The refinery was established several years before the City of Richmond was incorporated in 1905. Construction on the refinery began in 1901 between the Potrero Hills and the marshlands in the Point Richmond District; the refinery was opened in 1902. The refinery was built by Standard Oil and its first headquarters was in an abandoned farm house at the former site of the Peters and Silva Farms. The complex was described as "colossal" at the time and to this day it remains a very large complex in its kind.

In its first year of operation the plant could process 10,000 barrels (1,600 m3) of oil per day and had a tankage capacity of 185,000 barrels (29,400 m3) in that same first year. William Rheem played a key role in the facility's construction and implementation, being the project manager and the installation's first superintendent. Furthermore, Rheem continued on to be a key and historic civic figure in the City of Richmond. The presence of the burgeoning refinery transformed the small town of Richmond from a rural agricultural community with 200 residents to a company town of several thousand within a few years

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