Early in 1907 J. M. Guffey Petroleum Co. following planned expansion of their pipeline system from Oklahoma to Port Arthur, decided to add a large tanker of approximately 10,000 deadweight to its existing fleet of older vessels, enlarging their oil carrying capabilities.

[6][7] After delivery to her owners the tanker loaded a full cargo of petroleum consigned to the Anglo-American Oil Company and departed Philadelphia for United Kingdom on 7 May 1908.

After reaching and unloading her cargo at Belfast on May 21 and Dublin on May 23, the ship sailed back to Philadelphia arriving there on June 8, thus successfully completing her maiden voyage.

[8][9][10] On her second trip to England in June 1908 the tanker grounded on the upper end of Tinicum Island while travelling down Schuylkill River with a cargo of 2,400,000 gallons of oil, but was able to refloat herself on the rising tide and proceed to her destination.

On 4 January 1911 while attempting to dock in Port Arthur the tanker rammed and cut in half the barge Saratoga belonging to the Texas Company also causing minor damage to the wharf totaling in excess of US$10,000.

At around 07:30 on January 4, as captain Gunther was giving the ship's position to the wireless operator (believed to be approximately 39°30′N 74°0′W / 39.500°N 74.000°W / 39.500; -74.000), a huge wave swept over the side of the vessel breaking her in two with the stern being swung around and laying alongside the bow.

British steamer SS Tenadores also arrived at the scene as Bavaria was finishing up the rescue operation and stood by until all survivors were safely on board the German vessel.

[19] In response to a radiogram sent by the steamer Manuel Calvo in the late afternoon of January 4, the US Coast Guard cutter Seneca was dispatched from Newport to help the sinking vessel.

In the afternoon of January 6 Seneca located the upside-down floating fore section wreck of Oklahoma about 12 nautical miles (22 km) southeast from the Fenwick Island Lightship.

In the morning of January 7 it was decided not to use mines and instead the cutter fired sixteen shots from her rapid-fire six-pounder guns causing the wreck to rapidly sink in approximately 18 fathoms (108 ft; 33 m) of water.

[20][21] Subsequent investigation into the wrecking of Oklahoma established that her loss was unavoidable when her bow and stern were both buoyed up by high seas causing the ship to break in two.