Efficiency Improvements

Marathons own 50.7% of LOOP (Louisiana Offshore Oil Port). Crude is imported into this port. Only this port is equipped to handle super tankers. The super tankers can hold up to three million barrels of crude. However, the transporting and storing of the crude is open to efficiency improvements. Pipelines are the safest form of petroleum transportation but are the slowest. You can literally walk the speed of the pipelines. The average speed is four miles per hour. There is a four day window for crude oil to be off loaded from LOOP. It takes eight to ten days to arrive at Marathon’s refinery in Robinson, Illinois. Upon arrival, the refining process begins. Crude is processed into gasoline and other petroleum products. Storage is limited. The facility only has two to four days of storage for their finished gasoline and products. Even though Marathon Pipeline Operations Center operates 24 hours a day, seven days a week, 365 days a year some efficiency improvements are needed. Transportation is too slow and storage is too limited.

The Relationship The Energy Information Administration estimates world oil demand will grow from 84 million barrels a day in 2009 to approximately 99 million barrels a day in 2030. (http://www.api.org/aboutoilgas/gasoline/upload/Whats_Up_With_Gasoline_Prices.pdf).
Gas and crude oil are commodities that are traded around the world. Price is determined by supply and demand. If supply is high and demand is low prices will drop. If supply is low and demand is high prices will rise. There are many different factors that affect supply. Inventory levels, political issues, wars, refinery or shipping problem can cause tremendous obstacles on supply. Economic growth in the United States and around the world can cause demand to be affected. As well as, weather, seasons and driving habits. If