Crude oil is the term used for oil that is taken directly from the wellhead location prior to refining. Crude oil is refined into various forms of energy such as gasoline, diesel fuel and heating oil. It also is a key component in a broad variety of products. For example, crude oil is an important ingredient in plastics, medicines, crayons and tires. About 90% of the world's energy consumption comes from fossil fuels. In the United States, approximately 40% of all energy used comes from various petroleum products that start out as crude oil.
Blueknight Energy Partners’ network of crude oil assets provides customers the flexibility to access multiple points for the receipt and delivery of crude oil. We are transporters of crude oil and do not bear the financial risk of the crude oil that we gather, transport, terminal and store. We generate revenues by charging a fee for the services provided at each transportation stage as crude oil is shipped from its origin at the wellhead to its destination. Final destination points include storage terminals, such as the Cushing Interchange, and, ultimately, to refineries through pipelines.
Blueknight generates fees from third-party customers based on the number of barrels transported and the volume of storage leased on their behalf.