It's highly unlikely Pencoil had anything to do with Pennzoil. Pencoil was the trademark of Pennsylvania Petroleum Company of Kansas City, MO. The Pencoil brand name dates to around 1926 and was still in use at least until 1935.
The Pennzoil Company was from Oil City,PA and was primarily a lubricants refiner and marketer prior to getting into the retail gasoline business when they opened their first gas station in 1921.
South Penn, which had been part of the Standard Oil Trust bought controlling interest in The Pennzoil Company in 1925. The gas stations were renamed Pennzip in 36 but were still part of the The Pennzoil Company.
Pennsylvania grade crude was thought to be the highest quality crude so several companies capitalized by using "Penn" in their name, or products name.
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Today's Featured Article - Earthmaster Project Progress Just a little update on my Earthmaster......it's back from the dead! I pulled the head, and soaked the stuck valves with mystery oil overnight, re-installed the head, and bingo, the compression returned. But alas, my carb foiled me again, it would fire a second then flood out. After numerous dead ends for a replacement carb, I went to work fixing mine.I soldered new floats on the float arm, they came from an old motorcycle carb, replaced the packing on the throttle shaft with o-rings, cut new ga
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