Crude Oil as a Global Commodity: Logistics & Retail Research Paper

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Transportation of the Crude Oil

Nowadays, due to globalization, the world community needs to master the most effective ways of the transportation of global commodities. There are four primary methods that are used to transport crude oil, namely, pipeline, boat, truck, and rail (Steer, 2018). Pipelines remain the most efficient way to transport petroleum as modern technologies allow people to track its ways and prevent leaks and pipeline bursts. Pipelines are usually made of stainless steel and are buried deep underground. The utilization of pipelines brings both positive and negative consequences. Thus, it ensures the transportation of crude oil to various parts of the world but destroys natural sceneries in places where they are installed.

Sometimes, it might be difficult to transfer the crude oil through pipelines as not all the countries have an opportunity to install them on their territory. For example, it may be challenging for coastal countries to bury pipelines under the water. In this case, boats are used for the transportation of oil over the ocean. As a result, petroleum-producing countries have an opportunity to carry large quantities of oil using giant ships. However, at times, the shipwrecks occur, which result in the crude oil offshore and seawater pollution.

Trucks are usually used to carry oil for close-range distances, such as to local business companies. This transportation means is not popular for international shipment as it cannot carry a large quantity of oil. However, if an accident occurs, it is easier to clean up the oil on the road rather than in the sea. As for rails, they can also be used for carrying the oil to remote destinations. Moreover, the total volume of oil lost during transportation by rail is less than in other transportation methods (Steer, 2018). Nevertheless, some scholars still assert that pipelines are found to be a much safer transportation method than rails (Green, & Jackson, 2015). The consequences that may be brought about by the truck and rail methods of transportation include damage to buildings located nearby railways and air pollution emitted from engines. Therefore, the transportation of crude oil can be performed in various ways. Some of them are more beneficial than others depending on the destination, consumers, producers, and other factors. While some of the methods are safer than others, unfortunately, all of them may bring negative consequences for the environment.

Corporations that Dominate the Processing or Retail Sale of the Crude Oil

There are numerous corporations in the world that process crude oil. However, Forbes reveals 25 primary organizations that dominate the processing or retail sale of crude oil. Russian, American, Chinese, and European organizations are positioned on the top of this list. Russian companies, such as Rosneft and Lukoil, dominate the list, while the most powerful U.S. organization is represented by Exxon Mobil, the world’s third largest oil and gas producer. PetroChina produces almost the same quantity of oil as Exxon Mobil. The largest European corporation is British Petroleum, which is ranked as the fifth largest oil and gas producer in the top 25 (Rapier, 2016). Other large oil corporations include Saudi Aramco, Petrobras, and more.

Except for petroleum and gas, there are various products that can be derived from crude oil. Thus, various types of fuel are derived from oil, such as gasoline, diesel fuel, jet fuel, and others. Moreover, heating oil, petrochemical feedstocks, and waxes are also made of oil. Paving roads is also performed with the help of asphalt, which is made of oil as well. There is also a massive list of items that are produced from oil and used by people in their everyday lives, such as bicycle tires, motorcycle helmets, faucet washers, antiseptics, deodorants, perfumes, and even clothes.

References

Green, K. P., & Jackson, T. (2015). Safety in the transportation of oil and gas: Pipelines or rail? Eraser Research Bulletin, 1–14.

Rapier, R. (2016).Forbes. Web.

Steer. (2018). Web.

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IvyPanda. 2021. "Crude Oil as a Global Commodity: Logistics & Retail." August 7, 2021. https://ivypanda.com/essays/crude-oil-as-a-global-commodity-logistics-amp-retail/.

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