How do Oil Companies get their individual revenues?

Question

I'm confused on the process. First I believe Oil Companies can buy Oil from somewhere or use their own wells. Then they sell it to a refinery for income. Then, the refinery makes the gasoline and sells it to who? I know they also send it via pipeline to storage depots where tankers fill and mix additives and dyes to mark it as one oil company's or another and does that oil company get revenue from the storage depot owner???? There are also plastics, lubricants, LP gas etc..... very confusing.

Answer 1

Refineries sell to marketers.  The marketers can be from the same company or they can be independent.

These marketers operate what are called terminals, where all of the tanker trucks go to get more product.  These terminals are all supplied by pipelines that stretch across the US.  These pipelines go from refinery to terminal and sometimes storage tanks.  

Most terminals are owned by pipelines and refiners.  

Companies can basically lease out tank space at these terminals so trucks for their gas stations can fill up.  Each "jobber" pays the terminal using credit card type things that track the EXACT amount of product and additive used.  These jobbers are usually on accounts and the account is then charged for the product.  The average truck holds about 8,000 gallons.  The detergent used at each terminal depends on the owner:  the amount used depends on if the product is considered branded or un-branded.  Basically a grocery store station will be un-branded and will have less detergent than the BP station.  

Companies charge for the use of the terminals (called throughputting) and for additizing and mixing products.  

Any product that does not go to a terminal (everything that is not Jet, Diesel, or some sort of gasoline) goes elsewhere.  Other types of pipeline will transport different chemicals, like LPGs and such.  Sulfur and asphalt are usually shipped in rail cars out of the refinery to other companies.

OK.  I tried to explain what goes on.  Its actually far more complicated than what is before this but any more detail and it would be overload.

Hope I could help!!