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Important Oil Distributors and Marketers Terms
The oil marketing and distribution industry have specific terms to describe the products they sell and services they offer. Below are the most common terms you'll encounter.
Oil Distributor - An oil distributor dispenses petroleum and fuel products to consumers and businesses. The distributor is responsible for the safe transport and delivery of fuel.
Energy Company - An energy company may use petroleum products to create electricity, which is then dispersed to customers. However, many energy companies try to avoid fossil fuels and use renewable energy to produce electricity.
Crude - Crude, also called crude oil, is unprocessed petroleum for automobiles and other fuel burning engines.
Petroleum - In most cases, petroleum is a general term, which includes crude oil, methane, ethane, and other petroleum byproducts. Professionals within the industry may only use the term petroleum to refer to crude oil.
Extraction - Extraction is the process used to remove oil from the ground. The extraction process may also involve separating the oil from water after it is removed from the ground.
Natural Gas - Natural gas is a mixture of methane and ethane gases found in the ground. Natural gas used as fuel must be processed until only methane is remaining.
Petrodiesel - This type of fuel is a fractured distillation of petroleum. Once simply called diesel fuel, the term petrodiesel is used to distinguish this product from other diesels on the market.
Biodiesel - Biodiesel is a fuel made by combining oils or fats with an alcohol. Some biodiesel is created by reusing oils. However, most biodiesel uses oil specifically manufactured for the process.
Biomass to Liquid and Gas to Liquid Diesel - These diesel products are made to mimic petrodiesel products.
It is the job of oil marketers and distributors to advertise, market, deliver, and supply companies with natural gas, oil, and other types of fuel. Such distributors may sell gas and oil in bulk to gas stations, private companies, and other consumers. In essence, they represent major oil and gas companies and independent producers, acting as suppliers and transporters of crude oil, gas, petroleum, and diesel.
They may work with gas stations on rebranding, advertising their products, or selling them. They often sell gas products to the retail locations that offer sales to the general public, as well as to construction companies and other consumers who need synthetic oils, grease, crude oil, or fuel in bulk. Oil usually comes in drums and barrels, and industry prices are dictated by the state of the market. This is dependent on the New York Mercantile Exchange and the International Petroleum Exchange.
Because oil and gas are needed in the petroleum industry to power everything from cars to engine motors to generators, it's a necessary product for just about everyone. Oil marketers and distributors provide many services for their customers, not the least of which is information on the latest market prices and stock market values.
Oil distributors and marketers provide commercially packaged products in bulk tank trucks, five-gallon pails, and drums, with some dealing at domestic levels and others going international. Such companies can sell anything from brake fluid and gear oils to hydraulic fluids and motors oils. They have usually been in the business for generations, forming valuable business relationships with clients, selling custom blends, formulas, and equipment.
Consumers looking for more information on this topic can seek out energy resources online to find a company near them.