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.
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.
PRODUCTS, OPERATIONS & TECHNOLOGY
Products include gasoline (about 40% of US industry revenue), diesel fuel and heating oil (about 20%), and crude oil (about 15%), along with propane, jet fuel, kerosene, and lubricants. Diesel fuel and heating oil are collectively called "no. 2 distillates."