Gulf Oil - Competitors

Gulf Oil Competition

Now Viewing Gulf Oil's competition in: Petroleum Wholesale Distribution

Recent Developments

Petroleum Product Deliveries Flat - US petroleum product deliveries were flat in January 2008 compared to January 2007, according to the American Petroleum Institute. While gas and distillate deliveries rose, the increases were offset by decreasing jet fuel and residual fuel oil deliveries. Gas deliveries rose 1.6 percent during the period, despite record-high retail prices.

Rising Oil Price may Boost Funding for Electric Vehicles - Rising oil prices and the quest for US energy independence has led to legislative proposals intended to speed the widespread use of electric vehicles. Congress approved $295 million annually for research on vehicle batteries; the Senate is debating a bill to grant tax credits of $4,000 to $6,000 for plug-in hybrid vehicles. Increased use of electric vehicles is likely to reduce demand for petroleum products.

Groups Seek More Spending on Public Transit - Public transportation advocates want more federal and state spending on rail and bus lines to reduce oil consumption and global warming. Petroleum wholesale distributors may be negatively impacted by reduced petroleum demand caused by greater use of public transportation. Mass transit saves about 3.4 billion gallons of oil a year, according to the Maryland Public Interest Research Group Foundation.

Competitive Landscape

Demand for petroleum comes mainly from automobile and truck use and home heating. Profitability is determined by the spread between purchase price and selling price and on the volume of product. Most companies are local and operate a single "bulk station" (tank farm), although the large companies may operate a dozen facilities and serve several states. There are economies of scale because large wholesale purchasers generally can negotiate bigger price discounts from suppliers, and because the fixed cost of bulk holding facilities can be spread over a larger number of gallons.

Full Industry Overview For Petroleum Wholesale Distribution

Petroleum Wholesale Distribution Industry Forecast

from Hoover's/D&B subsidiary First Research

The domestic demand of US petroleum production, which is a driver for petroleum distribution, is forecast to decrease at an annual compounded rate of 3 percent between 2007 and 2012.

Petroleum Demand Growth Volatile

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.