(d) Since then, pipelines have become a major part of the petroleum industry. They serve as a
means of gathering and transporting the crude oil and natural gas produced in the field to the production platform,
moving the gathered fluids from the production platform to refineries, and they also serve to carry finished
products from the refineries to the wholesalers.
(e) Control in pipeline operation is a vital part of the industry, just as it is in most businesses.
The methods of control for oil pipeline listed below are simple.
1 Scheduling: An itinerary of deliveries.
2 Dispatching: The process of executing the schedule.
3 Testing: A means of recording the buying and selling of crude oil using a run ticket.
(4) Marketing: The marketing end of the oil business is engaged in the sale and distribution of oil
products to consumers who range from industrial users to homeowners. The major responsibilities of the
marketing end of the oil business are similar to those of any other business and include:
(a) Sales.
(b) Financial management.
(c) Advertising. Advertising traditionally has been through newspapers, magazines, television,
and radio.
(d) Distribution.
(e) Research.
(f) Planning. The planner is concerned with three basic periods of time; the present, the near
future, and the distant future. In any project, planning is essential and several factors must be considered:
1 Having an assured supply of raw materials: Not too much and not too little is ideal.
Industry must gauge future demands accurately to avoid creating a serious imbalance.
2 Planning for shutdown and seasonally: Refining facilities cannot operate continuous
without shutting down periodically for maintenance. These interruptions must be planned to provide a continuous
flow of products to customers. Thus, for example, refineries frequently shut down major gasoline-making plants
in the winter when the demand for gasoline hits a seasonal low.
3 Meeting changing demands: Industry is continually confronted with changing demands
both seasonal (for example, for home heating oil) and long-term (for example, for jet fuel). Companies must be
prepared to make these shifts at the proper time.
4 Obtaining good forecasts: This requires good communication between customer and
supplier. Industry encourages customers to do a good job of planning and announcing specific needs as far in
advance as possible. This is especially true of military requirements since the Department of Defense is industry's
single biggest customer.
QM5200
21-6
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