Crude Oil Acquisition and Marketing

From the wellhead of the lease to the refinery, the crude oil supply chain can be complex. Our Crude Oil Acquisition and Marketing organization purchases crude from producers at the wellhead and at trade locations, and then sells it to a refiner or other purchasers. We strive to keep our purchases and sales balanced, with each purchased barrel matched to a barrel sold, thereby minimizing commodity price exposure.
Presently we purchase approximately 300,000 barrels of crude oil each day from approximately 4,000 producers in nineteen states and the Gulf of Mexico, with the majority of purchases being made in Oklahoma, Kansas, Texas, New Mexico, Michigan, North Dakota, and Louisiana. We also purchase in bulk quantities at major pipeline interconnections and trading centers. 
We aggregate the crude oil we purchase from individual leases into trunk pipelines utilizing our gathering pipelines and our truck fleet as well as third party pipelines and trucks. The crude oil then flows on these pipelines to the refiner. Our inter-connected network of pipelines and terminals allows us to move crude oil through the supply chain in a cost-effective manner. Our extensive gathering system and trunk lines, combined with our crude oil terminalling assets, provide excellent flexibility to take advantage of many different market place opportunities. We have the capability to purchase and market various grades of crude oil to meet individual refinery specifications.
We have the ability to deliver to multiple trade centers and over 25 refineries via truck, pipeline, barge, and rail with our assets at Nederland, Longview, Wortham, Corsicana, and Colorado City, Texas; Westville, NJ; and Cushing, Oklahoma.