Every day, ExxonMobil supplies about 100 million gallons of gasoline to our customers in more than 100 countries. The journey may be across the city or across the ocean. At any given time, two weeks of gasoline production will be in transit.

Gasoline is delivered to many different users in many different industries. Purchasers may buy large or small volumes. Buyers may be end-users or wholesalers. As a result, the logistics and distribution system is complex, varied and competitive.

Pipelines
Pipelines are an essential part of the fuel transport system because of their excellent safety record, low cost and reliability. The first pipelines built in the United States in the 1860's were very short and made of cast iron. With technology improvements such as welded steel construction, extensive pipeline networks developed in North America beginning in the 1930s and in Europe beginning in the 1950s. Today, pipelines are a critical part of the gasoline supply system.

Tank trucks are loaded at a Marketing Terminal with about 10,000 gallons of gasoline before making deliveries to local service stations.

Vessels and Barges
The industry uses a fleet of modern vessels ranging in size from 5-100 dead weight tons (dwt) to move gasoline along the coast or across oceans.

Barges move fuel along coastal and inland waterways such as the Rhine and the Seine rivers in Europe or the Mississippi River in the U.S. Towboats push or pull groups of barges. A double-hull barge used in the U.S. may carry up to 30,000 barrels (4.8 million liters) of gasoline, equivalent to about 125 tank trucks driving on the highway.

Terminals
On the way to our service stations, ExxonMobil gasoline is stored in over 300 marketing terminals around the world. Terminals are clusters of storage tanks located along major distribution routes. At the terminal, proprietary additives that distinguish Exxon, Esso and Mobil brand gasoline from our competition are blended into the fuel as the tanker truck is loaded. The trucks then carry the gasoline from the terminals to our service stations.

Underground storage tanks are designed to protect the environment. Materials that resist rust, double walled tanks and piping, automatic shut-off devices, leak detection systems and remote monitoring are used for this purpose.

Inventories
At any given time, millions of barrels of gasoline are held in inventory. Much like a garden hose has to be filled before water comes out the end, a large portion of the inventory is needed just to keep the logistical system working.

Inventories also provide an important seasonal cushion to help meet peak consumer demand at certain times of the year. In the spring, for example, inventories of gasoline are built in anticipation of the summer driving season. In the late summer or fall, refineries begin making more heating oil and storing it for winter use.

While necessary, inventories are expensive to maintain, since oil sitting in storage generates no revenue. In the highly competitive gasoline market, good inventory management is an important part of efficient operation and helps keep the cost of gasoline down.

Retail Stations
ExxonMobil sells motor fuels at 45,000 stations in more than 100 countries.

In the early 1900s small stores sold gasoline in cans to the first automobile drivers. Service stations became widespread in the United States and Europe in the 1920s as the vehicle population began to grow.

In the United States, the total number of service stations grew steadily, booming after World War II as America became a nation on wheels. In the 1970s, however, changing customer needs and increasingly stringent safety and environmental practices made many small service stations uneconomic. U.S. customers want the convenience, service and value generally found in large multi-pump facilities located on major travel routes and offering convenience stores or fast food restaurants. The conventional "gas station" that includes service bays — a common sight in the U.S. a generation ago — is less common today because of improved automobile reliability and longer service intervals.

Scale and volume are critical to service station efficiency and success. A service station in the U.S. or Europe may dispense more than 250 thousand gallons (one million liters) of gasoline every month.

Similar trends are evident in other industrial countries, while smaller neighborhood stations with service bays are still common in Latin America, Asia and Africa where older vehicles still require more frequent maintenance.

Thirty years ago, many U.S. stations were owned and operated by oil companies themselves. Today, ExxonMobil owns and operates about 6 percent of the 16,000 branded outlets in the U.S. The remaining 95 percent are operated by independent dealers, by distributors with multiple outlets or by other companies. Relationships with our dealers and distributors are governed by contracts covering rent, supply arrangements, quality assurance, marketing and other issues to form a sound business relationship and assure value and service for our customers.

What may not be obvious at a service station is the advanced technology used to ensure safety and environmental protection as well as service and quality. When customers refuel, the gasoline is pumped from underground storage tanks to the island dispenser and through the hose and nozzle into the vehicle's tank. Modern service stations use rust-proof, double-walled tanks made of fiberglass, with special corrosion protection and emergency shut-off controls. Vapor recovery systems are employed where needed to reduce air emissions. Advanced leak detection devices can be monitored remotely in centralized locations to protect the local environment.

Along with safety and sound environmental management, customer convenience is the focus of today's retail gasoline business. Faster pump dispensers and the ability to pay at the pump island are increasingly common features in highly developed markets. New technologies such as ExxonMobil's Speedpass^TM allow purchases without cash or conventional credit cards.

Faster pump dispensers and pay at the pump provide customer convenience. New technology such as ExxonMobil SpeedpassTM allow purchases without cash or credit cards.

In addition to motor fuel, many service stations now include other retail offerings. Worldwide there are more than 11,000 Exxon, Mobil and Esso branded convenience stores, providing customers in many parts of the world with fresh food and baked goods as well as convenience items.

In developing countries, Esso and Mobil branded stations bring people clean, safe and efficient service to support increasing mobility and a growing standard of living.

Retail stores give motorists freedom to buy gasoline, pick up convenience items and enjoy a meal in one fast, friendly stop.

All this takes a significant investment. In metropolitan U.S. markets, a single retail facility may cost nearly $2 million to build and stock. In large cities or on major highways, the cost may be significantly higher.

People, hard work, advanced technologies, investment capital and careful management — these are the necessary ingredients to compete for your business.