Oil is one of the foundational necessities of modern life. Practically everything we purchase requires the use of oil at one point in the manufacturing process. Everything that is transported across our system of roads involves oil derivative commodities. With continual domestic and international increase in the use of energy, it’s more important than ever to manage America’s supply of oil and petroleum products.

What is a terminal?

An oil terminal is an industrial site where oil is loaded or unloaded for storage or transportation via pipelines or tankers. The storage facilities house products such as petroleum, oil, renewable fuels, and petrochemicals. You may not have thought much about the distribution and transportation of fuels. But, there is a complex system of logistics involved in getting crude oil from its source to its end destination.

Along the way, storage terminals facilitate transfer from one mode of transportation to another. From barge to pipelines, from tankers to refineries, or from freighters to railways, a terminal serves as an intersection between here and there. Millions of tons of oil are pumped from large storage cylinders into tankers on a daily basis to be transported somewhere in the U.S. Leveraging connectivity to key refineries, pipelines, and the country’s network of highways, integrated terminals provide logistical and wholesale distribution solutions for the oil and gas industries.

However, currently there is a shortage of available storage capacity as production is allowed to increase within our own borders. With the goal of becoming less dependent on foreign oil, it is imperative that America make way for storing fuel on our own land – onshore storage as it is known in the industry. Building sophisticated oil terminals that employ advanced technology to reduce our carbon footprint is one solution.

Traditionally, storage tanks can be either above or below the ground and have varying capacities. Capacity is measured in barrels of crude oil tankage. Maintaining the correct balance of available storage space with reserves of product is a science unto itself. Then there is the timing. When crude oil prices are low, storage facilities offer an option to hold out for a higher price before selling what is held in reserve. Oil and petroleum are kept in storage until they are ready to go to market when the price of oil is more favorable for producers and investors.

The Logistical Puzzle

Efficiency and speed from source to destination with seamless access for tankers is crucial in the overall logistics. Prime locations of terminals include areas where tankers can swiftly approach and depart to/from main arterial roadways and rail lines. Depending on the location, docks for loading and unloading barges, or a station for receiving transfer trucks, may also be part of the terminal layout, especially if it’s a major crude oil hub. Coastal operations allow for marine tankers from offshore production to load or unload oil products. Terminals located near cities take advantage of transportation arteries via roads and railways. Intercoastal waterways are often utilized to expediate distribution capabilities.

Safety is of prime consideration since storage facilities are dealing with highly flammable material. The roofs at individual storage tanks could either be fixed, with a vapor area above the contents, or internal or external floating, to reduce evaporation of volatile materials. Codes, regulations, and standards are extensively monitored to ensure compliance. These may be international, national, regional, or local laws all impacting the design, construction, maintenance, and operation of oil terminals. Whether it’s policies from Fire Protection, or Health, Safety, and Environment (HSE) agencies, legal standards are rigorously enforced.

Customarily there is no oil processing on the site of terminals. If a terminal is used for storing commodities from refineries, then the products are in a form ready to be delivered. Nor is any manufacturing done at a terminal location, although blending of additives may occur.

Scientifically advanced pumping systems increase revenues while decreasing downtime. A quality storage terminal has relatively few breakdowns of equipment or systems, or congested pipelines. Terminals must be optimized for profits early on and then operated with maximum productivity and efficiency. Strategic placement of each segment of the terminal can save millions of dollars in the long run.

Terminal Ownership

• A single oil company may own an oil terminal – also referred to as a depot. In this case, the company usually operates the enterprise as well.
• A joint ownership consists of two or more entities owning and operating the terminal, and jointly underwrite operating costs as well.
• If a terminal is owned by a non-oil company who is paid by oil companies to store their products, it is considered an independent ownership.

Investments in terminals pay for the real estate, construction, operations, regulations, inspections, surrounding infrastructure, qualified staff, and legalities. But the payoff can be lucrative depending on market conditions, management, and operational efficiency.

A Foreign Trade Zone (FTZ) is a distinct economic zone in the United States, usually near a Port of Entry. The creation of the federal Foreign Trade Zone Act of 1934 enabled incoming and outgoing goods, foreign or domestic, to be free of customs duty. In an FTZ, importing goods for processing, manufacturing, storing, distributing or re-exporting purposes all take place without the interference of U.S. Customs and Border Protection (CPB). By reducing or eliminating tariffs or other administrative costs, U.S. companies have a greater ability to compete in the international marketplace and economy…and this includes oil and all its derivatives as well.

Experience & Profitability

United Energy Corporation (OTC:UNRG) is a diversified oil and gas producer based in Plano, TX with a 50-year history in the energy, manufacturing, and mining industries. The Company’s new post-pandemic corporate directive includes exploration, development, production, technology and storage.

Our premier holdings include assets and operations in Texas, Oklahoma, Kansas, and Louisiana. United Energy owns or has operations in over 200,000+ acres of leasehold, 2,000+ wells, and 1,100 miles of natural gas pipelines.

Our objective is, and always has been, to maximize our resources for the highest possible gain to our shareholder and company while building a solid foundation of profitable, sustainable assets.

Our leadership team has over 150 years of combined experience which includes key performance areas such as: Investment strategies, acquisitions, development of more than 500,000 acres of oil and gas leasehold, extensive experience in the securities industry, and energy field operations at every level.

With the goal of sustained financial performance for the long-term, United Energy is determined to provide shareholder value.

We believe with our expertise, experience, and strategy, we will accomplish that goal!