Acronyms and Definitions of the Fuel Industry
By Steven E. Ibarra Salas

Pipeline Distribution – A pipeline that conveys gas from a transmission pipeline to its ultimate consumer.

Major Pipelines – Colonial, Explorer, Plantation and Centennial.

Refineries - Facilities that convert crude oil into gasoline and diesel, (should not be confused with natural gas).

Plant or Terminal – A large petroleum products storage facility where trucks load for delivery.

Tank Farm – An installation used by trunk and gathering pipeline companies, crude oil producers, and terminal operators (except refineries) to store crude oil.

Rack - A loading facility which pumps fuel into tanker trucks for transport.

RCU - “Remote Control Unit”, card reader located on rack where driver swipes electronic card to identify themselves. Also used to select and enter information about a delivery load.

Class of Trade (COT) - Examples of COT are Retailer, Dealer, Consignment, Wholesale and Commercial customers.

Consignment - An agreement between a consignee and a consignor in which fuel is taken responsibility for and transported by a third party, jobber.

Dealer - An independent branded or unbranded gas station owner, manager or employee responsible for operations.

Retail - Gas stations managed, operated, and owned, by a company.

Retail Outlet - any establishment at which gasoline is sold or offered for sale to the ultimate consumer for use in motor vehicles.

Commercial/Wholesaler - any person who is an ultimate consumer of gasoline and who purchases or obtains gasoline from a distributor for use in motor vehicles.

Distributor - any person who transports or stores or causes the transportation or storage of gasoline at any point between any gasoline refinery or importer’s facility and any retail outlet or wholesale purchaser-consumer’s facility.

Jobber - A jobber is a person or company like Susser Petroleum that purchases quantities of refined fuel from refining companies (e.g. Chevron, Valero, Shell, Exxon), either for sale to retailers (e.g., gasoline stations), or to sell directly to the users of those products (e.g., home heating oil to homeowners, lubricating oils to industrial operations or repair shops, jet fuel to FBOs “fixed base operator” - is a service center at an airport that may be a private enterprise or may be a department of the municipality that the airport serves.], etc.). In essence, the jobber acts as the "middleman" between the company that refines the petroleum products and those that either use them or market them at retail prices. The jobber often owns the gasoline being sold, and the station it is being sold to, but allows an operator to lease the store.

Carrier - any person who transports, stores, or causes the transportation or storage of gasoline at any point in the gasoline distribution network, without taking title to or otherwise having ownership of the gasoline and without altering the quality or quantity of the gasoline.

Dedicated Carrier - Trucking unit considered as an “asset” vehicle; contracted on long term basis providing predetermined number of hours per shift.

Owner-Operator - Self-employed independent drivers who operate privately owned or leased trucks, as opposed to a company driver.

Point-to-Point Carrier - Trucking unit considered as an “extra” vehicle; for hire vehicle. Standard Carrier Alpha Codes (SCAC) - A two-to-four digit identification, is used by the transportation industry to identify freight carriers in computer systems and shipping documents such as Bill of Lading, Freight Bill, Packing List, and Purchase Order.

Excise Summary Terminal Activity Reporting System (ExSTARS) - is a fuel reporting system developed with the cooperation of the IRS, Department of Transportation, States, and Motor Fuel Industry, which details the movement of any liquid product into or out of an IRS approved terminal.

Free on Board (FOB) - indicates the buyer pays shipping cost, and takes responsibility for the fuel when the fuel leave the seller's terminal.

Semi - 18-Wheeler tanker truck; 1 large tank usually containing 4-5 compartments.

Compartment - Section of a tank trailer which contains gasoline/diesel.

Bulkhead - Dividers inside a tanker which separate the different grades of gasoline/diesel.

Single bulkhead - Compartments sealed once within a tanker.

Double bulkhead - Compartments sealed twice within a tanker.

Truck and Trailer - Truck with tank attached which also pulls a tanker trailer. (Has 2 medium size tanks rather than 1 big tank like a Semi.)

Day Cab - A truck cab without a sleeper berth.

Sleeper Cab – A truck cab with a sleeper berth designated for sleeping legally must contain a bed.

Bobtail - Truck and trailer without the trailer. A tanker truck with only 1 medium tank.

Deadhead - Operating a truck with an empty trailer.

Drop - To unload product into a station’s underground storage tank(s).

Fills - Point where the drivers connect to unload truck at a station.

Water Finding Paste - This is a fast & reliable way to detect water in fuel storage tanks. It will accurately detect phase separation in ethanol blend applications. Used for all petroleum fuels, including ethanol and methanol blends, diesel, kerosene, #2 oil, JP-4, JP5 & more. Kolor Kut is the most common brand used.

Tank Monitor Readings or Stick Readings – Volume or Ullage in fuel storage tanks.

Sticks (stick readings) – Gasoline tank measurement used to confirm delivery will fit and to check for water. Can be manually taken by placing a stick with inch markings into a tank’s fill. The number of inches of gasoline in a tank can be converted to gallons to identify how much gasoline is in the tank.

Volume – The amount of product in a fuel storage tank.

Ullage – The empty space in a fuel storage tank. 90% Ullage – Refers to the safe fill of a fuel storage tank. (e.g. the amount of product the tank can hold before it sets off the high level alarm and causes an overfill).

ATG | Veeder Root, Incon, FMS or PDI – Automated tools, stations use to gauge fuel tanks and provide the volume and ullage of product in a tank:

• ATG – Automatic Tank Gauge

• FMS – Fuel Management Services

• Incon – Franklin Fueling Systems

• PDI - Professional Datasolutions, Inc.

Tank Probe – Is a probe in the tank that measures the volume, ullage, temperature and amount of water in a tank.

EPOS – Electronic Point of Sale is a device which enables an efficient recording of the sale of goods or services to the customer. (e.g. Verifone Ruby, Sapphire Cash Registers)

KSS – KSSRetail Price Optimization provides an integrated solution that manages both regular and promotional pricing by driving greater sales and profits, and implementing competitive price strategies that improve price image and market position.

CPG – Cents per Gallon Load - An order of gasoline/diesel.

Mixed Load - A trailer load of product which contains a compartment of diesel and compartments of gasoline.

Split Load - A load of gasoline that is being delivered to two different stations.

Short Load - An order of gasoline that does not fill all the compartments on a truck.

Milk Run – A load of gasoline that is being delivered to different stations depending on truck compartments. This is done during allocation issues to prevent stations from running out.

Order Number -?- digit random number assigned to confirm a gasoline delivery has been placed.

BOL - Bill of Lading is a paper document between a shipper and a carrier acknowledging the receipt of goods for transport. Usually describes the nature of the cargo; hazardous materials classification (if any); amount of cargo by weight, size, and/or number of pallets, boxes, barrels, etc; and the origin and destination of the cargo.

Manifest - A document that describes the contents of a shipment in greater detail than a bill of lading. Commonly used as a checklist during unloading.

Customer Number -?- digit number assigned to a specific account. Used to order via PDI or Telapoint.

GPO - Global Product Override. A GPO is requested to a supplier when additional allocation is necessary.

Run-Out - When a gas station’s underground storage tank stops dispensing fuel via pumps due to extremely low levels. The turbines are typically shut off to avoid mechanical failures.

Delivery Exceptions - These are the different reasons scheduled loads cannot be delivered as scheduled (something that prevents scheduled delivery). Examples are: No Fits, Car parked over fill, payment not available for a COD load, etc.

Just-in-Time - A method of inventory control in which fuel is either nonexistent or kept to a minimum. The freight arrives "just in time", and only when it is needed.

Redirect - No Fit - NDV (not delivered)- - All are different ways of indicating a load will not be delivered.

Blocked Site - An object blocking access to the fill(s) preventing the driver from delivering gas to the station.

No Fit - All of the product to be unloaded will not fit into storage at the retail station or all of the product on the truck will not fit safely in storage at station.

Redirect - To take gasoline ordered for one station and send it to another station.

Full redirect - To take the entire load to another station.

Partial redirect - To take a portion of a load to another station.

Retain - When all of the product on the truck will not fit in the station’s inventory tanks some or all of the product is not dropped at the station. Some or all of the product is RETAINED on the truck and taken elsewhere.

Demurrage - A charge by the carrier (any mode) for excess retention of shipping vessel, container, trailer, etc; caused by untimely unloading.

NDV- (Not Delivered) Driver was not able to deliver at original location- truck sent to another location.

PLOT - Product left on truck. This happens when a home can not be found for a retained load. Product is left on truck until a site that will hold it is founded.

Re-brand/Downgrade - Takes place when higher grade gasoline is unloaded into a lower grade tank at the station.

Cross Drop/Cross Contamination/Commingle of Product - When a product of lesser grade is “dropped” in a tank containing a higher graded product. Ex: Regular dropped in premium tank or Diesel dropped in a gas tank.

Pump Off - To return gasoline/diesel to the plant when it does not fit at a station. Generally used as a last resort. Also refers to pumping off product to an above ground storage tank.

Pump Out – To pump product out of a storage tank. This usually happens when there’s a cross drop or product is contaminated.

UST – Underground Storage Tank.

Tank Test – There are different types of tank testing and they include tank test, line test, leak detector test and soil test. In a Stage II Vapor Recovery Test the following is troubleshoot: Dynamic backpressure, liquid blockage, pressure decay, Air-to-Liquid Ratio, healy vacuum integrity and healy nozzle.

Stage II Vapor Recovery – Is the collection of gasoline vapors that would be forced into the air when refueling a vehicle and the transporting of the vapors to the storage tank via pipeline, to be processed at the bulk facility after transport by a delivery tank truck to the bulk facility or by processing on site or both.

Stock Transfer/ Gas Transfer - When a plant runs out of product, we truck gasoline from one plant to resupply the plant which is out of product. Target stock - The optimal amount of gasoline that a gas station should have. (The gasoline measurement used to determine when to order more gasoline.)

Buffer stock - The amount of product between target stock level and dead stock level.

Dead stock - The gasoline measurement used to determine the run-out point of a gas station. When the dead stock level is reached, the station is out of product.

Load Leveling - Reducing volatility by creating a more even demand for product.

Metrics - Statistics pertaining to deliveries used to reveal information concerning runouts and various delivery exceptions.

Barrel – A unit of volume equal to 42 U.S. gallons. One barrel weights 306 pounds or 5.80 million Btu of crude oil. Barrel is abbreviated bbl.

Gallon – A measure of volume equal to 4 quarts or 3.78541178 liters. Gallon is abbreviated gal.

RVP - Reid Vapor Pressure means the absolute vapor pressure of volatile crude oil and volatile nonviscous petroleum liquids, except liquified petroleum gases.

CBOB – Conventional Blend Stock for Oxygenate Blending (gasoline production) Conventional gasoline Blend Stock intended for blending with oxygenates downstream of the refinery where it was produced. CBOB must become conventional gasoline after blending with oxygenates. Motor gasoline blending components that require blending other than with oxygenates to become finished conventional gasoline are reported as All Other Motor Gasoline Blending Components. Excludes reformulated blend Stock for oxygenate blending (RBOB).

PBOB - Premium Blend Stock for Oxygenate Blending (gasoline production)

RBOB - Reformulated Blend stock for Oxygenate Blending (gasoline production) Specially produced reformulated gasoline Blend Stock intended for blending with oxygenates downstream of the refinery where it was produced. Includes RBOB used to meet requirements of the Federal reformulated gasoline program and other Blend Stock intended for blending with oxygenates to produce finished gasoline that meets or exceeds emissions performance requirements of Federal reformulated gasoline (e.g. California RBOB and Arizona RBOB). Excludes conventional gasoline Blend Stocks for oxygenate blending (CBOB).

RFG - Reformulated Gasoline. Finished gasoline formulated for use in motor vehicles, the composition and properties of which meet the requirements of the reformulated gasoline regulations promulgated by the U.S. Environmental Protection Agency under Section 211(k) of the Clean Air Act. It includes gasoline produced to meet or exceed emissions performance and benzene content standards of federal-program reformulated gasoline even though the gasoline may not meet all of the composition requirements (e.g. oxygen content) of federal-program reformulated gasoline. Reformulated gasoline excludes Reformulated Blend Stock for Oxygenate Blending (RBOB).

Gasoline - any fuel sold for use in motor vehicles and motor vehicle engines, and commonly or commercially known or sold as gasoline.

Conventional Gasoline - any gasoline that is not a low Reid vapor pressure gasoline. Finished motor gasoline not included in the oxygenated or reformulated gasoline categories. Note: This category excludes reformulated gasoline Blend Stock for oxygenate blending (RBOB) as well as other Blend Stock.

MOGAS – Motor Gasoline

Biodiesel – an alternative fuel that can be made from any fat or vegetable oil.

• Biodiesel Blends: B5 – 5% biodiesel, 95% petrodiesel, B20 – 20% biodiesel, 80% petrodiesel.

Diesel Fuel – a fuel composed of distillates obtained in petroleum refining operation or blends of such distillates with residual oil used in motor vehicles.

Dyed Diesel Fuel – a fuel composed of distillates obtained in petroleum refining operation or blends of such distillates with residual oil, injected with a mandated red dye to identify off road use.

Petroleum – Generally refers to crude oil or the refined products obtained from the processing of crude oil (gasoline, diesel fuel, heating oil, etc.)

Low Reid Vapor Pressure Gasoline - any gasoline which has a Reid vapor pressure of 7.8 P.S.I. or less. P.S.I. - pounds per square inch absolute.

MTBE - Methyl tert-butyl ether is a gasoline additive, used as an oxygenate and to raise the octane number, although its use has declined in the United States in response to environmental and health concerns. It has been found to easily pollute large quantities of groundwater when gasoline with MTBE is spilled or leaked at gas stations.

Ethanol – is a biofuel alternative to gasoline made from sugar cane and corn.

• E-10 - sometimes called gasohol, is a fuel mixture of 10% ethanol and 90% gasoline that can be used in the internal combustion engines of most modern automobiles.

• E-85 - is a mixture of 85% ethanol and 15% gasoline, and is generally the highest ethanol fuel mixture found in the United States.

Fuel Additives - increase gasoline's octane rating or act as corrosion inhibitors or lubricators, thus allowing the use of higher compression ratios for greater efficiency and power. (e.g. Generic Additives and Chevron Techron).

DEF – Diesel Exhaust Fluid is a urea-based chemical reactant designed specifically for use in SCR systems to reduce NOx emissions.

Octane Rating - is a measure of the resistance of gasoline and other fuels to autoignition in spark-ignition internal combustion engines.

• 85, 86, 87 – Regular Unleaded

• 88, 89, 90 – Midgrade (Plus) Unleaded

• 91, 92, 93 – Premium Unleaded

• 100 – Jet Fuel

FCCU - Fluid Catalytic Cracking Unit is the most important conversion process used in petroleum refineries. It is widely used to convert the high-boiling hydrocarbon fractions of petroleum crude oils to more valuable gasoline and it produces more gasoline with a higher octane rating.

Brine – is water, saturated or nearly saturated with salt (usually sodium chloride). Brine can be found in petroleum deposits.

TCEQ – Texas Commission on Environmental Quality. Is the environmental agency for the state that enforces environmental laws and protects human and natural resources.

DTPA - Texas Deceptive Trade Practices Consumer Protection Act. The underlying purpose of this Act is to protect consumers against false, misleading, and deceptive business practices, unconscionable actions, and breaches of warranty and to provide efficient and economical procedures to secure such protection. This Act is intended to be liberally construed and applied. A consumer is defined as one who seeks or acquires by purchase or lease any goods or services.

The Market - terminology used in the fuel department is the value at that moment in time for fuel products as assessed by the New York Mercantile Exchange (NYMEX).

Dow Jones – is one of several stock market indices. Dow compiled the index to gauge the performance of the industrial sector of the American stock market. The average consists of 30 of the largest and most widely held public companies in the United States.

NYMEX – The New York Mercantile Exchange is the world's largest physical commodity futures exchange and the preeminent trading forum for energy, located in New York City.

Basis - is the actual value of the products in the Gulf Coast versus the values on the NYMEX or New York Harbor. Products trade based on physical location and relationship to New York (NYMEX).

Platts - is a provider of energy information around the world that has been in business in various forms for more than a century and is now a division of The McGraw-Hill Companies. Products include Platts Energy Economist, industry news and price benchmarks for the oil, natural gas, electricity, nuclear power, coal, petrochemical and metals markets.

Bear Market – is a substantial drop in the prices of the majority of stocks in a given market over a defined period of time.

Bull Market – or Bull Run tends to be associated with increasing investor confidence, motivating investors to buy in anticipation of future price increases and future capital gains.

OPEC – The Organization of Petroleum Exporting Countries negotiates with oil companies on matters of oil production, prices, and future concession rights.

DTN - Data Transmission Network, is a subscription-based service for the delivery of real-time weather, agricultural and commodity markets information and provides information to professionals in agriculture, refined fuels, commodities and futures trading, public safety, aviation, turf, recreation, construction and transportation.

OPIS – Oil Pricing Information Service is the world's most widely accepted fuel price benchmark for supply contracts and competitive positioning.