auto

Understanding Fuel and Energy Supply Chains

Kevin Feather
Kevin Feather 5 Min Read
Oil Rig and ship

A clear understanding of fuel and energy supply chains is becoming more essential in today's fast-paced and interconnected world. These supply chains influence how energy is sourced, refined and delivered, impacting everything from the cost at the pump to environmental sustainability. 

When consumers understand these processes, they can make smarter energy choices, support sustainable initiatives and help create a stronger, more reliable energy future. Additionally, being informed about fuel and energy supply chains enhances awareness of global economic and political factors.

Disruptions, such as supply shortages or price spikes, can ripple through daily life, affecting budgets and markets worldwide. By staying informed, individuals can make more thoughtful consumption decisions and encourage fair, ethical energy production and distribution practices. 

Traditional gas stations vs. EV charging stations

While both traditional gas stations and EV charging stations aim to keep vehicles powered, their structures and features differ significantly. Gas stations are a well-established part of the landscape, offering quick fill-ups that typically take a few minutes, making them ideal for road trips and busy commuters. 

EV charging stations, though newer to the scene, come with different charging tiers, from slower Level 1 chargers to rapid Level 3 options. Level 3 chargers can replenish a vehicle's battery in under 30 minutes, but the process still takes longer than filling a gas tank. Each type of station has unique benefits tailored to the evolving needs of drivers and the changing automotive landscape.

How Gas Stations Receive Fuel: Distribution Networks

Gas stations operate as the final stop in a large, interconnected fuel distribution network designed to deliver gasoline and diesel efficiently across the country. This network begins at oil extraction sites, where crude oil is harvested and transported to refineries. 

This processed fuel is distributed to regional terminals via pipelines, railways and tanker trucks. Pipelines, in particular, play a critical role in moving large quantities of fuel over long distances with cost and energy efficiency. Once at these terminals, the fuel is loaded onto tanker trucks for local delivery to individual gas stations. This system relies on precise coordination to ensure gas stations remain stocked to meet consumer demand.

Fuel delivery driver checks the valves as gas is delivered from his tanker to the underground storage tanks at a local gas station.

Role of oil refineries and tanker trucks

Oil refineries are the heart of the fuel supply chain, transforming crude oil into usable products like gasoline, diesel and jet fuel. This complex process involves multiple refining techniques, such as distillation, cracking and blending, to produce high-quality fuel that meets environmental standards. 

Once refined, the fuel is sent to storage terminals strategically located to facilitate regional access. Tanker trucks then take over, playing a vital role in bridging the gap between storage facilities and gas stations. These trucks are built for safety and efficiency, equipped with multiple compartments to transport various fuel grades simultaneously, ensuring they can cater to the diverse needs of consumers at their destination.

Storage and maintenance of underground fuel tanks

At the gas station level, fuel is stored in underground tanks designed to safeguard the product and the environment. These tanks, typically made of durable materials like fiberglass or steel, ensure fuel is kept secure from contamination and leakage. 

Regular maintenance is essential to uphold safety and operational standards. This includes routine inspections for leaks, corrosion or other structural damage and monitoring systems to track fuel levels and detect anomalies. Effective management of these storage systems is crucial for gas station operations and protecting groundwater and adhering to environmental regulations.

Electric cars in charging station

Summer vs. winter: What to know about gasoline blends.

Learn more

How EV charging stations get electricity

Electric vehicles (EVs) rely on a robust, well-coordinated electricity supply chain for seamless charging. This process begins at power plants, which generate electricity using various energy sources such as fossil fuels, renewable energy like wind and solar, or nuclear power. Each energy source plays a critical role in ensuring a steady electricity supply while shaping the environmental impact of the grid. 

Once generated, electricity travels through a complex transmission and distribution grid. High-voltage power lines carry electricity across vast distances from power plants to local substations, where it is converted to lower voltages for safe usage. From there, utility providers ensure electricity is delivered to businesses and homes, including the EV charging stations that power electric vehicles.

The connection between utility providers and station operators is vital for EV charging networks. Utility companies collaborate closely with charging network operators to manage electricity demand effectively and maintain grid stability. Some charging stations supplement their power needs through on-site energy solutions like solar panels and battery storage systems. Solar panels provide a renewable and clean source of electricity, while battery storage ensures backup power availability during peak usage or grid downtime, making these stations more sustainable and efficient.

Challenges for energy distribution

Energy distribution faces various challenges as the demand for both traditional fuel and renewable energy continues to evolve. Gas stations and EV charging stations each have their complexities that need to be addressed to ensure reliability, safety and efficiency in supplying energy to consumers. 

Cars at a gas station

Gas stations 

Gas stations rely heavily on tanker trucks for fuel delivery, a process with inherent risks. Accidents during transportation can lead to hazardous spills, posing significant environmental threats and costly cleanup efforts. Additionally, many existing gas stations operate with outdated infrastructure that requires frequent maintenance and upgrades. Aging tanks, pipelines and pumps pose safety concerns and increase the likelihood of operational disruptions, which can leave communities underserved. Modernizing this infrastructure demands substantial investment and careful management to minimize environmental impact. 

Premium or regular -- which is better for your vehicle?

Learn the difference

EV charging stations 

Grid dependency is a critical challenge for EV charging stations, particularly during peak electricity demand. Without proper load management and upgraded grid capacity, the surge in EV adoption could strain existing electrical systems, risking outages and higher operational costs.

Station operators must explore solutions to balance energy use effectively, including intelligent charging systems and demand response programs. Another pressing issue is the rapid expansion of infrastructure to support the current and future electric vehicles on the road. Deploying an adequate number of charging stations requires significant coordination between governments, private companies and utility providers. 

pipeline and power line support

The energy supply chain’s ongoing importance

Understanding energy supply chains and distribution systems can give you a clearer perspective on how fuel and electricity reach consumers. By addressing these systems' specific needs and challenges, we can ensure an efficient energy ecosystem capable of supporting future demands.

Collaboration among industries, governments and communities will be pivotal in securing reliable access to energy while reducing environmental impacts. Ultimately, integrating both traditional and non-traditional sources, supported by innovation and cooperation, will define the future of energy distribution. 

Stay fueled

Find fueling stations on the go

Use the AAA Mobile app to find nearby gas or EV charging stations and compare prices.

Learn more