Companies in this industry store, transport, and distribute wholesale petroleum and petroleum products; some wholesalers also operate bulk storage facilities. Major US companies include Global Partners, Mansfield Oil, Statoil Marketing & Trading (owned by Norway's Statoil), Sunoco (owned by Energy Transfer Partners), and World Fuel Services.
The global petroleum industry processes about 90 million barrels of crude oil each day, according to the 2017 BP Statistical Review of World Energy. The US and China have the largest refining industries, together accounting for about a third of global capacity. Other leading countries include Russia and Japan. Countries with rapidly increasing refining capacity include Brazil, Saudi Arabia, Singapore, and United Arab Emirates.
The US petroleum wholesale distribution industry includes about 6,700 establishments (single-location companies and units of multi-location companies) with annual revenue of about $500 billion. Variations in the prices of crude oil and refined products can cause revenue for distributors to fluctuate significantly.
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 concentrated: the 50 largest companies generate about 80% of revenue....