The petroleum industry is broken into two halves. Upstream covers refining and distribution. The goal of the downstream half of the oil industry supply chain is to avoid both run-outs and retains. Run-outs are bad. During a run-out, not only is the station not making money, it is turning away customers who will then fill up elsewhere and may never return. Retains?in which a truck is unable to unload a delivery because there isn’t enough room in the station’s tanks and must return, full, to the terminal?are only slightly better. (Because of safety and environmental policies, once a truck begins pumping gas, it has to empty its tank; if it can’t empty its tank, it can’t begin pumping.) Every time a truck visits a filling station, it costs ChevronTexaco about $150. If a visit is wasted, that’s $150 down the drain. With 8,000 Chevron stations in the United States averaging a delivery every 36 hours, retains can add up fast.Run-outs and retains are not just issues for the retail stations. They figure in at every step of the downstream supply chain, which begins when the raw crude arrives on our shores from wherever it has been pumped out of the ground. For example, a tanker waiting to deliver crude to a refinery can be charged as much as $30,000 a day in docking and unloading fees. Obviously, the more efficiently ChevronTexaco walks the line between run-outs and retains, the more profitable the company becomes. Related content brandpost Sponsored by Palo Alto Networks Operational technology systems require a robust Zero Trust strategy in 2024 Zero Trust provides a foundation for creating a stronger security posture in 2024. By Navneet Singh, vice president of marketing, network security, Palo Alto Networks Dec 05, 2023 6 mins Security brandpost Sponsored by AWS in collaboration with IBM How digital twin technology is changing complex industrial processes forever As the use cases for digital twins proliferate, it is becoming clear that data-driven enterprises with a track record of innovation stand the best chance of success. By Laura McEwan Dec 05, 2023 4 mins Digital Transformation brandpost Sponsored by AWS in collaboration with IBM Why modernising applications needs to be a ‘must’ for businesses seeking growth Around one-third of enterprises are spending heavily on application modernisation and aiming for cloud native status. The implications for corporate culture, structure and priorities will be profound. By Laura McEwan Dec 05, 2023 5 mins Digital Transformation opinion 11 ways to reduce your IT costs now Reorienting IT’s budget toward future opportunities is a big reason why CIOs should review their IT portfolios with an eye toward curbing unnecessary spending and realizing maximum value from every IT investment. By Stephanie Overby Dec 05, 2023 11 mins Budget Cloud Management IT Governance Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe