Petroleum Product Wholesalers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 1,800 petroleum product wholesalers in the US act as middlemen between refiners/storage terminals and retailers or end users. Major revenue categories include motor gasoline; distillate fuel oil; lubricating oil and greases; jet fuel, naphtha, or kerosene; and residual fuel oil. Wholesalers may have downstream operations and own groups of gas stations. Petroleum product wholesalers service a wide range of customer industries, including gas stations, convenience stores with gas stations, airports, farms, and government fleet operators.

Sensitivity To Economic Conditions

Demand for fuel is sensitive to economic conditions, and can drop during periods of uncertainty.

Reducing Dependency On Fossil Fuels

Consumer and governmental efforts to reduce US dependency on fossil fuels affect demand for petroleum products.

Industry size & Structure

The average petroleum product wholesaler operates out of a single location, employs 18 workers, and generates about $282 million annually.

    • The petroleum product wholesaling industry consists of about 1,800 firms that employ about 33,300 workers and generate $520 billion annually.
    • The industry is concentrated; the top 50 firms account for 87% of industry revenue.
    • Large companies, such as Mansfield Energy, Murphy Oil, and US Venture, may have additional midstream and downstream operations, in addition to wholesale operations.
    • Petroleum products wholesalers ("jobbers") supply the majority of fuel sold to gasoline stations. Jobbers also own or act as franchisors for the majority of gas retail outlets in the US.
    • Most firms operate within a limited geographical market, and may be constrained by proximity to supply (terminals).
                                Industry Forecast
                                Petroleum Product Wholesalers Industry Growth
                                Source: Vertical IQ and Inforum

                                Coronavirus Update

                                May 6, 2022 - US LNG Exports Slip
                                • US exports of liquefied natural gas (LNG) fell about 8% in April, according to preliminary Refinitiv vessel tracking data, reported by Reuters. Europe remained the top importer of US LNG for the fifth consecutive month, accounting for about 64% of US exports, as the continent works to secure alternate supply following Russia's invasion of Ukraine. US LNG exports to all destinations totaled about 7.1 million tonnes (MT) in April, down from a record high 7.67 MT in March, according to Refinitiv. The decline in US exports was due mainly to planned maintenance at US LNG plants, experts said, which reduced available liquefaction capacity, though exports still exceeded expectations.
                                • Wholesale spot prices for petroleum products reached highs in April 2022, according to the US Energy Information Administration. Compared to the previous year, prices were up 131% for heating oil, 135% for jet fuel, 118% for diesel, 61% for gasoline, and 58% for propane.
                                • More people are traveling for work and leisure. Vehicle miles traveled (VMT) in the first two months of 2022 were up 7.2% from a year ago. VMT in 2021 increased 11.2% compared to a year earlier to reach 3.2 trillion, according to the US Federal Highway Administration. While an improvement, VMT fell short of the 3.5 billion vehicle miles traveled in 2019, before the pandemic.
                                • The supply of aviation fuel has not returned to pre-pandemic levels. Jet fuel supplies averaged 1.5 million barrels per day in April 2022, down about 12% from the 5-year average of 1.7 million barrels per day in 2015-2019.
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