provide the link between the wholesale and retail fuel marketers. Refined-product terminals receive bulk fuel supply by pipeline, waterborne vessels, or in some remote areas, rail or truck, and store the product until it is delivered by truck to retail outlets, large commercial consumers or distribution companies that supply heating oil and propane to residences and businesses. Refined-product terminals also typically have infrastructure to support blending biofuels (such as ethanol and biodiesel) and brand- specific additives into finished fuels.
Terminals facilitate the flow of crude oil, refined products or NGLs from one transportation system to another (e.g., from pipeline to truck or from one pipeline to another pipeline). While often overlooked, terminals are essential links in the supply chain. All terminals have storage tanks and infrastructure to facilitate the movement of material into and out of the terminal. This infrastructure may include: • Pipeline interconnections; • Marine jetties and other marine infrastructure for loading or unloading ships or barges; • Rail track and rail car loading and unloading infrastructure; and/or • Truck racks for loading or unloading tank trucks. Crude oil terminals are located at gathering points in oil-producing areas, at major pipeline interconnections and close to refining hubs. These terminals facilitate the sale of crude oil by producers to refiners and marketers. Refined-product terminals
By the Numbers The United States has approximately 1.7 billion barrels of operating storage
capacity for crude oil, petroleum products and NGLs; 539 million barrels of crude oil storage; 661 million barrels of refined-product storage; and 465 million barrels of NGL storage. More than 90 million barrels of crude oil storage, or approximately 17 percent of the nation’s total crude storage capacity, is concentrated at the crude oil hub in Cushing, Oklahoma. 28
Infrastructure in Focus: New York Harbor Product Storage Hub
Terminal storage capacity for refined products in New York Harbor, located primarily in northern New Jersey and Staten Island, New York, exceeds 75 million barrels, accounting for approximately 12 percent of total U.S. refined-product storage capacity. New York Harbor is the largest refined-product storage and distribution hub in the United States. 29 Terminals in New York Harbor store products received by pipeline from Gulf Coast and East Coast refining centers and by waterborne tankers from refineries in Europe, Canada and other international locations. Products stored in New York Harbor terminals are distributed throughout the Northeast by marine vessel to smaller terminals in coastal New England and on the Hudson River in upstate New York; by pipeline to Long Island, western New York, and central and western Pennsylvania; and by truck to local markets in the greater New York City area.
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