SIC 4613 Petroleum Pipelines, Refined

Encyclopedia of American Industries | 2005 | Copyright

SIC 4613
PETROLEUM PIPELINES, REFINED

This category covers establishments primarily engaged in the pipeline transportation of refined petroleum products of petroleum, such as gasoline and fuel oil. Linking all petroleum pipeline industries together is Industry Group 461: Pipelines, Except Natural Gas, which includes the other major subcategories of the petroleum pipeline industry, SIC 4612: Crude Petroleum Pipelines and SIC 4619: Pipelines, Not Elsewhere Classified.

NAICS Code(s)

486910 (Pipeline Transportation of Refined Petroleum Products)

Industry Snapshot

Pipelines are the leading method of transporting refined petroleum, and they are an especially important mode of transportation in the United States where large volumes of oil must be moved over land. Manufacture of refined petroleum is classified in SIC 2911: Petroleum Refining; fuels classified as refined petroleum products include gasoline, kerosene, distillate fuel oils, residual fuel oils, and lubricantsessentially any product made from the distillation of crude oil or redistillation of unfinished petroleum derivative.

The United States has an extensive network of pipelines for the transport of refined petroleum owned and managed, for the most part, by the large, vertically integrated operations of the major oil companies. In 2001, firms in the industry operated a network moving petroleum products through 91,000 miles of pipeline, or approximately 51 percent of the all petroleum pipelines (crude and refined) totaling 177,000 miles. Though pipeline grew at a crawling pace from the mid-1980s through the mid-1990s, the late 1990s ushered in a more successful period for the industry, and demand for refined petroleum products was predicted to increase modestly in the United States and abroad. In 2001, total value of petroleum pipeline put in place (carrying both crude and refined products) totaled $943 million.

The pipeline network contains gathering systems of pipelines, which are used to bring crude petroleum from the oil fields and pump it to storage. Then, oil fields have a network of small-diameter "gathering lines" collecting crude oil from individual wells and transporting the output to a large-diameter "trunk line" for shipment to a refinery. Next, pipelines move refined products to markets. In 2000 U.S. oil refineries moved 7.5 billion barrels of petroleum products.

The ups and downs of the industry have been attributed to several economic forces. The growth of pipelines in general is linked, and ultimately limited by, oil...

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