Crude Petroleum Pipelines

Crude Petroleum Pipelines

Brief Excerpt from Industry Overview Chapter:

Companies in this industry transport crude oil via pipelines. Major US companies include Energy Transfer Partners, Genesis Energy, and Plains All American Pipeline (based in the US); as well as China National Petroleum Corporation (China). Enbridge, Pembina Pipeline Corporation, and TransCanada Energy (based in Canada); Saudi Aramco (Saudi Arabia); and Transneft (Russia).

COMPETITIVE LANDSCAPE

Demand is driven by economic activity and population growth, which drive energy use. The profitability of pipeline transporters depends largely on the volume and efficiency of their operations. Companies that operate multiple pipeline networks may enjoy economies of scale in purchasing. The US industry is highly concentrated: the 20 largest companies account for 90% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Crude oil transportation companies operate pipeline and storage networks acting as the bridge between oil producers and refiners. Referred to as the midstream process of the oil industry, the crude pipeline transportation industry sells and distributes to refineries and to oil and brokers or agents that arrange the distribution to final customers. Main services include the transportation of crude oil and other commodities, which account for more than 95% of the industry revenue, followed by transportation of refined petroleum products and other liquids and gases.