Petroleum & Petroleum Products Wholesalers

Petroleum & Petroleum Products Wholesalers

Brief Excerpt from Industry Overview Chapter:

Companies in this industry store, transport, and distribute wholesale petroleum and petroleum products, including liquefied petroleum gas. Major US companies include Equinor, Global Partners, Mansfield Oil Company of Gainesville, Inc, Sunoco, and World Kinect Corporation.

COMPETITIVE LANDSCAPE

Demand for petroleum comes mainly from auto and truck use and home heating. Profitability is determined by the efficiency of operations. Most companies are local and operate a single "bulk station" (tank farm), although the large companies may operate a dozen facilities and serve several states. Large wholesale purchasers generally can negotiate bigger price discounts from suppliers and spread the cost of bulk holding facilities over a larger number of gallons. The US industry is highly?concentrated: the 50 largest companies generate about 80% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Products include refined petroleum (about 70% of US industry revenue), crude oil (about 20%), and lubricating oil (about 10%). Diesel fuel and heating oil are collectively called "no. 2 distillates."