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Pipelines play a significant role in transporting petroleum products. After the crude oil is separated from natural gas, pipelines transport the oil to another carrier or a refinery. The petroleum products are transported to the market through tankers, trucks, railroad tank cars, or additional pipelines.
Large tankers transport “dirty” cargo, such as crude oil and unrefined commodities. These tankers have a substantial capacity, often carrying an average of 2 million barrels of crude oil per shipment. On the other hand, smaller vessels handle the transportation of “clean” refined materials like diesel, gasoline, and jet fuel.
Trucks provide flexibility in terms of loading and delivery locations. They are beneficial for transporting smaller capacities of oil over shorter distances. Trucks are commonly used to deliver fuel to gas stations or directly to consumers, a task that other modes of transport cannot easily accomplish.
Railroads present an alternative route to pipelines and compete with them for transporting petroleum products. While rail transport is generally more expensive than pipelines, the existing railroad infrastructure offers greater flexibility when pipelines reach their capacity limits.
Given the value and versatility of crude oil, it’s in high demand across the globe. As such, it needs to be transported at two distinct stages:
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