
The three men entered a low but spacious chamber in which on a wide table by
the wall there stood rows of bottles and tubes, filled with liquids of all possible colours.
Some strange machine was placed in the corner, on a deep chimney place, under wide
eaves, consisting of a whole series of glass and metal tubes and pots.
Meeting Tytus Trzecieski as well as Karol Klobassa–the owner of the oil-bearing
fields in Bóbrka near Krosno changed Ignacy ukasiewicz’s direction of interests.
They together decided to make investments in the exploration, production and
processing of crude oil. Their joint endeavour was the establishment of an oil well
which was founded in 1854 in Bóbrka forests. That historical event is commemorated
with a big stone and a board with an inscription reading: To preserve the memory of the
establishment of the rock oil well in Bóbrka in 1854. Ignacy ukasiewicz, November 4, 1872.
The first oil distillery on the Polish land came into being in 1856 in Ulaszowice near
Jaso, thanks to the initiative of ukasiewicz and Trzecieski. However soon after it
started up it burnt down and the local population did not allow it to be rebuilt. Due
to oil I lost my property and thanks to it I am going to recapture it–ukasiewicz is supposed
to have said so. The next distillery was founded in Trzecieski’s estate in Polanka
15

Reconstruction of an oil lamp
on the basis of ukasiewicz’s
design.
(nowadays the district of Krosno)–it processed oil coming from the well in Bóbrka.
Due to problems with oil transportation (it was carried in barrels on carts or sleighs)
from Bóbrka to Polanka in 1865, ukasiewicz built and started up a bigger and more
modern refinery located in Chorkówka near an oil well in Bóbrka. He moved and
settled permanently there, with his wife, Honorata, a woman full of kindness (born
Stacherska, a lawyer’s daughter from the Congress Kingdom of Poland) in the
purchased manor-house. In 1870 the company of ukasiewicz-Trzecieski-Klobassa
was wound up. Klobassa kept the oil well in Bóbrka, Trzecieski became the owner of
neighbouring lands and ukasiewicz became the owner of the distillery in Chorkówka.
Inseparable was that partnership of the three folks, who in unlimited mutual trust did not
disappoint one another till the end, who without any formal contracts, depending only on oral
agreement, turned over millions without even a shadow of misunderstanding–this text was
written in a magazine Górnik [Miner] established by ukasiewicz in Gorlice which
dealt with crude oil matters. ukasiewicz’s decision to settle down in Chorkówka
began a new cycle of the newcomer’s life who came from the distant village of
Zaduszniki located near Mielec.
He inherited patriotism as well as sensibility to human misery and social injustice
from his family home. Leading an affluent life in his region rich in petroleum he
became both a philanthropist and a great social activist. Not taking personal part in
the January Uprising he supported its participants and he would give them shelter.
He took care of raising the political, social and cultural consciousness of the local
population. He aimed at improving the level of education and professional knowledge
among neighbouring folk. He became the founder of the people’s schools in Chorkówka
and Bóbrka as well as in nearby Zrcin and eglce. In Chorkówka, he established a
lace-making school which was run by his wife Honorata whereas in Ropianka he set
up a drilling school. He used to found and support communal loan-societies and
confraternity cash desks oriented on granting pensions and subsistence allowances to
workers. He would support neighbouring parish-priests and orders through free
deliveries of kerosene, and along with Karol Klobassa he financed the construction of
a magnificent church in Zrcin. In 1873 he received the title of the Papal Chamberlain
as well as Holy Gregory’s Medal from Pope Pius IX. It was decided to hand over this
distinction to ukasiewicz in a special way.
Without disclosing the aim of arrival, the following people arrived in Chorkówka:
prelates of Przemysl cathedral, canons, deans, parish-priests–each festally garmented or with
insignia on his breast. ukasiewicz did not know yet what was going on. Of course, he received
the guests and entertained them hiding his surprise. In the court there was a home chapel–it was
opened and a holy mass was celebrated there. After the mass “Father Ignacy” was surrounded by
the whole ministers’ team and one of prelates declaring that he was the Holy Father’s delegate,
having delivered a suitable address, read out the diploma.
Ludwik Tomanek, in a similar and colourful way, described a solemn presentation
to ukasiewicz (on his name’s day in 1878) of a medal commemorating the 25 th
anniversary of his activity. Appropriate information was published by the whole Polish
press, and a Vienna daily Neue Freie Presse, stressing that the Emperor had already
honoured ukasiewicz with a 3 rd class iron crown medal, wrote:
Austrian oil industrialists gathered on July 31 at the ceremony in the number of 80
persons–clergy, officials, manufacturers, oil miners, engineers and ordinary workers–in order to
express their gratitude to this persistently active man who through his fearless, untiring activity
helped this Galician industry flourish and reach the level of competitiveness. After the Holy
Mass ukasiewicz was handed over a gold medal with his faithful image as well as an album
with photographs of almost all the manufacturers and clients. An elaborately made medal had
the following inscription on its reverse side: “To the creator of the oil industry on his 25 th jubilee
in 1878–manufacturers.” These ovations concern the man who along with his tough occupation
and tiring work distinguished himself in the whole country with his humaneness, noble altruistic
approach, understanding of charity objectives and thus gained his fellowmen’s respect.
17

Gorlice–a market square with
a town hall housing
ukasiewicz’s first drug store;
a postcard from the beginning of
20 th century, printed by
Ch. Kleingut in Gorlice
(phototypography).
Chorkówka near
Krosno–a correspondence card of
the Oil Refinery
Fibich & Stawiarski of 1900.
One should also know that in 1876, Ignacy ukasiewicz was elected Member of
the National Parliament (Seym) in Lvov. There he mainly dealt with matters connected
with the development of the oil industry–legal regulations, economic and social issues.
In 1880, due to ukasiewicz’s initiative, the Oil Association was founded which under
his presidency used to protect the interests of oil enterprises. He also got involved in
matters connected with the Krosno district. ukasiewicz was chosen a member of the
county department dealing with the building of roads and bridges and soon after his
appointment he made the roads in Krosno district the best in the whole region of
Galicia. People used to say then: In Krosno, district roads are paved with ukasiewicz’s
guldens. ukasiewicz was also a tip-top farmer on his own farm: he used to raise purebred
cattle, he kept a pedigree sheep-fold, he built fish-ponds, and he dealt with
orcharding and bee-keeping. He particularly took a liking for orcharding–he himself
planted fruit trees along roads and encouraged others to do the same by paying a
gulden for every planted tree. “Father Ignacy,” as he was called, was a tip-top example
to follow for his neighbouring peasants. The ukasiewicz couple did not have their
own children. They adopted five-year-old Valentine whom they loved as their own
child. They kept an open house. It was an asylum for numerous others after the 1863
uprising, political wanderers as well as the youth who went there to spend their
breaks or holidays and for whom Father Ignacy founded scholarships at national and
foreign universities. But a good and beautiful life must end one day. Ignacy’s last years
were so beautiful that his death was blessed–an eye-witness of ukasiewicz’s last hours
wrote in Stranica Polska [The Polish Watch Tower] Gazeta Narodowa [National Gazette]
reported his last moments life as follows: On December 31 the late Ignacy worked till 11
p.m. complaining about his general incapacity, then he went to bed, and the New Year morning
met him already with little consciousness. Pneumonia proceeded quickly and all the doctors’
attempts were ineffective. About 11 a.m. he recognized nobody–fever developed more and more,
he spoke in malignant fever the whole week, day and night throughout. Only sometimes it seemed
that he came to himself for a short moment. His sight became more gentle and he recognized people
standing by his bed and with a handshake blessed them for ever. Ignacy ukasiewicz died on
January 7, 1882 in his 60 th year of life, full of creative strength. The funeral ceremonies
were held in the presence of a crowd of almost four thousand people–officials, Krosno
townsmen, oil workers, children, friends as well as a great number of clergy of various
denominations. The ceremony took place in Zrcin, in the parish church of which
ukasiewicz was a co-founder. He was buried in Zrcin cemetery. Honorata–a widow
after Ignacy ukasiewicz died in 1898.
The memory of Father ukasiewicz survives to our times in the Podkarpacie
region. Krosno, which bestowed Ignacy ukasiewicz with the Citizen’s Title of Honour,
also built him a beautiful statue by the well-known Cracovian sculptor, Jan Raszka.
In the letter commemorating the laying of the corner-stone under the statue and
duplicated in the form of a postcard, we can read: On September 30, 1928, in the tenth
year of Poland’s Independence, when Ignacy Mocicki, Ph.D. was the President of the Republic
of Poland, Kazimierz Bartel, Ph.D. was the Prime Minister, the First Marshal of Poland,
Józef Pisudski was the Minister of Military Affairs and the Great spiritual leader of the
Nation, General Sawoj-Skadkowski was the Minister of Internal Affairs, Engineer Eugeniusz
Kwiatkowski was the Minister of Industry and Trade, Count Wojciech Gouchowski was the
Lvov Province Governor, Emil Rappe was the head of Krosno district, Jdrzej Krukierek, M.P.
was the Mayor of Krosno, whereas Rev. Micha Nowakowski was responsible for his parish
souls–the corner-stone was laid under the statue of Ignacy ada–ukasiewicz, the Creator of
the Polish oil industry, noble alms-giver, faultless citizen, inventor of crude oil distillation and
the constructor of an oil-lamp,who connected the nobility of feelings with the power of knowledge.
This statue will be built from offerings of these people who following the Great Pioneer drilled
the extremely rich interiors of the Polish soil as well as owing to gifts of grateful citizens as a
mark of acknowledgment of the noble initiative and civil virtues of Ignacy ukasiewicz for the
good of the Country and the fame of the Polish Name. The statue was located on one of the
19

town central squares. After half a century it was restored to the memory of generations–this
is how Ilustrowany Kuryer Codzienny [Illustrated Daily Courier] entitled the article
describing the ceremony of unveiling Ignacy ukasiewicz’s statue in Krosno on October
23, 1932. Thirty years later the poet Jan Zych wrote:
In a blown away apron,
Fashioned in bronze,
Cheerful and thoughtful
Both in December and May.
His beard and moustache
Covered with patina
And sparrows chirp
On the oil-lamp
Which he holds in his hand,
When I arrive in Krosno
To ukasiewicz I bow.
The most vivid memory about ukasiewicz is still maintained at Podkarpacie.
The Gorlice town-dwellers show visitors with pride the site commemorating the first
street oil-lamp lit by ukasiewicz, and the Regional Museum in Gorlice collected
many souvenirs that are connected with this pioneer-of-oil-industry’s stay in this
town (among others, the first boiler for oil distillation). In Bóbrka (near Krosno)
there are still some oil wells in operation which were drilled in ukasiewicz time. In
1972, which was announced as the Year of Ignacy ukasiewicz, the Ignacy ukasiewicz
Museum of Oil Industry was opened there. It is situated on the site of the historical
oil well. The Podkarpacie Museum in Krosno accumulated a splendid collection of
oil-lamps. The replica of ukasiewicz statue from Krosno decorates the hall of Academy
of Mining and Metallurgy in Cracow. A bust of ukasiewicz was unveiled in Bóbrka
(in the museum), in Gliwice (near a shrine with the first oil street lamp), in Cracow (in
front of the seat of the Oil and Gas Exploration Company), in Pock in ukasiewicz
street or in Rzeszów at the Technical University named after ukasiewicz. The town
of Jaso commemorated ukasiewicz with a plaque with his face which was placed in
the building housing his drugstore as well as in Ulaszowice where the oil distillery
had operated till it burnt down. Pharmacists’ and oil-men’s associations as well as
schools and hospitals bear Ignacy ukasiewicz’s name. As a tribute, 2003 was
announced the year of Ignacy ukasiewicz.
Jerzy Zieliski
Schodnica (Poland’s former
border land)–Pasieczki oil field;
a postcard of 1903 printed by
Julian Polak in Schodnica, on the
basis of a photography by Stefan
Borówka (phototypography).
Schodnica (Poland’s former
border land)–Zrb oil field;
a postcard of 1903 printed by
Julian Polak in Schodnica on the
basis of a photography
by Stefan Borówka
(phototypography).
The personage of Jan Józef Ignacy ukasiewicz is described by many authors
and this is why we should let them speak. Professor Stanisaw Brzozowski, in his book
The History of the Polish Oil Industry, reminds us that Ignacy’s father was Kosciusko’s
uprising insurgent and in June 1845 Ignacy himself was sworn by Edward Dembowski
and worked with devotion to prepare the uprising for which he was sentenced and
imprisoned for 2 years. Professor Ryszard Wolwowicz in his report on 140 years of the
Polish oil industry writes that a Polish colonel was the young boy’s first teacher. This
climate shaped our hero who stayed faithful to patriotic traditions. As a mature man,
he supported the January uprising in 1863 and castaways of insurgents’ units. Being
a modest person, with a personality enticing his neighbours, as a co-funder of Zrcin
church and a founder of many schools, a supplier of free oil for the temples of
Podkarpacie as well as a philanthropist providing assistance for the orphaned and
peasant children, he lived a worthy and Christian-like life. He served people with his
advice and helped as an employer, Member of Parliament, member of the Town Council,
president of associations, a guardian of schools and many other institutions. His friend
and collaborator Teofil Merunowicz in the obituary devoted to him wrote: His main
condition of happiness was to make others happy and to lead people to the good. Hundreds or
maybe thousands of those who experienced his personal good deeds will keep him in their grateful
21

Schodnica (Poland’s former
border land)–Pasieczki oil field;
a postcard of 1900 of an
unknown author
(chromolithography).
Schodnica (Poland’s former
border land)–an oil field;
a postcard of 1899 printed by
Karol Schwidernoch in Vienna
(chromolithography).
remembrance till the end of their lives. But first of all he deserves to be named as the best and
noblest son of the whole nation. The Nation celebrates this great Pole with statues and
monuments. The Polish Senate celebrated ukasiewicz with a resolution dated February
19, 2003.
The beginnings of oil industrial utilization in Galicia
The last thirty years of ukasiewicz’s life were the pioneer years, full of work and
activities thanks to which oil and its derivatives found wide and quickly growing
application. Therefore, the memorable moment of lighting the first oil lamp at Lvov-
yczaków hospital in 1853 marks the beginning of the Polish oil industry. ukasiewicz’s
words cited in the foreword to this album perfectly illustrate what he believed in and
his passion.
Let us once again return to the events which took place in Peter Mikolasch’s
(1805-1873) drugstore Pod Zot Gwiazd [Under the Gold Star] in Lvov in autumn
1852, this time according to Melchior Wakowicz’s report from his book Sztafeta [Relay]:
...in Mikolasch’s old drugstore, up to here existing in Lvov, ukasiewicz, an outcast of the Nations
Springtide, found a shelter. [...] Abram Schreiner sneaked into the drugstore through the back
door directly to the lab, a peasant following him with a shirt pulled out from his trousers,
panting, and brought in a gallon of dark gunk. You, pharmacists, are learned people–said
Schreiner. Here is something that can burn. What can burn if not spirit? Let you Sirs build a
distillery on this lot so we shall be partners and let’s keep it in secret, shall we? A sweet picture
came to Abram’s mind: he is an owner of the business, he takes spirit directly from the ground, if
he could charge only five grejcars for one glass of vodka he would sleep on gold, anyway. In a less
funny version Abram Schreiner and Lejba Stierman from Drohobycz brought some
distillate from their own distillery with a request to specify its usefulness–thus studying
the matter according to the Austrian pharmaceutical aspect both chemists, Ignacy
ukasiewicz and Jan Zeh (1817-1897), affirmed the likeness of the stuff to the dear
Italian patent medicine on rheumatism and other diseases, Oleum Petrae Rectificatum.
ukasiewicz bought some oil which then was easily accessible in Peczeniyn. However,
they could not find many customers–patent medicine was going out of use. Mikolasch
quit the partnership, whereas the remaining two chemists further experimented outside
the drugstore. At the turn of 1852 and 1853, as a result of fractioning, they received
distillate up to 250 deg C. They refined it with sulphuric acid and soda. That was
kerosene, long yet called new kamfina. Only a lamp was missing to reach success–this
time, already without Zeh’s help, ukasiewicz with the tinsmith Adam Bratkowski
performed arduous tests and experiments which were finished with final success.
ukasiewicz was recognised as the lamp constructor (but in Vienna it was Dittmar who
got a patent for the lamp of improved construction). Schreiner helped to make a deal
with the hospital in Lvov where the lamps and 500 kg of oil were delivered. On July
31 st , 1853, the famous day took place when Dr Zaorski operated on Wadysaw Cholecki
by the new, bright light. That day marks the beginning of the world oil industry as well
as the first day of the world oil transaction. Kerosene lamps were well received in
Austria and they were further distributed to other European countries. ukasiewicz
and Zeh got a patent for the so called “cleaned oil” on December 2 nd , 1853. This
undoubtedly joint discovery Zeh attributed only to himself and in Ukraine he is perceived
as the oil discoverer.
ukasiewicz did not rest. He tried to arouse interest in kerosene by the Austrian
railway authorities. The products used for lighting before kerosene were the following:
tallow, spermaceti (cod liver oil), candles, bituminous oils made from roasted lignite
and shales; so called fotogen or hydrokarbur (hydrocarbon) was distilled from them and,
when mixed with rapeseed oil, it was known as pinolina, and when mixed with
turpentine and alcohol–as kamfina in Germany, Russia, England, Scotland and in the
USA. The famous German chemist Justus Liebig in 1863 still foresaw the development
of lighting in that direction. Therefore ukasiewicz’s accomplishment is so epoch-
23

Borysaw-Tustanowice (Poland’s
former border land)–Rockefeller
oil field; a postcard printed
by Leon Rosenschein in
Drohobycz in 1913
(coloured phototypography).
Borysaw (Poland’s former border
land)–a view of oil rigs in
a decorative vignette of stamps;
a postcard printed by J. Klein in
Cracow in 1908 to commemorate
the 60 th anniversary of Kaiser
Francis Joseph’s reign
(coloured phototypography).
making. On the other hand, gas lighting had been known since 1789–gas was made
of coal. Kerosene was about 30% cheaper than German hydrocarbur. The first street
oil lamp in the world flared up in Gorlice in 1854–that is where ukasiewicz lived as
a tenant of a local drugstore. In 1854 he discovered oil in a forest near Bóbrka village
and the first rock oil well in the world came into being there as well as the first oil
distillery, which was commemorated by its founder with an obelisk laid in 1872 at
the site where today there is a museum-heritage park and oil is still produced.
ukasiewicz was recommended to Tytus Trzecieski (1811-1878), a well-off landowner
from Polanka (district of Krosno) by influential officials from Lvov: Karol de Lance
and Felicjan Laskowski. Thus, a training ground for testing new techniques and
constantly growing oil yield came into being on the land belonging to ukasiewicz’s
neighbour–Karol Klobassa Zrcki (1823-1886), the owner of Bóbrka as well as thanks
to Klobassa and Trzecieski’s capital, ukasiewicz’s talent and technical skills of Adolf
Jaboski (1825-1887) and Henryk Walter (1835-1921). In 1856 ukasiewicz founded
his own distillery in Ulaszowice–today a district of Jaso–on the lot belonging to
Tytus’ brother–Franciszek Trzecieski.
Other claimants to the victor’s palm
In 1857 the distillation of oil started in Romania which is recognised as the
beginning of the Romanian oil industry.
American literature dates the beginnings of the oil era for the year 1859 when
the famous Drake drilled the first oil rig in Titusville in Pennsylvania and in 1861 the
first refinery called Oil Creek was started up. When Drake was drilling that oil well,
the streets of Bucharest were already lit with kerosene. Though in Russia, Burma and
Canada oil was already earlier produced on the trading scale. It is Drake, and the year
1859 which is recognised as the main date in the history of the world oil industry. The
fast development of this new branch caused that in 1865 thousands of oil rigs and
hundreds of refineries were in operation. Crude oil is the miracle of the 19 th century–
similarly as steam was the miracle that changed the 18 th century. A lot of history of oil
can be found in books by two Americans: Harvey O’Connor or Daniel Yergin, president
of CERA, a well-known consultative company dealing with energy matters, and a
laureate of a prestige Pulitzer prize in the USA in 1992 for the book The Prize (translated
into Polish as Nafta, wadza, pienidze [Oil, Power, Money]).
Great works of Galicia pioneers
In 1858 at a local agricultural-industrial exhibition in Jaso, ukasiewicz presented
crude oil from Bóbrka, kerosene in two varieties, oil for machines, gunk for axis oiling
and for roof or fence protection against rotting, bitumen on floors in farm buildings
and gudryna–raw material for production of wax candles. The exhibition was a success.
These products were to be also awarded at the general exhibition in Vienna in 1873
and at the national exhibition in Lvov in 1877.
In 1859 the well-off and well-connected brothers Apolinary and Edward Zieliski
(Edward Zieliski later became member of the National Government during the
January Uprising) discovered abundant sources of waxless oil in Klczany. After some
vicissitudes connected with that discovery, ukasiewicz quit the company dealing with
processing of that oil. In 1860 a fire destroyed ukasiewicz’s refinery in Ulaszowice
(peasants did not allow to rebuild it; remnants of foundations are still there) after
which he left Jaso where he had been living after the departure from Gorlice in 1858.
No longer did he run drugstores–the passion for oil completely absorbed him. However,
some failures and the family tragedy–daughter’s death–almost caused his permanent
departure to Lipno district in the Congress Kingdom. Then Trzecieski came back from
abroad and together with Klobassa persuaded ukasiewicz to establish a new company
of three, similarly as previously Trzecieski had set companies with each of them
separately. The partnership lasted from 1861 to 1868–ukasiewicz quit it claiming
25

Borysaw-Tustanowice (Poland’s
former border land)–Stefania oil
field; a postcard printed by Leon
Rosenschein in Drohobycz in
1913 (phototypography).
Borysaw-Tustanowice–aszcz 1
oil field; a postcard printed by
Leon Rosenschein in Drohobycz
in 1913 (phototypography).
Borysaw-Tustanowice–a general
view of oil fields;
a postcard printed by Leon
Rosenschein in Drohobycz in
1908 (phototypography).
that it brought too little profit and harmed his partners. He became the manager of
Bóbrka oil well which soon became Klobassa’s property after Trzecieski’s resignation
(probably in 1871). Klobassa gave ukasiewicz a free hand with regard to Bóbrka
development. This is how that prominent though modest inventor was saved for the
Polish oil history by these reasonable and trustworthy men. At that time ukasiewicz
started up a refinery in Polanka (1861) and Chorkówka (1865). Soon, that pioneer
period for ukasiewicz was to be completed. That refinery, being his last one, the
largest and the best one in Galicia, after ukasiewicz’s death became the property of
W. Stawiarski and W. Fibich and till 1904 was the facility in which the oil processing
technology was being perfected–Similarly as the Bóbrka oil rig which was the best one
in Galicia serving as a training ground and the school of specialists of oil industry.
Initially, oil wells were dug out by hand and they were reinforced with wood.
Henryk Walter, a graduate from Leoben, the January Uprising insurgent, an adviser to
ukasiewicz, in 1862 used for the first time a free-fall drilling system for drilling through
hard sandstone. In 1866 he imported a better version of Fabian’s jars for manual hammer
drilling on a poling conductor. It is he who implemented the first methods of isolating
water in underground deposits as well as applying a manual deep-seated pump. As far
as laying out of bore-holes is concerned, ukasiewicz was assisted by a graduate from
Freiberg, Juliusz Noth (1840-1922), who in turn recommended a German newcomer
from the USA, Albert Fauck (1842-1919). It is Juliusz Noth and others who in the
seventies of the 19 th century laid the foundations of oil geology as a trend of regional
applied geology. In 1867 Albert Fauck introduced a steam drive for drill rigs and in
1870-1872 the Pennsylvania rope method was applied in Klczany, Bóbrka and
Ropienka. In 1868 there were already 84 oil wells in Bóbrka. One of these oil wells
provided mineral water as in Iwonicz-Zdrój, where in 1874 a healing institution with a
pump-room was founded to function till water depletion. After that the well turned
out to be an oil-bearing one. Also, in Bóbrka a steam drive for pumps was used for the
first time. Adolf Jaboski, the former exile to Siberia for conspiracy activities, in 1870
was sent by ukasiewicz to the USA from where he had come back in 1873 with new
and better drills. He also improved the method of water isolation.
Not only oil wells, refineries, oil and its products but also written word were the
fruit of these men’s work. In 1870 Antoni Teleyski published the book Olej skalny i
jego zastosowanie w przemyle i yciu codziennym [Rock Oil and its Use in Industry and
Everyday Life]. A year later Szczsny Morawski, in his book wiatek Boy i ycie na nim
[God’s Small World and Life on it], described a visit in Bóbrka as well as an interview
with ukasiewicz. In 1875 Edward Windakiewicz published a book Olej i wosk ziemny
w Galicji [Oil and Earth Wax in Galicia], first in German (in Vienna) and then in Polish
in Lvov. In 1880 in Cracow Arnulf Navratil published a book O nafcie i innych wyrobach
galicyjskiego oleju skalnego [On Oil and Other Products from Galicia Rock Oil]. In Vienna
Henryk Walter and Emil Dunikowski published the work Das Petroleumgebiet der
galizischen Westkarpathen. In 1882 in Gorlice the first oil periodical called Górnik [Miner]
was published. Thanks to the Krajowe Towarzystwo Naftowe [National Oil Company]
which was founded in 1880 and chaired by ukasiewicz, a periodical Nafta [Oil] came
into being. Adolf Jaboski in 1885 published a book Kopalnictwo naftowe [Oil Mining].
The same year M. Malanko published a book Zarys kopalnictwa naftowego [An Outline
of Oil Mining] in Stanisawów. R. Zaoziecki (1861-1916)–a disciple of professor
Bronisaw Pawlewski (from Pock region) who was the author of Technologia nafty i
wosku ziemnego [Technology of Oil and Earth Wax], published in 1891–wrote a book
Technologia nafty do uytku organów kontroli skarbowej i fabrykantów [Technology of Oil for
the Use of Treasury Control Organs and Manufacturers] in 1894. ukasiewicz did not
publish anything and his notes commenting lab tests and experiments did not survive.
In 1875 Windakiewicz founded 111 oil wells in Bóbrka: 60 were inoperative
and 51 in operation, some of them were drilled down even to 450 m. At that time,
however, less oil than in Borysaw was produced there, though this oil field was still in
27

Borysaw-Tustanowice–a general
view of No. III oil field; a
postcard printed by
Leon Rosenschein
in Drohobycz in 1908
(phototypography).
Borysaw-Tustanowice–a general
view of No. V oil field; a
postcard printed by
Leon Rosenschein
in Drohobycz in 1913
(phototypography).
Borysaw-Tustanowice–a general
view of No. VI oil field; a
postcard printed by
Leon Rosenschein
in Drohobycz in 1913
(coloured phototypography).
second place. Windakiewicz enumerated the following localities in Galicia where oil
was discovered and produced: Bóbrka, Powce, Ropianka, Siary, Skowa, Ropica,
Harklowa and others. Borysaw, Bóbrka, Kryg, Lipinki, yny, Soboda Rungurska
and a few other places were then the essential sources of oil. In 1874 in Borysaw an
oil well Potok [Stream] produced about 40 tons of oil per day! That was a forecast of
a new stage of oil industry development in Galicia.
Oil processing was ukasiewicz’s domain. He covered a long road from his lab to
the refinery in Ulaszowice, Klczany, Polanka and Chorkówka, from iron retort boilers
to distillation processes heated with wood. Till 1862 in the process of refinement he
had used smoky sulphuric acid and for leaching he had used wooden pots. Then,
almost simultaneously with Americans, he applied agitators. He produced exceptionally
good types of kerosene “Standard” and “White Standard” with which he interested
Romanians and Americans. John Rockefeller himself supposedly visited him; an
Austrian oil potentate Gustaw Wagemann certainly did it too. Initially he owned a
few shops in Tarnów, Cracow and Warsaw, then he only ran a wholesale trading company.
In 1866 ukasiewicz with his company partners established an oil well in
Ropianka, in 1873–in Wójtowa, in 1874–in Ropa, in 1875–in Smereczne, in 1881–
in Wilsznia. In the year of his death (1882) about 50,000 tons of oil were produced
annually and the Chorkówka refinery processed 3000 tons of crude oil per year. In
the Gorlice region, the largest as far as crude oil is concerned, oil was produced in
almost 20 sites with operational refineries. In 1881 oil production reached 7300 tons,
in 1883 as much as 51,000 tons and Poland was the third in the world after the USA
and Russia. There are still three active oil wells dating from the 19 th century, including
the oldest one in Wakowa from 1848; until recently, the oil from Wakowa was
pumped directly into tank cars at the Olszanica railway station.
Already during ukasiewicz’s life in Galicia there appeared his successor, also a
pioneer of the Polish oil industry, Stanisaw Szczepanowski (1846-1900). This
thoroughly educated young but already experienced man arrived in Galicia in 1879
with the intention to help this poor province and it is the oil industry that filled him
with hope. He selected the village of Soboda Rungurska (Koomyja district) for his
activities and not the oil-bearing areas of Gorlice, Krosno or Borysaw. There was the
so called government property where as early as 1771 the first oil well was dug out
which in 1874 produced about 50 kg of crude oil daily. Oil was processed in distilleries
in Kosowo and Peczeniyn. Szczepanowski also drilled an oil well and by applying the
method of steam percussive drilling he reached considerable efficiencies of oil production.
In 1880 in Soboda he established the first factory in Galicia manufacturing mining
machines and equipment. In 1881 he produced a lot of oil and there was a problem
with its storage–Soboda was the largest oil field in Galicia. One could notice the so
called oil fever and a run on Soboda. Szczepanowski founded a company, took credits
and in 1883 constructed the largest refinery in Galicia–in Peczeniyn–which for some
time was the third refinery in Europe. It had tanks, oil pipeline, gas and a refinery
wastes heating system. In 1884, thanks to deeper drilling, the production of oil greatly
increased. At that time Szczepanowski assembled a group of serious businessmen and
oil technicians. History quotes over 20 surnames. Szczepanowski engaged an insurgent,
member of the National Government, an oil industry pioneer, Mikoaj Fedorowicz as
well as managers from Ropa and Siary distilleries, Piotr Brzozowski and Felicjan
odziski. Felicjan odziski, a technical manager of the company Wolski & Co. at
the age of 85, together with his wife, were taken away by Russians to exile to Siberia
where he died of hunger in 1941. Felicjan’s son, Wodzimierz odziski, was to continue
his father’s work in the oil industry but he also experienced misfortunes at the times of
the historical, national upheavals. His life included Pisudski’s legions, Russian exile,
the Bolshevik revolution, then 20 years of free and independent Poland and again war.
Such a fate touched millions of Poles. In 1887 Szczepanowski was ousted from Soboda
and soon also from the refinery in Peczeniyn. In 1887-1889 he owned small oil wells
29

An oil field in Potok
near Krosno; a postcard printed
by Bernard Fischbein in Krosno
in 1900 (phototypography).
An oil field in Potok
near Krosno; a postcard printed
by Bernard Fischbein in Krosno
in 1910 (phototypography).
in Równe and Wietrzno (Krosno district) and in 1889-1894 he had an oil rig in Siary
near Gorlice–all of them managed by F. odziski. He was the first one who drilled in
Bitków but without success. He also drilled with poor results in over 10 localities and
just in Schodnica, where a shallow oil well had existed since 1855 (drilled by the owner,
duke Schwarzenberg, and then Maria Lubomirska) and since 1888 Szczepanowski managed
to attain from deeper wells better efficiency than in Borysaw or any other oil well of
Galicia. But he also lost Schodnica. It was taken over by Wolski and Odrzywolski, Co.
which in the period from 1893 to 1899 was owned Schodnica, Kosmacz, Grziowa,
Kropiwnik, Paszowa, Truskawiec and then Borysaw, Tustanowice as well as the
Mislisoare Valley and Campina-Busztenari in Romania. The whole Szczepanowski’s
personnel came to Schodnica which soon became a pure Polish oil field in distinction
from already international Borysaw. For his achievements Szczepanowski was rewarded
at exhibitions in 1882 in Przemyl, in 1887 in Cracow, and in 1894 in Lvov for soil
profiles, drill logs, geological maps, oil rig and for the best oil from Peczeniyn. To the
advantage of the oil industry, he managed to conduct an action of customs protection,
then the reduction of railway fares for oil products as well as the decrease of taxes in
this industry. From 1886 to 1897, he was an MP at the Viennese parliament and from
1889 till 1899 in the National Lower House. In 1884 he published the work Nafta i
zoto, praca i boto [Oil and Gold, Work and Mud] and in 1888 Ndza w Galicji [Misery in
Galicia] in which he criticized apathy and the lack of commitment. Then, in the
period from 1890 to 1896 he worked in the editorial staff of the exclusive quarterly
Ekonomista Polski [The Polish Economist] (Lvov) in which, thanks to his several press
releases, he went down in history as a precursor of National Democracy. In 1891 he
established, together with a poet Adam Asnyk, the Society of People’s School, he was
also the creator of the Polish cooperatives’ head office in Galicia. The daily paper and
the publishing house as well as his broad social activity got him enemies and his not
always honest business practices made him a debtor and defendant. He was defended
by such famous writers as Prus or Sienkiewicz. That opportunity was used by the
foreign capitalists who mastered the oil industry. Szczepanowski and ukasiewicz
were so different and alike at the same time–patriots, stubbornly aiming at their
objectives, disinterested, modest and dedicated. Szczepanowski, like a meteor on the
Galician firmament, bestowed an European flourish to the Polish oil industry. He
inspired the young generation with his discoveries, but, being a straightforward man
and despite his unusual abilities, he ended up as an unhappy person. ukasiewicz is
commemorated with statues whereas Szczepanowski has a few streets named after
him in Warsaw, Cracow and Pozna as well as a modest statue in the yczaków
cemetery in Lvov. The greatness of this figure is not questioned by anybody–he was a
symbol of our oil industry’s fight for independence, an exceptional personality who,
together with ukasiewicz, somehow also deserved the eternal memory in the pantheon
of great Poles.
The turn of the 19 th and 20 th century was filled with a wave of oil discoveries in
almost the whole Podkarpacie province. The following oil deposits were discovered at
that time: Turzepole-Zmiennica (1883), Potok and Wakowa (1885), Krocienko
and Witryów Homcza (1886), Biecz (1887), Wglówka (1888), Rudawka
Rymanowska (1889), Iwonicz Zdrój (1890), Kobylany (1891), Turaszówka (1892),
Stara Wie (1896), Grabownica (1898), Tarnawa Wielopole (1900) and Mokre (1913).
Effective exploration was performed in the region of Borysaw–apart from Ratoczyn
and Wolanka, oil was found in Tustanowice (1895) and Mranica (1911). Further
eastwards the oil production was undertaken in Majdan, Pasieczna and Strzelbice
(1886), Rypne-Dubie and Schodnica (1890), Urycz (1895), Bitkow, Kosmacz and
Opaka (1899). The following oil wells were also active in that period: Gorlice, Glinik,
Magdalena, Ropa, o, Ptna, Mcina, Kobylanka, Rozdziel, Wójtowa, Pagorzyn,
Skowa, Powce, Librantowa, Wietrzno and Równe, Ropienka, Humniska,
Klimkówka, Libusza, Dominikowice, Ropica Polska and Ropica Ruska.
31

An oil field in Potok near Krosno;
a postcard printed by
Bernard Fischbein in Krosno in
1907 (phototypography).
An oil field in Potok near Krosno;
a photographic postcard by
R. Kaska from Krosno,
about 1930.
Shallow and primitive methods of oil production did not bring expected results
in comparison with hammer drill methods applied with success on the other
hemisphere. Therefore in the beginning of 1880 a partnership Jana founded with August
Gorayski, Adam Skrzyski and ubieski invited a Canadian William Henry Mac Garvey
(1843-1914), a pioneer, inventor, organizer and administrator, a man of steadfast will
and great diligence who brought credit to the Polish oil industry. The company Bergheim
(John Bergheim–a Viennese banker) & Mac Garvey in 1882 applied already famous
Canadian drilling. At that time those areas went through the period of boom. Up till
1894, the company built 370 oil wells in 43 localities of the total depth of 100 km. In
1883 the company founded Fabryka Maszyn SA Glinik [Factory of Machines joint
stock company Glinik] existing at present. The factory later became famous worldwide
thanks to production of machines, oil well and mining equipment, refinery apparatuses
and equipment, casts, constructions, tanks, barrels as well as overhauls and repairs.
The company, later transformed into Galicyjskie Karpackie Naftowe Towarzystwo
[Galician Carpathian Oil Company], established a plant in Tustanowice, the then centre
of oil production. TEPEGE (today’s Naftomet), a production and repair company, was
founded in Krosno. In other places the following firms worked for the oil industry
being well provided: Towarzystwo Akcyjne L. Zieleniewski [Joint-stock Society
L. Zieleniewski] in Cracow and Sanok, the factory Perkins-MacIntosh and Perkins in
Stryj with its branch workshops in Borysaw and Tustanowice, the factory Roman
Gierszyski in Tustanowice, a plant W. Wolski & K. Odrzywolski in Schodnica,
workshops Dudziak-Mermon in Wolanka and workshops J. Dawidowicz in Borysaw,
Warsztaty Mechaniczne Taran [Mechanical Workshops Taran] in Tustanowice.
Additionally, oil wells workshop back-up facilities provided services in Borysaw and its
later districts, Tustanowice, Mranica and Wolanka, as well as for oil rigs in Rypne,
Bitkow, Nadwórna, Wakowa, Grabownica, Krocienko, Potok, Równe, Kryg and
others.
The scale of the gigantic jump which the oil industry has made since the 19 th century
till today is presented in Table 1 (in thousands of barrels–1 metric tone equals 7.3 barrels).
The cited quantities are outright indispensably necessary every day now! And also
formerly–as one can see in the Table–we were the third oil power in the world!
In 1900, less oil than presented in Table 1 was produced in Canada, Peru, Germany,
Italy and Japan. Table 2 shows production and processing of oil in the period
1905-1912 in thousands of metric tons in Galicia and Austria.
Oil was quite often processed on the spot, near oil wells, in small distilleries. At
that time in Podkarpacie province, from Klczany in the west to Soboda Rungurska in
the east, there were over 60 distilleries and refineries of various sizes. Some authors
claim that there could be over a hundred of them–they were founded and went bankrupt
depending on the economic situation. Other studies state that there were about 80
distilleries and refineries in 60 localities, whereas at the end of the 19 th c. there were
about 40 refineries in working order. In 1910 there were only 35 and in 1926 only 29
refineries. Some of them were commemorated with postcards. In 1885 Bergheim &
Mac Garvey worked out a project to develop a distillery in Glinik into a comparatively
large oil processing plant, the future Oil Refinery in Glinik for which the Factory of
Machines functioning in the same place and under the joint management manufactured
apparatuses, tanks, devices and other equipment necessary for the refinery operation.
Significant refineries which were built at that time include Glinik Mariampolski (1886),
Peczeniyn (1887), Jaso (1888), Targowiska (1890), Trzebinia (1895), Jedlicze (1902),
Krosno (1905), Czechowice (1907) and Drohobycz (1912). Distillation equipment was
very primitive at that time–gasoline which was thought useless, was poured into rivers
or streams. The distillatory boilers covers were helmet-shaped–those were partial
condensers which reduced the loss of valuable kerosene. Pipe coils were plunged in
water and served as coolers. As early as 1890, the so called coke distillation was conducted
in small boilers, which often burnt through. Refinements, products of wax and bitumens
33

Krocienko near Krosno–an oil
field. A postcard dated 1910,
printed by Bernard Fischbein
in Krosno (phototypography).
Wglówka near Krosno–an oil
field. A postcard dated 1914 and
mailed in 1918, printed by
Bernard Fischbein in Krosno
(coloured phototypography).
Grabownica near Brzozów–an oil
field. A postcard by an unknown
author, mailed in 1937.
were added to the primitive distilleries. At the end of the 19 th c., kerosene made up
75% of the oil products. There were five different types of kerosene produced at that
time and their density was measured in the Beaume’s scale. In Poland in 1938, out of
500,000 tons of processed crude oil, the demand for kerosene reached 100,000 tons.
The oil industry operated much worse than the western one–the production went down,
the risk of purchase of new licenses and systems rose. Refineries often changed their
owners, they were rented, shut down for longer periods, there were fires, bankruptcies
and later even the lack of feed stock. There is not sufficient information but it is known
that the medium size and larger refineries were not Polish. In the region of Borysaw-
Drohobycz there were about 30 distilleries and refineries. Till the end of World War I,
Polish refineries used to export their products practically all over the world.
In the period 1882-1910 the problem with gas, which was so uncomfortable
and dangerous while drilling, was solved. First it was used for heating and lighting
up of back-up facilities at oil fields.Then they drilled down to gas deposits and laid
gas pipelines leading to refineries. A gas absorption plant belonging to engineers
Wadysaw Szaynok (1876-1928) and Marian Wieleyski (1879-1945) was started
up in 1914. However, the development of the gas industry was to take place later.
The first stage of the history of the Polish oil industry ended in 1896 when
Wadysaw Dugosz, the later organizer of “Falcon’s” military units and the leader of
the Independence Committee, completed the first oil well in Borysaw called Na Potoku
[By the Stream] with the output of 40 tons per day. In 1893 Mac Garvey explored oil
in Tustanowice. In 1895 Mciski, Pocki, Sroczyski and Suszycki were looking for
oil. Thanks to Dugosz’s discovery, a considerable portion of the drilling operations
was moved eastwards and the Borysaw region entered history. Borysaw became the
unofficial capital of the Polish oil industry. In 1901 the Karpackie Towarzystwo Naftowe
[Carpathian Oil Company] and Nafta [Oil] oil wells produced a dozen or so thousand
of tons of oil each. In 1904 in Tustanowice the oil rig Wilno [Vilnius] produced 400
tons per day, and the oil well Litwa [Lithuania] 800 tons daily. That was the golden
age of the Polish oil industry. Today already legendary oil well drilled in 1908–Oil
City–produced 2500 tons per day. Here are words of the then chronicle: ...in the first
24 hours two pumps managed to pump 140 tank cars and at least the same quantity was spilled
over in the fields. The production rapidly increased, more and more powerful oil rigs were built
while larger and larger areas of fields were covered with spilled oil. On July 4, 1908 a powerful
fire caused by lightning broke out and lasted three weeks–the glow was seen even
from Sambor. Generally 127 oil wells from the region of eastern and western Podkarpacie
are cited in materials on the Bóbrka heritage park. Apart from the above mentioned
oil wells it is worth showing those from the vicinity of Bochnia, Krosno or even Stryj.
Oil has been well-known for ages, coming from natural effluents and wells in the
region of Scz, Gorlice, Krosno, Sanok, Sambor, Drohobycz, Nadwórna, Kosowo
reaching up the Romanian Carpathians. In fact, as late as in 1861, the depth of oil
wells reached 150 m., in 1881–230 m., in 1896–612 m. and 1273 m. in 1906. The
depth of 2274 m. was reached in 1934 using the hammer drilling method.
In 1860 a mineral called ozokeryt (ozokerite) was industrially produced. The name
of that mineral was made up by an Austrian mineralogist Glockner in 1850. This
mineral is found in very few places in the world and is commonly known as mineral
wax, containing hydrocarbons of carbon atoms number from 29 to 55. Its melting
temperature is 30-98 deg. C and it comes in 4 types which are used mainly for the
production of candles. The main mining centers were Borysaw, Dwiniacz, Starunia
and Truskawiec, but apart from them there were also about 15 sites of its occurrence
in western Podkarpacie and 23 places in eastern Podkarpacie. In the peak year of
1873 in the vicinity of Borysaw there were about 12,000 wells located. From one
there was about 3 to 8 meters to another and supposedly about 10,500 people were
employed there at that time; the majority of them were so called ebaks–collectors of
oil and ozokerite crumbs. In that period the most mineral wax was produced, i.e.
35

Iwonicz Zdrój near Krosno.
A postcard printed by
Wydawnictwo Turystyka
in Krosno in 1939.
about 20,000 tons which was exported to various regions of the world–in the whole
history 400,000 tons is reported to have been produced. Only one mineral wax field
in operation survived up to WW II in Borysaw.
The second stage of the development of the Polish oil industry has had many
heroes: Professor Rudolf Zuber (1858-1920), a world class geologist who contributed
considerably to the growth of the Polish oil industry and especially the oil geology as
well as to the development of Polish health resorts (spas), an engineer Wacaw Wolski
(1865-1922), the inventor of the battering ram for deep drilling, August Gorayski
(1832-1915); Wojciech Biechoski (1839-1926), an insurgent and the member of
the National Government, cooperating with ukasiewicz in Krajowe Towarzystwo
Naftowe [National Oil Company]; Zenon Turczynowicz-Suszycki (1840-1912), a
fighter in the January Uprising in Lithuania, an expert and founder of the vocational
school of Canadian drilling in 1885 as well as Stanisaw Olszewski (1852-1939),
probably the most active person among the authors and editors of the technical press
in the whole history of the Polish oil industry. It is worth mentioning that many
people working in the oil industry made a serious contribution in the January Uprising–
for example the owner of the properties in the Polish Kingdom and afterwards the
owner of oil rigs in Galicia, cavalry major Bronisaw Deskur or an engineer of the oil
industry, major Józef Leniecki.
Shipment, transportation, storing and trade were run by firms of various sizes,
with national and foreign capital, by strong and durable ones, weak and disappearing,
and sometimes by fraudulent firms. Well-known companies were Premier, Galicia,
Karpaty and tens of others. The technical level of those firms varied from very
primitive to very high, the latter going to the credit of experts-graduates from
mining academies in Leoben, Freiberg, Pribram, Lvov and from higher technical
schools in Lvov, Prague or Vienna. Mining schools have existed in Ropienka, then in
Wietrzno and Borysaw since 1885. Many books and works on the oil geology, the
oil industry or oil law (including belle lettre ones) were published at that time. Several
periodicals were dedicated to oil. After Górnik [Miner], published in 1882-1886 in
Gorlice, the next was Przegld Górniczy, Naftowy i Techniczny [Mining Technical and
Industrial Review], published since 1889; Nafta [Oil] in Lvov in 1893-1914; in 1894-
1895 Sprawozdania Krajowego Towarzystwa Naftowego [Reports of the National Oil
Company] in Jaso; in 1900-1911 Polski Kalendarz Naftowy [Polish Oil Calendar]; in
1911-1914 in Borysaw Ropa [Oil] in Polish and German; in 1912-1914 in Lvov
bilingual Gazeta Naftowa [Oil Gazette]; in Drohobycz in 1912: Oleum. Przewodnik po
Przemyle Naftowym [Oleum–the Guide Through the Oil Industry]; in 1912-1914 in
Borysaw: Dzienne Wykazy Galicyjskiej Produkcji Ropy Naftowej [Daily Reports of the
Galician Oil Production] whereas many other periodicals and papers edited columns
or releases on oil.
It is then that the creative life of Stanisaw Pilat (1881-1941) began. Having
receired the degree of Ph.D. at Leipzig Technical University and after studies at home
and abroad he began working in the Galicyjskie Towarzystwo Naftowe [Galician Oil
Company] in Borysaw in 1904. The next year he worked in the refinery at Pardubice,
in 1906-1908 in Krosno refinery, then in the refinery Vega in Ploiesti, from 1909 to
1918 in Drohobycz in the factory which later was named Polmin Refinery. Gaining
experience while supervising motor oils distillation, he ran the assembly of deep vacuum
distillation systems and plants. He also worked on methods of cleaning waste processing
waters, he supervised the revamping of the future Polmin refinery and he worked on
gasoline rectification using heat coming from burning of residues. His engineering
design of the distillation process, ordered by the Pearsons company in 1912, was
finally completed in the Mexican refinery of Minatitlan. Plants according to his knowhow
were erected in Drohobycz and the patent of emulsion breaking was born there.
A further period of his life, already in free Poland (1918-1939), brought a splendid
development of that great man of Polish oil.
37

Ratoczyn near Borysaw.
Workshops and oil rigs
of Galicyjsko-Karpackie
Towarzystwo Naftowe (formerly
Bergheim&Mac Garvey).
A postcard of 1902 by Wilhelm
Russ, a photographer from
Drohobycz (phototypography)
Galicyjsko-Karpackie
Towarzystwo Naftowe (formerly
Bergheim & Mac Garvey).
Ratoczyn near Borysaw.
A photo postcard of 1929
by W. Selinger, a photographer
from Borysaw.
In 1902 the oil production on the Polish territory reached 576,000 tons. The
period of oil overproduction began in the years 1902-1909. In 1903 the world produced
25.64 mln tons of oil whereas Borysaw produced over 524.5 thousand tons. In 1908
the process of integration started due to the economic crisis and growing costs of
production. In 1909 a record of oil production in Galicia was set: 2,076,740 tons; it
was 5.22% of the world production which at that time came up to 39.86 mln tons. In
1910 the world oil production share was the following: USA–63.16%, Russia–21.87%,
Galicia–4.06%, Dutch India–3.44% and Romania–3.11%.
Thus, out of nearly 40 million tons of oil produced all over the world, Poland was
the third power in this industry! High efficiency caused the drop of oil prices whereas
the lack of storage capacities, fires and damages led to a crisis. Size reduction of
enterprises–340 firms with 75 oil rigs–caused that around 1908 the process of integration
was started mainly by foreign capital. The predominating companies then were the
Galician Carpathian Oil Company, David Fanto und Co. and Nafta AG, and Galicia.
This splendid past was outshined by achievements in other places on the globe.
One might express his sorrow citing Petrarka (Petrarka–somehow an oil-sounding
name), though the quotation is taken from completely different circumstances: tempo
passato, perche non ritorna piu?, that such a beautiful time of development and enthusiasm
does not want to come back to us in free Poland.
The nineteenth century–world career of oil
And yet the date of August 27 th , 1859, and Edwin Drake’s discovery of oil in Titusville,
Pennsylvania, marks the beginning of the world oil history. Already in 1860, there were
20 refineries in the USA. In 1865 (yet acting unofficially–officially since January 10, 1870),
Standard Oil had 30 such plants and 5 years later reached 10% of the US market whereas
in 1879 it had 90%! The scale of production affects costs, therefore three Standard Oil
refineries produced a quarter of the whole world oil output. In 1891 the largest world
refinery in Whiting (Indiana) was erected (there at Amoco, now BP, much later constructed
a crude oil distillation plant, a unit of 11 mln t/a, even a hundred years later was still the
biggest one). 1866 marks the beginnings of oil pipelines. Tank cars and tank trucks came
into effect at the end of the 19 th c. Tank ships already existed at that time. As early as
1865, Standard Oil started to integrate refineries with the market and in 1891 they began
to produce crude oil. Already in 1872, they started a price war thus eliminating competitors,
they applied dumping of their firms, they used a trust system which is opposite to a
shareholding system–dependent firms are stockholders. This company with its bad image
was an object of numerous complaints and law suits. Exploration and drillings are very
expensive–whereas production is relatively cheap. However, it is a risky business. Oil
processing requires much investments in a refinery. Eventually, trade and logistics give
profits. The best situation is to have all of these elements in one hand and most preferably
in many countries–then the risk is minimum. John D. Rockefeller, the founder of Standard
Oil and probably the biggest figure of world oil, perfectly understood that logic. In 1880
the company supplied petroleum products worldwide using sea tankers for transportation.
The concern applied blue barrels (bbl) with capacity which in 1482 king Eduard IV ordered
as the measure of herring fishing in the North Sea (nomen omen, these are not herrings
which are weighed with this measure today), equal to 42 gallons, that is exactly 158.97
litres which till today is accepted as the most basic oil capacity unit. Within 25 years from
the first oil well drilling, this company became the largest exporter in the world, operating
without any competitor! These are the things which the stunned world witnessed!
Oil was discovered in many states in the USA–for example in California. Union
Oil (today’s Unocal), which had existed since 1890, started oil production as early as in
the 1890’s. Texas had produced oil already in 1892 and the oil boom caused that in
1901 oil was cheaper than water. In the 1870’s and 1880’s, over half of the world oil
export came from the USA: 90% by Standard Oil and, later, 10% by the Mellons, a
bankers’ family with a lasting place in history.
39

Borysaw (Poland’s former border
land) Wolanka oil rigs,
a postcard printed in 1900 by
an unknown author, on the basis
of a photography by
Wilhelm Russ in Drohobycz
(phototypography).
Borysaw–a view of Mranica
a postcard printed by J. Pilpl
on the basis from Drohobycz
(coloured phototypography).
In Baku, oil was produced in rummaged wells and drilling was applied as late as
1871/1872. In 1873 there were 20 refineries there, in 1880–already 200. In 1888
Baku produced 80% of the oil quantity which was produced in the USA at that time.
Oil export from here made up 31% of the world output. Batumi has been an oil
harbour since 1883 through which oil was transported, among others, to the Fiume
refinery (Rijeka) owned by the Rothschilds. The main export was performed that
way. In 1875 the Nobel brothers arrived in Baku and in 1883 they already controlled
51% of the oil market. Soon baron Rothschild’s Paris bank house joined them. Both
groups quickly developed European networks and they broke the monopoly of Standard
Oil. Powerful Germany, where Standard Oil was predominant, tried to reach for oil in
Galicia and Romania to accomplish its military endeavors. That was the region where
the Nobel brothers or the Rothschilds multiplied their fortunes. Our countryman,
Witold Zglenicki from Mazovia province, went down in history for his accomplishments
there. Oil was discovered on Borneo in 1897 and the next year a refinery was built
there. Oil was also discovered on Sumatra where, since 1890, the Royal Dutch had
been operating and was sponsored by the king.
The Scottish firm Burmah Oil, established in 1866 (and known for its Castrol
oils–now in BP) transported to India products from the refinery in Rangoon. Shell
and Royal Dutch mastered over half of the trade with Russia and Asia.
In the 19 th century baron Reuter, later to be well-known for his information
agency, was looking for oil in Persia but without any success. In 1860 Russia wanted
to occupy that country and in 1885 declared war against Afghanistan. Russia wanted
to lay pipelines from Baku through Persia but England was against it. It reminds us
of a bit less distant times, though...
All these stories sound as if you heard about the gold rush–that was the pace and
momentum of the desirous world. Kerosene was the product which replaced previously
used lighting materials (tallow, spermaceti, coal and shale oils like fotogen, hydrokarbur,
pinolina, kamfina) manufactured by the already then powerful industry; it was the
19 th century miracle, like the steam engine which altered the 18 th century. Oil
distillation and refining processes were rapidly developing. The oil industry produced
lubricants, wax, or candles; gas oil was refined into gas used for illumination or heating.
Bitumen had already been known since 1890; gasoline was useless and dangerous–
many fires and explosions were reported at those times. Fuels made of oil were used
for the production of steam on ships and railway steam engines. Edison’s invention in
1882, i.e. the electric bulb, caused the slow death of kerosene whereas Rudolph Diesel’s
invention of his famous engine in 1897 and an eleven year older invention of a gasoline
engine opened perspectives of a completely new world in which oil reigns up till
today. Oil production, which in 1875 did not reach even 10 million barrels, in 1900
was estimated to have reached about 146 million, that is about 20 million tons, out of
which 50% came from Russia, a little less from the USA and about 300,000 tons
from Poland. The rest came from Dutch India, Romania and Burma. In 1900, in the
USA, there were already 8000 motor vehicles.
Oil becomes indispensable... beginning of the 20 century
The 20 th century brings fast progress–18 million electric bulbs shine in 1902
and the first airplane was constructed in 1903. Henry Ford left Edison’s bulb factory
and thanks to him in 1905 there were more combustion engines than steam and
electric ones. The gasoline engine defeated other engines. The first filling station was
built in the USA probably in 1907–previously gasoline was sold in shops. In 1909,
American gas stations and workshops already sold 42% of the petrol and in 1911 the
demand for petrol was bigger than for kerosene. Compression-ignition engines used
fuel which was heavier than kerosene, i.e. gas oil (it was so called because that fuel
was processed in illumination gas or heating gas retorts\; it was produced from shales
and tars).
41

Rypne near Dolina (Poland’s
former border land), Podlasie XI
oil rig; a postcard by an
unknown author and mailed in
1928; black and white print.
Bitków (Poland’s former border
land), a postcard printed
by B. J. Harz in Nadwórno
and mailed in 1903
(phototypography).
In 1911 the First Admiralty Lord, Winston Churchill, observing the growing
German threat and its desire to rule the world, began to transfer Albion’s pride–the
British fleet–from the Welsh coal driven engines into diesel oil ones.
In the same year the USA Supreme Court (Sherman Antitrust Act) decreed the
partition of the Standard Oil and as a result it stopped being a monopoly. But in 1907
there was a new power–the joint Royal Dutch and Shell. In the USA, California
produced the most oil, but in 1901 Texas became a leader (Beaumont, Spindletop).
In 1901 Texas State refused to accept the merger of Texaco and Gulf Oil. At the
beginning of 1906, over half of the oil produced in the USA came from Oklahoma. It
was also produced in Ohio, Kansas and New Mexico.
In the USA in 1912, there were 902,000 cars, in 1914–already 1.8 million.
Roads were constructed and the demand for petrol was growing. In 1913 a process of
thermal cracking (in UOP’s history it was 1914 and the famous Dubbs’ process) was
implemented into refineries for the first time which considerably increased the quantity
of produced petrol, improved its octane number and for 30 years it was the most
desired process, the first process of conversion. This technology was sold to the refinery
in Bratislava, to Romania, to Polish refineries, and then even to the USSR.
The Baku industry was destroyed by the revolution of 1905. Shell and Exxon
bought the oil fields from the Rothschilds and Nobels. In 1911 it became obvious that
it was “upstream,” not “downstream” that brought the most profit, wealth and power.
In the beginning of the 20 th century, Romanian oil was under control of Shell,
Standard Oil, the Nobels and the Rothschilds as well as the Deutsche Bank. The
Deutsche Bank used to sell Romanian oil to England through their company, British
Petroleum, which together with the name was later taken over by today’s BP.
Oil was discovered in the Middle East in 1901 when an Englishman D’Arcy got
an exploration licence. In 1908 Persian oil was produced by Anglo-Persian (today
BP). In 1912 a large refinery was built in Abadan. The same year a great figure,
Talleyrand of oil, Gulbenkian, an Armenian, the architect of the oil policy in this
region of the world and the founder of Turkish Petroleum, entered the history of oil.
The region was under the Ottoman Empire reign.
In 1910 a large amount of oil was found in Mexico (Tampico). There was also
exploration in Venezuela.
Oil and its role in World War I
Soon oil was to turn out to be something exceptional. WW I was a war of people
and machines driven by fuels coming from oil. Airplanes in the air, which for the first
time were used by the Italians in 1911-912 in the battle of Tripolis against Turkey,
horrendous German U-boots at seas, tanks (which someone described as the victory
of a lorry over puffer train) on the ground–all these machines were used to kill and
destroy. But the chronicles also cited positive events when e.g. 3000 Paris taxis
transported men to the Marna battlefield. In 1914 Churchill decided, and the
Parliament passed the decision, to purchase 51% of the shares of Anglo-Persian (now
BP). As much as 67% of the oil was coming from the USA, which made up 80% of
the allies’ demand. U-boots destroyed sea transportation causing fuel shortages. The
Germans used 70 of the refineries in Romania. Germany tried and managed to occupy
Baku which was defended by England from Persia. In 1917 the British army, to
protect the Abadan refinery, conquered then Turkish Baghdad and Basra. In 1918
the Turks captured Baku.
When war broke out the Austrian authorities in Galicia, recognising the
importance of the oil industry for the war needs, released workers from war duties for
this industry. But in the meantime, war destroyed almost everything–Gorlice almost
stopped to exist, in Borysaw and Tustanowice the Russians burnt down gigantic
tanks and 170 oil wells. The oil industry workers came forward to the Polish Legions–
the first army formations in reborn Poland.
43

Bitków (Poland’s former border
land), a view of oil rigs in a forest;
a postcard printed by
Wydawnictwo Artystów
in Vienna and commissioned
by E. Schreier from Stanisawów
in 1924 (phototypography).
All those facts showed the meaning of oil. The famous allies’ conference of
November 11, 1918 (Versailles Treaty), recognised oil as the blood of war and victory,
also foreseeing its great role in times of peace; the well-known Lord Curzon was
gloryfing oil too. That date is memorable for many European nations. It is also the
day of Poland’s independence. One might say that it happened thanks to oil. But we
may add that surely it took place thanks to the Polish soldiers’ blood offering...
II. THE TWENTIES, THE THIRTIES...
The Second Polish Republic
War destruction of 1914-1918 and later fights during 1918-1920 against Ukraine
and later against the Soviet Russia strengthened the Republic. At that time, many oil
men fought and fell (for example Wiktor Kulczycki who got a medal). However,
already in the first year after the war the production reached 830,000 tons. Later it
went down to 812,000 tons in 1925, 663,000 in 1930 and 553,000 in 1938. In 1919
Poland had 28 oil fields in very dissipated structure. The Polish government, under
the pressure of oil lobby–as we would say today–did not take advantage of the right
to take over the property of the Central States’ citizens under clear statements of the
Versaille Treaty. As a result the unheard-of wealth of the Austrian and German
companies was taken over by suppositious French and other capital while 75% of the
oil industry was in the hands of foreign capital, mainly of the French and the American
one. In 1919 the Pastwowy Instytut Geologiczny [State Geological Institute] and
Urzd Naftowy [Oil Authority] were founded. Konstanty Towiski (1876-1961), a
prisoner and exile of Czarism, then a great figure of those times, after exploration
made in Sumatra and Europe began to work in Borysaw and became a geological
adviser to Polmin. He was an author of maps, publications and editor of many texts
on oil mining and from 1938 a member of Polska Akademia Umiejtnoci [The Polish
Academy of Skills]. He continued his career after WW II becoming a full professor
and laureate of the state prize for prominent achievements in his field.
From 1929 to 1930, oil drillings were conducted in almost 200 localities with a
total of 100,000 m. every year. This meterage went down to 60,000 m. in the period
of the Great World Crisis. In 1936, again, there was a visible growth from about
100,000 m. to over 150,000 in 1938. In 1929 in the region of Jaso, 118 wells were
drilled and 29 wells were in working order. In Stanisawów province 34 wells were
drilled and production was obtained from 30. In 1931 fewer wells were drilled but in
the Jaso region out of 58 wells only 7 were negative. Much success was achieved on
old deposits. Gas was discovered in Roztoki. Oil was discovered in Tyrawa Solna in
1930. The year 1932 brought production from 10 new wells in the Stanisawów
province. There were few unsuccessful drillings. Similar results and discoveries in the
old fields were also predominant in later years. Gas was also discovered in Strachocin
and Szalowa. In 1936 oil was discovered in Lipie and Czarna near Ustrzyki, also in
Mranica, in Leszcowate, Humniska, Zae, wierchowa. Other discoveries include
Rzepiennki (1930), Magdalena (1931), Sanok-Zabotka (1933), Bystre (1934), Dolina
(1935), Fellnerówka-Hanka (1936), Szalowa-Heddy (1939). Though the area of
exploitation was extended in Borysaw, Rypne, Niebyow and Bitkow the production
did not grow. Here is a list of explorating firms: Maopolska, Polmin-Pollon, Gazy
Ziemne [Natural Gases], Pionier, Gazolina, Schmer J., Galicja. The company Pionier SA
was founded in 1928 by strong oil firms, like Premier, Nafta, Karpaty, Fanto, Galicja,
Standard Nobel, Vacuum Oil Co. and Polmin. Polmin was selected as an exploring
company. As much as 85% of the wells were less than 600 metres deep and only
2.8% were deeper than 1200 metres. The record-breaking Orów 1 was 2274 m. deep
(1934), drilled by Pionier but did not produce industrial output. A geophysical survey
was undertaken in 1929. About 10,000 km. 2 of the south east part of Poland was
surveyed by means of a magnetic method, about 17,000 km. 2 from the Vistula river
to Stanisawów was surveyed with a gravimetric method and over 12,000 km. 2 from
45

Bitków–general view, on the left
side there is an oil field office;
a postcard printed by E. Schreier
in Stanisawów in 1914
(phototypography).
Bitków–stone breaking plant
and oil rig No. 27; a postcard
printed by E. Schreier
in Stanisawów in 1914
(phototypography).
Tarnów to the Romanian border was examined with a seismic method. In 1923 a rope
drilling method was applied for the first time and since 1931 the Rotary system has
been used. In 1931 K. Towiski, at the geologists’ conference in Lvov, quoted data
on oil production in Poland in the period 1874-1928 (Table 3), which is interesting
because 1928 is the half-way-mark in 150 years of the Polish oil history.
The state of oil resources in the operational and potential oil wells was reported
to reach 774,242 cisterns on December 31, 1936 (1 cistern equals 10 tons). Here is a
list of oil fields in operating order in Poland by the end of 1938 (the age of oil wells in
parentheses): Lipinki-Wójtowa–Libusza–Kryg–Kobylanka–Dominikowice (72),
Gorlice (6), Biecz–Korczyna–Biecz (40), Ropica Polska–Siary–Skowa–Ropica Ruska–
Mcina Wielka–Harklowa (67), Sobniów–Roztoki–Jaszczew–Sdkowa–Dobrucowa–
Biakówka–Brzezówka–Mcinka (28), Potok–Turaszówka (47), Krosno–Krocienko
(49), Bóbrka–Równe–Rogi–Wietrzno–Kobylany–ki (89), Iwonicz–Klimków–
Lubatówka–Wulka–Posada (49), Ropianka, Zmiennica–Turze Pole–Górki–
Strachocina–Wola Komborska (41), Stara Wie–Brzozów, Humniska–Grabownica–
Lalin (41), Wglówka (49), Mokre (56), Witryów–Tyrawa Solna, Wakowa–
Ropienka–Paszowa–Stakowa (51), odyna, Rajskie, Lipie–Czarna. We should also
include here the whole area of Eastern Carpathians with Borysaw, Daszawa, Dolina,
Rypne, Schodnica, Bitkow, Nadworna and others.
The Polish oil industry in particular years is presented in Tables 4, 5 and 6.
The interest in natural gas significantly increased and not only in gas accompanying
oil production. Big gas resources were discovered in Daszawa, Sdkowa and Roztoki
(1922), Strachocin (1928), Balicz (1934), Wierzbowiec (1935), Chodnowice and Opary
(1938), as well as in other localities. Production reached the level of almost 0.5 billion
of cubic metres per year (such an amount is used nowadays by Pock refinery to produce
hydrogen!). The following pipelines were laid; in 1921: Winnica–Niegowice–Gorlice
and Krosno–Iwonicz; in 1922: Daszawa–Stryj–Drohobycz; in 1929: Stryj–Mikoajów–
Lvov; in 1933: Roztoki–Mocice and further to Niedomice, Strachocin–Sanok and
from Roztoki through Sandomierz, Sdziszów to Starachowice, i.e. to the Central
Industrial Region in 1937. The total length of high-pressure, long distance pipelines,
without branches, was about 800 km. Gas was used to heat not only refineries but
also three power stations: in Borysaw, Lvov and Mcin. Gas was used to produce
casing-head gasoline (light naphtha)–from 463 tons in 1919 to almost 40,000 tons
from 28 gasoline plants in 1938. Casing-head gasoline was valuable and dearer than
the oil product of 0.55 to 0.655 density, increasing the profitability of oil wells. Another
interesting thing is that LPG was produced through stabilization of gasoline which
was exclusively a Polish invention. The company Gazolina, belonging to M. Wieleyski
and W. Szaynok, developed many pioneer acomplishments; for example, they built
the first pipelines, compressor stations and gasoline units. Under I. Mocicki’s patent
they produced burners, reducers, fixtures and fittings. In 1932, using their liquid gas
called Gazol, they “gasified” Gdynia. In the oil concern Malopolska LPG was called
eteryna. The laboratory Metan belonging to Gazolina was later transformed into a
R&D Chemical Institute in Lvov. The today’s Instytut Chemii Przemysowej [Institute
of Industrial Chemistry] in Warsaw refers to that tradition.
In 1919 the Mining Academy was established in Cracow. Lvov Technical University,
engineering colleges, universities in Lvov, Cracow, Warsaw as well as foreign universities
delivered the best industry experts. Several engineers’, technicians’ or drillers’
associations came into being. Several professional superb works were published on
geological subjects and mining, by Zuber, Nowak, Towiski, Bielski and others. There
were professional periodicals like Metan (1919), Czasopismo Naftowe [Oil Periodical] (1920),
Nafta [Oil] (1922), Dwutygodnik Naftowy [Oil Biweekly] (1924), Przemys Naftowy [Oil
Industry] (1926), Geologia i Statystyka Naftowa [Geology and Oil Statistics] (1932),
Kopalnictwo Naftowe w Polsce [Oil Mining in Poland] (1934) and other numerous bulletins
of various institutes and unions. Many conferences and meetings were held.
47

Bitków–an oil rig and Sulimierski’s
workshop; a postcard printed
by E. Schreier in Stanisawów
in 1914 (phototypography).
Bitków–a postcard printed
by a book shop in Nadwórna
(owned by Aba Heller) in 1928,
a print in the brown colour
on the basis of a photography
by L. & M. Heller.
In homage to ukasiewicz’s tradition, his statues were built in many places.
A most honourable oil distinction was set up and called the Ignacy ukasiewicz Medal.
The following persons were honoured with this medal for their creative contribution
to the establishment of the oil industry: Wadysaw Dugosz (1863-1937), the Polish
president Prof. Ignacy Mocicki (1867-1946), a later prisoner of many concentration
camps, Prof. Zygmunt Saryusz-Bielski (1869-1942) and post mortem Prof. Stanisaw
Pilat (1881-1941).
It is just Stanisaw Pilat who after liberation in November 1918 became the
manager of the oil industry organization in Poland, being the director of the oilrefinery
department in Polska Komisja Likwidacyjna [The Polish Liquidation
Committee] which was taking over the remaining property after the Austro-Hungarian
monarchy. Inclusion of the Oil Authority in the Ministry of Industry and Trade made
him accept the position of a technical adviser at the Galician Carpathian Oil Company
and then the post of a technical director of Dbrowa concern. When Lvov Technical
University resumed its operation he was appointed lecturing professor of oil technology
and in 1924 he became the chairman of a newly set up chair of oil technology and
natural gas as well as of a small laboratory. In 1926 he interrupted his scholarly
activity and took a position in the company Polmin in Drohobycz, offered to him by
president Ignacy Mocicki and minister Edward Kwiatkowski. At his request, the
government founded Syndykat Przemysu Naftowego [Syndicate of Oil Industry],
including all Polish refineries in order to develop profitable solutions for the Polish oil
industry as well as the sale at home and abroad of oil and oil products. In 1928 Pilat
gave up chairing the Syndicate and in 1929 he left Polmin and came back to university.
In his script, published in 1928 according to his lectures at the Faculty of Chemistry,
we read: Petroleum is one of the most important mineral feedstocks of universal application in
the economic life of civilized countries. First of all, it is almost the sole source of propelling means
for combustion engines, which in the light of the present development of automobilism, air and sea
navigation makes it a product of the first need. Moreover, petroleum makes up the raw material
for the production of mineral lube oils and greases which condition the development of the machine
industry. Products received from oil also serve as fuels, as high calorific liquid fuel for illumination,
as grease and lube oil for all kinds of machines, and finally it serves various technical aims,
including healing and cosmetics. And one more quotation of Prof. Pilat dedicated to
managers of the oil industry and published in his monumental work Polska Odrodzona
1918-1928 [Poland Reborn 1918-1928]: How and with what kind of the cheapest means
can we obtain these products from petroleum which the army, railway, industry and everyday
life need more and more? The answer should be sought in laboratories run by factories, technical
universities, universities as well as in R&D departments of factories and oil refineries. The
world publicity, membership in international scientific associations, his R&D school
as well as extraordinary amount of, sometimes timeless, knowledge made Prof. Pilat
the patron of Instytut Technologii Nafty [The Institute of Oil Technology] in Cracow
whereas the chairs of oil at Lvov Technical University (today in Ukraine) as well as in
Gliwice and Wroclaw consider themselves as heirs and continuators of his great
achievements.
Obsolete Polish refineries required modernization 75% of the oil industry
belonged to the French and American big business. Production capacities of Polish
refineries were about 50% greater than the national supply. In the 1920’s, the
Americans constructed the first crude distillation unit (CDU), which was in fact a
column with an evaporation chamber and a cold reflux downwards. In Poland, the
first plant of this type was built in 1928 in the refinery Vacuum Oil Co. in Czechowice,
in 1932 in the Jaso refinery and in 1938 in Polmin. After WW II this technology
became present in all Polish refineries–the first largest CDU I and recently CDU III
being in Pock. Crude oil treatment–emulsion breaking takes place e.g. according
to prof. Pilat’s patent at the Jaso refinery. Dewaxing, acidic refinement and other
types of treatment were typical then. About 1935 (worldwide already in 1920’s)
49

Bitków–a postcard printed
by a book shop in Nadwórna
(owned by Aba Heller) in 1928,
a print in the brown colour
on the basis of a photography
by L. & M. Heller.
lead tetraethyl was added to petrol and this sufficed to increase the octane number.
Thermal cracking was already in operation in the 1930’s in Czechowice, then in
Drohobycz and in Gorlice. The refinery Polmin was the largest. It had long-distance
pipelines of gas and oil, 500 tank cars meeting one third of the national demand.
The next refineries after Polmin were Czechowice, Galicja in Drohobycz and the
refinery in Trzebinia. From 1929, the refinery in Jaso was out of operation. In
1938, there were 31 refineries in Poland but several of them were out of operation.
The number of Polish refineries and gasoline plants as well as their production is
shown in Table 7.
According to somewhat different data, there were 15 large refineries in Poland
during the inter war period. Their capacity varied from 10,000 to 200,000 tons per
year of oil processing–in total 850,000 tons and 64 small refineries of total capacity of
100,000. The processing capacities were developed from 950,000 to 1.2 mln t/y but
in 1938 only 42% was utilized. There were almost as many owners as refineries. One
of the largest refineries was concern Maopolska owned by Maopolska Grupa
Francuskich Towarzystw Naftowych, Przemysowych i Handlowych [Malopolska
Group of the French Oil, Industrial and Trade Companies] which after mergers
assembled Galicyjsko-Karpackie Naftowe Towarzystwo Akcyjne d. Bergheim i Mac
Garvey [Galician-Carpathian Oil Company, Bergheim and Mac Garvey], Dbrowa-
Premier, Fanto, Oil, Naftowy Przemys Maopolski [Malopolska Oil Industry], Petrolea,
Oleum and others. Maopolska owned 8 big refineries: two in Drohobycz, Dziedzice,
Gorlice, Jedlicze, Rychcice, Trzebinia, Ustrzyki Dolne as well as power stations in
Borysaw and Mcinka. The state-owned Polmin operated the largest refinery in
Drohobycz and it also managed state-owned gas pipelines in Jaso as well as
construction of the central gas pipeline in Sandomierz, a gasoline plant in Mocice
and numerous oil wells in Roztoki, Sobniowo, Lipinki, Równe, Daszawa and Borysaw
plus the majority of the country’s filling stations. The firm Gasolina had three refineries
in the Borysaw region. The following firms owned one refinery each: Galicia in Lvov,
Polska Nafta [Polish Oil] in Koomyja, Gazy Ziemne [Natural Gases] in Lvov, TEPEGE
in Targowiska near Iwonicz plus foreign concerns: Standard Nobel in Libusza, Vacuum
Oil, which also had a refinery in Czechowice as well as concern Potiq, with the refinery
in Jaso. Production, national consumption and export of oil products are shown in
Table 8.
There is an evolutionary change in products quality. Cymogen and Rhigolen are
names of C4-C5 mixtures; gasolines, i.e. light naphtha C6-C7 (gasolen, canadol with
density 0.64-0.667 and boiling range 70-80 deg. C), were also called petroleum ether
(also keroselen, rhygolen, Sheerwood Oil of 0.65-0.66 density and boiling range 40-
70 deg. C), there are also solvent naphthas (naphtha C–safety oil, Dafourth Oil–of
specific weight 0.667-0.707, boiling range 80-100 deg. C; naphtha B–ligroin–of
density 0.707-0.720 and boiling range 80-120 deg. C; naphthal A of density 0.722-
0.737 and boiling range 120-150 deg. C). In 1927 standardization was introduced.
The following petrols are distinguished: gasolline, aircraft fuel, car fuel, agricultural,
extraction and lacquer naphtha. Kerosene was still produced (kerosen, kerosin,
petroleum–boiling in 150-300 deg. C). So much gas oils (in 1927 this oil was still
called propelling oil) were needed during WW I that the production was not sufficient
and solar oil (medium oil for lamps and engines, heavier than today’s gas oils, of flash
point 80 deg. C and density 0.875-0.885) disappeared as an applied product. In
1937, there were gas oils on sale but–judging by their specification–they were very
heavy: oil I of density 0.94 and 50% of distillation to 350 deg. C; oil II–density to
1.02 and 20% of distillation to 350 deg. C. Lubrication oils are the oldest. In Poland
in 1915-1925, there was considerable development; in 1927 there were 15 groups of
such oils, in 1927-1937 there was a next jump: viscosity and temperature properties
were improved. Additives–detergents–entered the Polish market very slowly and with
delay. Fuel oils were not produced before WW II. In 1900 the world production of
51

Gorlice–a general view
and an oil rig; a postcard of
1898 of an unknown author
and mailed in 1899
(bicoloured phototypography).
Ropica Ruska near Gorlice;
a postcard of 1898 of
an unknown author and mailed
in 1899 (phototypography).
bitumens reached only 26,000 tons, more than 50% in the USA. In 1925 Poland
produced 34,000 tons of bitumens at 715,000 tons of oil processing.
In the Austrian section of partitioned Poland the oil products trade was
monopolized by French and Austrian big business plus some American companies.
Automobilism starts to develop in the beginning of the 20 th century but in Poland
that development really happens after WW I. After 1918, we lost the Russian market
but in the former German and Russian section we also got rid of the American and
Russian competition. Transportation, storing and distribution of oil products were
conducted by many firms, for example by Petrolea. Several large firms–Polmin,
Karpaty, Galicja, Standard-Nobel, Gazolina or Gazy Ziemne–owned filling stations.
Since the turn of the centuries, this kind of fuel retail sale has already been known.
On December 31, 1938, there were 55,000 motor vehicles registered (motorcycles,
passenger cars, lorries and buses). In 1937 Poland had 8 cars per 10 thousand citizens,
Romania–12, Austria–69, Czechoslovakia–71, Italy–95, Germany–214, Switzerland–
222, Belgium–242, England–476, France–517. And now let us look at the currrent
data–what a progress! Poland–270, EU–on the average 500, USA–600 cars, but no
longer per 10,000 citizens but per 1000!
In 1928, managements of the seven world-scale concerns divided the whole
world into spheres of influence, establishing the cartel well-known as Seven Sisters
(Standard Oil of New Jersey, Royal Dutch Shell, Gulf Oil Company, Texaco,
Socony Mobil, Standard Oil of California, British Petroleum Company). Three of
those “sisters” came from Standard Oil which was divided in 1911 by the US Supreme
Court decree. In the beginning of the 21 st century, we have such giants as Exxon
Mobil, Chevron Texaco formed from Gulf, Standard Oil of California and Texaco,
Shell and BP remaining as they were. All these giants knew and know very well that
it is the upstream which gives the biggest money. Of course, it requires big investments
and taking risk in exploration and drilling. Refineries are also unusually expensive to
built. The access to the market, also expensive in the building of the infrastructure,
makes it possible to get the biggest profit. Possession of all structural constituents–so
called vertical integration–gives the full control. During the interwar period, in Poland
there was a company, Standard Oil of New Jersey, which sold the most oil products
on the market in 1921. Polnobel, a company owned by the brothers of the famous
Alfred Nobel, was affiliated to Standard Oil in 1925. Then there is Socony–Standard
Oil Company of New York, which in 1931 took over Vacuum Oil (from 1959 it was
Mobil Oil and since 1998 it has been Exxon Mobil). At that time, the only state
refinery in Poland was Polmin. Oil products were exported through Gdansk but we
had to build customs depots there because the international committee did not grant
us those which were left by the Germans. There were storing capacities of 100,000
tons–much more than an annual export from Poland. Shell, though it had a base
there too, withdrew from our market. Small national demands made export in the
1920’s quite considerable. Later it dropped to a dozen or so thousand tons per year.
Prices were fixed and there were export quotas because the production capacities
of the refineries were much bigger than the national demand. Table 9 presents export
of petrol along with light naphtha [gazolina] plus wax. The domestic consumption of
petrol and kerosene was very small; Table 10 presents the national average annual
output, export and import in 1933-1937.
World’s vivid development after the horrors of World War I
After this war, the US economy became much stronger–in 1920 there were 9.2
mln cars there, in 1929–already 23.1 mln That made up 78% of cars all over the
world, one car per 5 persons, as in our country 70 years later! (respectively in Great
Britain there was one car per 30 persons, in France–per 33, in Germany–per 102, in
Japan–per 702, in the USSR–per 6130 persons!). Cars covered about 12,000 kilometres
per annum. The quality of petrol sold in shops was often bad. Therefore refineries
53

Kobylanka and Jedle near Gorlice;
multipicture postcard of an
unknown author, mailed in 1902
(coloured phototypography).
Lvov–a mail card of
Galicyjsko-Karpackie Towarzystwo
Naftowe (formerly
Bergheim & Mac Garvey),
mailed in 1933.
implemented the petrol quality control through ownership of petrol stations and the
sale of their brand products. Leasing of gas stations was already well-known during
World War I. In 1919, gas stations and garages sold 85% of the petrol. In 1921,
there were 12,000 stations, in 1927 there were 317,000 points of sale–these were
small shops or garages. The expansion of petrol stations took place in the period
1920-1939. Shell, for example, used to construct gas stations in 6 weeks and there
were 10 days for the start up–that was quicker than it took to arrange formalities
connected with the land lease. In 1929 there were 116,000 gas stations, in 1939–as
many as 231,000! Many of them distributed free road maps (as it happens today),
they employed mechanics and provided garage services. Refineries started to produce
petrols of higher octane number. Since 1921, we have known lead tetraethyl which
became blended with petrols two years later (in Poland from 1935). The automobile
revolution became a fact, for instance by the end of the 20 th century in our country.
New discoveries of big oil
As early as in the 1920’s, there were fears that crude oil would soon run out. In
1918, for example, oil wells were 1800 metres deep whereas in 1930 they reached
3000 m. Reality quickly surprised pessimists. California, which in 1910 produced
22% of the world oil output, experienced new discoveries: in 1921, Shell found oil
and in 1923 a quarter of the world’s oil production and the majority of it was in the
USA. In 1921 Mexico became the second country in the world with regard to oil
production–in 1925 this country produced 160 mln tons. But the uprising of 1911
and the infamous constitution of 1917 forecast problems for foreign firms which led
to the deterioration of public and business relations, the drop of oil production by
80% in 1927 and, finally, to the nationalization of the oil industry in 1938 by president
Cardenas and the establishment of the firm Pemex (Petroleos Mexicanos) which even
caused embargo on part of England. In 1920, the large refineries Aruba, Curacao of
Amoco and Shell, were founded. In 1929, Venezuela became second after the USA in
oil production. In 1922 this country passed a new oil law, contrary to Mexico. In the
1920’s Venezuela entered the period of a great boom–55% of its oil production was
exported to the USA but after the world crisis it had to look for new markets in
Europe.
After World War I, the victorious powers executed a new division of interest
zones in Turkish Petroleum–France replaced the Deutsche Bank, however it did not
get Mosul which was still occupied by Great Britain. In 1924, they established the
state company CFP (Compagnie Francais des Petroles–the ancestor of today’s Total,
which was set up by Fina and Elf together). CFP groups 90 banks and firms. France
had access to the oil fields in the Middle East and in 1928 it passed a new oil law–
controllable prices which protected the market. In 1925, under the pressure of the
USA, also American oil companies gained access to the Middle East oil fields. Oil in
Saudi Arabia (this name has been in force since 1932 with the coming of the Sauds
dynasty) was discovered in 1924; Socal (today’s Chevron) was there from 1922 and it
discovered oil and constructed a refinery on Bahrain island in 1932. But, according to
BP, geologists it is Albania, not Saudi Arabia and its territory, which has splendid
prospects to discover big oil. In 1927 BP discovered the oil fields in Kirkuk and set
up the company IPC (Iraq Petroleum Co.) in Mesopotamia (since 1925 this region
has been named Iraq). It is present in Anglo-Iranian (in 1935 Persia was renamed as
Iran). Soon the Persian Gulf, treasures of which have been so far caught by the pearldivers
only, was to become famous for its oil. There was big oil in Damman–the city
of Dhahran was founded and in 1939 the harbour, pipeline and refinery of Ras Tanura
were built. In 1938 Gulf Oil–a company owned by the Mellons family–discovered
the giant oil field Burgan in Kuwait. But oil from the “golden crescent” region from
Iran to Arabia was not for all–Italy, Japan and Germany did not get a licence there.
Italy had their own national concern Agip (Azienda Generali Italiana Petroli), which
55

Dziedzice–a view of Schodnica
oil refinery; a postcard printed
by Karol Schwidernoch in Vienna
and mailed in 1898
(coloured phototypography).
Dziedzice–Schodnica refinery;
a postcard of 1915 printed by
“B.I.M.” printing house.
in the 1930’s shared Italy’s market equally with Shell and Esso (Exxon). In 1934
Japan introduced the market adjustment law–Exxon, Shell and Mobil had 60% of
the Japanese market. In 1913 Germany had Bergius’s process to produce fuel from
coal (in 1931 the Nobel Prize for Bergius and Bosch) as well as the Fischer-Tropsch
process 10 years later and the first plant in 1927 (Bergius’ petrol was better). In 1926
Exxon became a partner and in 1929 it erected a new unit in Louisiana. Due to
Hitler’s program from 1932, on September 1, 1939, Germany had 14 factories and
other 6 were still being built. Apart from that, there was 18,000 m. 3 of synthetic
petrol per day which makes twice more petrol than we produce now at the Pock
refinery! In 1927 the Soviet NEP (Nowaja Ekonomiczeskaja Politika–New Economic
Policy) got rid of the foreign firms in Baku. In 1937, small Bolivia confiscated the
branch of Standard Oil. In 1923, the Prime Minister Churchill wanted to merge BP
and Shell but soon gave up that intention. Regardless of that fact, oil companies were
already very strong–in 1924, at a secret conference and with the participation of the
British government, they executed the final division of the spheres of interest and
concluded an agreement called As Is (market sharing, production quotas, prices) for
which even after 30 years they were sued though without consequences. Thus we
witnessed geopolitics which till the present day animates the activities of great powers.
Paradoxically–the liquidation of Standard Oil strengthened that industry. Oil is now
a strategic challenge because, afterwards, it shaped the whole 20 th century.
The great world crisis slowed down the world economy. Thermal cracking doubled
the production of petrol and suddenly there was too much oil! There began a fight for
a customer–a New Deal–initiated by president Franklin Roosevelt in the 1930’s,
which brought quota system and market adjustments. As in a mirror, all that is bad
in life was reflected in the oil industry. Nationalism is an example of such a phenomenon.
Therefore, sometimes in crisis, alcohol is added to petrol.
The world was full of tensions and strong nationalisms led to wars. In 1935 Italy
was threatened with an embargo by the world community for its invasion on Ethiopia.
Japan had also been fighting for Lebensraum since 1931 (Manchuria, 1937–war against
China); the USA did not react though it made Japan economically dependent.
A lot of new technologies–for World War II?
Ideas for rent–this is the title of the history of the UOP company (Universal Oil
Products). This enterprise not only created history but during its functioning was not
free from mistakes. UOP, with much effort, developed completely new techniques in
oil processing. Experience prompts that in order to work out a new process one should
solve at least 60-100 different problems, often coming from distant scientific branches
in order to apply these new solutions in practice. The company has been existing
since 1914 and has developed the famous process of thermal cracking as well as
employed, among others, a prominent practicing scientist–Gustav Egloff, the son of
an emigrant and probably the most important person of the period. But probably the
best period in UOP’s existence began after 1930, when a world conference grouping
4500 persons of science and practice from 50 countries was held in the German
Reichstag. Experts foretold that the US oil deposits would run out within 20 years
because such a lot of petrol was needed. They saw the solution in catalysis process
which was to resolve the problem of the expected lack of petrol. Coal was to be a
solution and rescue–IG (Industriegemeinschaft) Farben and Standard Oil of New
Jersey (Exxon) were to become leaders. But it was not these companies which were to
become healers of the more and more fuel-consuming economy. Ipatieff (original
English spelling), already then a famous chemist, in czarist Russia was responsible for
explosives and for gas-masks against war gases during WW I. It is in his brother’s
house in Jekaterynburg that the whole czarist family of the Romanov dynasty were
brutally murdered by Lenin’s order. Ipatieff, being a czarist general but also a famous
chemist, was saved, also by Lenin’s order, and become a member of the presidium of
57

Limanowa–a railway station with
tank cars servicing
a refinery in Sowliny;
a postcard from 1917 printed by
M. Olszewski in Limanowa
(phototypography).
Oil refinery in Sowliny near
Limanowa; a postcard printed
by M. Olszewski in Limanowa
in 1916 (phototypography).
the Highest Council as a manager of the administration of chemical industry with a
task to build modern chemistry. Being the only non-communist in this government,
he took to work with enthusiasm because, as he said, governments come and go whereas
people stay. Working as the ambassador of sciences at the Academy of Sciences, he used
to go abroad freely–18 times he was a consultant of Bayerische Stickstoffwerke. Stalin’s
repressions reached several of his students and co-workers–he also became a suspect,
so, reasonably, did not come back to the USSR from the above mentioned congress.
And thus he found himself in UOP. That company also employed Hans Tropsch and
a Russian emigrant Vladimir Haensel. In UOP, a Polish emigrant Herman Pines
accidentally discovered the reaction of alkylation. These great scientists, through their
research, contributed to the creative progress in the history of oil. Ipatieff and Pines
devoted themselves to pure chemistry. Isomerisation was their work, but at that time
it was an unwanted process because isobutane is very volatile–but in the course of
time it turned out very important. The polymerisation unit, which was completed in
1934, yielded petrol with the octane number 81, i.e. racing gasoline. Dubbs’ process
cracks hydrocarbons molecules, whereas this process “glues” them. In 1937 Sun Oil
built the first catalytic cracking with “magic clay” by project of the French engineer
Eugene J. Houdry. In 1937 Time named Vladimir Ipatieff the greatest expert of catalysis
reaction in oil refining. After his refusal to return to the USSR (his disciple, ambassador
Trojanowski, persuaded him to do so), Ipatieff’s son, also professor of chemistry,
renounced his father in 1936 and the Soviet Academy of Sciences crossed out Ipatieff
from its membership.
In 1936 in the USA, there were 28 mln cars and for the first time they used more
cracking petrol than straight-run one, thanks to the progress of techniques.
Polymerisation was the only catalytic process in refineries. UOP worked out a synthetic
catalyst for cracking in the solid bed–it was the continuation of Tropsch’s research.
Standard Oil’s successors developed a fluidal cracking process and they established a
consortium to deal with the cracking process, consisting of Standard Oil, BP, Shell
and UOP. The civil war in Spain showed the important role of aviation for which
high-octane petrol became vital–it improved the compression ratio, speed, lifting
capacity and load capacity. Thanks to polymerisation, isooctene and isooctane of 100
octane number was produced. It was produced by Shell–then one of UOP’s owners–
for the engine of 260 mph. In 1937, UOP included that process in its offer. Also Shell
instituted the alkylation process by Ipatieff, recognized by UOP as a useless one in
practice. It was also Shell which began to produce isobutane from butane, modifying
Ipatieff’s isomerisation catalyst. It meant more feed for alkylation. No one other than
Ipatieff contributed more to the production of high octane petrol–said the President of the
American Chemical Society in 1937. Recapitulating, it was UOP’s R&D work which
developed feed materials to produce explosives, rubber and detergents–here especially
Pines’ work. It is also worth remembering about Ker rubber from Dbica (Poland),
which was handed over to UCC (Union Carbide Corp.) during WW II as well as abou
the Pole Szuszkiewicz’s contribution. UOP sold its licences for 500 units with the
total output of 32 mln tons per year under Dubbs’ licence as well as for polymerisation
units. In 1937 the licence on polymerisation reached Saratov, Ufa and Groznyj in the
USSR, in 1938–Japan (they terminated that contract!); Department of State’s
acceptance was always granted. The allied forces lost access to 95% of natural rubber
after Japan’s attack on Pearl Harbour on December 7, 1941. In 1940 Dow Chemical
produced butadiene on the basis of UOP’s licence. UOP also developed a patent on
the production of toluene from n-heptane, necessary to manufacture TNT
(trinitrotoluene). During WW I 68,000 tons of coal were used to derive TNT. WW II
needed as much as 1.35 mln tons of TNT–this time it was produced from oil processing.
Fischer-Tropsch petrol attained 87-91 octane number. The allied forces administered
petrol with an octane number even up to 100. During WW II the Americans needed
14 times more petrol daily than they sent to Europe during WW I! Just after the
59

Glinik Mariampolski near
Gorlice–oil refinery
of Galicyjsko-Karpackie
Towarzystwo Naftowe (formerly
Bergheim & Mac Garvey);
a postcard printed in 1900
by Aleksander Lecker in Gorlice
and mailed in 1906
(coloured phototypography).
An oil refinery in Glinik
Mariampolski near Gorlice;
a postcard printed by
S. Engelberg in 1910
(coloured print).
attack on Pearl Harbour the authorities ordered to make available the patents of
alkylation with sulphur acid, cracking and reforming (Hydroforming ® ). Standard Oil’s
Hydroforming ® was developed on the basis of the German patent from before the
war. It did not crack, however, like the thermal reforming (they knew this process
from the 1920’s), but it provided necessary octanes and TNT precursor which played
such a role during WW II. Following the exchange of patents, UOP knew that process
and studied it very hard. Costs and economics, however, were very important to
justify its implementation. At that time, UOP used alkylation (with sulphur acid) on
Trinidad. Hydrofluoric acid (HF) had already been discovered for that application (it
was terribly dangerous to handle). In 1942 the Petroleum Administration of War
undertook an action Quick 100-Octane. About 400 refineries of 20 mln tons per year
participated in it. Chemists were very much interested in triptan–2,2,3-trimethylbutane,
i.e. hydrocarbon of the highest then known octane number. They
could produce it but there was no engine to use it. On August 1, 1943 a very important
and tragic operation took place in which 178 alkylate-driven bombers took off from
Libya to bomb Ploiesti which produced one-third of the Nazis fuels. One fourth of
the 1733 men did not come back and only 33 airplanes were still able to fly. But
fortunately, they managed to destroy the fuel centre. Since 1942, the war had used
200 mln tons of oil products, including 5 mln tons of aviation petrol. Ipatieff, the
great Russian chemist like omonosov and Mendeleyev about whom we learn at
school, died in 1952, in his 85 th year of life. But, according to the president of the
American Chemical Society, it is he who had a much bigger influence on chemistry
and prosperity than the two others. In 1965 the USSR Academy of Sciences
rehabilitated him. Egloff died in 1955. In 1959 Dubbs, Egloff and Ipatieff were
commemorated in the Refining Hall of Fame in Titusville.
In 1940 Japan attacked the French Indo-China (Vichy’s government did not
oppose it) but in 1941 the USA froze Japanese assets. It worked as an embargo
because that country was not able to pay. In 1943 Japan had access to 25 mln tons of
oil per annum from the Dutch India which it was occupying, though in 1942 the
refinery on Borneo was destroyed to avoid its being taken over by the Japanese.
However Caltex (ChevronTexaco) discovered oil Minas on Sumatra in 1941. The US
submarines destroyed sea transportations so successfully that due to the lack of oil,
alcohol and vegetable oils were added to fuels in 1944. Yet as late as in the 1950’s, oil
made up only 7% of the energy source in Japan, i.e. less than wood! We all know
what was the outcome of the war with Japan.
Poland experienced so many disasters that they would suffice for many
generations. The Poles’ fate, for centuries, meant tragedies of repeated fights, uprisings
and wars for freedom resulting in deceases and destruction. Also men-of-oil were part
of that history. Again, it is difficult to enumerate those who may have been forgotten.
It is worth providing some examples of heroic and patriotic behaviour. For example,
Jozef Ostoja Ostaszewski, later an assistant professor of the Oil Institute, fought in
the war of 1939. Several confined scientists managed to escape internment and escaped
to the West. Among them was engineer Kazimierz Kachlik. Here are several members
of the underground resistance movement: Ryszard Wolwowicz, Jacek Soyski and
Józef Pietrusza. Over one thousand of oil workers lost their lives in WW II, for example,
Wodzimierz odziski, son of Felicjan, as well as Professor Stanisaw Pilat who was
shot dead by a German firing squad in Lvov at Wuleckie Heights.
Thus, oil and the history of wars intermingle. Oil, as ill-omened and destructive
as the A-bomb, became a weapon in the fights for domination. Petrols which were
used in WW II had octane numbers 75 and 87. The Germans used synthetic petrols
in 46% but in 1943 that number increased to 57%. German tanks were petroldriven
in comparison to gas oil-driven Soviet tanks. The lack of petrol held back
Rommel in Africa but also Patton in Europe. Allied forces used petrol with an octane
number of 100. The merits of such fuel (at octane number 100 an engine power is
61

An oil refinery in Glinik
Mariampolski near Gorlice;
a postcard printed
by S. Engelberg in 1910
(coloured print).
An oil refinery in Glinik
Mariampolski near Gorlice;
a postcard printed in 1910
by Mutual Help Teachers’
Association in Gorlice,
printed by L. Weis in Budapest.
increased by about 15-30%) helped them to gain advantage in the war. It is a cliché
that possession of oil means to have power. Then, citing the most famous oil-man in
history, Rockefeller, commonly perceived as the embodiment of wealth and malice
but later a well-known philantropist, who said, It brought more good than evil to the
world, one might wonder whether it is true.
III. THE WORLD AFTER WORLD WAR II
After WW II rapid development again
WW I and WW II proved that oil is the “blood of war” and that oil equals
power. President Roosevelt was to understand the importance of the Arab oil much
later–even the Italian air-raids on the refinery at Ras Tanura in 1941 did not suffice to
alter it. However, it is he who through his diplomacy handed over Iran to Great
Britain, he who recognised Iraq and Kuwait as common authority zones and assigned
Saudi Arabia to the American firms. Northern Iran stayed in the Soviet hands till
1947. In Saudi Arabia the Aramco company was founded in 1944. A third of its
assets were possessed by the USA. After the proclamation of the state of Israel in
1948, Saudi Arabia, in 1950, was granted military guarantees from the USA.
How much the oil production grew, in relation to the data in Table 6 within just
several years! In 1945 the USA produced 235 mln tons, the USSR–204 mln tons,
Iran–180, Mexico–60 and Venezuela–44 mln tons. When WW II was over, some
journalist asked Gustaw Egloff on the phone, Is it the end of the refinery industry–do we
need it now? Hearing long explanations he said to a collegue sitting aside: OK., Gasoline
Gus (Egloff) is still talking. Although in the period 1940-1949 a number of filling
stations went down in the USA but after 1946, the country had undergone a boom:
it produced over 2 mln cars and in 1947 already 3.5 mln In 1950 in the USA there
were 50.3 mln personal vehicles (other data claim 45 mln in 1948), the world along
with the USA had 53 mln personal cars. However, within the period 1947-1948 the
USA had bigger oil import than export. In 1956 the American authorities elaborated
a program to build 60,000 kilometres of highways–thus the railway lost the market.
In 1940 cracking units processed about 2 mln tons per annum and 25 mln five years
later. The first UOP’s fluid catalytic cracking was started up in 1947 and several
years later there were 50 such units. In 1947, there was one of the most tragic
catastrophes in the US history. In Texas City fires and explosions spread starting from
ammonium nitrate through the ammunition warehouse to the refinery like a small
atomic bomb. It cost the lives of many people.
Poland after WW II
Poland, after WW II, only apparently was a victorious country–it was horribly
devastated with incredible material, human and territorial losses.
The oil-bearing areas were reduced to Carpathian Przedgórze [mountain foothills],
despite that in 1945 oil production reached 86,000 tons (other source reported
106,000)–an admirable accomplishment having considered both invaders’ robbery
during the war. During the 1950’s, oil production rose to 189,000 and to 195,000 in
the 1960’s. There was a need to enter new territories for exploration. In 1946, the
first drillings took place in Kujawy province and salt was discovered in Kodawa and
Inowrocaw. Aleksandrów Kujawski was a site of search. These works were stopped
in 1950. In 1955 oil exploration was resumed in Ni Polski [Polish Lowland] and in
Ostrzeszów. In 1956 a branch office of Polskie Górnictwo Naftowe i Gazownictwo
(PGNiG) [Polish Oil and Gas Exploration Company] was founded in Pia and
afterwards in Zielona Góra and in Toru. The Polish Lowland provided oil from fifteen
deposits, the first oil well being built in 1961 in Rybaki near Krosno Odrzaskie; in
1961-1965 production reached 75,700 tons. The best result was in 1974, when it
reached 562,000 tons. There is the Grobla oil field in the Carpathian region and
Kamie Pomorski at Ni Polski. The largest gas production–7.5 bln cubic metres–
63

Oil refinery in Trzebinia;
a postcard of 1910 signed
“B.K.Sch.”; a colouful print.
Borek–oil refinery Jedlicze (built
on fields of Borek village);
unknown author;
a postcard mailed in 1904
(phototypography).
was in 1978 and the best period of 1976-1980 oil production reached 917,000 tons.
The Polish Lowland was rich in gas–its supplies, up till 1987, reached 110 bln cubic
metres from sixty deposits with production starting in the 1970’s with the annual
output of 3.3 billion cubic metres. The 1980’s witnessed a fall in production.
The demolished Polish refineries were rebuilt mainly thanks to the initiative of
the local population and sometimes in defiance of the authorities’ opinion. After
WW II, oil processing took place only at the Jedlicze refinery. On August 7, 1944,
the Americans almost completely bombed the Trzebinia Refinery and many people
were killed. Rebuilding took place in the period 1952-1953–then it was the largest
refinery in Poland. It produced, among others, naphthene acids, technical fats and
later it utilised old tyres. Till 1960, Trzebinia produced 100,000 tons of bitumens
per annum. The refinery in Czechowice, which was also bombed by the Americans
(August 20, 1944), was rebuilt comparatively late, then it was revamped. The Polish
south refineries were modernized. The world refineries applied new technologies
already in the 1940’s. Electrodehydrators for oil cleaning before distillation were
introduced after the war–in Czechowice and Trzebinia under the Russian licence.
The selective furfural refining process was introduced in the Jedlicze and Czechowice
refineries. Deasphaltisation with propane was applied in the Jedlicze refinery. They
produced petroleum jelly, greases and waxes. Bitumen blowing, which was wellknown
already before WW II, was used in all refineries. The Jaso refinery
manufactured carbon black which is necessary for the production of tyres and additives
for lube oils. Oil processing in the Polish refineries is shown in Table 11. It could be
interesting to show data on employment in the oil industry in Poland just after the
war and later–Tables 12 and 13.
After the war, there was not enough crude oil for five existing refineries. The
West announced embargos and the USSR produced too little oil. The big oil
Romaszkino was discovered in 1958. Poland, being a country of coal, tended to
disregard the oil industry. Oil products were imported mainly from the USSR. The
Russians sold us Austrian oil–till they left Austria in 1955–as their war reparations.
In international trade we imported products from the East: exporting of surplus
goods to the West was necessary to get foreign currency. Table 14 represents import
and export of oil and petroleum products.
The world oil consumption gained enormous acceleration. In 1952, oil
processing reached 680 mln tons. After 1945, we can see the beginning of the
development of the petrochemical industry–about five hundred products were
produced in 7 mln tons is (about 1% of oil’s worth). Fifty years of automobilism
development had passed and the market needed high-octane number petrol due to
the fact that the compression ratio in engines rose from 5 to 9-10 to get better unit
power. During the war, the allied forces used 100 octane number aviation petrol
which gave them an advantage over German air forces which were still using
synthetic petrol of lower octane number and well-known since 1932. Lube oils with
additives work 5-7 times longer than fine mineral oils. In Poland after July 1 st ,
1958, petrol had MON (Motor Octane Number) from 55 to 80 and it contained
much lead tetraethyl–up to 1.4 g/kg. After July 15 th , 1966, leaded petrols 78 and
94 were in force (in this case the method is RON–Research Octane Number) and
they had up to 1.2 g/l of lead tetraethyl. After general electrification of the country,
kerosene almost vanished from the market but on the other hand there appeared
jet fuel. On the turn of the 60’s and 70’s, the refinery in Glinik started the production
of aviation fuel ATK under international standards. There were several kinds of
gas oil which were different in relation to the presently produced oil! At that time
world refineries applied other methods of refining (selective, hydrogen, i.e.
hydrofining or hydrodesulphurisation), there were destructive processes, reforming,
isomerisation and alkylation. All these chemical processes brought about progresses
which engine constructors were waiting for.
65

Jaso–an oil refinery in
Niegowice; a postcard printed
by Juliusz Krischer in Jaso
in 1906
(coloured phototypography).
Oil refinery in Jaso; a postcard
printed in Jaso in 1915
(phototypography).
The world and its new technologies
New refinery technologies were being developed very quickly which we have
come to know also from the Pock refinery. In 1947, Haensel developed a reforming
process with a platinum catalyst but the road to success was to be very long. He
discovered poisoning of the catalyst by sulphur compounds. He also discovered a positive
influence of chlorine and fluorine. The thermal reforming gave 70% of petrol efficiency
and an octane number over 70. The new process mentioned raised yield to 90% and
an octane number over 80. In 1947, Platforming ® process caused resistance even in
the sales department of UOP. It took over two years to implement the new technology
and in four months a desperate customer started to adopt a small unit and demonstrated
it to prejudiced and distrustful experts. The test was not started–liner had to be added.
The problem of precipitation of sulfide iron was solved by radial flow on the catalyst.
They got an octane number 93 at 95% efficiency! The following slogan was created,
they even apply platinum to get the best petrol. The end of 1949 brought ten licences. They
poisoned a catalyst with arsenic. Shell bought this process for its refineries. In the
Smithsonian Institution in Washington, they placed three models of UOP units:
thermal cracking, polymerization and Platforming ® . Together with Dow Chemical,
they developed a process of production called Udex ® . Aromatics turned out useful
during the Korean war. Antioxidants were elaborated–it was a remedy against the
harmful influence of the ozone upon tyres. In 1954 UOP along with Union Oil
developed a process of hydrodesulphurisation called Unifining ® , which opened the
road for processing of sour oils. At that time UOP offered fifteen processes!
World’s years of anxiety
Apart from many other elements, the Marshall plan, which was devoted to
European countries ruined by WW II, assumed deliveries of 20% demand for oil
during a severe winter of 1947, due to a general shortage of coal. That plan was an
incentive to give up coal. In 1946 Europe imported 77% of its oil from the West but
already in 1951 80% was imported from the Middle East.
Yet the 1950’s were not calm. In 1951 there was the nationalization of the Iranian
oil industry and the state founded NIOC (National Iranian Oil Co.). Great Britain
embargoed Iran for nationalization and shut down the Abadan refinery. In 1950 as
much as 40% of the aviation petrol was sent to the Korean war just from Abadan,
then the largest refinery in the world. In 1952 the Iranian oil production immediately
fell to 1 mln tons per annum whereas the world needed 650 mln tons per annum.
British and American companies as well as the French CFP resumed their activities
They received compensations. In 1957 ENI (Ente Nazionale Idrocarburi) entered the
Iranian market offering better conditions. It was its president, Enrico Mattei, who
opposed the hegemony of the “7 sisters” (that is how he called the leading world’s oil
concerns). He owned the newspaper Il Giorno, maintained politicians from the Christian
Democracy and violated the principle of 50:50 from Venezuela and other countries.
ENI was established in 1953. The great Enrico Mattei avoided British mediation in
the oil purchase and traded with Iran and Russia. He died in 1962. His concern took
up the national Agip and expanded thanks to the discovery of gas. ENI and its SNAM
Progetti (Societa Nazionale Ante Metanopoli–Projects) played a huge role in the
building of the Polish refinery industry here in Pock as well as in Gdask. Then
Amoco discovered oil near the now famous terminal on the island of Kharg. The wars
of Israel with its neighbours started with the war with Egypt in 1956. The same year
president Nasser nationalized the Suez Canal. English Prime Minister Disraeli had
bought 44% of that Canal with Rothschild’s money in 1875. Almost two thirds of
the oil sailed through the Canal to Europe but after India’s regaining independence
the Channel did not matter so much for the British. The USA refused to fund the
Aswan dam but in 1959 the USSR provided funds for that project.
67

Jaso–a railway bridge on Wisoka
river (in the background you see a
refinery); printed by Koo
Towarzystwa Szkoy Ludowej
in Jaso and mailed in 1914
(phototypography).
Niegowice (Jaso)–oil destillery;
printed in 1900 by J. Zajczkowski
in Jaso (phototypography).
Jean Paul Getty, a well-off townsman, in 1953 discovered oil in Arabia. Getty’s
company was later purchased by Texaco for the huge sum of 10.2 billion dollars.
Iraq, which operated an export pipeline to Haifa (built in the period of the British
Mandate), in 1958 laid a pipeline through Syria. In 1950 gas consumption in the
USA rose quickly to 71 billion cubic metres which made up 2.5 times as much as
in 1946. In 1959 Exxon and Shell found large gas deposits in Groeningen in
Holland. In 1958 there was a start-up of the great basin Volga-Ural and cheap oil
flooded the markets. Big oil was also discovered in Libya in 1959 where oil was
produced by such companies as Occidental, Marathon, Conoco and Amerada Hess.
Lenin’s friend, Armand Hammer, produced 40 mln tons per annum there–then
he was the sixth in the world! The fact of oil discovery in Libya had an indirect
influence on the establishment of OPEC resulting from great oil concerns’ policy
of the so called posted price which pushed the reduction of oil prices. Oil production
costs in Venezuela were on the level of 0.8 dollar per barrel, and in the Arab
countries only 0.2 dollar per barrel. This is why it was Venezuela which exerted
the biggest pressure on the founding of OPEC. That organization was established
on September 10, 1960, in Baghdad but initially it did not play much of a role in
the world.
And in Poland...
Polski Monopol Naftowy [The Polish Oil Monopoly] was established on July 27,
1944, and in February 1945 its name was altered into Centrala Produktów Naftowych
(CPN) [Oil Products Head Office] which was incorporated in 1999 into Polski Koncern
Naftowy ORLEN SA [Polish Oil Company ORLEN joint stock company]. At the end
of 1945, there were 73 depots of oil products and 26 filling stations. The sale reached
121,800 tons, there was a significant import from the USSR and deliveries from
UNRRA. Till 1957, filling stations were equipped with hand distributors and then
with electric ones. In 1955 CPN operated 679 stations, in 1960–1005, then that
growth was rather slow, reaching 1335 stations in 1986. Generally, stations were located
22.5 km. from one another, covering on average 234 square kilometres and sold over
2000 tons of fuels per annum. In 1968, 296 stations began filling up cylinders with
LPG. In 1986, beside CPN, there were over 1000 sale points supplying fuels for rural
and transportation enterprises. There were also 16,902 garage stations but they sold
only 5% of the fuels and the rest was sold by CPN. The developing economy needed
more and more oil products. Here is some statistics relating to the 5-years cumulative
national consumption: 1945-1950–2.6 mln tons, 1951-1955–6.1, 1956-1960–10.
Table 15 clearly shows the shortages of the domestic output if we look at the origin of
those products.
Meanwhile, at the beginning of the 1960’s, oil processing reached a level of 1 mln
tons per annum, import of fuels reached two thirds of their consumption and the
number of filling stations exceeded one thousand. The idea of a new refinery
construction, reducing our dependence on oil products import, was very logical. In
1954, the Polish authorities began to consider the construction of a new complex
processing 1 mln tons of oil per annum; it would be delivered from Austria by railway
or by sea from Iran and then transported to a refinery situated in the south of Poland.
For a long time, the oil industry had been under the supervision of The Ministry of
Mining, then Mining and Power Engineering, and here it did not have a big chance of
development. But as late as 1958, when the oil industry was transferred to the Ministry
of Chemistry, they started considering the intention to build a new, so called sixth
refinery. These plans took concrete shape following the decision dated October 14,
1958, on laying the pipeline called Przyja [Friendship]. It was undertaken on the
basis of a common arrangement within the confines of RWPG [Council of Mutual
Economic Assistance–Comecon] after the start-up of the gigantic oil production from
the basin Volga-Ural. Ten localities were considered for the new refinery erection:
69

Trzebinia, including a refinery;
a postcard of 1900 printed by
B. Schunert in Oberstephansdorf
(chromolitography).
Trzebinia, including a refinery;
a postcard of 1899 printed by
Karol Schwidernoch in Vienna
(chromolitography).
Makinia, uków, Siedlce, Wgrów, Wyszków, Wyszogród, Pock, Lubartów, Warka
and Puawy. Finally, Pock was selected.
Since the time of the erection of Nowa Huta [New Ironworks] in Cracow it was
to be the greatest investment. The construction decision was taken on January 5,1959,
by the Economic Committee of the Government (KERM). In general, around big
industrial complexes of the oil sector there appear and develop urban agglomerations,
as is shown by many foreign examples. The Pock refinery was originally planned to
process the first 2 mln t/a, then 4 and then 6 mln t/a of oil. Petrochemical plants were
to be erected here for the first time in Poland–as it turned out, it was the only time.
Kazimierz Kachlik was the general designer, Antoni Rogucki was the general manager
of the construction, Pawe Nowak–the future general manager of the new refinery,
assisted by Jakub Tomaszewicz, Henryk Kozdrowicz, Wiesaw Kosut and several
others. A detailed report describing the history of the refinery construction is presented
in a monograph Pocka Petrochemia 1960-1985 [Pock Petrochemical Works 1960-1985],
which releases the Author from the obligation of very detailed reporting. This is why
it will be a short presentation.
The pipeline Friendship was solemnly started up on December 28, 1963, and
the first oil arrived in the Pock refinery on April 21, 1964 (that was obviously a
political anniversary, the 19 th anniversary of the conclusion of a Friendship Treaty
with the USSR; anniversaries were very popular then). On the memorable day of
August 17, 1964, the first oil distillation products were produced from CDU I
plant. Chronicles state that CDU I reached its full output capacity within 4 days. A
week later (August 23), the first train with oil products left the refinery. In December
1964, Reforming I plant was put into operation. The ceremony of the official startup
took place on December 21, 1964. Experts from the old refineries from the
south of Poland helped start up the Pock refinery and Henryk Kozdrowicz supervised
the start-up. His team consisted of experienced “oil men,” including Kazimierz
Wawszczak and Józef Pikulski. CDU I was managed by Ludwik Chrapkowski and
Reforming by Wodzimierz Derecki. In 1966, the first stage with a more complex oil
processing with a conversion unit, catalytic cracking, and bitumens was completed.
The development of the catalytic cracking process took place in the USA at the
beginning of WW II. That famous process, due to its excellent economics, is sometimes
called “a device to make money in the refinery” arrived in Poland through the USSR
and it is only at the Pock refinery. On the basis of the Minister’s decision dated
August 21, 1969, several design assumptions from the Initial Engineering Design
document were altered and the following processes were given up: dodecyl benzene,
glycerol, isoprene rubber, urea, surfactants, sulphuric acid, ethylbenzene and wax.
Oil processing capacity was fixed to reach 5.6 million tons per year.
As early as on August 7, 1968, Reforming II was started up, CDU II was already
in operation, in 1969 a lube oil complex, and on August 16, 1971, Reforming III
started working. It was plain to see that 6 million tons of oil was too little. This is why
on October 10, 1972, the Minister of Chemistry decided to expand the production
complex to 12 million tons of oil per year. Up untill 1975, there were other CDUs of
3 million tons per year each. The first 50 million tons of oil was processed on May 24,
1974, one hundred million tons on July 21, 1978, on November 12, 1982–150 million
tons, etc. The most oil was processed in 1978: 12,866,619 tons. The operation of
delayed coking unit was unsuccessful. In 1975 the plant was ultimately shut down.
Later there were more such “retired” plants.
New wave of innovations in the world
The period of 1959-1975 is called “the golden age of innovations” for the refinery
industry. It is then that most of the currently used processes were developed:
Platforming CCR ® (Continuous Catalyst Regeneration), the separation of n-paraffins by
adsorption Molex ® , p-xylene Parex ® (UOP’s names of processes), FCC (Fluid Catalytic
71

Krosno refinery; a postcard
ordered by Bernard Fischbein
in Krosno and printed
by the firm Weis Leopold
in Budapest in 1910
(varnished phototypography).
Krosno refinery; a postcard
ordered by Bernard Fischbein
in Krosno and printed
by the firm Weis Leopold
in Budapest in 1910
(varnished phototypography).
Cracking) was improved and we witness the mature processes of hydrocracking and
isomerization. There are treatment processes elaborated for all cuts yielded from oil
processing (for example Merox ® or deasphaltization), including aromatics and detergents
LAB (Linear Alkyl Benzenes). The properties of water adsorption and desorption from
natural zeolite were discovered in 1756 by the Swede Cronstedt and he appropriately
called the mineral (from Greek Zeo, to boil and lithos, a stone that released water
reversibly). In 1949 the research programme Linde was initiated (Linde was an affiliate
of UCC) and the UCC company introduced molecular sieves on the market in 1954
and later it was done together with UOP. In 1962 Mobil applied variant X to the
cracking catalyst (Mobil was granted 159 patents for synthetic zeolite catalysts and
among the inventors there is a Polish sounding surname, Edward Rosiski). Mobil
company is honored in the National Hall of Famous US Inventors. In the 1960’s the
first applications of PSA (Pressure Swing Adsorption) took place; they were later
improved. Then UOP developed isomerization Butamer ® and Penex ® . Here in Pock
we use almost all these renown processes and therefore I do not treat their enumeration
as advertising of UOP! In the 1970’s, there were modifications in the cracking process
into “riser cracking.” Then a full combustion was applied instead of CO burning. In
1961 a series of UOP’s hydrocracking process variants was implemented: Isomax ®
with Chevron and Unicracking ® with Unocal. In 1967 Chevron, for the first time,
introduced the chemical element rhenium to platinum reforming catalyst and applied
low pressure. In 1967 the Amoco process was applied (as in Gdask) but afterwards
CCR became unbeatable because interruption and the shortage of hydrogen for various
refinery units every 6 months did not threaten the continuity of operation. It really
was a breakthrough in refineries though initially it was not perceived very well.
Surprisingly, 20 years later there were 186 such units operating in 41 countries. But
probably the most popular was the Merox ® process–since 1960, 1650 such facilities
have been built! The process Udex ® was applied in over 100 plants though very
quickly, i.e. in 1962, it was replaced with Shell Sulfolane ® production of aromatics
process, later modified by UOP. The majority of the world aromatics was manufactured
with these processes. Also some European processes are well-known here, for example
Arosolvan ® , which is in operation in Pock. There also appeared such processes as
ethylbenzene production Alkar ® , cumene or even phenol. The end of the 1950’s
brought the Molex ® process; the Pacol ® dehydrogenation process was a break-through.
A similar process is Olex ® which was worked out in 1968. A new family of processes
called Sorbex ® was proposed. Since 1971, the process Parex ® has been applied in 54
plants in 20 countries. Tatoray ® and Isomar ® complete the range of heavier aromatics
conversion. Ipatieff’s catalyst was applied for the production of tetramer and
dodecylbenzene but in the 1960’s there were ecologists’ protests against detergents
yielded by those processes. It is an important fact that the General Initial Engineering
Design document for the Pock refinery forecast the construction of a dodecylbenzene
plant. After 1975 ethers plants were erected; the first ether plant–MTBE (Methyl
Tertiary Buthyl Ether)–was started up in 1974 in Ravenna. The Cyclar ® process was
worked out together with BP. Dehydrogenation process Oleflex ® was added later.
Cheap oil
The 1960’s brought more and more oil from California and Libya. In 1969,
Libya produced and exported even more oil than Saudi Arabia. Oil was very cheap,
similarly to the Soviet oil which spoiled the market. In 1961 the British army left the
Persian Gulf. After the 1967 war (and after 1973), the political and military situation
in the Middle East became very tense. It resulted in an oil embargo by the Arab
countries imposed on Israel’s supporters. It contributed to a wave of nationalization
of the oil industry–it was nationalized in Libya, Iraq, Iran and Kuwait. In 1972
Venezuela passed a new oil law. In 1980, Saudi Arabia took over Aramco–hereinafter
called Saudi Aramco. The 1960’s for the first time witnessed a special contract in
73

Drohobycz (Poland’s former
border land); a light naphtha
recovery plant; a postcard
printed by J. Pilpl in Drohobycz
in 1914 on the basis
of Lieberman’s photography.
Drohobycz; tanks at the light
naphtha recovery plant;
a postcard printed by
Leon Rosenchein in Drohobycz
in 1911 (phototypography).
Indonesia: PSA (Production Sharing Agreement). In 1962, Japan introduced a new
oil law and the almighty ministry MITI (Ministry of International Trade and Industry)
controlled the course of development of the national industry and eventually already
at the end of the 1960’s about 70% of the energy came from oil. In 1955, Europe
obtained 70% of its energy from coal and only 23% from oil; in 1972 the proportions
got reversed–22% came from coal and 60% from oil. The Western Europe refinery
capacities rose from 220 to 550 mln tons/y in 1960-1967. Cheap oil was accessible
everywhere. Oil exploration entered areas where climate created additional difficulties.
In the USSR, oil is in Siberia. Phillips Petroleum explored oil in the North Sea because
its geology was like Groeningen; after some time Phillips Petroleum wanted to
stop exploration but in 1969 it came across the Ekofisk field at a depth of 3000 m.
In 1970, BP discovered the Forties oil field and several new discoveries followed.
In 1971, Exxon and Shell developed Brent oil which nowadays serves as the basic
oil indicator for the whole world trade. In the sea the production conditions are
extreme–17 m. high waves and 110 km./h wind. In spite of such circumstances,
they managed to reach a depth of 6000 m. while waves were 30 m. high and the
wind blew at 200 km./h. The history of oil exploration in Alaska had been none the
less fascinating. The “big oil” was discovered on December 26, 1967, and that was
1.5 times more than West Texas, the biggest oil field in North America (after the
Saudi giant Ghawar and the Kuwaiti Burgan fields) discovered in 1930. In 1977, an
oil pipeline of 1300 km. connected that region with the northern states. In the 1980’s,
the output rose to 100 mln t/y. It was going to be the most important oil-bearing
region for the USA. Even today that region causes severe polemics whether or not to
expand oil exploration to other areas.
There were more and more cars in the world: in 1960 there were 98.3 mln
vehicles (in the USA 61.7 mln) and in 1970 193.4 mln (89.2 mln) respectively. In
1972, some US statistics report the number of 119 mln cars! The number of filling
stations in the period 1959-1969 rose because four times more fuel was needed than
in 1939. The 1960’s witnessed the idea of franchising–nets of company stations; there
appeared large stations with fast service, customers got special credit cards from large
oil firms, free maps, and free car service; there were also snack bars and customers
were becoming more loyal. A station in 1969 filled up a 20 gal. tank within 1-2
minutes which would have been sufficient for cleaning a windscreen and for the
payment. As early as in 1914 there were free maps available at the stations–today it
is a rarity. The construction of the net of highways between states was completed.
In the USA in 1958-1973, the government established import quotas which were
to protect American firms producing oil. The beginning of the 1970’s marked the
energy crisis in the USA. Although gas was sold on a regulated market, it was too
cheap. Therefore, there were not enough investments, like in California. Atomic energy
gained many followers. The peak load of oil production in the USA–552 mln tons–
took place in 1972 and already in 1973 import reached the level of 300 mln tons. In
1969 the USA had 263 refineries for 600 million t/y. In 1968 oil processing in the USA
reached 559.5 mln tons; in EEC countries–293.8 mln; in USSR 230–million t/y and
102.6 million t/y in Japan. The world needed almost 2 bln tons of oil! The world steel
production reached about 500 million t/y. The published attempt at comparing
incomparable GNP data (Gross National Product) per capita from that period provided
the following figures: almost $1000 in USA, $600 in Western Europe, $500 in socialist
countries and $200 in Japan. At that time, Saudi Arabia produced 420 million tons
per year which made up 21% of oil world production. In 1972 the USA needed three
times more oil then in 1948, Europe–15 times more. Poland needed yet more–about
50 times more. At that time the energy consumption in the US refineries reached
10%, calculating with regard to oil. The hydrocracking plant of 3.1 mln tons/y was
operating in Richmond and 30 plants processed, in total, 18.5 million t/y; in Europe
such plants operate in Germany, Finland, the USSR and in BP’s firm in Grangemouth.
75

Drohobycz; State light naphtha
recovery plant; a postcard
printed by J. Pilpl in Drohobycz
in 1910 (phototypography).
Drohobycz–Austria refinery of
Towarzystwo Akcyjne dla
Przemysu Naftowego;
a postcard printed by
J. Pilpl in Drohobycz and mailed
in 1914 (phototypography).
Drohobycz–Austria refinery;
a postcard printed
by Leon Rosenchein
in Drohobycz in 1910
(coloured phototypography).
In 1965 Western Europe got 42% of its fuel oil from processed oil and in 1975 it was
going to reach 60%. Atomic energy began to play a very important role in the
production of electricity and thus decreased the consumption of coal. This was the
time when the Roman Club, a trust of brains grouping over a hundred distinguished
scientists, announced its forecast in which it foresaw that in the year 2000 there
would practically be no hydrocarbons available.
The world growth of the petrochemical industry
In 1950 the already powerful chemical industry reached an annual turnover of
about 30 bln USD, in 1968–already 145 bln USD and spent 8%-10% of its turnover
on investments and from 2 invested dollars received 1 additional dollar of turnover per
year. Petrochemistry, which was based on petroleum products as its raw materials, was
the predominant part and a driving force. The basic product of petrochemistry–ethylene–
in 1968 was produced in the quantity of 13 million tons which made up almost twice
as much as in 1965. In 1966-1967, 26 ethylene plants were started up, including 18 at
the capacity of 200,000 t/y. When the Olefin I Plant was started up in Pock in 1971,
the average capacity was 300,000 t/y and there were also plants of 500,000 t/y! The
Cologne–Frankfurt ethylene pipeline 156 km. long and of 450,000 t/y was laid further
to Antwerp, Rotterdam and Lorraine. Polyethylene LDPE (Low Density Poly Ethylene),
the history of which began with ICI patent (Imperial Chemical Industries) in 1937, was
applied as an insulation of suboceanic cables in 1938 and 1939 and produced on a mass
industrial scale in England in 1942 and in the USA in 1943. It was also successfully
used for HF (High Frequency) cable radars. Also, the German Lupolen dates back to
1942. At the end of the war, they produced 4500 t/y, in 1966 the world could produce
as much as 2.7 million t/y (the USA 1.2 million t) and in 1968-1969 the world production
capacities reached 5 million t/y! The industry applied other types of those processes–
medium-pressure and low-pressure HDPE (High Density Poly Ethylene) and soon
the linear LLDPE (Linear Low Density Poly Ethylene). In 1970 the European HDPE
production capacities reached almost 0.6 million t/y, the USA–0.4 million t/y, Japan–
0.2 million t/y, the whole world–1.2 million t/y on Ziegler catalysts and 1.1 million t/y
with the Phillips Petroleum process. Polypropylene, the invention of the Italian professor
Natta, the youngest member of the polyolefins family, in 1969 in the USA reached the
production output of about 0.5 million t/y, in Japan–over 250,000 t/y but 7 firms’ total
output was 0.454 million t/y. Soon the world production capacities reached 1.3
million t/y. Earlier came the era of plastics! In 1955 an average new car had 5 kg of
plastics in its structure and 10 years later already 16 kg. In 1968 Brazil used 1.5 kg of
plastics per capita, similarly to Poland. The world produced 20 million t/y whereas in
1948 it was only 1 million! In 1969 Japan produced over 4 million t/y of plastics and the
USA–8 million t/y. Butadiene, which was a very important chemical from the military
point of view, in 1968 in the USA was produced in the amount of 1.5 million t/y, in
Japan–in 400,000 t/y, and Western Europe–in 765,000 t/y. In 1968 the firm ICI was
the second chemical company in the world, Hoechst was the fifth, Bayer the sixth, BASF
the eighth and Dow Chemical the eleventh. How different is today’s hierarchy !
Polish beginnings of the petrochemical industry
The use of oil as a chemical raw material–the key notion included in the name
“petrochemistry”–dates back to a very modest starting point: the production of 75
tons of isopropanol in 1925. On February 25, 1968, the Pock Refinery and
Petrochemical Works produced cumene, phenol and acetone from propylene and
benzene. On December 31, 1969, the process of hydrocarbons pyrolysis (steam
cracking) for ethylene production was initiated. Nowadays, the production of ethylene
makes up the basic foundation of the petrochemical industry, a measure of civilization
development. Still, a much deeper meaning was attributed, from the local point of
view, to a new butadiene plant started up in 1970, which manufactured a militarily
77

Borysaw–wax fields and oil rigs
on Potok; a postcard printed
by an unknown author in 1900
on the basis of a photo
by Wilhelm Russ in Drohobycz
and mailed in 1901
(phototypography).
Borysaw–stock corporation
for wax and earth oil
and Galicia Credit Bank;
a postcard printed
by an unknown author in 1902
on the basis of a photo
by Wilhelm Russ in Drohobycz
(phototypography).
Borysaw–Mikucki & Perutz oil
field; a postcard printed
by Leon Rosenschein
in Drohobycz in 1904
(phototypography).
essential raw material for the production of rubber, which in turn is necessary for the
tyre and rubber industry. These licences were purchased, thanks to intense diplomatic
efforts, in spite of the US embargo. The production of ethylene, propylene, ethylene
oxide and glycols was started up. On July 21, 1971, a polyethylene unit was started
up, and then, aromatics, polypropylene and paraxylene plants. In 1976, the refinery
units were added: II Catalytic Cracking (FCC) and HF Alkylation which were
connected with the petrochemical part by means of propylene from FCC and gas feed
stocks prepared in the petrochemical part of the works for alkylation. The capacities
of polyolefins were expanded. A large Olefin II unit enabled the increase of the
production of ethylene, among others for Wocawek Chemical Works and its polymers,
as well as obtaining more butadiene and benzene. The most recent facility, started up
on September 20, 1983, was Ethylene Oxide II plant together with the production of
ethylene glycols, though the idea of a polyester plant construction in Pia was given
up. And here in Poland, where coal over shadowed everything, the climax of
petrochemistry was in the 1970’s when the era of plastics flourished. We were granted
only 15 years of the petrochemical industry development and it is in the second half
of the 20 th century that this branch of industry became the basics of chemical industry.
Professor Taniewski stressed the fact that 95% of the organic synthesis products is of
petrochemical origin, not to mention hydrogen and sulphur from oil and gas which
are commonly produced. The petrochemical industry, through its activating influence
upon the development of other industries, significantly contributed to the growing
general prosperity worldwide. Then, maybe now, together with the world chemical
potentate, Basell, the Polish petrochemical industry will regain its grandeur.
...and the golden age of refinery
Chroniclers define with nostalgia the 1970’s as the golden years for refineries. At
that time, we produced 1.5 million t/y of bitumens. In 1972, a decision was undertaken
to erect a refinery in Gdansk. The Italian SNAM Progetti was the general contractor
and the start-up took place on July 1, 1976. Crude oil came from the Middle East.
The southern refineries did not develop so quickly. The Czechowice refinery was hit
by a great fire in 1971. In the period from 1976 to 1981, there were attempts to
consolidate those refineries: three south-east refineries and two Silesian ones were
merged into two groups but that experiment brought little effect. Here we can mention
some interesting personal careers, for example Zdzisaw Tomasik, Ph.D., the future
professor at Wrocaw Technical University, was the general manager of the Czechowice
refinery for a short time, before that Kazimierz Kachlik was the manager’s deputy,
Kazimierz Klk, the future minister and diplomat, became the manager after the
great fire and afterwards was also the general manager in Pock. General managers in
Gdask and Pock were Woroniecki and Nikiewicz. Professor Kotowski, Wadysaw
Wawak, Czesaw Dolasiski and Konrad Jaskóa also contributed to the history of
the Pock complex.
“Oil Shocks”–oil weapon of oil producers
The oil shock of 1973 hit the developed countries unexpectedly enough. As ten
years before, during the Cubian crisis, the USA and the USSR introduced a nuclear
alert but negotiations prevented a global conflict. Just afterwards, the recession of
1975 hit the USA very hard–GNP dropped by 6% in comparison with 1973. In
1974 Japan, for the first time after the war, experienced a set-back of economic
development. Oil prices rose shockingly–since then it is well known that their level
should be balanced: if they are too high then other forms of energy and its sources
would have become more profitable and oil would have stayed untouched, as the
famous Sheik Yamani used to tell his countrymen. In 1973 the OECD (Organization
for the Economic Cooperation and Development) established the IEA (International
Energy Agency). In fact, oil disappeared from the power industry. France introduced a
79

Borysaw oil rigs; a postcard
printed by J. Klein
in Cracow in 1908
(coloured phototypography).
Borysaw-Horodyszcze–
a postcard printed
by Wydawnictwo Wspóczesna
Sztuka in Przemyl in 1910
(varnished phototypography).
prohibition of fuels advertisement which lasted 15 years. The IEA worked out the
strategies of oil savings but, on the other hand, they recommended high tech for Japan
or atomic and coal energy for France. There was a common hatred towards the oil firms
in the USA for their profits. The Senate committee investigated the matter, though
profits came mainly from upstream activity. President Gerald Ford’s gigantic plan of
1975 assumed the construction of 200 atomic power stations, 250 coal mines, 150 coal
power stations, 30 large refineries and 20 factories producing synthetic fuels–but it all
was too expensive and eventually only TAPS (Trans Alaskan Petroleum System) pipeline
from Alaska for 10 bln USD was completed. The standard CAFE (Corporate Average
Fuel Economy), which was introduced in 1975 to save fuels in the USA, resulted in the
decrease of gasoline consumption from 18 l/100 km. to half of that 10 years later.
Mexico, which in 1972 produced only 25 million tons of oil, discovered new oil
fields located more deeply–after 1973 oil was present in Campeche Bay (in the Mexican
sate Tabasco), in an oil field called Reforma or “Little Kuwait;” in 1976 oil production
increased to 41.5 million tons and in 1980 it reached 95 million tons. But the bank crisis
in 1982 marked the end of prosperity. However, at the turn of the 1970’s and 1980’s, oil
from Mexico was available. Canada also had oil. Venezuelan PdVSA (Petroleos de
Venezuela SA) has been the second oil company in oil producing countries, after Saudi
Aramco since 1976, Pemex was the third. Since 1983, Venezuela has granted licenses on
oil exploration and production but now president Chavez tends to stop that trend.
Yet a more severe crisis was caused in Iran by the Islamic revolution–the oil
price converted into the present currency value, including inflation rate, exceeded
90 USD/bbl! In 1979 in the USA, drivers waited in queues for petrol–what a rare
picture! In 1978 oil made up 53% of the world energy and fell to 43% in 1983!
President Carter announced an odd plan: “energy–a moral equivalent of war”–its acronym
sounds to jokers as something like a cat’s call. During the crisis, the market share
system was in force. The programme at the beginning of the 1980’s with the
participation of Unocal, Occidental and Exxon was oriented on bituminous shales,
coal and similar feed stocks–and so synthetic oil entered the market. Saudi Arabia
increased oil production to 525 million tons and it reported a record income. In
1979, there was a breakdown of an atomic power station at Three Mile Island near
Middletown, Pennsylvania, and that fact marked “stop” to atomic power. Diversification
of activities in companies became fashionable after the oil shocks. At that
time, Nigeria nationalized its BP’s assets due to BP’s trade contacts with South Africa.
Russia was fighting in Afghanistan. Iraq, which imposed an embargo on Egypt in
1979 the peace treaty in Camp David, in 1980 attacked Iran (in 1981 Israel destroyed
the Iraqi atomic weapon systems), which reduced much oil inflow onto the market.
Oil became dear again and there was a general recession. OPEC reduced oil production
from 1.55 million bbl/d to 0.9 million bbl/d and respectively decreased quotas for its
members to preserve high prices. Saudi Arabia played a special, so called buffer role,
swing producer. The following countries exported oil: Indonesia, Nigeria, Egypt,
Malaysia, Angola; China produced its own oil in 1980’s. In 1983 Great Britain
produced as much oil as Algeria, Libya and Nigeria together. Competition made oil
prices fall. The world decreased oil consumption from 2.6 bln tons in 1979 to 2.3 bln
tons. After 1982, a new system of oil trading was initiated, i.e. spot trading and oil
entered the world stock exchanges.
Poland at that time...
Poland experienced a so called “steered development of planned economy” but
the privately-owned vehicles started to play an important role as petrol consumers.
Table 16 presents data on the number of vehicles on the basis of statistical information
provided by the State Insurance Company PZU.
The oil products consumption in a 5 year period raised quickly: 1961-1965: 18.8
million tons; 1966-1970: 32.2 million; 1971-1975 49.4 million and in 1976-1980:
81

Borysaw–tank cars being filled
with petroleum; a postcard
printed in 1910 by J. Klein in
Cracow (phototypography).
Borysaw–Popiele oil field;
a postcard printed in 1908
by Leon Rosenschein in
Drohobycz (phototypography).
71.4 million tons whereas in 1981-1985 that consumption fell to 62.1 million. Through
these 5 years the cumulative volumes look considerable but they are hardly on the
level of an annual consumption in Spain with a comparable number in population!
This is a measure of our technological gap and staying out of the main development
stream of the European countries which are not too rich, anyway. Table 17 provides
more precise data for Poland.
The long-distance pipelines going through Pock were started up in 1968 to
dispatch motor fuels. In 1986 they pumped 4.9 million tons. In 1985 CPN’s [Oil
Products Trading Agency] turnover reached 22.5 million tons: by pipelines–4.9 million,
by railway–12.5, by tank trucks–4.5 and by ships–0.6 million tons.
Oil import played a significant role in foreign trade. Table 18 presents oil import
in thousands of tons.
In 1963, the first section of “Friendship” crude oil pipeline was started and in
1973 it was necessary to start the next section. The really big oil import from the
west started in 1973, from Algeria, Libya, Iran, Iraq and for re-export from Nigeria
and Angola. Sea oil transportation was little; a bigger one started after 1975. It is
then fhat Poland bought 6 oil tankers. The peak of import, and import in general,
took place in 1980. but after that year Poland lacked foreign currency. This is why in
1980 a pipeline from Pock to Gdask was set in motion. Seller’s special prices were
applied in oil purchase from the USSR; in 1985 it reached the level of world prices.
The world was still in an oil crisis after the Iranian revolution. Almost 50% of the
refineries were shut down in the developed countries because of the oil price, so far
the highest in history. If corrected by the inflation index, in 2002 it would have
reached over 90 USD/bbl and till 1986 it had not dropped below 50 USD. The
socialist economy could not have survived such a blow.
Import and export of oil products (in thousands t) is presented in Table 19.
Oil import from the west was small but qualitatively important–mainly high
class lube oils and additives were imported. The high import in 1973-1975 from
Eastern Europe was paid in US dollars and therefore it was considered as trading with
the west. Gas oil was exported to Western Europe as a light fuel oil. There was a
quick rise in export of petrochemical products during the 1980’s, among others to
Asia. However, fuel oil was dominant in export. On the home market, there was
almost no demand because the Polish economy was based on coal, whereas other
countries replaced coal with fuel oil. In the end of the 1970’s, the national consumption
of fuel oil considerably rose and in the beginning of 1980’s it fell to 400,000-500,000
tons/y. Gas oil L-II was exported to western recipients as heating oil and its national
consumption was small. Table 20 represents export data.
During the 1970’s, the surpplus of petrols was exported, including those with
higher octane number (91, 94 or 98) than the ones used here. In 1975 and 1976
these were base petrols and naphtha (Table 21).
Export was ephemeral and fuels were intended for export during off-season.
There was a shortage of storage capacities. In the 1980’s, the Gdask Refinery began
exporting base oils. Export of petrochemicals from 90,000 tons in 1980 reached
155,000 tons in 1985, exclusively to the West (propylene, aromatics, glycols, plastics
and others). The assigned oil processing–being a form of export and trade in general–
also took place in Polish refineries. Table 22 shows once again oil processing volume
and import of finished oil products.
The world after crisis... oil concerns
At that time, integration of firms provided fewer advantages: there were firms
with “value gaps” (the difference between a firm’s value and its shares) and a new
kind of “war” broke out: wars through taking over. Such firms as Cities Service,
Conoco, Marathon, Getty and Gulf were taken over by others. Many firms went
bankrupt, for example Cities Service in 1982 in the US, being the 19 th in rank, was
83

Sporne near Krosno–Noe oil field;
an unknown author’s
photograph of 1910.
bought out by Hammer which in 1981 also bought Occidental. Conoco, which
formerly belonging to Standard Oil, and in 1981 purchased by DuPont. In 1983,
Chevron bought Gulf Oil for the huge sum of 13.2 bln USD.
...petrol stations
During the 1970’s and the 1980’s, the consumption of petrol decreased. Fewer
new stations were built but they were more expensive, more modern, they had intercom
to communicate with customers, remote control and self-service (the change of fire
protection law made its development possible). Free services disappeared. In the USA,
the number of gas stations dropped by about 50,000. In 1978, 68 mln customers had
credit cards for oil firms. Gas stations still sold car parts but garages and car showrooms,
by the end of the 1970’s, started to take over more and more of that business. In 1978,
the law protected small business and it forbade the largest 16 oil concerns to sell their
petrol at their own stations. Thus franchising with the exclusive right to sell one’s own
brand name became less profitable. In 1980 there was a drop of about 30% of the gas
stations and a “divorce” law ordered the refineries to sell a lease their stations (then it
was possible to sell 2 brands). Generally, in 1982 franchising was developing very
fast–they sold cars or tyres in this way. There were two opposite theories, i.e. dual
distribution (i.e. wholesale+retail), also defined as “bad birds of prey” or vertical
integration. Tests showed that integration was more effective, however it depended
on the sale of petrol more than other goods and services. In 1980 there were 121.6
mln cars in the USA and 320 mln worldwide.
...refineries
In the 1970’s, the refinery industry in the USA and Europe differed with respect
to the complexity level of oil processing, i.e. the proportion of conversion processes
capacity towards the quantity of processed oil. For example, in the USA the yield of
fuel oil from crude oil was lower and amounted only to 20.2% (residues: on the average,
6% in the USA and 55% in Europe). In the USA, they produced as much as 50%
petrol from oil, whereas in Europe only 14%. In the beginning of the 1970’s, the
processing capacities of the fluidal catalytic cracking process in Europe reached only
6% with regard to processed oil and 1% in hydrocracking, whereas in the USA it was
48% and 4% respectively. The percentage of reforming and hydrodesulphurisation
processes was also higher in the USA–22% and 32%, against 13% and 23% in Europe.
The processes of visbreaking, coking, alkylation and polymerisation, quite rare in
Europe, were already applied. Reforming units used 7-10% of their capacities for the
production of aromatics; two thirds of them came from that origin, the rest–from
steam crackers. A stricter work regime and more improved catalysts were applied.
Dealkylation of toluene to benzene lost its economic efficiency quite quickly because
in Europe the production of ethylene from naphtha produced a lot of benzene. The
first modern export refineries of the “all hydrogen” new era were constructed in Kuwait,
with hydrocracking–as in Pock–of the distillates and residues facilities (Shuaiba–
Isomax ® and H-Oil ® ). Catalytic cracking was accompanied with more and more common
refinements: new catalysts, heat utilization, improved regeneration, power recovery,
hydrodesulphurisation of feed stock, and propylene recovery. In this way, the cheaper
cracking process technology defended itself not to give way to considerably more
expensive hydrocracking process. Obviously, the development of the refinery industry
was also accompanied with more or less serious catastrophes: for example, in Feyzin,
the next one in Texas City (butadiene plant), explosions at ethylene plant in Geleen
and in the control room of the German VEBA company.
Already in the 1970’s the refinery in Pock was exceptional. It followed the
American, rather than the European pattern of oil processing. Before the start-up of
the FCC II unit in 1976, the refinery produced about 1/3 of its fuel oil from the
processed oil feed stock. As early as in the 1970’s, we tried to produce unleaded
85

Borysaw (Poland’s former border
land); oil refinery
of Galicyjsko-Karpackie
Towarzystwo Naftowe (formerly
Bergheim & Mac Garvey),
a postcard printed
by Leon Rosenschein
in Drohobycz in 1904
(phototypography).
Tustanowice (Poland’s former
border land); explosion of Oil
City–the biggest oil rig;
a postcard printed
by Leon Rosenschein in
Drohobycz in 1908
(phototypography).
petrol of 91 octane. The development of the Complex finished at that time, after
building the commissioned plants of Olefins II and the second plant of ethylene oxide
and glycols. It is worth reminding people here of the exceptionally successful start-up
of the olefins plant!
...ecology becomes priority
The last 50 years of the oil industry were marked by stronger and stronger emphasis
put on ecology. This notion was coined by Haeckel during the 19 th century; the science
combines elements of physical, biological and sociological sciences. In 1935, Tansley
defined the ecosystem. Daniel Yergin distinguished the first impact of ecology as the
moment of departure from the predominant role of coal, the second impact being the
set-back of atomic energy development and the present third phase consisting in
general pro-ecological legislation.
The CAA law (Clean Air Act) passed in 1970 in the USA, assumed a 90% reduction
of carbon oxide, hydrocarbons and nitrogen oxides in exhaust gases within 5 years. In
1974, car producers started to mount a catalytic converter made from precious metals,
which required the use of petrol without lead. There was a problem of sulphur content
because vehicles emitted aerosols of sulphuric and sulphurous acids as well as sulfates.
It immediately turned out that unleaded petrols had lower octane numbers, petrol
consumption rose and there was a shortage of gasoline. Generally, Europe aimed only
at the limitation of lead content in petrols from 0.4 to 0.15 g/l. It was later that it was
claimed that gasolines of 95 and 98 octane numbers meant optimum from the point
of view of their production and consumption. In 1967, earlier than in the USA, Japan
passed the environmental protection law which was less severe than the American
one. Afterwards, many changes in the petrol quality requirements took place. After
the elimination of lead in 1989, they lowered the RVP level and in 1992 the content of
benzene. But it is Europe which is the leader in raising fuels specifications. The WWFC
(World-Wide Fuel Charter), grouping car manufacturers strives for the unification of
fuel quality and standards in the whole world.
Levelling of the development chances?
The world was aiming at the leveling of the discrepancies in the economic
development. UNIDO Declaration from Lima of March 1975, confirmed by the UN
General Assembly, assumed the achievement of 25% of the world industrial production
by developing countries. Petrochemistry, which was widely perceived as the animating
power of progress, in 1950 reached 3.5 mln tons of production and 70 mln in 1976–
an average growth rate of 14% p.a. within 25 years! It was developing cyclically,
which was affected by mutual substitution of products and emerging new technologies.
The chemical, organic industry was the first industry of intensive R&D. Already at
the end of the 1940’s, industry began to move away from coal and in the direction of
eight basic chemical products which could be manufactured more cheaply from crude
oil and gas: ethylene, propylene, butadiene, benzene, toluene, xylene ammonia and
methanol. In 1950 the petrochemical industry consumed less than 1% of all the oil
but in 1976 it was about 4.5-5%. The processing industry based on petrochemicals
could be built more cheaply then, creating many new jobs. Since the 19 th c. Germany,
France, Great Britain and the USA developed carbochemistry. At the end of WW II,
all basic petrochemicals were well-known and produced. But only the USA produced
a lot of oil–other countries did not have any reason to change their raw material base.
Soon the number of refineries rose 2.5 times more quickly than the GNP. Also the era
of coal seemed to end. Europe and Japan, competing against the USA, had to erect
big, world-scale units and the technical progress became faster and faster. Professor
Marian Taniewski (Przemys Chemiczny [Chemical Industry] 1987, vol. 5, p. 223) who
was mentioned earlier, described this process in the following way: The structure of the
industrial organic synthesis, defined from the point of view of the type of feed stock, is very simple.
87

Borysaw (Poland’s former border
land); 8000 oil fielders striking
in 1904; a postcard printed
by Leon Rosenschein
in Drohobycz in 1904
(phototypography).
Over 95% of the world production is based on oil and natural gas. Less than 5% of the products
are produced from coal and renewable resources of the agricultural or animal origin.
The world production of synthetic materials in millions of tons is shown in Table 2
and the production of the main petrochemicals in thousands tons is in Table 24 while
Table 25 displays production shares of particular regions in the world production.
The production of plastics in the period of 1950-1970 doubled every 5 years. Later
that growth was only about 50%. In production of synthetic fibers, the growth was
from 5 to 11%, in production of synthetic rubber from 17 to 23% annually in our part
of Europe! In 1977 the USA together with Europe and Japan had 92% of the ethylene
production capacities, 93% of the butadiene and 97% of the benzene of the whole
world. In 1976 the world resources of oil were estimated at 87,606 million tons, including
50,160 million in the Middle East. Eastern Europe, which was next after the Middle
East, had 11,109 million tons–more than North America with 5116 million and
Western Europe with 3353 million tons. The consumption of oil reached 2879 million
tons. In 1974, plastics made up 58% of the petrochemicals, with 14% for fibers,
rubber and detergents each. In the USA, the value was added in the following way:
9 USD/bbl to the price of a barrel when processed at the refinery and 13 USD/bbl
when petrol is the final product. However, with regard to petrochemicals like glycerol
(this product was included in the general preliminary design for the Pock complex
and now–what an ironic twist of fate!–its production has grown in view of the biodiesel
production increasing so dynamically at present!), it was already 50 USD/bbl! Further
processing gives the value of 100 or even 200 USD/bbl and, what is more, the
development of other industries. There were over 200 products of petrochemistry
manufactured in big quantities.
Unfortunately, the world did not follow the Lima Declaration but went towards
globalisation.
Is there a good energy policy?
The analysis and data presented in the American Petroleum Institute (API)
materials entitled Oil and the USA federal government policy after WW II is very interesting
and instructive. The main objective of that policy is the assurance of the state energy
security, also for the correction of any free market distortions, i.e. too high fuel
consumption and excessive dependance upon import. In 1948, the USA became the
oil net importer because the national production was more expensive. Therefore, in
1955 the state introduced the control of import, which lasted till 1973. Such policy
resulted in granting production or consumption percentage limits; import licenses
were awarded and quotas established. It was ineffective and in 1959 they started to
introduce changes: refineries were granted limits inversely proportional to their
processing capacity. Then small size firms, or newly established ones, or petrochemical
companies were granted preferences for the import from other countries. And again
it turned out ineffective–import grew to 1/3 of the consumption which generally cost
consumers about 50% more than in the free market circumstances.
The oil prices and quotas control in the period from 1971 to 1981 were part of
the control system of prices and remuneration. Price control of other goods lasted till
1974, while oil prices were under control till 1981. Contingencies were for small
firms and prices were established on the basis of costs which were lower than the
world prices of fuels. It resulted in the redistribution of income from manufacturers
to consumers. Small refineries took advantage of that situation but when the control
was lifted, they went bankrupt because they could not bear competition. Further
results of price control consisted in petrol shortages, excess of heating oil, and low
efficiency of refineries and distribution. Natural gas prices were also under control
from 1954 even till 1993, which was motivated by its natural monopoly character.
The results were the following: consumers’ subsiding, excessive consumption and
ineffectiveness. Therefore in 1975 the new law on CAFE was necessary for new car
89

Równe near Krosno;
a postcard printed in 1910
by L. Majewski–a photographer
in Tarnów and Iwonicz
(coloured phototypography).
Równe near Krosno–an oil field;
a postcard printed in 1935
by an unknown author on the
basis of a photography
by St. Mucha in Cracow.
models, in 1978–encouragement of power engineering and industry to give up oil and
gas in favour of coal. Then, unexpectedly, there was an excess of gas and in 1986 the
prohibition was lifted. On the other hand, ecologists fought against the use of coal. The
establishment of IEA caused the founding of SPR (Strategic Petroleum Reserves) in
1975, as well as strategic oil reserves, stored at the cost of the state. Those reserves were
used, so far, only once in 1991. Thanks to a worldwide coordinated action after Iraq’s
invasion on Kuwait, it was possible to maintain oil prices on a decent level. Alternative
fuels were a consequence of the shocking growth of oil prices. In 1980, the state company
producing synthetic fuels was established. They planned to produce 100 million tons in
1992. They erected three coal gasification plants and one for production of synthetic oil
from bituminous shales. However, only oil prices which equaled 30-40 USD/bbl would
make this production profitable, so in 1986 they gave up these projects.
Excise duty–its federal share–was mainly spent on highway construction. Then
it rose considerably and from 1990, in some part, it also went into the budget. Federal
lands were hardly made available to oil and gas companies for leasing and there one
could find 85% of the undiscovered oil and 40% of the gas, but the public opinion
did not allow the learing for environmental reasons. Since 1980, the national park
ANWR (Alaska National Wildlife Refugee) in Alaska has been a very controversial
issue in this context. Since the 1970’s, oil companies have been criticiled for
monopolistic practices. They have tried to vertically divide integrated firms in three
parts. It related to such large ones as those of oil production over 5 million t/y or
refineries processing over 15 million t/y. The principle was that pipelines could not be
their property. In some states they were even forbidden to own gas stations!
Generally, such energy policy did not find acknowledgement. Environmental
interventions were recognised as well-founded, when there was domination of one
entity or dishonest price practices as well as in circumstances when intervention itself
did not cause significant distortions.
Regulated market
The American gasoline market was regulated with so called “concentration”
(which the Ministry of Justice associated with domination, monopoly or lack of
competition). It was measured with the Herfindahl index (the sum of squared shares
on the market can’t be higher that 0.18) or the Herfindahl-Hirschman index (the
share of the 4 largest firms below 50%, then 70%). The west was the most concentrated
region–4 concerns possessed over 50%. Half of the USA the gasoline production
came from the south, almost 1/4 from the north-eastern states and import was oriented
mainly towards the eastern coast where the consumption was the biggest and the
production was smaller than 30% of the consumption. Also, the north-east states
production met only 3/4 of their needs, the west met its demand in over 90% and the
south exported 2/3 of its production mainly eastwards. Pipelines transported 74% of
the consumed gasoline. The period 1977-1989 resulted in a profit rate (net profit to
capital) considerably lower than for firms of other trades and thus out from 314
refineries in 1981, in 1989 there were only 183 and nobody erected new ones any
more. Investments were mostly spent on more complex oil processing and revamping
of existing facilities as well as rehabilitation of the distribution grid. The wholesale
margins of profit were not high. Business was made only on world-scale refineries–
over 10 million t/y and above. All 10 leading US concerns had over half of the
production capacities, each of them with over 25 million t/y of the oil processing.
But market adjustments were made all the time. In 1981 prices went down so the
“minimum prices” were legally in force but being discordant with principles of the
free market and free competition. That is why they can be subject to antimonopolistic
interventions for “dishonest trading,” dumping and equal prices. A lock-up of profit
margins was in force in the period 1973-1981. The experiment of small retailers’
protection turned out costly and it did not hold back their bankruptcies.
91

Ropienka near Sanok–an oil rig;
a photographic postcard of 1901.
Peczeniyn (Poland’s former
border land); the first oil refinery
in Galicia; a postcard printed
in 1905 by Moses Schlossberg
in Peczeniyn (colour printing).
Finally, the 1980’s brought the liberalization of the oil industry in the USA as
well as in Europe.
Twenty years earlier... than today–and afterwards
Thus the world had over 700 refineries, not too complex, without the deepened
processing technology, and in the 1980’s about 200 of them were shut down. It is
assumed that hydrocarbons were really under control of only about 100 companies
from 20 countries.
In 1985, the USA got out of the recession and the economy was at its prime.
Great Britain experienced extended privatization and Prime Minister Margaret
Thatcher dissolved the state-owned British National Oil Co., which from 1975 had
had 51% of the shares of the oil fields of the British sector in the North Sea and it fixed
prices in order not to support OPEC. France acted towards a free market and resigned
from the state economy; thus the world economy grew without the oil “drive.” Europe
bought gas from the USSR. There were large quantities of stored oil and oil began to
disappear as a subject. It became an issue as any other issue. Saudi Arabia, playing the
role of a buffer of the oil market, sold only 110 million t/y, which was only half of its
quota because other OPEC countries exceeded their quotas. For Saudi Arabia, it meant
only 1/5 of the output which it had produced 5 years before. In such a situation of
decreased income a brilliant idea was born, i.e. netback, to defend exported quantities.
This meant sharing the profit margin with refineries. Thus, in 1985 trade was intensified
and at last refineries had money. Prices fell, the British state treasury suttered a loss and
that was the third oil shock–such a different and reversed one. The index oil price for the
western hemisphere, WTI (West Texas Intermediate) dropped to 10 USD/bbl, Arab oil
cost only 6 USD/bbl and world players started to struggle for markets. The government
of Norway resigned because its income from oil was decreased by 80%–the free market
had developed too far. History repeated itself: overproduction, prices fluctuation, quotas,
waste of energy, capital and oil. Only a decrease in production could be the medicine but
no company wanted to start by itself. Everybody cursed Saudi Arabia; Sheik Yamani,
who for 24 years was the architect of his country’s oil policy, lost his ministerial portfolio.
But OPEC agreed to a compromise: they “gave back” 50 bln USD to importers and in
1986 the economic growth was still maintained and the world inflation declined. In
1988 Saudi Arabia established joint companies with Shell and Texaco in the USA and
could process 30 million t/y of its own oil (in 1985 only 1.3 million t/y). Similar actions
were undertaken by Mexico and Venezuela founding firms in the USA (Venezuela also in
Europe–Ruhroel in 1980 in Germany and Nynas with the Finnish Neste, known for
bitumens). In Saudi Arabia, one of the Japanese companies could produce oil which
covered 15% of the import demand of this 99% dependent-on-oil-import country.
Thus another philosophy turned out to be victorious in international relations–
one could see the willingness to prefer economy issues over politics and an air of
cooperation, not confrontation.
The year 1989, “baptized” as annus mirabilis–was a miraculous year in the end
“cold war” and petrol in the USA was the cheapest since WW II. Oil reserves were
increased, somehow with an administrative move, to 140 bln tons in 1990 from 94
bln in 1984 and two thirds were located in the Persian Gulf countries. In 1990, the
USA consumed about 100 million t/y of oil less than in 1986 but import was growing
and the margin of energy security was shrinking. In 1990, the world had 440.7
million personal cars, including the USA with its 147.9 million.
The last decade and...
In 1991, 7 of the largest OECD countries paid to their budgets the total of 200
bln USD as fuel taxes, which meant 1/3 of their oil products value. Europe applied
fiscal policy to the largest extent. As a result, the USA and Canada increased their
taxes. Much of these taxes were spent on various subsidies. Thus relations got distorted
93

Borysaw-Tustanowice (Poland’s
former border land); a fire
of Oil City oil rig; a postcard
printed in 1905 on the basis of
Tadeusz Rybkowski’s watercolour
by J. Czernecki in Wieliczka.
and fuel competitiveness in the integrating world at growing free trade worsened.
Surely they shaped the consumption of oil, its price and exporters’ profits. The USA
had the largest consumption of oil per capita, even three times higher than the other
leading economies of the world.
In the meantime, Iraq attacks Kuwait and again oil becomes a commodity which
must be struggled for, like in the whole 20 th c. 600 oil wells flared, from 200 million t/y
of Kuwait production 150 million t/y was out, prices grew, but OPEC and IEA mastered
that dangerous situation. Russia had 60% of its export income from oil and gas, the oil
industry lost its exceptional role and it became like any other industry. Germany and the
Pacific countries were capable of developing without oil and Japan with its huge import
became the world’s banker. Ecology became more and more important as well as gas
and alternative fuels. The conflict between energy and environment, about the limits of
development and about cooperation, was more and more vivid.
...time for changes in Russia
The 1990’s brought the beginning of the restructuring of the Russian oil industry
after the fall of the USSR. That process lasted till 1995 but even at present great
changes are taking place. As a consequence, 12 big oil companies, usually vertically
integrated, were established. At the end of 1991, the largest of them, Lukoil, was
founded. However, the production of oil fell drastically–from a record of 616 million
t/y in the 1980’s to a level of below 300 million t/y. It is only recently that the
production has been growing and has exceeded 350 mln t/y. Many large projects to
produce oil with international partners were undertaken, for example in the Republic
the Komi, in the region of Archangielsk, or recently with Exxon in Sakhalin, and
there are many small projects under way. The most spectacular event was the second
BP’s entry into the Russian companies. This time the TNK [Tiumieskaja Nieftianaja
Kompanija] had already controlled Sidanco since 2001 and had established the thirdin-size
company in Russia in which BP’s 50% marked the largest direct foreign
investment, FDI of 6.75 bln USD! Before that, in 1996, Arco (now belonging to BP)
joined Lukoil with 7.99% shares. In 1998, Lukoil took over the shares in the Romanian
refinery Teleajen (Petrotel) and Bulgarian Burgas (Neftochim) and in 1999 the refinery
Odessa in Ukraine; it is also present in the USA. Other Russian companies also manifest
strong tendencies of expansion. In 2002, Yukos bought shares in the Lithuanian refinery
Mazieikiai from which an American company Williams withdrew (it had been there
since 1998). Yukos also bought shares in the Slovak company operating an oil pipeline.
Yukos also used to deliver oil to Poland. In Lithuania, there is an active company
Sibur–a petrochemical agenda of Gazprom, which is also present in Hungary and the
Ukraine. Russian capital is also involved in the Belorussian refineries. Slavnieft’s shares
were passed to TNK and Sibnieft. Surgutnieftiegaz and Sibnieft (the latter was to
join Yukos twice) belong to the largest companies in Russia. Russia increased its oil
export capabilities; not long ago, it was the second oil exporter in the world. It operates
a pipeline to Novorossiysk, also for Caspian oil, and a new pipeline to the Baltic coast.
It uses the harbour in Primorsk, pipelines through Poland, Lithuania, Latvia as well
as transports oil by rail through Estonia–one of few countries in the world that use
shale oil. There are plans to lay pipelines from Russia to Japan and China, with a final
harbour in Murmansk. Russia tried to join WTO (World Trade Organization) but it
does not want to raise (and to make them more real) its internal oil and gas prices (till
2007) which are 5-6 times lower than the world prices (raising them is the condition
to join WTO). However, Russia’s refineries and its net sale are slowly rehabilitating.
...and oil is still a strategic commodity
Oil, which determined the past century being the most valuable of goods, in the
1990’s initially had a rather moderate price, lower than 20 $/bbl which was due to
the Russian and south Asian crisis at the turn of 1997, and throughout 1998 it was
95

Borysaw-Tustanowice (Poland’s
former border land);
oil rigs in fire; a postcard printed
by Leon Rosenschein
in Drohobycz in 1908
(phototypography).
Borysaw-Tustanowice;
explosion of Oil City oil rig
(250 tank cars daily output);
a postcard printed by
Zygmunt Tabak in Borysaw
in 1908 (phototypography).
even cheaper than $10/bbl Afterwards, its price grew to a level which, since 2000,
has initiated worries of the next oil shock. In 2003, the strike in Venezuela and the
intervention in Iraq hoisted the oil prices. Speculations on “the new order” in Iraq
foretold the comeback to moderate prices but still there is no stabilization there.
Strikes in Nigeria or OPEC policy causes that prophecies do not want to come true
and the price of $30/bbl is quite probable. There is an obvious need for compromise
in petroleum prices–there are opinions that its fall by 10 USD/bbl from the level of
30 USD/bbl could cause the world GDP growth of about 0.5%! However, in 1998
the OPEC countries, with $150 bln of income a year before, earned about $50 bln
less, the least since 1972, which caused definite negative results for investments in
this industry, not to mention various serious social consequences. In 1996, the world
needed 3.6 bln tons of oil and although that demand hardly incresed recently (to 3.8
bln/y), specialists forecast that in 2010 the demand would reach 4.5 bln tons and do
not foresee a peak of production till that year.
The Middle East stays a neuralgic region of the world and a hermetically closed
area as far as foreign investments in the oil sector are concerned. Only Kuwait with
its resources of oil, its export and export of oil products, including petrochemical
ones, professionally administers the received benefits and manages its oil assets more
as a corporation than as a state, accumulating funds and investing in foreign enterprises.
Saudi Arabia made a decisive step, opening for foreign investments (Shell and Total)
the huge area of 200,000 km. 2 of desert for gas (not oil) exploration and production.
However, the Caspian oil raises hopes. All big oil concerns came back to Baku. The
yet larger deposits of Kazakhstan–currently exploited Tengiz and powerful Kashagan–
are going to play a serious role in the world in the next decade. All key international
corporations are present there. Recently, one could observe their objection against
Chinese firms’ entry into that market. Pipelines are a problem, because the existing
ones do not suffice. The construction of the basic pipeline through Turkey to the deep
harbour Ceyhan is in its initial stage. In 1996, they discovered “big oil” in the deep
waters in West Africa and in the deep waters of the Gulf; the latter discovery did not
arouse special optimism, even though a new drilling record, at the depth of almost
3000 m. from the ocean bottom, was established, thus improving Brazilian
achievements (the best so far). The technology of oil production has undergone essential
improvements. The method of horizontal drilling was introduced even on a dozen or
so kilometres. There are FPSO systems (Floating, Production, Storage, Offloading)
instead of immovable platforms, which, like the Norwegian Troll placed in May 1996,
that weighed 1 million tons and was 472 m. high, surpassed everything that man has
made in the world, even the Egyptian pyramids. So oil is produced not only in Africa
(Nigeria, Libya, Algeria, Gabon) but also in Egypt, Sudan, Chad, Equatorial Guinea,
in the tiny states of San Tome and Principe, in Morocco and in Angola (the “big oil”
discovered by Exxon in 1998). Alaska in North America may become open to
exploration under the energy bill which, despite the US engagement in Iraq, is
nowadays intensely and legislatively elaborated. Canada has new oil fields (Hibernia
and Terra Nova) near New Foundland. There are big deposits of heavy oils, shales
and sand. There have been new investments in the production of synthetic oil since
1997. There is already considerable production of synthetic crudes. Yet Venezuela has
larger resources of heavy oils, surpassing the current oil reserves in the world. In the
Orinoco Belt their deposits have been assessed at 170 bln tons. This country opened
itself to foreign investments in 1995 but recently, under Hugo Chavez’s presidency,
developmental projects have been moderated. Mexico, with its new president, can
attract foreign investments, however it requires constitutional amendments. Ecuador,
Colombia, Peru and Mexico are also oil countries. In 1997 the Petrobras’ (Petroleo
Brasileiro) monopoly was finished (by an act of law); it had lasted since 1953. Since
1991, Argentina has introduced liberalization of the oil industry. But there are not
significant resources of oil there–Brazil is a net importer of oil and gas. Argentina has
97

Tustanowice (Poland’s former
border land); a general view
of the oil field;
Oil City–the biggest oil rig;
a postcard printed
by Leon Rosenschein
in Drohobycz in 1903
(phototypography).
surpluses of gas. Oil fever, which spread across the Falkland Islands in 1995, was
gone after ineffective drillings. In 1996, similar hopes turned out futile in Greenland.
China produces much, yet its demand is bigger than its own supplies and it is still
growing fast. Since 1992, this country has been a net importer of oil. Norway, not
long ago being the second producer, now the third largest exporter of oil in the
world, following the pattern of some Arab countries, manages an impressive oil fund.
There are many changes in the North Sea–for example, the ENI concern bought
assets from Fortum, and BP sold its legendary oil field the Forties. The British press
deliberates that its oil supplies are almost “dry.” Instead, in 1996 the largest oil
deposit in the western part of the European continent–in Italy, in the region Val
d’Agri–was discovered. German companies, which possessed rather small resources
and production, have recently sold them–Preussag to OMV (Oestrreichische
Minaraloelverwaltung) in New Zealand and Deminex to PetroCanada.
New quality of fuels and other environmental challenges
On October 1, 1993, the USA, on the basis of CAAA (Clean Air Act Amendment),
introduced gas oil including maximum 500 ppm (ppm–part per million=0.0001%)
of sulphur. And 3 years later, on October 1, 1996, the same law was in force in the
European Union. On January 1, 1995, the USA implemented the first stage of using
RFG gasoline (RFG–Reformulated Gasoline), containing oxygen compounds
(oxygenates). These changes in quality are based on research–in the USA on the
programme AQIRP (Air Quality Improvement Research Programme), in the European
Union on the programme Auto Oil (1995). These programmes proved the
contamination of many urban areas with nitrogen oxides emissions and volatile organic
compounds which together set up photochemical smog; they also proved high releases
of particulates from vehicles, particularly from compression-ignition engines. These
changes turned out insufficient and in 1997 there was a decision to do additional
research–the Auto Oil II Project. Further reduction of the content of sulphur
compounds (until the achievement of low sulphur fuels and tightening of other
parameters of fuels quality) was implemented very quickly (Directive 98/70/EC and
its amendments–2003/17/EC). This is also postulated by the World Wide Fuel Charter
from 2002. For refineries it means the necessity of bearing serious investments which
are very expensive–the alternative is to go out of business. Here is a list of international
legal acts and projects which set very high requirements with regard to emissions and
atmosphere purity: the so called Montreal Protocol, prohibition of production and
use of chlorinated and fluorinated hydrocarbons in the European Union since 1995,
the Kyoto Protocol on the reduction of greenhouse gases emission (1997), a directive
from 2001 restricting the release of acid gases (sulphur and nitrogen oxides) by large
power engineering facilities–LCCP (Large Carbon Combustion Plants), and the
programme “clean air for Europe”–CAFE or acts on protection of water and soil. All
these legislative measures make up severe requirements and big challenges for oil
companies. The refineries of tomorrow must certainly be much more expensive. There
will be limits of greenhouse gases emissions GHG for companies and trading them
will meau something like an additional tax (Poland approved of the obligation of 6%
reduction of such emissions). Other fuels, the so called alternative ones, became a
serious subject of political debates. Biofuels make up such a challenge that they are
more and more widely discussed and introduced onto the US market in large quantities
(in the form of ethanol) and in Europe (tert-buthyl ether from ethanol, ETBE, and
biodiesel); the same goes for the recommendations of the Directive 2003/30/EC.
USA and Europe execute large R&D projects dealing with the applying of hydrogen
in fuel cells–the idea which has been well-known since 1839. The first economy in
the world based on hydrogen energy is to be introduced in Iceland. Hydrogen gas
station were opened there. Several European cities implemented pilotage programme
with such drives for city bus fleets. Also, hybrid vehicles are quite popular–cars powered
99

Tustanowice (Poland’s former
border land); a fire of the biggest
oil rig Oil City; a postcard
printed by Leon Rosenschein
in Drohobycz
in 1908 and mailed in 1915
(varnished phototypography).
by conventional fuel and electric current. Those examples are enough, not to mention
new designs of engines which also may require other fuel specifications.
Contemporary times–the Third Republic of Poland
The years immediately preceding the political changes in Poland and Eastern
Europe were a period of general economic breakdown for our country. The sale of oil
products for private car owners had already been under control for many years. The
unreal prices, lack of goods, growing hyperinflation and the lack of foreign currency
haunted the country, like the proverbial 7 Egyptian plagues.
The first years of the III Republic, since 1989, brought many changes but the so
called payment hold-ups (delayed payments), high exchange rate of the dollar, high
inflation and high interest on credits did not mean normality. Foreign entities and
private entrepreneurs entered the market.
After 1993, on the basis of amended law, foreign companies could also explore
oil and gas in Poland. In 1996, PGNiG (Polish Oil and Gas Exploration Company)
discovered oil fields in the BMB region–Bamówko-Mostno-Buszewo–with 7 bln m. 3
of gas and 10 million tons of oil for recovery. There maybe twice as much oil near
Gorzów. The oil field Midzychód contains 6 million tons of condensate and 36 bln m. 3
of gas. The Petrobaltic company produces significant quantities of oil from the Polish
shelf of the Baltic Sea. Totally there are 13.6 mln tons of oil, including 12.5 million in
the Polish Lowland and 157.4 bln m. 3 of gas. Specialists forecast that in the period
2005-2020 it will be possible to discover 2-5 million tons of oil and an additional
10% from the foreign concessions in Poland. Table 26 presents the current petroleum
production in Poland.
In 2001, professional literature claimed the world supplies of 141 bln tons of oil
and production of 3.19 bln, whereas in Poland those figures are 15 million tons and
0.85 million tons respectively.
Completely different data about oil in Poland are taken from a different source
(J. Siewierski, wiat Paliw [The world of Fuels] No. 6(24) November-December 2002,
p. 6-10)–Table 27. Data for 2002 here and in the next tables from the same source
make up only an estimate. Table 28 shows import of oils.
After an initial period of diversification of oil exporters, among others, to reduce
sulphur dioxide from the PKN ORLEN’s heat and power generating plant, when the
Russian oil made up only 80% of imported oil, we came back to processing Russian
oil almost exclusively–already in 2000 it was 93%, in 2001 95%, and in 2002 the
pipeline Friendship transported 95.5% of imported oil. Presently, Russia is an important
stabilizer of the world oil market, second exporter after Saudi Arabia. Its export has
been incessantly growing since 1994 and the pipeline Friendship makes up the main
route of transportation. Table 29 presents average annual oil world prices. The influence
of oil prices on the world economy has often been much discussed. Though the world
economy has became less sensitive to “oil shocks” which caused world crises in 1973
and 1979-1980, it is estimated that the growth of the oil price by $10/bbl can reduce
the world gross product by about 0.5%! The Polish economy, being insufficiently
effective with regard to GDP per capita, may be much more susceptible to such changes.
In the period of constitutional transformation, refineries had to change their
strategies–generally into pro-market policy oriented towards the customer and profit.
The Gdask Refinery Works quickly became a one-man partnership of the State
Treasury (a kind of private enterprise during the transition period). That company
began to import oil and fuels on its own as well as it entered the retail market. The
Mazovian Refinery and Petrochemical Works in Pock (MZRiP) entered the same
trend somewhat later. Earlier it had completed some new projects–in 1991 the
production plant of methyl-tert-buthyl ether (MTBE) was started up basing only on
Pock solutions and the design which was developed by OBR–Orodek Badawczo
Rozwojowy [R&D Center] and ZBP–Zakadowe Biuro Projektów [Company’s
101

Kamionna near Bochnia–Maria
oil rig; a postcard printed
by Wadysaw Gargul
in Bochnia, mailed in 1909
(phototypography).
Krosno–an oil field; a postcard
printed in 1939 by M. Monheit
in Krosno (reprint by
Wydawnictwo Salonu Malarzy
Polskich in Cracow)–one colour
print.
Engineering Office]. In order to revamp the polypropylene units, they implemented a
prototype, unsuccessful, foreign know-how pelleting system which was later adapted
for compounded polymers. Then hydrodesulphurisation of the gas oil (HON V)
plant was completed also on the basis of the aforesaid engineering. In 1990, a
contract on imported reforming of naphtha with continuous regeneration of the
catalyst was a precedent (Refroming V). At that time, in order to get profitable
foreign credit without a government guarantee, like the German one established
for GDR (German Democratic Republic) in Kreditanstalt fuer Wiederaufbau,
bordered on a miracle, because neither indebted Poland nor its enterprises had
creditworthiness–the world agencies like Standard & Poor’s, Moody’s or Fitch IBCA
had not set a rating for us yet. Here it is worth remembering that thanks to the
then management’s decisiveness and persistance, the project was completed in spite
of its being questioned by the Najwysza Izba Kontroli [Supreme Control Authority]
and some political forces.
Numerous contacts with the world technology in the whole history of the refinery
in Pock favoured the staff’s growth of skills. Technical progress developed itself and
the staff was innovative. About 100 units and 100 products entered the market along
with over 2000 factories. The following units were revamped: CDU, HON, phenol,
polypropylene, ether and olefins. The design loads of cracking and hydrocracking as
well as water deionisation units were exceeded. Several units were upgraded. New
products were introduced to the production schedule–new petrols, gas oils, jet fuel,
basic lube oils, bitumens, o-xylene, solvents, polymers, bi-axially oriented
polypropylene film, new techniques in maintenance departments and computerization.
Much was done due to the establishment of the national R&D institutions, especially
OBR in Pock, which was founded at the beginning of 1972. Environmental protection
became a motor of changes. Culture and sport could be developed.
The refinery industry in the III Republic faced completely new challenges. Beside
economic objectives, environmental protection became an object of the highest concern
and inspiration for undertaken actions. In the 1990’s in Pock, a two billion dollars’
investment programme was executed which included hydrocracking of distillates,
hydrocracking of residues, a hydrogen unit, hydrogen recovery, a network of gas and
new units of CDU, Reformings with continuous regeneration of the catalyst–the
mentioned V and a newer VI, hydrodesulphurisation of gas oils–V and a very modern
VI, isomerisation of light naphtha, an ether plant (now ETBE from ethanol); numerous
other units were revamped and expanded and the whole complex was modernized
and rehabilitated. It is as if an additional refinery had been built and revamped
thoroughly. Here is a list of undertakings, projects and programmes which compelled
the Pock complex to be a leader in its field: EU strategies of fighting acid gases
emission to prevent the pollution of air as well as acidification of the water and soil,
ozone strategy against tropospheric ozone, harmful for old people and children (this
ozone is in mundane cosset, do not confuse it with the stratospheric ozone which was
destroyed by the forbidden chlorinated had fluorinated hydrocarbons, forbidden by
the Montreal Convention for causing the so called “ozone hole”), and formation of
smog, global action following the Kyoto Protocol, hindering the climate change,
keeping the standards of imission recommended by the World Health Organization,
results of audit programmes Auto Oil I and II, standards of exhaust gas emitted by
cars Euro 3, 4, 5, World Wide Fuel Charter, a packet of EU directives “Clean Air For
Europe” (CAFE), requirements to use the best pro-ecological technologies and the
action Responsible Care or requirements of ISO standards 9000 and 14,000. We
must also diligently follow new emerging and announced technologies of car
manufacturers: SIDI–Spark Ignition Direct Injection, CAI–Compressed Auto Ignition
in gasoline motors, HCCI–Homogeneous Combustion Compression Ignition in Diesel
engines, low sulphur fuels to be obligatory from 2009, upgrading additives, hybrid drives,
alternative fuels including biofuels and hydrogen in fuel cells, also for vehicles, etc. Here
103

Krosno region oil-field–Ignacy
oil rig; a postcard printed
by Towarzystwo Szkoy Ludowej
in Krosno in 1938, printed
in the St. Wojciech Printing
House in Pozna.
Krosno–an oil field;
an unknown author’s postcard
printed in 1935.
Kryg near Gorlice–oil fields;
a postcard printed
by H. Nebenzahl in Gorlice
in 1900 on the basis of A. Müller
(phototypography).
is a list of dates illustrating the heroic strive for the implementation of new oil
products in Poland:
1991 • the production of Eurosuper 95 petrol (in 1994 it was awarded a prize Teraz
Polska [Now Poland]);
1992 • the reduction of lead content in petrol to 0.15 g/l;
• the production of jet fuel according to international standards Jet A l instead
of PSM-2;
1993 • the production of light fuel oil Ekoterm;
1994 • the production of leaded petrol 94A with reduced lead content to 0.12 g/l
with addition of alcohol;
• the production of premium gasoline Super Plus 98;
• the production of Ekodiesel–gas oil of 0.2% sulphur content;
• the production of city almost sulphurless gas oil (in 1996 a prize: Now
Poland, in 1997, “Leader of the Polish ecology” prize);
1995 • the production of unleaded universal petrol U-95 at CPN;
1998 • the production of Ekodiesel Plus gas oil with the content of 0.05% of sulphur;
• the production of light fuel oil Ekoterm Plus with the content up to 0.2% of
sulphur;
1999 • Polish Standards became identical with European EN 228 for petrols and
EN 590 for gas oils;
2000 • from 2003 fuels meet EU standards and quality, the end of production of
leaded petrol, Ekodiesel Plus 50 gas oil fulfils EU quality requirements which
were to be achieved in 2005 with maximum content of 0.005% of sulphur (in
November 2001, distinction in the III edition of the contest called “The
European Medal” by the Committee of European Integration and the Polish
Business Centre Club), the new version of city gas oil ONM “Standard 25”
(Grand Prix of the V International Fair “Oil and Gas 2000,” a prize “Golden
Wheels of the Municipal Transport” in September 2001, at the Exhibition of
Municipal Transport during the International ódz Fair).
In 1999 CPN merged with Pock Petrochemia SA and thus Polski Koncern
Naftowy–PKN [Polish Oil Company] was established. The same year, this new
company entered the Warsaw Stock Exchange. In terms of Polish circumstances,
PKN is a leading concern but in the oil world it is not large. It has no upstream which
is the main source of profits, often more profitable by the order of magnitude for the
same oil quantity. Fortunately there is petrochemistry which increases added value
processing of about 8% oil, which is above the world’s average. There is a majority
share in Anwil Wocawek and together with this company PKN ORLEN produces
over 50% of plastics. There is an agreement with Basell Holding and we began a
project to significantly increase the production of polyolefins. The refinery complex
in Pock is one of the leading ones–it ranks among the 10 largest refineries on the list
of 100 EU refineries, so called supersites, and is one of the most complex ones. In its
Capital Group, it has shares in Gdask Naftoport (oil harbour), IKS Solino storing oil
and fuels in its caverns. ORLEN has also expanded the grid of filling stations in
Germany.
Table 30 presents the production of motor petrols and gas oils in Poland. Recently,
there has been a break down in the increase trend which is confirmed by the drop of
car sales. In Poland, despite quite a descent number of passenger cars, with even a
lower number in comparison to our southern neighbours, the situation is far from the
western standards–there is still a big potential for growth. At the turn of the centuries,
we withdrew leaded petrol but, on the other hand, some low grade products appeared
on the market. Gas oils also have strongly diverse quality, especially with regard to
sulphur content–apart from products of the highest world class with 50 ppm of sulphur.
There are also products of larger but admissible content of sulphur. Table 31 shows
the sale of such products and their import.
105

Marcinkowice near Jaso–an oil
field; a postcard of 1910 printed
by Karol Schwidernoch in Vienna
(phototypography).
Rogi near Krosno–an oil field;
a postcard of 1910 printed by
L. Majewski–a photographer in
Tarnów and Iwonicz
(coloured phototypography).
The home market, after the liberation of prices in 1997 and the later annulment
of customs duties, became a competitive market with 1968 filling stations run by
PKN ORLEN SA and with 302 filling stations belonging to the Gdask refinery, 276
BP’s stations with the grid of German Aral, 210 stations of the Norwegian Statoil
with the Swedish Preem taken over, 205 Shell’s stations with the German DEA taken
over, 51 Jet stations belonging to ConocoPhillips, 38 Esso stations of ExxonMobil
and 27 stations of Neste, the Finnish Fortum concern, as well as a large number of
private and independent petrol stations. The Polish market also presents a very dynamic
growth of consumption of relatively cheap, low excised autogas: propane-butane
LPG. In 2000 Poland almost set the European record of LPG volume, equal to 1.175
mln tons, and, in 2001, 1.39 million tons, from the import of 0.877 and 1.127
respectively, including Autogas of 0.55 and 0.7 million tons respectively! The market
of gas oil is similarly misshapen by “the black economy” and illegal use of light fuel
oil to drive Diesel engines. In spite of several attempts, in fact, there is no monitoring
of the market through the effective quality controls and inspections, although directive
EU 98/70/EC as well as 2003/17/EC oblige to effective monitoring and quality control.
In the case of the southern refineries, still processing oil thanks to fiscal privileges, the
moment of truth slowly approaches–they start looking for market niches. The
investment plans undertaken in the refineries of Gorlice, Jedlicze and Trzebinia seem
to confirm the choice of the proper option. Still unfinished or not even started
privatization processes impede the situation of the whole sector. The situation of
completely “dicky” market is overlapped with a recently passed act on biofuels with
its unprecedented compulsion of using components of agricultural origin, bioetanol
and biodiesel, which are more expensive than those of oil origin; the are used in
considerable quantities which is a rear precedent in the civilized world. In view of this
difficult market and being confronted with dishonest practices of various entities, the
Polish refineries are more and more interested in export–vide Table 32.
In the national market for 3 quarters of 2002, PKN ORLEN presents better
results than the remaining refineries in oil processing and production of fuels. Here
are its shares on the home market: 75.9% in oil import, 71.0% in oil processing,
73.8% in production of motor petrol, 70.6% in production of gas oil, 72.7% in
production of light fuel oil, 74.4% in the sale of petrols excluding import, 68.2% in
the sale of gas oil excluding import and 72.0% in the sale of light fuel oil, also without
import. In addition, it is, as was mentioned before, the only manufacturer of
petrochemicals in Poland, also with a strong position on the national market in lube
oils, bitumens and solvents. PKN ORLEN SA is present on the stock exchange. The
company publishes more detailed data which are generally accessible and this is why
it exempts the chronicler from the duty of going into details.
The most recent years...
It is worth tracing the most recent years for our orientation on how complex and
quickly changing is the world in which we live and how difficult it is to find a stately
place in it.
The processing capacities of refineries from 1 bln tons in 1950, 4 bln tons in
1980, 3.6 bln tons in 1986 reach up to 4.1 bln tons at present, i.e. 10 times more
than in 1939! The world demand for oil is to grow 1.6% annually, according to IEA
prognoses–up to 89 million bbl/d in 2010, oil is to cost $21/bbl and refinery capacities
are to grow about 1.3% per year. Many companies quit downstream activities.
Potentially, the strongest oil organization–OPEC–has only 10% of the world refinery
capacities, but, on the other hand, as much as 40% of the oil market and 77% of the
oil resources. In 1995, the world petrochemical industry produced 175 million tons
of basic products, including 65% of olefins, 21% of aromatics and 14% of methanol.
There is an expected amount of 275 million tons to be processed in 2005. Ethylene
production capacities exceeded 100 million t/y long ago. Europe has the strongest
107

Rogi near Krosno–an oil field;
a postcard printed in 1910
by Bernard Fischbein in Krosno
(phototypography).
chemical industry but does not have many so called comparative advantages coming,
for example, from the possession of cheap feedstock base for its development. Europe
produces 40 million t/y of plastics, similarly to the USA, and has 1/4 of the world
production. In the USA an unusual plant was started up–BASF (Badische Anilin und
Soda-Fabrik) Fina in Port Arthur with 817,000 t/y of ethylene and 884,000 t/y of
propylene, with the process of metathesis to increase the output of the latter. The
Canadians, who enjoy superb conditions for this industry development built a plant
of 900,000 t/y of ethylene in Joffre and this is the largest centre with 2.5 million t/y
of this product in the world. South Korea, which within three decades built a refinery
industry from almost zero to 122 million t/y, was ranked sixth in 1997 in the world
with its refinery Yukong of 40.5 million t/y being the largest in the world until recently.
In the 1970’s, South Korea made petrochemistry their national industry and it is the
fifth in the production of ethylene in the world. However, nowadays that country is
not able to keep pace with the new conditions of business. New powers appeared–
Singapore became the regional centre of that industry. Other countries of that region,
especially China, develop quickly and after joining WTO they got development stimuli.
However, the greatest development of petrochemistry is in the Middle East. In 2003
the leading petrochemical company of that region, SABIC (Saudi Arabian Basic
Industries Company), bought the petrochemical part of the Dutch DSM (Dutch Staats
Mijnen), having its assets also in Germany. In Europe there appeared a South African
Sasol, a company established in 1950, being the only company in the world operating
Fischer-Tropsch technology and the present renaissance of that process opens
perspectives for the excellent GTL (Gas-to-Liquids) fuels for that company. Sasol
purchased German Condea. In 1996, Exxon and UCC founded a joint enterprise in
the polythene process called Unipol. In fact, there is a true race of great firms in R&D
on new catalysts for polymerisation of ethylene. Many companies look for chances in
building petrochemistry because the recent optimistic forecasts assumed the rate of
growth of refinery production on the average of 2% annually, and the petrochemical
production–of 5% annually (though today it is not true) because petrochemistry
develops more quickly than the refinery business. Petrochemical companies began
the process of mergers as the first ones. In 1995, a company Borealis was established
with Statoil and Neste assets (today there is OMV instead of Neste) as well as Montell
which later was to become in 100% the property of Shell, the ancestor of Basell,
which was founded from the joint assets of Montell, Elenac and Targor, the latter two
the property of BASF.
...in Central Europe
In 1997 the plans to expand the petrochemical works in Litvinov, belonging to
Unipetrol in the Czech Republic and TVK (Tisza Vegyi Plant) in Hungary started to
by developed. The same year, Dow Chemical solemnly and finally overtook Boehlen,
just off the Polish border. In 1999, it merged with Union Carbide Corp. (UCC) and
probably became the most global petrochemical concern. Transformations in the
Eastern and Central European countries from the beginning of the 1990’s were an
obvious consequence of constitutional changes. The establishment of the company
MOL (Magyar Olaj Gazipari Rt.) in Hungary, its privatization in 1995 and investments
in upstream and downstream as, in 1998 in the process of coking for the refinery
Duna DKV, reduction of costs and outsourcing e.g., accountancy outside of MOL
head office, its taking over of a part of petrochemical industry (TVK), later in 1999 of
Slovnaft (now owned in 70%), whose bonds were taken over by employees in 1995,
and investments of about 500 million USD–these are visible signs of modern strategy
of oil companies of this region. Restructuring of oil industry in the Czech Republic,
started in 1993, was completed in 1996 with taking over of 49% of Ceska Rafinerska
by Agip, Conoco and Shell. These investments caused, among others, the start-up of
fluidal catalytic cracking plant in Kralupy under UOP license. Even in Slovenia, which
109

Rogi near Krosno–an oil field;
a postcard of 1910 by an
unknown author with a mistaken
caption “Równe”
(phototypography).
Zboiska near Krosno; a postcard
printed in 1900 by J. Wein
(phototypography).
has a refinery in Lendava of only 0.5 million t/y, in 1995 a company Petrol was
privatized. The Romanian oil industry, beside Lukoil, was entered by OMV, which
recently has bought Rompetrol, the oil company second in size. OMV also holds
about 10% of MOL shares. In this part of Europe the Turkish companies Petkim and
Tupras were taken over as well as Greek Hellenic Petroleum, the quick expansion of
which “swallowed” the Macedonian refinery OKTA, and filling stations in Montenegro
and on Cyprus. The Croatian INA (Industrija Nafte) was entered by MOL. And what
about the Gdask Refinery and its capital group “LOTOS?” What about PKN ORLEN
SA? Time is running fast and we may not keep pace with the world...
...and the rest of Europe
In countries where the oil industry reached maturity long ago, one could observe
how much brand names matter; at the same time, independent gas stations were
going bankrupt. In Great Britain in 1995-1997, there was a price war and many
independent stations disappeared. In the European Union in 1997 malls had only
4.8% of the petrol shares but with regard to sales, it was 14.8%, which was more
than any oil concern. In France, it was a total of 48.9% and in Great Britain 22%!
Thus, nearby refineries merged for the optimization of their production sale–like, for
example, refineries Esso and OMW (Oberrheinische Mineraloelwerke) in Karlsruhe
with the Bavarian refineries Ingolstadt and Vohburg in Bayernoil in 1997, or in 1999
refineries Agip, Erg Augusta and Priolo on Sicily. In 1998, Shell and Statoil traded
parts of their assets of the super-refinery Pernis, which had been expanded to the sum
of $2 bln in the last years of the 20 th c.; the same was true about the most recently
erected refinery in Europe (not taking into account the refinery Mider Leuna,
constructed in 1997 on the streugth not too “clean,” political French-German
relations), the one in Mongstad which has a residue coking. Since 1997 it has been
operating a rare RCC facility (Residue Catalytic Cracking) of 2 million t/y. In 2001
Statoil was privatized as one of the last oil companies in Europe, though in the past it
often acted as a private company, growing and expanding its operations beyond
Norway, investing in upstream in many places of the globe, in downstream in our
part of Europe and buying, for example, a number of petrol stations in Ireland. The
only refinery in Ireland was taken over by a large independent concern Tosco from
the USA, which, in turn, was taken over by Phillips Petroleum. In 1999, Conoco was
sold by DuPont on the stock exchange. In 2000, Phillips sold its petrochemical business
to Chevron and then it itself merged with Conoco. All these examples are specially
listed here to show the exceptional tempo and the variety of changes in this difficult
oil world, looking for new development chances. Foreign capital began to flow to
refineries in Europe: the refinery Goeteborg, long ago called OK Petroleum and then
Preem (well-known in Poland but non existent now), was taken over by an Arab oil
concern in 1994. In 1996 the Kuwaiti KPC (Kuwait Petroleum Company), well
known in many countries of Europe for its Q8 stations grid, bought 50% of the
refinery Milazzo. Saudi Aramco bought 50% of Motor Oil Hellas in Corinth and 600
Avin stations in Greece. The investment fund from Abu Dhabi is in OMV. Earlier in
Europe, there were Lybian Tamoil and Holborn, etc. which were bought out. A private
company Petroplus was expanding; since 1998, it had been buying refineries in
Holland, Switzerland and Wales as well as terminals and pipelines in France. In 1995,
Neste started selling its bonds. This company, one of the best in Europe, is famous for
superb quality fuels from its refineries. It is perhaps the first company in posttransformation
Poland which in 1997 started up the first plant in Europe in Porvoo
on Chevron licence of 50,000 t/y of lube oils with extra high viscosity indexes. These
lube oils are not of Group I or II but of the third Group, which is the highest for
mineral oils, comparable with synthetic poly alfa olefins oils of Group IV. And it is
this company which suddenly altered its strategy, quitting upstream on the North
Sea, and since 1998 has established Fortum conglomerate with the Finnish electric
111

An oil rig in Stryj (Poland’s
former border land), a postcard
printed in 1898
(chromolithography).
Stryj (Poland’s former border
land), a factory of drilling
machines; a postcard printed by
Karol Schwidernoch in Vienna
in 1900 (chromolitography).
power company. It is not the first case in the history of changes in the company
profile. The pride of the British crown for 70 years–ICI concern–having quit
petrochemistry and other sections of chemistry and having taken to life sciences found
itself in a lousy position. After similar change in the Hoechst company–one of the top
three chemical companies in Germany and the world–this company (now called
Aventis) is more succssful. Not only oil companies face bad fate but also the wellknown
engineering company (also in Poland) ABB (ASEA Brown Boveri), for many
years recognized as one of the best managed companies, struggles for survival.
Great manoeuvres were observed in big oil concerns in the middle of the 1990’s
and a notion of “financial engineering” was created. A report published in the USA in
1998 showed that as many as 12 out of 16 great American companies in the field of
downstream “destroyed the value.” Value creation for company shareholders is a
business canon in the Anglo-Saxon culture. It is different from previous Japanese
philosophy oriented on the unity of employees and the company, or from the European
approach which is in-between in that it takes into account social matters, especially
the local ones. The “third road,” as in Johnson & Johnson, with gradation of validity
from customer through partners and suppliers, workers, commune up to shareholders,
also does not seem to assure success in the 21 st century.
Mergers of great entities
Mergers and acquisitions, alliances, taking over–all these processes have intensified
enormously. In the period 1996-2000, the value of such transactions in the oil industry
was about 500 bln USD, which was more than in the past 95 years of the previous
century!
BP’s spectacular merger with Amoco in 1998 began apparently a new era in the
world of oil. BP survived difficult years of 1992-1995–its splendid history started
from Iran, Iraq, Kuwait through Libya, Algeria, the North Sea, the USA, Alaska,
now Russia, the Caspian Sea and China–and after that merger plus having taken over
Arco and Castrol, and recently Aral and VEBA from Germany and being very strong
there, became one of the biggest oil concerns in the world with the market capitalization
usually close to $200 bln! It is worth mentioning that it is BP which applied NIR
(Near Infrared) technology of petrol blending as the first company in the world (the
technology was also implemented in Pock) and in 1997 it joined its patent rights
with the American company Ashland (now Marathon Ashland).
The merger of Exxon and Mobil just after that (also in 1998) established a still
more powerful oil giant–concern No. 1 in the world, with its market capitalization
sometimes exceeding $300 bln! These are among the biggest successors of Standard
Oil, from another epoch. Before that, Mobil tried to merge its European assets with
BP but this adventure did not last too long. Apart from exceptional successes in its
glorious history (for example joint-venture with Shell in 1996 called Infineum), Exxon
also experienced less praiseworthy moments, e.g. when, in 1952 the authorities
conducted an investigation of IG Farben’s business relations and the division of markets
in 1924. The concern was punished for the famous catastrophe of the tanker Exxon
Valdez in Alaska. That accident even nowadays is the reason for opponents to protest
against further exploration there. In Canada, there is a strong company which is
Imperial Oil, a branch of Exxon.
Shell, one of the great three concerns, ranking alongside BP, had not made such
great acquisitions. However, since 1997 it has been present together with Texaco in
the US refineries. Now it has taken over shares of Texaco, it also took over the largest
independent British firm in the North Sea, Enterprise Oil. In Germany in 2001, it
took over the assets of RWE DEA. It is probably the most global company in the oil
sector. It is particularly strong, among others, in Nigeria through the alliance with
NNPC (Nigerian National Petroleum Company) and in Australia, thanks to its shares
in the largest independent company Woodside, let alone the USA. Shell company has
113

A stock worth 1000 Polish marks
issued by Zachodnio-Maopolska
Akcyjna Spóka Naftowa
i Gazowa in Cracow in 1923;
printed by Piller-Neumann in
Lvov (litography).
also had same shameful moments in its history, e.g. pro-Nazi sympathies of its then
President and violation of human rights in Nigeria.
The fourth power, approximately half as big as the companies of “the great
three,” is French-Belgian Total, which was the result of the merger of French Total,
CFP’s heir, with Belgian Fina in 1998, and taking over of the French Elf Aquitaine in
1999. That is the biggest company in Europe, and as far as its refinery capacities are
concerned, absolutely predominant in France. Total holds shares in the Spanish CEPSA
(Compana Espanola del Petroleo SA) which is the second in this country after Repsol.
It is also present in the Lindsay refinery in England.
The joint Chevron and Texaco Companies (2001), with comparatively
underrepresented in Europe, compete with Total and ENI for leadership. Phillips
along with Conoco are also close to this hierarchy. The merger of the Russian concerns
Yukos and Sibnieft could set up a giant with even larger resources than those of
Chevron Texaco.
In 1996, the Italian ENI entered the stock exchange. Before that, it survived the
period of marriage and divorce with Montedison after the event ful history of its
petrochemical daughter-company EniChem. Great fusions turned out unsuccessful
for this company though it has strong relationships with Russia and the Caspian
region. It purchased a lot of assets in the North Sea including a big independent
British company, Lasmo. It also entered the Portugese market merging with the power
engineering firm Gulp, which was established there as a result of restructurization in
1998, taking up, among others, the refinery company Petrogal.
Repsol completes the review of great firms; it came into being as a result of
transformation in Spain, as a predominant entity, at the end of the 1980’s. Repsol
quickly crossed country borders. In 1996, it first bought Astra in Argentina and then
in 1999 the greatest company there–YPF (Yacimientos Petroleos Fiscales). After the
economical crisis in Argentine, Repsol YPF suffered hard times but it certainly will
survive this crisis.
The Norwegian Statoil is a strong company that represents everything which, in
the last 30 years of the Norwegian oil history, was achieved. Here also is a significant
firm called Norsk Hydro, which took over a part of the assets of Saga Petroleum.
However, it is not these companies but the state molochs from OPEC countries
with gigantic resources of oil as well as underappreciated Russian oil concerns which
are the potential oil giants. In 2000, three Chinese oil firms entered the stock exchange
and immediately PetroChina, Sinopec and CNOOC (China National Offshore Oil
Company) joined the team of the greatest energy concerns of the world.
The world after a hundred years–where is it heading for?
The world has changed much during the last hundred years–the British Empire
was at the peak of its power a hundred years ago. During that time the US GNP per
capita grew 5 times, even in India it rose twice, including inflation. At that time
Germany was a threat towards Great Britain, now China with its unparalleled speed
of economic growth seems to threaten the US power. Only seemingly nothing has
changed–the 10 richest countries are still the same ones, only the USA went ahead
while Russia fell back. Oil, which these two countries have always had in abundant
resources, served them so differently! The energy sector is an avant-garde of
globalization. Globalization is an irreversible process because it reduces costs.
Meanwhile, the fall of Enron and the scandals connected with it question the confidence
towards the ethical side of the operations of great concerns, which is an indispensable
factor in the globalization process. A new paradigm of big concerns’ operation is
being discussed. Investors often see only half of companies’ value at stock exchanges
but the unmesureable elements, such as their culture of workmanship and operation,
leadership, innovativeness, quality and strategy execution are not seen. Sustainable
development is vital. The European Union wants to be the most broad-minded and
115

Polanka (Krosno)–a palace built
in 1808, a seat of general
manager of an oil company
“Maopolska” in Lvov; an
unknown author’s photography
made in 1930.
Polanka (Krosno)–a dining room
in the palace belonging
to general manager of
an oil company “Maopolska”
in Lvov; an unknown author’s
photography made in 1930.
Polanka (Krosno)–a building of
the head office of the oil
company “Maopolska–West
Branch Office;” an unknown
author’s photography
made in 1930.
liberal market in the world in order to be able to become an economic leader. Starting
from July 1, 2004, all institutional organizations and since July 1, 2007, all other
companies may enjoy an open EU energy market. It concerns gas and its enormous
resources, even without hydrates, as well as electric power. Already now, oligopolies
are being founded. The European Union is criticized for the weakness of its economic
policy. Its public debt has been growing for years and 50% of its GNP is spent on
public expenses. Its productiveness has fallen and the potential of economic growth
diminishes. In addition, there are loud calls with regard to the policy in favour of
renewable fuels against fossil ones. In 2001, the WEC (World Economic Congress) in
Davos argued that in the period 1950-1998 the world economy grew 6 times, export
of goods 19 times, and in spite of that in the world trade, which is worth 6800 bln
USD, only 1/4 of the world production was traded.
Several impressions–memento for the future
The fate of the world economy and individual countries depend on the secure
delivery of energy, especially crude oil, which was particularly clearly visible during the
so called oil shocks causing crises of the world economy. Fiscality lets states “suck”
huge money into the budget from excise duties and taxes. An oil company in today’s
market economy has to create value for stockholders, though in the past there were
several examples of ruining such a value. Production and investment plans must be
done for 10-20 years ahead in unforeseeable surroundings while investments are
expensive and any mistakes cost even more. This is why every bit of information must
be taken into account in the planning of a company’s strategy. While reading this
book, it is plainly seen that after a change of lighting technology from kerosene to an
electric bulb a possible scenario is likely to take place with conventional, fossil fuels:
hydrogen fuel cells driven vehicles are slowly going to replace fossil ones–already
nowadays there are such vehicles. Energy forecasts assume that this kind of energy
will become widely accessible after 2020. But it is easy to make a mistake–the prognosis
of the Roman Club is a good example when over a hundred famous scientists and
scholars of the world at the end of the 1960’s forecast that hydrocarbons resources
would run out soon and a complete twilight of the world oil industry would take
place. Another impression concerns biofuels. In Poland, they try to base that technology
on obsolete distilleries and the production of FAME (Fatty Acid Methyl Esters), due
to lack of capital, on small, thrifty entities. This reminds us of the aforesaid illusions
connected with the beginnings of the Polish oil industry. Again, history probably will
not teach us anything, as it used to happen, anyway.
Consolidation of companies is a characteristic phenomenon of our times. In the
oil and gas sector–which is worth repeating–the value of mergers, fusions, take overs,
canvassing, joint ventures etc. in the last 5 years of the 20 th century (1996-2000)
reached over 500 bln USD (as much as almost 3 years of the Polish GNP!) which is
more than throughout the previous 95 years! This “fashion” came from America.
Consolidated, great oil concerns, three of them with market capitalisation usually
over 200 bln USD, as well as a number of smaller companies, but with the value of
order of magnitude higher than PKN ORLEN’s 2 bln USD, as competitors have not
only theoretical superiority resulting from their financial power. Globalization is their
strategy. In the phenomenon of globalization its followers appeal to its conformity
with the man’s social nature. They present its advantages coming from the integration
of economies. Its opponents criticize the expansion of international capital and its
privileged use of fruits of the technological revolution in the world of unequal chances
and merciless competition. A powerful cartel of oil exporters grouped in OPEC which
is keeping, in the name of another ideology, the world economy in tight grip, provides
a different kind of data. Namely, within 40 years, the average GNP per capita of the
20 richest states, being 15 times higher than that of the 20 poorest states, underwent
duplication (“the rich become richer and the poor become poorer”). But according to
117

Polanka (Krosno)–employees of
the oil company
“Maopolska–West Branch
Office” in front of the head office;
an unknown author’s
photography made in 1930.
Polanka (Krosno)–a house of
office workers of the oil company
“Maopolska;” an unknown
author’s photography
made in 1930.
Polanka (Krosno)–a house
of manual workers of the oil
company “Maopolska;”
an unknown author’s
photography made in 1930.
economists, the only way to progress leads through globalization which will enfeeble
the role of national businesses; it will increase the role of international organizations
and cooperation, it will add an extra value of ethical dimension and will have to
awaken the feeling of ethics of global concerns. It is going to change the world and
create men’s new mentality. The president of the British Petroleum, Sir John Browne,
awarded with a noble title by the Queen, in one of his university lectures at Harvard
proved to the listeners the advantages of globalization, reminding them that during
the first half of the 20 th century the then 1 billion of the world divided population
could achieve only 1% growth of GNP per capita annually. During the second half of
the century, open world community of 3.5 bln or more doubled this result and increased
the world trade value by 1700%! It is probably unlikely to hold back or stop the
processes of the global integration and open cooperation. This is why we worry when
we look at the slow and still unfinished processes of the Polish oil sector transformation.
In contrast, the Hungarian oil concern MOL has been operating for over 10 years,
and has a wider base of operation with its upstream and majority of shares in the
Slovak refinery Slovnaft. In short-term, the concern’s strategy for 2005 assumes
EBIDTA profit of over 1 bln USD and an impressive coefficient of capital return
(ROACE) of 17%. Another regional player, the Austrian OMV, has recently acquired
licences for upstream (oil and gas) in Bulgaria, New Zealand, Pakistan and is arranging
the purchase of shares in two refineries in Romania. Theoreticians see in the oil industry
a so called “old economy” with declining importance and set it against quickly
developing “new tech” (telecommunication, media, IT). Oil is, however, still a basic
resource of the world energy–still 38% of the energy comes from oil, 25% from coal,
24% from natural gas and only less than 7% from hydropower and atomic power.
Thus, one cannot imagine the world without oil. The present history of oil runs fast.
It requires incessant follow-up actions and undertaking of appropriate actions for the
development and value incresing of such companies as PKN ORLEN SA. The world
of oil is somehow, and not in a small degree, shaped by politicians. Let us not get
offended–understanding of people’s needs, various dependences, tendencies, knowledge
of forecasts, applied fiscal regime, etc.–such education and training would turn out
advantageous and certainly not only for the Polish political class. History, also presented
in this short draft, quotes more than enough examples to prove this thesis. Thus, let
the Year of ukasiewicz become an opportunity to remind these old and well-known
truths; his words cited in the foreward, a kind of his testament, will then really have
a chance to come true.
We may look at the past with pride. There is documentary evidence of almost
400 Poles’ share in the development of the oil industry and spreading it to all parts of
the world. Among them there are outstanding persons, just to mention a few: Zygmunt
Bielski (1869-1944), Professor of Lvov Technical University and then the Academy of
Mining–in Iraq, the Czech Republic and Albania; Karol Bohdanowicz (1865-1947),
Professor of the Academy of Mining–in Iran, in the Ural Mountains and Siberia;
Edward Kiliski, Ph.D. (1899-1931), great grandson of John, the famous shoemaker,
who discovered the rich resources of oil in Edmonton, Canada; Pawe Potocki (?-1924)–
an outstanding expert in Baku, honoured with Lenin’s medal; five members of the
Rylski family–Baku multimillionaires till the revolution in 1917; Leon Syroczyski
(1844-1925), the January Uprising insurgent, Professor of Lvov Technical
University and its rector–active in the area beyond the Caucasus; Stanisaw Wyrobek
(1903-1979), who discovered gas and oil in the North Sea; Franciszek Zamoyski
(1877-1969), Member of Parliament, working in Caucasus region in Mexico; Witold
Zglenicki (1850-1904)–well-known in Baku; the Zuber family; Stanisaw Abamowicz
(1905-?), known in Polmin oil fields and a pilot in France and England (Wing 300),
and then a mayor in Australia; Micha Szopiak–in 1905 drilled the first oil well in
Ecuador; Hilary Ortyski (1907-1974)–in Turkey, in Algeria he found oil in Hassi
Messaoud, awarded with the the Legion of Honour; Jerzy Strzetelski (1874-1943)–
119

in Groznyi and Baku, a prisoner in 1917-1921, then in Albania, Greece, Italy, Romania,
working for Anglo-Persian successfully found oil in Iran, Iraq, Syria; Zdzisaw Tomasik
(1902-1970) a graduate from the Sorbonne, worked in Austria and Germany; Damian
Wandycz (1892-1974) a chemist and oil activist in Romania and London, since 1951
the director of the Józef Pisudski Institute in New York; Stanisaw Weigner (1886-
1935) a geologist in Colombia who worked for CFP; the Wieleyskis and many
others. They were everywhere...
BIBLIOGRAPHY
Historia, dzie dzisiejszy i perspektywy górnictwa naftowego w Polsce. 2003 Rok Ignacego ukasiewicza. Seminarium
i wystawa w Senacie RP 15 stycznia 2003, CD.
Koski Wiesaw, Pocka petrochemia 1960-1985, Mazowieckie Zakady Rafineryjne i Petrochemiczne, Pock
1986.
140 lat przemysu naftowego w Polsce – historia i perspektywy. Materiay z konferencji naukowo-technicznej,
Bóbrka, 20. 08. 1993.
Materiay z II Krajowego Zjazdu Branowego Przemysu Naftowego i Gazowniczego “ Nafta-Gaz ‘97, ”
Cracow 1997.
Nafta Gaz, 2001, vol. 12.
Naftowy Kurier Karpacki, 1993, vol. 12.
Remsberg Charles and Hal Higdon, Ideas for Rent–The UOP Story, UOP 1994.
Soaski Józef [ed.], Bóbrka – Naftowe dziedzictwo, Krosno 1996.
Wiek Nafty. Zeszyty naukowo-historyczne Muzeum Przemysu Naftowego i Gazowniczego im. Ignacego
ukasiewicza w Bóbrce, nr 1/93, 3/96, 2-4/2002.
Wolwowicz Ryszard [ed.], Historia polskiego przemysu naftowego, t. I i II, Brzozów–Cracow 1994, 1995.
Yergin Daniel, The Prize–The Epic Quest for Oil, Money & Power, Simon & Schuster, New York–London–
Toronto–Sydney–Tokyo–Singapore 1992.
Author’s own information, data and collections.
Krosno–fuel and lub oils supply
point of Polmin company during
a car rally
Warsaw-Lvov-Cracow-Warsaw;
a photo postcard by R. Kasko
from Krosno (1936).
Wisa (Cieszyn Silesia)–filling
station of “Karpaty”
company located by the health
resort house; a photo postcard
by Tadeusz Kubisz from Cieszyn
(1938).
121

IV. FROM THE MAZOVIAN REFINERY AND PETROCHEMICAL
WORKS TO POLSKI KONCERN NAFTOWY ORLEN SA
A rich though not very long history of one oil company
Certificate of location
of the Mazovian Refinery and
Petrochemical Works in Pock
(MZRiP) of February 25, 1960.
Opening ceremony of MZRiP
in 1964.
A good cause does not require many words
(old saying by an anonymous author)
Introduction
In this part of our draft of the history of the oil industry in the world and in
Poland, we have decided to present how crude oil arrived in Pock and how the work
of ukasiewicz found its crowning achievement in his motherland. The reasons already
described in the preface authorize us to special treatment of this ancestor’s history as
well as of today’s PKN ORLEN SA. The reader may find numerous mentions allowing
us to make direct comparisons of various human fates, events, acts or facts experienced
by us and others, yet, even risking repetitions here we shall write about MZRiP–
Mazowieckie Zakady Rafineryjne i Petrochemiczne in Pock, afterwards called
Petrochemia Pock SA [Petrochemical Works in Pock joint stock company] and finally
Polski Koncern Naftowy ORLEN SA. The author hopes that this short history of the
evolutionary transformations which has led to the establishment of the European
scale concern will induce readers to reflections and musing.
Reasons and beginnings, characteristic general features
The decision to construct the so called sixth refinery about 50 years ago was a
logical consequence of execution of industrialization doctrine which was promoted for
confrontational purposes against the hostile imperialism by helmsmen of the stateship in the
world conquered by confessors of new ideologies. The development of the Polish economy,
which was so much destroyed in the last war, required more and more energy and
fuels. Table 15 clearly shows, as was stressed in the proper place of part III, that in
1960 import already made up two thirds of the national demand for oil and its
products. In addition, the world had a new motor of development–petrochemistry,
which in Poland was then unknown and probably no one foresaw its unusual growth
at that time.
The choice of Pock for the location for this sixth refinery was made out of 10
sites as we wrote earlier in the book, referring to Wiesaw Koski’s monography
published by MZRiP. In the book by Mrs Alina Klocek, even fourteen localities are
mentioned, i.e. additionally Koo, Konin, Ostroka and Tczew–as well as the location
in the former German factory of synthetic petrol in Blachownia lska is discussed.
Most probably it is the scheduled route of the future oil pipeline which affected the
decision to select Pock. The study also cites the fact that the Soviet experts accepted
the location of the complex on the eastern side of the Vistula River. Apologists of
that undertaking found twelve reasons for that location. Here we can add as a
perverse thesis one more, the thirteenth reason: if Cracow got New Ironworks [Nowa
Huta], then Pock should also have its “cathedral of socialism,” with a strong centre
of the working-class. Social changes were the essential element of the internal policy,
anyway. In the previous parts of the book, formal decisions, dates of important
events as well as their heroes were mentioned. In this part of the book, we will not
come back to dates, names or numbers but instead we are going to focus on the
general presentation of rules and mechanisms as well as their reasons which have
led to the present state.
The construction of the refinery, ten years after the Cracow New Ironworks, of
equally great scope, meant much more advanced professionalism. Even today, after
four decades, among people accustomed to uninterrupted presence of building sites
at the Pock complex (maybe except nearly ten years in the 1980’s), that pioneer time
123

Central Workshops will soon
be built here.
Cracking I Unit.
of building arouses admiration and acknowledgement. Great challenges required
great men’s contribution. Especially Antoni Rogucki is a figure–symbol of those
unnamed heroes–a builder, the manager of Petrobudowa, who was responsible and
had the honour to found a production complex without precedence in the history of
our country.
Even today, the technological and engineering solutions introduced at that time
in Poland (reforming, cracking, coking) arouse respect. Though coking did not turn
out a success, it was not the originators’ fault, the real cause being imperfect technology.
The common use of coking in the USA, the USRR and Romania took and takes place
and the recent start up of such a unit at the main MOL refinery in Szazhalombatta
also proves that it was the right decision with regard to Pock. Special homage should
be paid to the chief project engineers’ accomplishments, to Mr Kazimierz Kachlik
(already mentioned as a veteran) and Ludwik Kossowicz, Ph.D., as people responsible
for the investment decisions in Pock.
The method of the Pock complex construction consisted in multiplication of
units, in adding next repeatable modules, which in consequence periodically caused
the presence of six (with some omissions) CDUs, reforming of naphtha,
hydrodesulphurisation of gas oils (HON), whereas two parallel units, as a rule being
of various generations, are found quite often. For example, Fluidal Catalytic Cracking,
FCC I, as well as the more modern FCC II, differed in the output efficiency of white
products, 72.5 and 87.5% respectively, including petrols 23.3 and 50.3%. Both plants
underwent several revamping operations which resulted in significant improvements.
The layout of production facilities, which were constructed as independent entities,
with their own control rooms, tanks and various auxiliary systems, was far from the
later concepts, especially with regard to energy consumption reduction during
operation. But from a safety point of view, losses were minimalized in case of failures.
It fully met the military requirements of assets security which is even nowadays
supported by insurance companies. This reasonable type of architecture of the refinery
and petrochemical complex, along with its self-sufficiency in supply in utilities, plus
the services needed for the complex, in consequence led to unusually complicated
industrial organism. Hence the task to optimise the operation of the complex became
extremely difficult which was experienced by KBC’s specialists, who have achieved a
rather moderate result. Another challenge was to obtain a low rate of employment, is
essential nowadays, as well as competitively low production costs which are possible
to attain, among others, thanks to outsourcing.
Appropriate certificates of location, establishment of the enterprise MZRiP under
construction and approval of the General Preliminary Engineering document by the
KERM resolution 419/60, were simultaneously followed by the passing of resolution
420/60 about the development of the Pock city infrastructure.
And thus, here, by the Vistula river, a well-known scenario of formation of a
large municipal agglomeration was repeated. The town-creating role of industry has
always interested demographers of the past epoch and eulogists of its glory. Pock
industrialization increased the number of town-dwellers in the period 1960-1970
from 42,798 to 72,336, i.e. by 69% which is the largest increase, if we consider the
list of 79 largest towns and cities in Poland. MZRiP’s construction was accompanied
with advantages as well as tensions caused by the insufficient meeting of people’s
needs. Animated liveliness of the city, numerous foreign visits, wide contacts with the
western world and modern technology were not to be ignored. On the other hand,
the complaints about the environmental pollution, or hidden tragedies caused by
health reasons, alerted the authorities and inhabitants.
The growth of demand for oil and its products was huge in the world and in
Poland, the economy was unsaturated, and this brought about the continuous
necessity of its development–it was always cheaper to invest here than expose a
poor country to bigger expenses in other virgin areas, which we call grass roots. It did
125

Phenol and Acetone Plants.
CDU I, 1965.
Head office is being erected.
not matter that under such policy–as the Anglo-Saxons say–“all eggs are in one
basket.” Let me repeat here the comparison of the oil consumption growth rate in
1948 and 1972–in Poland it grew 50 times and in Japan even more, 137 times! The
1970’s were to be a golden age for refineries but if they really were, they lasted very
briefly. The famous “programme of preference of the chemical industry in the national
economy,” i.e. assuming a serious growth of production of olefins, aromatics, ethylene
oxide, glycols, butadiene, plastics, synthetic fibres, rubber as well as other chemical
products for agriculture, food industry, building industry, health system and other
needs, finally was not executed. The world events and the political requirements
concerning the shortcomings of the economy which was resistant to central planners’
commands quickly ordered the authorities to introduce an “economic manoeuvre,”
coupons system for basic life products and, finally, the nightmare of martial law.
Thus, it practically led to the bankruptcy of “the great ideas of socialism.” However,
a few relicts of the said programme have survived–Olefins II as well as ethylene
oxide and glycol II plants. Thus the Polish People’s Republic, in short, contributed
to the first thirty years of the history of the Pock Complex. But these are only
general features. Life, in comparison to such a briefly presented description, was
much richer in events though it really accelerated in the III Polish Republic.
Feed stocks, products and engineering processes
in the Pock Complex
Petroleum from Russia has been flowing incessantly for almost forty years to
the Pock industrial complex. During this time, over twenty oil brands of various
origin have been processed, and their share has reached about 15% of the whole
volume of processed feed stock. It is just this oil, despite its recently less profitable
price difference towards other oils, which is still the most convenient feed stock.
The Complex adjusted itself to such sour oil which, in fact, is the most commonly
produced in the world. Russia with its growing oil export, the attitude towards
OPEC, most recent appeals to OPEC countries to increase production in order to
reduce excessive prices as well as the key oil export route, despite some new trails–
still seem to induce confidence. There are a few companies which deliver oil to
Poland. The most recent long-term contracts, as we read in annual reports, have
been with two companies: J&S and the Russian Yukos, each 40% of our demand.
The energy security of our country is fortunately assured by connection to the PERN
pipeline grid leading to Naftoport-Gdansk oil docks and ORLEN’s holding of
48.72% of its shares. Naftoport is capable of the freight-handling of 23 million tons
of oil annually. It is quite astonishing and worth recalling that in the context of the
energy consumption by the then economy, the peak oil processing in our Industrial
complex history was in 1978, with almost 12.9 million tons of crude oil! Recent
years of completely different times of automobilism development in the Polish society,
let us reach the result close to that from 25 years ago–12.5 million tons in 2000 with
the highest share of sweet crude. Afterwards, its percentage dropped to 10.5% in
2001 and 3% in 2002. Another fact worth noting is 75 years of presence of CDU
technology which is described in Chapter II, with the largest in Poland CDU III unit.
Also, here the last oil distillation unit in Poland, CDU VI, was built. In the meantime,
the desolate CDU I and V were shut down. Other CDUs were expanded or revamped
in the 1990s everybody being aware of their key importance for the Company’s results.
At present, the total oil processing capacity of all CDUs is 17.8 million tons per year.
Natural gas, as a rule being present in activities of oil companies, became a feed
stock when the production of hydrogen was started up–its consumption is more or
less the same as the whole pre-war annual, national production. Will natural gas be
also widely used in the Polish (Pock) power industry?
Motor fuels have always been and still are products of basic importance for an
oil company. Today the market, i.e. motorized customers decide about it. The
127

Aromatics Extraction Plant.
Reforming I Plant in 1963.
statistics quoted earlier in Chapter II and III certainly shows a huge increase trend
in the automobilism development worldwide, which is also visible in Poland today.
In comparison with 1937, there are over three hundred times more cars per one
thousand persons and thus presents at least 70 years distance. The Polish
consumption of petrol is much lower in comparison with already quoted Hitler’s
Germany during the war and its twice higher abilities in production of synthetic
petrol than the present production of the Pock complex. Obviously, fuels have
undergone changes. The career of lead tetraethyl is over–in Poland it lasted for 65
years. The end of the 20 th century brought the end of the production of leaded
petrol. The technology of petrol production is complete and does not differ from
the world standards. The automatic, computer-based system of blending, based on
a very modern NIR (Near Infrared) spectroscopy and built in recent years, blends
petrols from high octane reformate, cracked gasoline, alkylate, isomerisate, ether
and a packet of additives as the basic streams in accordance with detailed recipes.
The new act on biofuels was to force producers to add not only ether ethyl-tertbuthyl
(ETBE) (since 2001 it has been produced in Pock from agricultural, subsided
ethanol and isobuthylene cut) but also ethyl alcohol, which strongly complicates
logistic operations on the main bulk of petrols (petrols with alcohol cannot be
transported by means of far-reaching pipelines or be kept as strategic and military
reserves). Pock gas oils with sulphur content below 50 ppm (since 2000) meet the
severest world specifications of EU directives to be observed, in fact, from 2005. It
can be achieved, thanks to hydrodesulphurisation units. Three such units were
revamped and replenished with HON V and HON VI installations. An additional
hydrocracking unit, recently significantly expanded, produces a perfect quality
summer gas oil, whereas HON VI improves the properties of winter gas oils. Packets
of additives are obviously obligatory. Therefore, it is no wonder that the true
revolution in the quality of motor fuels, brought to Poland in the last ten years
when we, without any delay, followed Europe, results in numerous prizes and
distinctions, presented earlier in this book. It is worth stressing the pertinence and
skills of taking proper decisions. Here again our complex writes its name in the
economies of Europe with their decreasing demand for petrol and growing demand
for gas oils. This is particularly visible in the increasing demand for Diesel engine
passenger cars and in the forecasts relating to the sale of more than half a general
quantity of such cars, recognized in the EU as a method to reduce the consumption
of fuel and emission of greenhouse gases from the transport sector, which is the
major consumer of liquid fuels. Here again it is worth citing the act on biofuels
recommending the addition of rapeseed oil methyl ester (FAME), the production
of which is in fact starting. PKN ORLEN in its Capital Group is initiating the
construction of two such projects. Here a by-product, glycerol, will be produced,
which, as has already been mentioned, was to be synthetically manufactured in
Pock according to the original plans for MZRiP. History sometimes goes strange
ways–it is difficult to be a prophet in one’s own country. In order to achieve the
new quality of fuels, following EU directive 2003/17/EC, PKN ORLEN SA has
already started the construction of a cracked gasoline desulphurisation unit. The
erection of HON VII unit for production of practically sulphur-free fuels has already
been launched. In order to observe the requirements of EU Directive 2003/30/EC
on biofuels, any investments in, for example, ethers, will depend only on
attractiveness and profitability as well as on assuring the stability of fiscal solutions
and assistance (excise duty reduction and/or total exemption).
Two different phenomena, unknown for the economy of the Polish People’s
Republic, appeared in the III Polish Republic. The unusual popularity of LPG is one
of them, especially for passenger car engines. Fiscal solutions created this economic
situation; an interesting fact, though, is that similarly lower rates of excise duty
introduced in the EU countries did not cause such a boom for this kind of fuel. This
129

Catalytic Cracking I Plant
(1962-1963).
Engineers at work.
proves that our impoverished society must bear the excessive burden of excise duty
on fuel prices (in EU these duties are even higher, and Directive 2003/96/EC defines
higher minimum rates of excise tax for their harmonisation). On this particular market,
ORLEN is a powerful player.
Light heating oil experiences even more unusual career, nowadays being a very
common fuel for heating our houses, housing estates, greenhouses, etc. In the 1970s,
we could read only in the professional press about domestic oil used in the USA and
we might be surprised with oil waste, having abundant quantities of coal in Poland.
Now Ekoterm Plus from Pock meets all requirements of the EU. It contains the
necessary packet of additives. On the other hand, it is not a mystery that unfortunately
this fuel is often used as propellent by those who avoid fiscal restrictions.
The vacuum residue, in the part which provides fuel proper for heating and
providing electric power for the complex by its own heat and power station, undergoes
desulphurisation and partial conversion to the product which can be further processed
in the catalytic cracking unit, mainly oriented towards petrol. Heavy fuel oil, which
in the future–under the EU directives–may contain a maximum 1% sulphur or which
may be sold only to recipients possessing desulphurisation units for flue gases meeting
standards of sulphur dioxide emission (also defined in the appropriate EU directive),
is going to become a problem in the future when the level of oil processing exceeds
today’s level.
Lubricating oils and bitumens are important products of refineries, increasing
their added value. The 1990’s brought revamping of Lube Oil units, construction of
a completely new dewaxing unit by means of mixture of methylethylketone and
toluene solvents. The old unit called Acetobenzen (its name coming from the mixture
solvent components: acetone, benzene and toluene), with its faulty filters and a series
of unsuccessful experiments with a prototype of COBR filter in Cracow, could be
totally shut down after 25 years of operation. That vicious circle of impotence was
broken with the brave decicion in those difficult times. Petrochemia Pock SA moved
further on and established a company for production and distribution of lube oils
called Petro-Oil (today ORLEN-Oil). A similar solution was implemented with
bitumens–the modern unit called Biturox was erected on Poerner’s licence and a
company ORLEN Asfalt has recently been founded. Again, the Pock complex produces
over 0.5 million tons of bitumens per year and the new company plans to reach the
output of 750,000 tons. Thus the refinery oil processing, which e.g. in 2002 gave
52% of income, produced 64% of the whole profit.
The use of oil to produce definite chemical products through petrochemical
processes, contrary to refinery processes (the manufacture of energy products, lube
oils and bitumens), is thought to be a more effective utilization of crude oil giving
products which are more deeply processed. Sometimes the idea of petrochemistry is
wrongly referred to, for example, the Gdansk Refinery, or other companies dealing
with the exclusively refinery processing of oil, which is done in all Polish refineries
except the Pock one.
Petrochemical processing of feedstocks coming from oil practically goes only in
two directions: towards olefins and aromatics. Further on the road towards more
usable end products, there are plenty of combinations leading to a large variety of
goods. Thus it is not especially surprising that the decisions of the Chemical Industry
Minister dated 1965, assumed the production of, among others, detergents and
it is as late as in 1971 that, for the first time, we heard the enigmatic expression
“petrochemical production.” At that time, Olefins I Plant was already in operation
and Aromatics Extraction Unit was being built. However, like almost ten years before
in Owicim Plant, the butadiene plant was the key notion for authorities, so important
for the rubber and tyre industry and so indispensable to the army. But in Pock, the
first petrochemical products which appeared in 1968 were cumene and later phenol
plus acetone. Strictly speaking, only a smaller part of the mentioned products originated
131

Catalytic Cracking I Plant
(1962-1963).
Pyrolysis and Separation
of Pyrolitic Gases Plant
(Olefins I).
Chamber coking unit in 1965.
from propylene separated from FCC I stream, whereas benzene, needed for this process
in considerable “majority,” approximately 70 to 30, was purchased from the
carbochemistry–coke oven benzol processing, coming from coal. But really the
Aromatics Extraction Unit (soon to be revamped) made phenol and acetone truly
petrochemical products. Then, in the course of deeper processing of these precursors,
also some other Polish chemical companies produced nylon (Stilon) fibres and other
products (from phenol), like bakelite as well as the organic glass, well-known as
Plexiglas (from acetone).
One could “smell” the great petrochemistry when Olefins II Plant was started
up in 1980. So far it has been the largest event of Polish petrochemistry and probably
of the whole Polish chemistry. The chemical industry in the EU countries is the second
industry with regard to income volume. In Germany and the USA, it is the leader of
export which is basically important for the modernity of products manufactured by
other industries. A successful start-up of the Plant, already mentioned in Chapter III,
was conducted by the company’s later president, Konrad Jaskóa. Ethylene from Pock
flows via a pipeline to Anwil Wocawek. In 2002, that chemical company, from
ethylene and chlorine coming from salt which is mined by IKS Solino (Inowrocaw
Salt-Mines), reached a record production of polyvinyl chloride, PVC (one of the most
well-known plastics), of 23,8440 tons. Another product from Olefins Plant and FCC
II, propylene, is the basic feedstock for the export hit of Nitrogen Works in Kdzierzyn–
Oxo alcohols. The end of only 15 years’ period of petrochemistry development in
Pock, and obviously in Poland, took place in 1983, along with the construction of
Ethylene Oxide and Glycol II Plants. Olefins II Plant was expanded in 1990 by
20%–from 300,000 to 360,000 tons/y of ethylene–which let the small and desolete
Olefin I Unit be shut off, without a damage to the general balance. At present, Olefins
II Plant is being significantly revamped at a cost of 250 mln euros to 700,000 tons/y
of ethylene and this makes up a prelude of unusual, historical development of
petrochemistry in Poland–in times when this mature industry practically does not
develop in Europe.
And thus we have come to the biggest petrochemical endeavour in this part of
Europe. On March 1, 2003, PKN ORLEN SA concluded a joint venture contract
(50:50) with Basell Europe Holdings B.V., the leader of polyolefins production in
Europe and the second largest company in the world, established from petrochemical
assets of BASF and Shell. The contract assumes the construction of two world-scale
plants: one producing 320,000 tons/y of HDPE polyethylene and the other producing
400,000 tons of polypropylene. The cost of an investment at 300 mln euros. The
expected IRR is to bring 18%. This gigantic undertaking, a visible symbol of
globalization in our country, can be viewed as an enormous success of the Board of
Directors. It is an impressive progress if we compare the levels of plastics consumption
per capita in Poland, similar to Brasil, and equal to 1.5 kg in 1968. Nowadays, 35
years later, for the first time in Pock, the annual border line of 300,000 tons of
polyolefins was exceeded (157,700 tons of polyethylene and 142,800 tons of
polypropylene in 2002). The petrochemical complex produces, therefore, almost 8
kilograms of plastics per capita in Pock and, along with Anwil Plant in which ORLEN
has 76% of the shares, it makes 13 kilograms. This huge joint-venture investment
increases that volume by 18 kilograms per person. Decades of civilization negligences
are being made up, although slowly. However, these comparisons show the power of
the progress.
The statistics of plastics production in Pock clearly shows its stepwise growth–
from 30,000 tons/y of polyethylene from the first unit and the later added another
unit of 100,000 t/y; for polypropylene, that growth began from 30,000 t/y from
the first unit, another similar unit added, up to today’s state after expansion by
about 150%. This expansion was not simple–the new extrusion line from the
beginning of the 1990’s, as well as formerly bought coloration unit, were not
133

Reforming I Plant being built.
We have processed 100 million tons
of crude oil...
successful. The substitute production of compounded polymers also did not bring
amazing results. The production of bi-axially oriented polypropylene film was the
beginning of a difficult road which was finished with founding of a joint venture with
Flexpol Company. At present, PKN ORLEN SA is considering the sale of its minority
shares in that company. Film is an interesting subject for considerations concerning
the barriers of entry and survival in a business without tradition and markets.
Technical gases, oxygen and nitrogen, as well as heat sold to the city in the form
of hot water, complete the palette of products. Periodically, an excess of electrical
power was also sold to the national power grid.
The Company’s management has always chosen modern and up-to-date
technological solutions and processes for its units and plants. For example, the UOP’s
processes are very common here: reforming, cracking, hydrocracking, alkylation,
isomerisation and hydrogen recovery. Also, the Italian oil concern ENI and its sister
companies played an important role in the building of the Polish refinery industry.
That cooperation started with the construction of combined Reforming I, Ethylene
Oxide and Glycol units. These business contacts were successfully continued during
execution of the big development programme from the end of the 1990’s. Several
investments were executed in cooperation with German contractors, e.g., Extraction
of Aromatics Arosolvan, p-xylene manufacture processes, Olefins I or Reforming V
designed and delivered by Mannesmann in the beginning of the 1990’s. The contract
on Reforming V was concluded in the conditions of high risk for the German company,
in light of existing payments holdups in our economy and the lack of any rating
defining our creditworthiness. Credit taken from KfW Bank, which was also active in
the reconstruction and rebuilding of GDR, turned out to be superb help on the part
of our powerful western neighbour. French IFP, today Axens, is well-known in Pock
for its Vacuum Residue Hydrodesulphurisation and Hydrogenation of Steam Cracked
Gasoline units. There were also American companies, like ABB Lummus Global
(Olefins II), the Japanese companies (Toyo, Mitsui, Nippon Zeon) as well as some
Soviet ones. There were also such giants as Shell (Ethylene Oxide II) and small ones
from countries of the former Comecon. There were also Polish designs and processes,
such as the very successful projects from the 1990’s: MTBE, HON V or expansion of
polypropylene plant.
It is worth reminding that the exceptional pattern of the Pock refinery was
already visible in the 1970’s. It did not follow patterns of the Soviet or European
refineries with their simple processing and the largest yield of fuel oil but it followed
the American refineries with processes of conversion as well as units increasing their
added value.
The climate of innovativeness in the Pock complex and its openness to the world
were exceptional, if we consider the reality of the Polish People’s Republic. As a result
of courageous investment programmes, worth over 2 billion USD, this Cinderella has
been transformed into an attractive smart unmarried woman as if touched by a fairy’s
wand.
The period of transformation has radically changed the company
In the communist economy, till 1989, law forbade individual companies to make
investment decisions–this was reserved only for central, ministerial planners. Now the
situation has changed dramatically. Among the principal legal acts which are in force in
the III Polish Republic with regard to companies, is the act on privatization of public
enterprises and the Commercial Code, Energy Law relating to companies of our industry,
Articles of Corporation, required licences, an act on obligatory reserves, acts on quality
of products and services, on protection of environment, on technical supervision, and
antimonopolistic acts as well as acts and directives of the European Union.
The transformation period, although peaceful, was not free of pressing upon
personal changes. It is easy to understand–it was in fact a bloodless revolution and
135

.
A labyrinth of stairs, ladders
and platforms marks the route
for employees.
A picteresque element of the
unit.
This plant hides thousands of
points and sites in which
technological processes
can be controlled and monitored
by the staff often without leaving
the control room.
Industrial landscape and
the setting sun.
normally such revolutions bring various executive staff sweepings. However, during
such events the people’s justice is even blinder. The dispute about the contract on
Reforming V crossed the limits of common sense, whereas that relating to
polypropylene extrusion was a bit more moderated.
Finding itself in the new economic surroundings after 1989, our concern at first
faced severe competition. Big oil concerns as well as small companies appeared on the
Polish market. Agents, such as oil purchasing Ciech and fuels selling CPN, were
slowly deprived of their monopolistic role and their margins of profit bacame attractive
for taking over by MZRiP. The company was forced to independent functioning on
the market. Its marketing department had to be set up and developed. The free
market economy had its price: the first MZRiP filling station in Pock, with
environmently friendly solutions of vapours recovery while unloading and tanking of
fuels, did not turn out a successful experience as well as some businesses with insolvent
customers. For a long time, the justice administration has had much work with these
matters, however, without the acknowledgement of MZRiP workers’ guilt.
Our concern began to purchase oil independently at the beginning of the 1990’s.
A short-term credit from a foreign bank, one of the newcomers to Poland, was taken
to execute that first independent deal. Slowly, payments congestions stopped being a
nightmare.
Building of our concern’s presence on the market consisted in offering of new,
high quality fuels, winning partners for establishment of franchised grid of petrol
stations, building of LPG filling plants, fuels wholesalers, wholesalers of plastics,
starting up of our own fuel filling terminal with modern environment friendly system
of fuels vapours recovery, with bottom filling of trucks in sealed closed loop, purchasing
of our own tank trucks and providing services by means of them. In the course of the
growth of the company’s market position (since July 1, 1993, it was called Petrochemia
Pock SA, a company fully owned by the State Treasury) Regional Market Operators
and Regional Trade Offices were established. At the end of 1998, Petrochemia operated
a grid of 500 filling stations including 87 of its own. Moreover, there were 8 LPG
companies of Petrogaz and 10 gas filling plants which sold about two thirds LPG
produced by Petrochemia. In 1998, the sale structure looked peculiar: 23.4% was
sold through its own grid, 20% through the agency of CPN, 5.9% by means of the
Southern refineries, 9.4% was bought by great companies and the remaining 41.3%
was bought by other customers. It was clearly visible that Petrochemia Pock SA
achieved success in the execution of pro-market strategy and, finally, it won the
competition with CPN’s monopoly–in the liberalized and free, after deregulation,
fuel market existing in Poland since 1997!
Petrochemia Pock paid much attention to quality policy. It was granted ISO
9002 certificate as one of the first ones in its trade. It was the proof of carefulness
about its processes and products quality, arousing customers’ trust. This helped
establish a strong market position on the national territory where the Company was
a leader, also with regard to its revenues.
Modernization or expansion of the concern was taking place in all spheres.
Petrochemia Pock revamped and rehabilitated production facilities (catalytic cracking)
or plants producing utilities. Traditional control system was replaced with DCS
computerized control system delivered by the best suppliers of such equipment and
advanced measuring techniques were introduced. Computerization entered offices.
The company bought, trained and started up the system SAP R/3 of management,
book-keeping with numerous modules for cost control and materials handling. Trading
departments got access to Reuter’s links and cooperating banks. The executive and
managerial personnel attended many trainings and got specialized knowledge. In
1994, over 2700 employees participated in professional trainings. Public relations
acquired special meaning, just like advertising and sponsoring: granting of money
for the second bridge in Pock, charitable actions, donations for housing and culture,
137

Nature does not shun big
industry.
including a spectacular gesture of donation of the king Stanisaw August’s portrait
from Bacciarelli’s study to Warsaw azienki, where it had its place about 200 years
ago. Moreover, Petrochemia finacially supported the local medical facilities, schools,
Technician’s House, public library, cultural organizations, sports and some important
events.
Employees were and are upgrading their qualifications. In 1998, about 10% of
the staff had higher education and 43% had secondary technical education. It meant
that the educated employees made up the majority of the total number of the staff.
The act on restructuring of enterprises of 1990, intended to increase their value
before privatization, necessitated a special programme in the company. This programme
assumed appointment of business entities as profit centres; algo a meticulous costanalysis
and controlling system was introduced. In the beginning, daughter-companies
were set apart: Designing Office, Transportation Company, Social Services and others.
Our concern began to execute capital investments and establish the Capital Group
with its pearls: Naftoport, Anwil, IKS Solino, Polkomtel, Petrotel and in Germany–
Chemiepetrol. The Fire Brigade and Chemical Rescue Services remained in concern’s
structures but the Security Guard Service was outsourced in the form of Petro-Ochrona.
Additionally, several LLCs (limited liability companies) were seperated from the
maintenance departments of the concern. These included maintenance companies for
the repair and overhauling, of mechanical, instrument and electrical engineering
services.
The protection of the environment became an absolute priority. Already in the
beginning of the transformation process, about 40% of the investment budget was
spent on that objective. That effort resulted in granting ISO 14001–the certificate of
meeting international standards. Our concern also joined a programme called Responsible
Care, which a group of Canadian enterprises proposed in 1984 with regard to chemical
industry companies. The programme consisted in the monitoring of emissions through
automatic stations as well as manual measurements, audits and it became an everyday
routine. Our concern developed and implemented the policy of environmental
protection; with regard to technical development, concern applied and applies the
principles of sustainable development. For example, in our heat and power generation
plant and CDUs furnaces, we have applied low NO x
emission burners with reduced
emission of nitrogen oxides. In order to reduce water consumption, we introduced
the system of recycling of treated industrial sewage, which was acknowledged and
awarded with a golden medal at the Innovative Fairs in Brussels in 1997. In order
to meet requirements set by the authorities, the company worked out and
implemented the so called Ecology Improvement Programme. The same year, the
environmental protection expenditures even reached 80% of the whole investment
budget. Annual environmental reports are published and then analysed and discussed
by the experts’ team.
In 1997, at the conference “Oil and Gas” in Cracow, the president of Petrochemia
Pock SA was honoured with the ukasiewicz Medal–an unusually prestigous award
in Poland in the oil industry. Of course, all Petrochemia’s employees of all professions
of every work station contributed to this act of distinction.
Polish Oil Company ORLEN, joint stock company
The oil sector has waited a long time for discussions over a programme of its
transformation to get materialized into concrete decisions about its development. It
had lasted since the first years of the system transformation. Many foreign advisory
and consultancy firms participated in this process but without constructive
conclusions. In the meantime, the Hungarian MOL was building its power, the Czech
refineries were sold to a consortium of strong western oil firms, the refinery in Lithuania
was sold to the Americans, the Schwedt refinery in the former GDR was privatized
and a new refinery in Mider Leuna in Germany near our border was started up. Also,
139

.
A clouded sky and sharp
contours of distillation towers.
Autumn landscape.
on the internal market, the competition in fuels distribution was already strong and
the competition in the refinery field was approaching our borders. CPN practically
lost the market of fuels distribution to Petrochemia Pock. Further argument would
not have served anyone. Nafta Polska [Polish Oil] quite unconcernedly watched
those proceedings of the eradicative competition, whereas oil got cheaper, mergers
of great concerns were intensified and it was already high time that ultimate decisions
were made. The lonely lobbing of this provincial company, after all, did not promise
well...
The Polish Oil Company (PKN), a joint stock company, came into being through
incorporation of CPN to Petrochemia Pock on September 7, 1999. On the occasion
of that incorporation, CPN was divided in such a way that its best storage tank farms
were separated into independent enterprises called Naftobazy and the railway tankers
and their transport company, Dyrekcja Eksploatacji Cystern [Management of Tankers
Operation] (DEC), were quickly enough sold to an American company. Thus, PKN
was effectively deprived of its important logistic back-up facilities, including pipelines
of oil and fuels which were fully controlled by the state, and the principle of third
party access was in force, as well as the majority of the domestic storage capacities. The
services of those companies, however, are not cheap in this aspect. As a result, the
concern was immediately forced to build its own big storage tank farm, its pipeline
and its own storage volumes in salt caverns. It was compelled to disperse its efforts, to
prioritize its objectives adjusted to its limited financial resources and to slow down its
expansion. Meanwhile, the Hungarian MOL could be an operator of its oil pipeline.
PKN made its debut at the stock exchange with 30% of its 420,177,137 stocks
on October 21, 1999. A number of stocks in the form of GDR also entered the
London stock exchange.
Being no longer a local firm but a concern of nationwide range, it faced the
integration of its structures, especially the commercial ones. The new strategy assumed
as its important task the creation of a new image of the company. And this meant a
new name and logo. On April 3, 2000, Shareholders’ General Assembly voten on the
proposed name “ORLEN,” logo and colours. Since that time, it has been operating as
PKN ORLEN SA.
The new company continues the restructuring and growth of the Capital Group.
The Group brings together the Trzebinia refinery, a refinery in Jedlicze, increased
shares in Anwil Wocawek–generally the whole Group consists of over a hundred
business entities, including 24 limited liability companies which had been seperated
out from the concern. In 2000, already 72% of PKN ORLEN’s shares were on the
stock exchange. The company belongs to the biggest and its shares enjoy high liquidity.
Still, there are 12 regional trade offices. Out of 152 storage tank farms, 110 were
destined for liquidation or resale. The management made a decision to build a storage
tank base in Ostrów Wielkopolski and pipeline from Pock to that city as well as to
build storing caverns in saline diapirs near Inowrocaw. A loyalty system in the form
of fleet cards was implemented as well as the rebranding of CPN’s and Petrochemia’s
filling stations to strive for the unification of their image. In 1999, 15% of ORLEN’s
staff already had higher education and together with the secondary education staff it
made up 60,5%. 9500 employees underwent all kinds of training and coaching. A
year later, in 2000, already 23% of ORLEN’s personnel had higher education in
comparison to 10% just 5 years before! These are significant changes, which perhaps
in the least degree affected the production sphere.
The annual report for 2001, shows that the year of the September 11, the year of
recession and high oil prices was also the year of the sale fall and worsening financial
and economical results. An important index of the return of the average capital
employed–ROACE–fell from a quite good level of 11% to 4.6%; net profit from 944
mln PLN in 1999 and 902 mln in 2000 fell to 367 mln PLN. KBC–a renowned
company seeking savings in the production costs–reached a result of 0.40 USD/bbl
141

This is not a fire–this flare is
a symptom of a safety operation
of the plant.
Slender towers aiming at the sky.
These tanks contain millions
of fuels litres–will rape seed
biofuels replace fossil fuels?
and it expects to reach 0.10-0.15 USD/bbl more from the implementation of the
suggested improvements. Revamping of Olefins II Plant was started, IKS Solino was
to attain 1.75 million m. 3 of storing capacity for oil and fuels, ultimately–5 million
cubic metres; the Jedlicze refinery started the plant for processing 80,000 t/y of spent
lube oils, the tank farm in Ostrów Wielkopolski expects 55 thousand cubic metres of
capacity and now plans to finally achieve 175,000; moreover a pipeline of 214 km. is
being laid.
The present condition of ORLEN, which is a live, active organism, is fully reflected
in the concern’s annual report for 2002 as well as in the data waiting for their
publication after the end of 2003. PKN ORLEN SA entered the family of recognized
international companies for good when in the first quarter of 2002 it got BBB rate by
the Fitch agency, the best rating of all Polish companies. Its creditworthiness was
estimated high, which increased confidence in the financial circles towards this concern.
That fact of acknowledgement was also confirmed by the Foundation of Accountancy
Development that ORLEN’s annual report for 2000 was the best in Poland. PKN
ORLEN is still the largest company in Poland.
The year 2002 brought the change of the centre of gravity from the production
activity into a trading one–this is what is written in ORLEN’s strategy. And although
it is logical and obvious in the free market economy, it is worth noticing perversely
that it is a kind of rehabilitation of the “swallowed” CPN. This somehow humorous
statement should be completed with the information that there were no disputes or
animosities among employees coming from various sectors of departments of the
merged concern. The cultural differences, which are so common in case of mergers
and full integration, luckily were not an obstacle in the new company in the process
of its employees’ identification with the concern and its objectives and mission.
PKN ORLEN’s operating in a difficult competetive environment of strong market
players, under high oil prices, slowdown of the economic growth rate of powerful
economies of the USA, Japan, Germany as well as in the slump on the Polish market,
has to seek savings and methods to reduce costs. The programme of cost cutting which
was often repeated in various options in many companies worldwide and which became
a standard for executives’ actions forced by the shareholders to achieve better results
and to increase the company’s value, had also to be implemented in PKN, together
with introducing rational management of material and human resources as a priority.
Contracts with consulting companies, e.g. with KBC, were aimed at finding savings
in production, or, with Shell Global–at Company’s operations and planning of overhaul
shut-downs. Revenues in 2002 were lower than in the previous period and according
to the international financial standards IFRS, reached only 16.9 billion PLN (Polish
Zoty) and a net profit of 421 million PLN. The company’s assets were growing, its debt
fell to 2.3 billion PLN. But although the financial leverage (debt related to equity; the
latter one grew to 8 bln PLN) reached 28%, a safe level, an important factor ROACE
was unsatisfactorily low–only 5%. It should be stressed here that in times of very
high unemployment rate in Poland the employment in our Capital Group went up to
17800 people. Revenue and profit in ORLEN’s particular segments of activity were
as follows: the refinery brought 6262 million PLN of revenues and 793 million PLN of
profit, petrochemistry–4166 million and 200 million PLN, the remaining activities:
1639 million and 45 million PLN. Therefore, from the refinery’s income of 52% the
profit made up 64%, which clearly confirms priorities. But if we consider the assets of
particular sectors and attained profits, then the refinery operations achieved an index
of about 1.6, whereas the petrochemical ones have an index 2 and the remaining
operations did not bring even 1. This simple test shows the importance of petrochemistry
in the company and relatively low profitability of other operations. This affects decisions
which assets should be kept and taken care of as our core business and which assets
should be got rid of (divestment). Two specialist companies help improve the ROACE
index, which rose a little bit from the level of 4% in 2001 and now is a bit better.
143

A night view of the Production
Complex.
Here you control and monitor
the operation of the equipment
and systems by means
of computers.
The Mazovian weeping willows.
In the sphere of production, various aspects like the EU requirements, especially
with regard to the quality of products and ecology (but also conditions of
competitiveness), excise duties, liberalization of the energy market, energy security,
etc.–all these factors extort the necessary investments in order to stay in business,
which is usually estimated as lower than the costs of quitting the business. Investments
in the production sector in 2002 reached 1/4 of the total of 888 million PLN.
Investment expenditures in production, 240 million PLN, in 2003 were to reach 650
million, revamping of Olefins II and Aromatics Extraction plants is being executed.
A great event for the refinery and the sector was the start-up of CDU III, which was
revamped from 3.2 million t/y to 6.7 million–the largest plant in Poland and Central
Europe. This plant is to help PKN to secure feedstock for the growing demands of
the emerging big petrochemistry. Meanwile, the record of white products yield was
in 2001 and reached 79.72%, bordering on the magic 80%, which was possible to
achieve thanks to the costly technologies of oil conversion; generally, that oil yields
only half of those products. That exceptionally high complexity of oil processing is
reflected in the increasing of the added value because these “white products” are
solely demanded by the market.
Today’s market is much different than several decades ago in the Polish People’s
Republic, which was presented in Tables presenting Poland’s demand or export of
petrochemicals to gain hard currency. Petrochemistry in that Poland, when its system
was popping off, did not have chances to develop. At that time, nobody followed
professor Taniewski’s advice when he stressed the role of petrochemistry. Now, thanks
to the revamping of Olefins II and the construction of Polyolefins Poland, LLC, a joint
venture of PKN with Basell, is to become a chance and a test of the truth for
globalisation in the country with the civilization gap.
ORLEN wins new customers, despite the Polish anachronistic custom of
overestimation of services of foreign filling stations, which in majority sell fuels produced
just in Pock and not necessarily gloryfing a client. The programme of fleet cards
includes over 1000 companies, the programme Vitay for individual customers–over 2
million! Soon this programme is to reach about 70% of the sales at ORLEN’s own
stations for over 3.5 million clients with Vitay cards.
In 2002, PKN possessed 1321 CODO (Company Owned Dealer Operated)
filling stations and 631 DODOs (Dealer Owned Dealer Operated). At the end of the
year, it expects to operate 1313 stations, including 845 with ORLEN’s logo and 620
franchised ones. Up to 2005, PKN plans to reduce its total number of stations to
1100. This downward trend, also observed in reduction of storage tank farms from
30 to 20, in the light of CPN’s inherited dowry, shows insufficient value of this property
which does not meet contemporary standards. On the other hand, the purchase of
494 ARAL (now BP) stations in northern Germany for the price of 140 million euros
and of total annual sale of 2.8 million litres, i.e. about 50% more than all our stations
in Poland, is an undoubtful success. ORLEN’s grid of filling stations in Germany
with its 3% of the market share (as to the number of stations) is the sixth in size in
that country but, taking into account their location mainly in the lands of northern
Germany, that share sometimes is equal to 7%. ORLEN, being an outpost of the
Polish presence in the European Union, fights for its (and not only) good reputation
on that difficult, extremely competitive and mature market with a long tradition of
high quality products and services. It is a huge challenge which was undertaken to
build equal chances for the next generations of Poles.
Long-distance pipelines from Pock pump 55% of its products, our fuels reach
country regions which are exposed to the nearness of foreign competition. PKN
ORLEN, just as other oil entities in our country, is obliged to keep strategic and
commercial reserves of fuels and oil. At the end of 2002, those reserves reached over
1 million tons (431,000 tons of oil products and 583,000 of petroleum), including
198,000 tons of crude oil and 86,000 tons of fuels in the IKS Solino caverns.
145

These pipes and apparatuses
house complicated chemical
and physical processes.
Polish red poppies and big
chemical processes.
PKN ORLEN SA Capital Group amounts to 116 companies. This economic
national giant transfers to the state budget make up about 10% of the total Polish
budget! In 2003, two new entities were established in the Group: ORLEN Laboratory
in January and ORLEN Asfalt in April. The fate of companies in this Group is not
equally gracious for all–for example in 2002 the Jedlicze refinery made a net loss of
almost 31 million PLN. Anwil Wocawek is looking for its chance in the development
of petrochemistry, planning to construct a PET (widely needed plastics) Plant of
120,000 t/y with a Korean partner, but probably without cooperation with Pock
with regard to feedstocks. Polkomtel, as a company with our shares which is destined
to be sold, has better profits than ORLEN from GSM cellular telephony, unsually
lucrative in Poland, and increases its potential value.
In August 2002, the Warsaw stock exchange valued only 15.3 PLN for a share–
a historical minimum. However, it is also important that out of 420 million stocks as
many as 320 million changed hands. High liquidity brings expected income, especially
for that institution, which is a barometer of the state of the national economy; the
stock exchange cannot return to its splendid rate of growth from the beginnings of its
existence.
The environmental protection is still the highest priority–in 2002 PKN was
awarded a diploma for the Responsible Care initiative. Another prestigeous contest
prolonged ORLEN’s right to use the slogan “environment friendly company.” The
Ecology Improvement Programme is nearly over.
Our country’s joining the European Union required the establishment of an
office dealing with EU affairs. ORLEN has wide contacts with such European
organizations as EUROPIA–grouping refinery companies, CEFIC–association of
chemical industry, EFOA–association of oxygen compounds producers (mainly ethers)
blended with petrol, or EHRN–the European Human Resources Network–an
organization dealing with social aspects of companies’ operation. The membership in
the European Union is a serious challenge relating to the high-quality of fuels and
larger competition on the market, also due to a considerable decrease of fuel
consumption in passenger cars by about 25%–to 5.8 litres per 100 kilometres in
models planned for 2006. Other possible implications consist in the increase of required
obligatory reserves for 120 days, the obligation to increase excise duty, for example to
minimum 302 euros per 1000 litres of gas oil, bearing the costs of growing emissions
of refineries greenhouse gases (these emissions are to be available on the market as
any other commodity to be purchased at companies with unused limits of such
emissions). Obviously, the list of such challenges, which are also threats as well as
chances, may become much longer, also as a result of full liberalization of the energy
market, which is to take place in the EU in the middle of 2007, after a partial
liberalization already in the middle of 2004.
Company as a complicated organism
It is a cliche that large enterprises employ many people of various specialities,
which sometimes may seem strange for a layman. Though it is probably difficult to
present some revealing ideas here–still, to convince readers who do not deal with
company’s organization or management, you may find here some issues which are
as essential for a company’s proper operation success as finances and sale or
production.
PKN ORLEN SA, which operates in the territory of the whole country,
attentively observes local, regional, national and international events and processes
which in turn affect oil prices and, in consequence, the price of fuels. And it is a
global market in which competitive companies will immediately take advantage of
increasing import to Poland. It all means that the company is a very complex
mechanism in which employees and their efficient workmanship are the most
important asset. The transformation of Petrochemia Pock, in fact more local than
147

Unusual view of the refinery
plant in the night scenery.
Piping and towers dominate
in the landscape of the modern
refinery.
national company, into PKN ORLEN SA required building of new organizational
structures being able to undertake proper decisions to execute them effectively.
The helmsmen of this Concern, i.e. the Board of Directors, in order to operate
effectively needed to separate four large fields for the sake of supervision and audits.
These are human resources and systems of management, finances, sale and, finally,
production and development–all coordinated by the president of the board. The
Suprvisory Board plays the role contained in its name and Shareholders’ General
Assembly plays the role of the sovereign. The court register entry and the Articles
of Corporation define the area and the range of company’s activities. The Company
holds stock and reserve capital and has to generate profits. The production complex
in Pock, its real estates in Poland and its Capital Group make up the essential
material assets constituting the value of the company and being, in theory, essential
for its pricing at the stock exchange. However, in practice the reliable and true
value of a company, i.e. its market capitalisation being the product of the number
and value of its stocks and established by the market just at the stock exchange,
fluctuates due to various reasons. And this is what happens with all stock exchange
companies, even the largest oil concerns. For example, ExxonMobil quotations fell
from 302 billion USD to 260 bln; similarly, BP and Shell from over 220 billion went
down to about 180 billion dollars. When investors no longer have trust in a company,
the pricing of that company falls. The opposite happend with PKN ORLEN SA–its
market capitalisation of 2 billion USD in the autumn 2003 significantly went up to
about 2.7 billion dollars. Transparency of operations and finances as well as care
about impeccable and attractive image played a vital role here. Therefore, the
communication with investors as well as with society, mainly through media, is
especially crucial and a balanced tone of information as well as reliable informing is
absolutely a must.
PKN ORLEN SA gets its revenues mainly through the sale of its products while
other goods and services usually make up just a bit more than 3% of its income. In
consequence, an adequate strategy of the company is constructed, obviously taking
into account lots and lots of factors. All of these factors are presented in an annual
report, and let me summarize them in short as follows. The establishment of a regional
concern in Central Europe, managed by ORLEN, is a strategic objective for the next
3 years. Further privatization of the company will be helpful in achieving this aim.
The highest standards of operations and workmanship and the concern’s development
are to serve stockholders and clients. The expansion on the market, the rehabilitation
of the stations grid, reduction of costs in all spheres of activity as well as
restructurization–these are all helpful means to achieve that objective.
Banks play a key role in running business; contracts PKN has accounts in over
thirty different banks and has in cooperation with many of them. It gave up, however,
the bank activity, selling its shares in LG Petro Bank which was established by CPN
with a Korean partner.
Our concern regulates its business relations with surroundings through
agreements. It has concluded contracts on oil deliveries, with the Polish Oil Mining
and Gas (PGNiG) on deliveries of gas, contracts on execution of particular investment
projects, purchase and sale agreements, contracts of insurance and many others.
ORLEN was granted a concession, required by the Energy Law, for the business and
a permit to use the natural environment. We possess numerous patents, licences and
trademarks protecting our intangible assets. Another vital aspect is R&D works,
ordered and performed, which are so important for our modernity, competitiveness,
results and image. ORLEN does not limit itself only to the pure function of generating
profit. Our concern sponsors many organizations and events, conducts charitable
activities, helps various funds and foundations, supports sciences, education, culture
and amicably cooperates with local communities in their needs because it feels morally
obliged to do so. It is worth stressing that PKN ORLEN SA sponsored the publication
149

A panoramy of Pock Refinery.
of a reprint of Professor Stanisaw Pilat’s book from which we dared to take a quotation
in the present album. The Year of ukasiewicz, being the inspiration to write and
publish the present work, was commemorated, among others, by the organization of
an all-Polish conference in Pock and the laying of a wreath of flowers by the statue of
the person who started the whole oil history. We want to remember our tradition, our
roots and to build our future on it.
BIBLIOGRAPHY
Klocek Alina, Pocka Rafineria i Petrochemia w latach 1959-2000. Monografia [tapescript in possession of
the Author].
PKN ORLEN SA’s Annual Reports, 2000, 2001 and 2002.
151

V. TABLES
Year USA Russia Dutch India Romania Burma Poland
1875 8 788 697 – 108 – 158
1880 26 286 3 001 – 115 – 229
1885 21 859 13 925 – 193 – 465
1890 45 824 28 691 – 383 118 659
1895 52 892 46 140 1 216 576 372 1 453
1900 63 621 75 780 2 253 1 629 1 079 2 347
Table 1.
Production of crude oil in 19 th
century (thousands of barrels).
Year 1905 1906 1907 1908 1909 1910 1911 1912
Oil production 801 760 1176 1754 2077 1762 1455 1167
Oil processing in Austria 663 831 977 1266 1628 1439 1556 1755
Including Galicia 223 214 282 154 570 712 733 907
% of the total 33.7 25.8 28.8 30.6 35.1 49.7 46.8 51.5
Locality Total Numer Average
production of wells depth
in tank cars in m.
Borysaw-Tustanowice 2 001 600 980 1 225
Mranica 145 900 120 1 070
Schodnica 190 000 500 500
Bóbrka-Równe-Rogi-Wietrzno 65 000 159 600
Potok 58 000 174 700
Bitków 56 000 130 900
Wakowa 46 000 150 500
Urycz 40 000 180 350
Soboda Rungurska 33 500 300 250
Wglówka 23 200 200 300
Harklowa 16 500 210 300
Krocienko Wyne-Nine 14 700 100 450
Ropienka 14 000 70 300
Rypne-Duba 13 300 80 600
Humniska 7 300 35 400
Zmiennica-Turze Pole 7 000 30 450
Tarnawa Dolna 6 700 18 750
Zagórz 6 600 19 700
Grabownica Starzeska 6 500 25 450
Pasieczna 6 000 170 300
Strzelbice 5 600 40 250
Kosmacz 2 300 9 600
Table 2.
Oil production and processing
(thousands of tons) before WWI
in Galicia and Austria.
Table 3.
Production of oil by particular oil
fields in Poland in 1874-1928;
1 tank car=10 tons.
Total 2 765 700 3 699 675 Table 4.
Number of oil fields in operation,
number of employees, production
of oil years 1913-1938.
Year 1913 1923 1926 1928 1929 1932 1933 1934 1935 1936 1937 1938
Oil fields in operation 444 474 546 642 655 723 – 785 – 835 812 854
Workers (in thousands) 8.6 14.0 9.4 11.4 11.0 8.6 – 8.9 – 9.6 10.3 10.7
Production (in thousands tons) 1114 737 796 743 675 557 – 529 – 511 501 507
Drohobycz 1004 649 679 624 556 421 – 399 – 350 337 325
Jaso 67 56 70 76 74 96 – 95 – 108 118 136
Stanisawów 43 32 47 43 45 40 – 35 – 53 46 46
World (in mln tons) 54 – – 184 – 181 197 208 226 246 279 –
152

Table 5.
Production of crude oil
in Borysaw oil field,
in 1936 and 1937.
Company Oil production Numer of
in 1936, tons wells in 1937
Maopolska 125 620 168
Galicja 25 850 31
Limanowa 27 460 40
Standard Nobel (Vacuum Oil) 13 460 16
Polmin-Pollon 680 2
Pionier 1 150 1
Gazolina 220 8
227 other small firms 76 920 493
Total 271 360 759
Table 6.
Some other data on oil production
in the first half of 20 th c., mln tons.
Year 1913 1928 1936 1937
World Production 53.7 183.8 246.5 278.6
USA 34.0 123.6 148.9 173.0
Russia (and USSR) 9.2 12.3 27.4 27.8
Venezuela – 15.3 22.9 27.8
Iran 0.2 5.8 8.3 10.4
Dutch India 1.5 4.3 6.4 7.3
Romania 1.8 4.3 8.7 7.1
Mexico 3.8 7.6 6.1 6.9
Iraq – 0.1 4.0 4.3
British India 1.1 1.2 1.3 1.4
Poland 1.1 0.7 0.5 0.5
Germany 0.1 0.1 0.4 0.5
Table 7.
Output of Polish refineries
between the wars (1918-1939)
(thousands of tons).
Year 1928 1929 1932 1933 1934 1935 1936 1937 1938
Refineries 26 30 29 35 29 26 25 27 27
Their products 664 595 502 521 485 469 450 456 481
Light naphta plants 19 20 24 26 26 26 25 28 28
Light naphta 32 35 39 42 41 40 38 39 41
Table 8.
Production, consumption
and export of oil products between
the wars (1918-1939), tons.
Year Production National Consumption National Consumption (%) Export (t)
1925 659 100 258 350 39.20 400 750
1926 734 710 288 700 39.30 446 000
1927 619 200 350 000 53.91 299 200
1928 700 800 374 600 53.45 320 200
1929 633 400 398 000 62.81 235 400
1930 617 800 392 100 63.47 255 700
1931 600 700 344 800 57.40 255 900
1932 538 100 304 500 56.40 233 600
Table 9.
Export of petrol, light naphtha
and paraffins (thousands of tons).
Year 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938
Petrol+light naphtha 37.8 33.7 62.3 57.0 50.1 55.6 41.5 49.4 – 4.7
Paraffins 28.0 23.7 21.9 20.0 22.2 18.5 19.2 11.0 17.5 12.3
153

Product Production Import Export
Petrol and light naphta 127 534 18.0 47 478
Kerosene 156 592 0.8 26 939
Table 10.
Average production, export and
import of petrol, light naphtha and
kerosene in 1933-1937 (tons).
Year 1920 1938 1946 1950 1955 1960 1962 1963
Rafinerie 37 27 7 5 5 5 5 5
Oil processing 669 502 118 271 686 876 1293 1442
Products 608 481 108 254 656 848 1247 1415
Petrol 77 141 34 49 64 119 244 301
Kerosene 179 141 17 35 86 111 28 21
Diesel oil 215 66 26 54 260 207 352 705
Oils and greases 90 51 24 65 144 163 183 194
Paraffins 21 23 2 6 7 8 10 8
Asphalt – 29 8 51 101 119 146 186
Employment 5800 3250 2277 2859 3368 3350 3771 4004
Table 11.
Oil processing in Polish refineries
(thousands of tons).
Employment Total Office workers Manual Apprentices
Oil fields
1945 5280 393 4766 119
1946 6556 523 5907 126
1947 6791 575 6104 112
Earth gas
1945 246 74 174 8
1946 611 84 520 7
1947 535 87 441 7
Oil refinerie
1945 2405 171 2211 23
1946 2248 248 1952 48
1947 2470 226 2189 55
Total
1945 7941 540 7151 150
1946 9415 855 8379 181
1947 9796 888 8734 174
Table 12.
Level of employment in oil
companies in 1945-1947.
Employment Total Oil fields Refineries
1947 9.3 6.8 2.5
1970 13.2 3.5 9.7
1978 19.0 4.7 14.3
1980 19.4 4.5 14.9
1981 19.8 4.7 15.1
1982 19.9 5.1 14.8
1983 19.4 5.1 14.3
154
Table 13.
Average employment at oil fields
and oil industry in 1947-1983
(thousands of people).

Year 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959
Import
Oil 116.2 91.5 193.7 224.8 239.4 412.4 463.2 544.9 536.9 630.2 599.8 692.5
Import
Products 268.0 245.4 278.8 529.8 604.8 538.4 723.5 885.7 951.9 1156.5 1273.8 1497.4
Export
Diesel and heating oil 7.1 24.4 50.3 58.8 125.4 111.1 47.1 138.3 177.7
Export
Asphalt 19.1 20.9 28.3 25.9 25.6 24.7 4.0 – 5.4
Table 14.
Import of oil to Poland and export
of fuels after WWII.
Table 15.
Import share in the Polish volume
of fuels till 1970’s (%).
Year 1955 1960 1965 1970
National production 46 34 69 78
Import 54 66 31 22
Table 16.
Motorization development in
Poland 1973-1986.
Year 1973 1978 1983 1986
Mopeds 1 143 490 1 322 569
Motocycles 1 086 293 1 086 119 1 096 018
Passenger cars 696 218 1 689 597 2 974 297 3 615 336
Lorries 37 178 105 304 205 053 325 159
Farm tractors 90 483 212 014 495 567 620 000
Table 17.
Consumption of oil products
1979-1986 (thousands of tons).
.
Year 1979 1980 1983 1984 1985 1986
Oil products total 14 969 15 037 12 297 12 155 12 492 12 558
Petrol 3 309 3 308 3 092 2 838 2 781 2 918
Disel oil 5733 5664 5260 5508 5669 5741
Heating oil 4 207 4 054 2 729 2 600 2 790 2 617
Year 1950 1955 1960 1965 1970 1975 1980 1985
From Eastern Europe 151.5 524.8 713.9 3 215.6 7 010.7 10 882.0 13 100.0 12 725.0
From other countries 42.2 20.1 – – – 1 963.0 3 500.0 987.0
Total 193.7 544.9 713.9 3 215.6 7 010.7 12 845.0 16 600.0 13 712.0
Table 18.
Crude oil import (thousands of
tons) in the Polish People’s
Republic (PPR).
Table 19.
Import and export of oil products
in PPR (thousands of tons).
Year 1960 1965 1970 1975 1980 1985
Total import 1789.0 2248.0 2336.0 2351.0 3326.0 2625.0
From Eastern Europe 1786.0 2230.0 2170.0 1516.0 3212.0 2423.0
From other countries 3.0 18.0 166.0 835.0 114.0 202.0
Total export 223.0 1028.9 1315.9 – 1488.0 392.0
To Eastern Europe 17.7 34.8 104.7 – 14.0 13.0
To other countries 205.3 994.1 1211.2 – 1474.0 379.0
155

Year 1960 1965 1970 1975 1976 1980
Heating oil 43.2 642.8 726.3 1185.0 1674.6
To Eastern Europe 7.2 8.4 57.3 12.7 4.9
To western countries 36.0 634.4 669.0 1172.3 1669.7
Diesel oil 152.4 346.0 539.5 350.9 – 715.0
To Eastern Europe 4.9 4.2 9.8 13.4 – 10.0
To western countries 147.5 341.8 520.7 337.5 – 705.0
Table 20.
Export of oils from Poland
1960-1980 (thousands of tons).
Year 1971 1972 1975 1976 1977 1978 1979
Export of petrol 86.6 104.6 14.8 74.0 279.0 422.1 208.3
To Eastern Europe 6.0 – – – – – –
To western countries 80.6 104.6 14.8 74.0 279.0 422.1 208.3
Table 21.
Export of patrol from Poland in
1970’s (thousands of tons).
Table 22.
Oil processing and Import of
productsPPR (thousands of tons).
Year 1945 1950 1955 1960 1963 1965 1967 1970 1975 1978 1979 1980 1981 1982 1983 1984 1985 1986
Oil processing 90 253 656 876 1 442 1 516 4 097 7 470 13 515 16 970 16 617 16 126 13 585 13 382 13 634 13 629 14 046 14 278
Import of products 31 410 886 1 790 2 634 2 248 2 784 2 424 3 418 3 418 3 891 4 407 3 929 3 131 3 411 3 299 3 476 –
Year 1950 1960 1970 1974 1975
Plastics 1.5 7.0 30.2 44.6 38.5
Synthetic fibres 0.1 0.7 5.1 7.5 7.5
Synthetic Caoutchouc 0.7 2.0 5.9 7.7 7.4
Detergents 0.1 3.5 9.0 11.0 10.8
Total 3.0 13.2 50.2 70.8 64.2
Table 23.
World production of synthetic
goods (mln tons).
Year 1965 1970 1976 Comment
Ethylene 8 000 16 500 26 000 USA, West. Europe, Japan; others from 500 to 2700
Propylene 4 400 9 530 13 700 from 200 to 1600
Butadiene 1 900 3 130 4 890 300 1 400 -
Benzene 4 780 8 820 13 300 250 2 800 -
P-Xsylen 3 100 300 -
Table 24.
Production of main
petrochemicals (thousands of tons).
Year 1960 1965 1970 1974
USA 50 39 30 32
Western Europe 32 39 41 43
Eastern Europe 9 10 10 10
Japan 9 11 16 14
Others – 1 3 1
Table 25.
The share in world production (%).
Year 1995 1996 1997 1998 1999 2000
Oil 180.5 169.3 181.3 187.3 185.6 343.0
156
Table 26
Production of crude oil in Poland in
1990’s (thousands of tons).

Year 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Oil 242 284 292 317 289 357 425 653 759 730
Table 27.
27. Other data on
Other data on crude oil production
crude in Poland oil from production 1993 in
Poland to 2002 (thousands from 1993 of tons).
2002
(th. t.)
Table 28.
Import of crude oil to Poland
from 1994 to 2002 (mln tons).
Year 1994 1995 1996 1997 1998 1999 2000 2001 2002
Oil 13.2 13.6 14.4 14.7 15.4 15.9 18.0 17.5 17.0
Table 29.
Average annual price of oil on the
world markets (USD/ bll).
Year 1997 1998 1999 2000 2001 2002
Price 19.4 13.3 18.0 28.5 22.5 25.0
Table 30.
Production of petrol and diesel oil
from 1994 to 2002 (thousands of
tons).
Year 1994 1995 1996 1997 1998 1999 2000 2001 2002
Petrol 2941 3037 2984 3195 3360 4093 4435 4281 4030
Diesel oil 5087 5183 5277 5287 6031 6041 5531 5197 4400
Year 1994 1995 1996 1997 1998 1999 2000 2001 2002
Sale of petrols 3948 4195 4321 4886 5034 5773 5260 5031 4700
Sale of diesel oil 5614 5754 6413 6409 6554 6493 5766 5497 4800
Total 9 562 9 949 10 734 11 295 11 588 12 266 11 026 10 528 9 500
Import of petrols 1007 1158 1337 1691 1674 1680 825 750 800
Import of diesel oil 527 571 1136 1122 523 452 235 300 350
Table 31.
Sale and import of fuels (thousands
of tons).
Table 32.
Export of oil products in the first
3 quarters of 2002 (thousands of
tons).
Export PKN ORLEN Gdask Southern Total
Refinery
Refinery
Petrol 95.1 174.5 – 269.6
Diesel oil 120.8 141.1 – 261.9
Light heating oil – – – –
Jet fuel 13.2 192.4 – 205.6
Heavy heating oil 364.6 350.5 64.3 779.4
Heavy heating oil 593.7 858.5 64.3 1516.5

THE SPONSORS
Orlen Automatyka Sp. z o.o.
09-411 Płock ul. Chemików 7
tel. 0-24 365 33 50
Petro Eltech Sp. z o.o.
09-411 Płock ul. Chemików 7
tel. 0-24 365 83 00
Petro Mechanika Sp. z o.o.
09-411 Płock ul. Chemików 7
tel. 0-24 365 42 88
Petro Remont Sp. z o.o.
09-411 Płock ul. Chemików 7
tel. 0-24 365 51 88
Orlen Wir
Zakład Remontów Sprężarek i Turbin Sp. z o.o.
09-411 Płock ul. Chemików 7
tel. 0-24 365 26 77
Petro EnergoRem Sp. z o.o.
09-411 Płock ul. Chemików 7
tel. 0-24 365 88 94
Orlen Projekt SA
09-411 Płock ul. Chemików 7a
tel. 0-24 365 36 18

TABLE OF CONTENTS
PREFACE ....................................................................................................................................................................... 7
I. TIMES OF OIL INDUSTRY PIONEERS
Crude oil has been well-known since the oldest times ....................................................................................................... 7
“Father” Ignacy ukasiewicz (1822-1882) ...................................................................................................................... 11
The beginnings of oil industrial utilization in Galicia ...................................................................................................... 23
Other claimants to the victor’s palm............................................................................................................................... 25
Great works of Galicia pioneers ...................................................................................................................................... 25
The nineteenth century–world career of oil ..................................................................................................................... 39
Oil becomes indispensable... beginning of the 20 century ............................................................................................... 41
Oil and its role in World War I ....................................................................................................................................... 43
II. THE TWENTIES, THE THIRTIES...
The Second Polish Republic ............................................................................................................................................ 45
World’s vivid development after the horrors of World War I ........................................................................................... 53
New discoveries of big oil ............................................................................................................................................... 55
A lot of new technologies–for World War II? ................................................................................................................. 57
III. THE WORLD AFTER WORLD WAR II
After WW II rapid development again........................................................................................................................... 63
Poland after WW II ....................................................................................................................................................... 63
The world and its new technologies ................................................................................................................................ 67
World’s years of anxiety.................................................................................................................................................. 67
And in Poland... ............................................................................................................................................................. 69
New wave of innovations in the world ............................................................................................................................ 71
Cheap oil........................................................................................................................................................................ 73
The world growth of the petrochemical industry ............................................................................................................ 77
Polish beginnings of the petrochemical industry ............................................................................................................. 77
... and the golden age of refinery ..................................................................................................................................... 79
“Oil Shocks”–oil weapon of oil producers ....................................................................................................................... 79
Poland at that time ... ..................................................................................................................................................... 81
The world after crisis ... oil concerns ............................................................................................................................... 83
...petrol stations ............................................................................................................................................................. 85
...refineries ..................................................................................................................................................................... 85
...ecology becomes priority ............................................................................................................................................. 87
Levelling of the development chances? ........................................................................................................................... 87
Is there a good energy policy? ........................................................................................................................................ 89
Regulated market .......................................................................................................................................................... 91
Twenty years earlier... than today–and afterwards .......................................................................................................... 93
The last decade and... .................................................................................................................................................... 93
...time for changes in Russia ........................................................................................................................................... 95
...and oil is still a strategic commodity ........................................................................................................................... 95
New quality of fuels and other environmental challenges ................................................................................................ 99
Contemporary times–the Third Republic of Poland ...................................................................................................... 101
The most recent years ... ............................................................................................................................................... 107
...in Central Europe...................................................................................................................................................... 109
...and the rest of Europe ............................................................................................................................................... 111
Mergers of great entities ............................................................................................................................................... 113
The world after a hundred years–where is it heading for? ............................................................................................. 115
Several impressions–memento for the future ................................................................................................................. 117
BIBLIOGRAPHY ........................................................................................................................................................ 121
IV. FROM THE MAZOVIAN REFINERY AND PETROCHEMICAL WORKS
TO POLSKI KONCERN NAFTOWY ORLEN SA
A rich though not very long history of one oil company ................................................................................................ 123
Introduction................................................................................................................................................................. 123
Reasons and beginnings, characteristic general features................................................................................................. 123
Feed stocks, products and engineering processes in the Pock Complex ......................................................................... 127
The period of transformation has radically changed the company.................................................................................. 135
Polish Oil Company ORLEN, joint stock company ....................................................................................................... 139
Company as a complicated organism ............................................................................................................................ 147
BIBLIOGRAPHY ........................................................................................................................................................ 151
V. TABLES ....................................................................................................................................................................... 152