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Charles "Mac" McPherson had lofty goals when he left a career as a lubrication engineer at Shell Oil Co. in 1971 to form his own independent distribution company making deliveries for the big oil companies.
Forty years later, McPherson has surpassed even his own expectations.
His McPherson Oil Products now has 300 employees and a fleet of trucks that transport 12 million gallons of gasoline and diesel fuel each month to gas stations across the Southeast, as well as 1 million gallons of oils and other lubricants.
In an interview, McPherson talked about how has grown his company from humble beginnings in which he averaged 70,000 gallons of fuel and gasoline deliveries a month and sold one drum of oil a month. McPherson also addressed what he says is a myth -- the belief among many that independent gasoline station owners and distributors are raking in big bucks with pump prices nearing $4 a gallon.
"It is the big oil companies making record profits now. We make less money the higher fuel prices get," McPherson said.
Q. What are your thoughts about the recent fall in the price of crude oil, which surpassed $110 a few weeks ago but has recently been trading below $100 a barrel?
The fluctuation in crude is attributed to four things -- supply and demand, commodities traders, greed and devaluation of the U.S. dollar.
I personally feel there is no shortage of oil, but commodities traders have been taking advantage of the situation and driving up the price. Though prices have fallen recently, I'm concerned about what might happen if the Mississippi River floods refineries in Louisiana.
If water gets in the refineries, they could be shut down up to 10 weeks.
We have stored here at our property a half million gallons, so we have plenty to supply our customers. During Katrina, we stored 1.5 million gallons just in case there was a need.
After the tornadoes, we had an emergency team in place to help. We supplied tank trucks in Pleasant Grove, Tuscaloosa and have been supplying fuel for removal companies across Jefferson County.
Q. A lot of people have been upset as before the recent fall there were expectations that regular gasoline may surpass the record of $4.05 a gallon set in metro Birmingham in 2008. Many folks believe gas station owners and distributors are making record profit.
Higher prices do not mean larger profits for distributors and dealers. The higher fuel goes, the less fuel the consumer purchases and that hurts us and the dealers.
Most fuel businesses are off 30 to 40 percent because of the down economy. We are one of the biggest suppliers of lubricants in the Southeast and our business is lubrication business is off 40 percent.
I think it'll take three years to get back to where we used to be.
It's the big oil companies making most of the money. Exxon Mobil just reported profits of $11 billion in the first quarter. The federal government gives the big oil producers $4 billion in tax incentives a year.
Q. What led you to leave Shell Oil to start your own company?
When I was in Texas with Shell, I set up distributions out there and realized a need for more middle men to work with big oil companies. Those oil companies are so big and powerful they needed middlemen like myself.
I felt I could do a good job, and it would be a way to make a nice living. I started out with just me and one truck, and in our first year we delivered 70,000 gallons of fuel a month.
Now we deliver 12 million gallons of fuel and 1 million gallons of lubricants a month to large and small gas stations. We do business with Shell, BP, Exxon and Castrol. We are a distributor of gasoline, diesel, and lubricants for convenience stores, industrial and commercial plants including paper mills, as well as truck fleets.
We are probably the largest lubricant distributor in the Southeast and are No. 1 with BP/Castrol in the U.S. and in the top three with Exxon in the U.S. We have facilities in Trussville, Decatur, Montgomery, Atlanta, Panama City, near Mobile, Chattanooga and Jackson, Miss.
Q. I understand McPherson Oil has a division that recycles used oil. Tell me about that.
That's something I'm real proud of. We take used oil, remove the water and hydrocarbons, test it in our facility here and then recycle and resell it. We recycle about 1 million gallons of used oil a month.
If we didn't, that oil would end up in landfills and possibly in creeks. Plants, if they didn't use us, may put it out on the street or dump it. I see refinement of used oil as an important part of recycling in the future.
There is nothing wrong with used oil. After we clean it up and recycle it, the oil is as good as new.
Q. What advice can you offer other business owners on how to build success?
You have to be committed from the top. You need the support of your family and friends, and you need a strategy to plan for the future.
If I die tomorrow, this company will be in good hands. I want to leave a legacy that can keep providing jobs for our employees and providing a good service for many years to come.
Q. How do you relax away from the office?
I'm the best bleacher sitter in America. I love to follow my grandchildren to recitals and other events.
I love to fly fish.
