Grade: A.    Ready.
A Petroleum Processing Plant
Petroleum processing plant

Source: Stock photography (copyrighted)

An Oil Pipeline
An Oil Pipeline

Source: Stock photography (copyrighted)

Most diesel fuel consumed in the United States is produced in U.S. refineries. In 2008, 4% was imported, mainly from Canada and the Virgin Islands.

U.S. refineries produce diesel fuel from domestically produced and imported crude oil, of which about two-thirds was imported in 2008.

How Does it Get to Your Service Station?

Most diesel fuel is transported by pipeline from refineries and ports to terminals near major consuming areas, where it is loaded into tanker trucks for delivery to retail service stations. A small amount of diesel fuel is transported by barge and rail.

Diesel and other products are sent through shared pipelines in “batches.” Because these batches are not physically separated in the pipeline, some mixing or “commingling” of products occurs. This possible mixing is why the quality of the diesel fuel and other products must be tested as they enter and leave the pipeline to make sure they meet appropriate specifications. Whenever the product fails to meet local, State, or Federal product specifications, it must either be removed and trucked back to a refinery for further processing, or sold as a different product.