Essay: Transportation of Crude Oil at Marathon
It is evident that transportation of the crude and refined oil takes a lot of the tine in the production process; this leaves Marathon with the best decision to increase in increasing the efficiency in the transportation of the crude oil to the refineries and refined products to the terminals. Since most of the transportation is carried out by Capline Pipeline, this pipeline needs to be expanded or the speed of the product to be increased and thereby reduce the time spent in the production process.
Additionally, it is evident that in most cases, there is a direct relationship between the prices of crude oil and the gasoline prices. This means that, an increase in price of crude oil results to an increase in the price of gasoline, however there are exceptions when a business intends to maintain its market share, is new in the market or the government regulation increase the costs of processing and distributing the refined crude oil. The government affects the prices of gasoline in reference to mandated gasoline that must comply with certain specifications.