TOPIC: Globalisation » Economy » Energy » Distribution » Vehicles

Definition

Basic 
Vehicles form part of the complex logistics network required to supply petroleum products from the refineries to the end users. The key vehicles used in the distribution of petroleum products are tanker trucks (known as road tankers in the UK) and railroad tank cars.

Commodification 
Vehicles are an integral component of any petroleum distribution network. This report addresses the issue of distribution for private customers and how to make distribution by tank trucks more efficient and cost effective.

History

Origin 
The success of the Densmore Tank Car revolutionized the transportation of oil by railway, leading competitors to copy the car’s simple design and to improve upon it. Over the next several decades, many improvements were made, including metal construction, a single-tank design, and expansion domes that prevented leakage. By 1868, a boiler-type tank car was in use. These cylindrical horizontal tanks could carry 80 to 100 barrels of oil each. The new tank cars were not top-heavy and were made of metal, so they did not leak oil. 

Popular Use 
Tank trucks became a popular means of transport in the USA between 1910 and 1920. Circa 1920, trucks with a separate full tank trailer began to be used by large oil companies. Tank trucks are now used globally to transport and distribute petroleum products.

Money Involved

Capital Costs 
Trucking is associated with a variety of different costs which include fuel prices, taxation, driver wagers etc. This report gives an overview of the cost involved in trucking in USA and compares this to fluctuating fuel prices and taxation.    

Use

Primary 
Tank trucks and railroad cars are used at different stages of the petroleum products distribution network. Although crude oil is usually transported by pipeline to the refinery, tanker trucks are often used to collect oil produced in smaller, scattered fields. After the oil is refined into gasoline, heating oil or other products, it is then transported to petroleum terminals. 

Production

Construction 
Road tankers designed for the conveyance of petroleum have a number of unique engineering features which differentiate them from tankers transporting chemical or pharmaceutical products. Engineers must consider the high centre of gravity of tanker trucks and the possibility of rollover due to sloshing of the liquid cargo. The interface of the loading gentry with the distribution terminal is also a key design consideration.

Challenges

Cost 
Transportation by tanker truck and railroad is often the most expensive method of conveyance of petroleum products. Pipelines and tankers are more cost effective and efficient at distribution over long distances and with larger volumes.

Safety
Every day there are more than 800,000 shipments of hazardous materials (hazmat) in trucks-usually flammable liquids, such as gasoline, or flammable gas. About 200 hazmat trucks a year are involved in fatal crashes and 5,000 in nonfatal crashes. Although these numbers are small relative to the totals of almost 5,000 trucks involved in fatal crashes and 400,000 involved in nonfatal crashes annually, the potential for human injury and property damage in hazmat crashes is much greater.

Possibilities

Flexibility 
The primary advantage of transporting petroleum by vehicle over alternative methods is the high level of flexibility offered by this method. The conveyance of petroleum by tanker truck or railway car requires significantly less capital investment then constructing a new pipeline or purchasing a tanker. This method of delivery is also used as it has fewer geographic constraints and thus is an attractive option.

Prospects

Outlook 
The outlook for the petroleum tanker truck sector is strong. Tanker trucks and other vehicles are crucial for the distribution of refined petroleum products and this is unlikely to change in the near to medium future. In certain areas, such as in Canada, railways and trucks are important for transporting oil.

Miscellaneous

Natural Gas 
Natural gas can also be distributed by tanker trucks like propane. However, liquefying natural gases is more complicated than liquefying propane since it has a much lower boiling point.

Transition to Globalisation

Tanker Truck Spills 4,000 Gallons of Fuel into Creek 
This article reports how a tank truck rolled onto its side, spilling its oil cargo into a creek. It is reported that this incident led to a fish kill.

Globalisation > Economy > Energy > Sources > Non-Renewable > Oil 


Transition to Tools

US EPA Oil Spill Program 
This presentation details the US EPA regulations pertaining to Oil Spill Prevention, Control and Countermeasure (SPCC).

Tools > National > USA > Dom. Policies > Economy > Energy > Non-Renewable 


Transition to Actors

Belize’s Oil: Doing it Right 
This report investigates local perspectives regarding oil development in Belize and from this provides advice on future oil development in the country. Tanker trucks are the primary means of transport of oil from the fields.

Actors > Civil Society > NGOs > Development