The distribution of oil describes the methods and means used to forward the Pétrole refined and the consumable goods manufactured to the ultimate consumers.
end products
See also: Oil
Oil must be sold in the form of end products such as:
- Super fuel without lead 95 Number octane RON (85 octane number MY)
- Super fuel without lead 98 octane number RON (87 octane number MY)
- Kerosene,
- Aviation gasoline 100 L (AVGAS 100 L) - 100 octane number 100 RON
- Jet A1,
- driving Gas oil,
- domestic Fuel,
- Diesel Oil,
- Fioul marinades,
- Fioul BTS,
- Fioul MTS,
- Fioul HTS,
- Bitume S
organization of the distribution network
With this intention, the oil companies create or repurchase distribution networks. A distribution network comprises several branches or channels of distribution:- Administration,
- Armed,
- Big industries,
- Aviation,
- Fellow-members (for the exchanges),
- Navy,
- organic Service station,
- Service station under contract.
storage
See also: Procurement, production and distribution Plan of oil
The distribution network has warehouses of storage or deposits distributed through a country or an area, a park of tankers. The oil companies often have contracts with more or less long run with the various potential customers for the supply of the various products quoted above. The monthly needs for each customer are known a long time in advance and reactualized approximately 45 days before the deliveries. These needs entered like data a computer program being used as Plan monthly magazine of production making it possible the refinery to choose the quantities and qualities of crudes to be treated in the month.
systems of exchange
If, an oil company does not have a refinery in a certain area, but which it nevertheless has of the channels of distribution in this area, it practices the system of exchanges between fellow-members.Let us consider two areas “has” and “B” distant one of the other of a thousand of kilometers and two oil companies “P1” and “P2”. The company “P1” has a refinery “R1” in the area “has” and the company “P2” a refinery “R2” in the area “B”. On the other hand, P1 and P2 have both of the distribution networks in the two areas has and B. In order to avoid costs of Transport parasitizes, P1 and P2 will be intended to make exchanges of products what wants to say that P1 will deliver in the area “has”, not only its own distribution network, but also the distribution network of its P2 fellow-member. It is the same for P2 which will entirely deliver the two distribution networks of the area “B”. The exchanges can be done on the basis of of the same products and/or different products. But it is quite rare that P1 and P2 are all the two applicants; like consequence, there are always difficult enough negotiations for one of the two protagonists.
What is true for two areas is even truer for two different countries. If P1 which is in France does not have a refinery in Italy, but a distribution network in Italy has, and that P2, Italian oil company, do not have of refinery in France, but only one distribution network in this country, P1 and P2 will negotiate and sign a contract of exchanges of products for the supply of products to their own network.
Thus most of the market products in Paris region by all the oil companies (Esso, Shell, BP, Total, Agip) comes from the Refinery of Grandpuits, property of Total. The products are delivered pure, and each company adds itself of the Additif S private individuals to personalize these products. In certain cases, these additives are essential to improve the performances of the products (see Lubrifiants in Raffinage of oil).
Another case can arise too. P1 is in France, it has a distribution network in Greece, but not of refinery. And it cannot sign contract of exchange with its fellow-members Greek because the refineries of those are saturated. On the other hand near Greece there are independent refineries, i.e. refineries which do not belong to the large international companies. In this case, to feed its distribution network Greek, it will sign, with the owner of the one of the independent refineries, a contract of shaping or (contract of processing). A contract of shaping is a contract in which, the fashioner will refine crude provided by his customer with the help of a certain amount of money (fresh of shaping or processing fairies in English).
One defines in this contract all the terms of the contract such as, the quantities and monthly qualities of crudes to be delivered, the quantities and qualities of the products to be restored, the modes of delivery etc One defines the Rendement S of each product like his physicochemical qualities. The output of a product is the percentage of this product resulting from the treatment of a unit of crude (kg, ton), according to a structure of well defined refining . In our case, P1 goes, for all the periods (month, quarter) defined in the contract, to deliver gross () (S) to the fashioner who makes the treatment and restores in P1 according to his desire and his requirements in Greece the quantities and adequate qualities for products.
Beside the regular supplies of the distribution networks, there exist obviously purchases and sales “spot” according to opportunities which arise to each one, but in this case it is trade of the crudes and end products which is concerned.
See too
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