Petroleum: Transportation (OG-12)
A pipeline system is usually owned by a pipeline company. Some companies purchase as well as transport petroleum, but most confine themselves to transportation. The first task is to get the oil from scattered lease tanks to a central pumping station. This may be done with tank trucks but usually is done with gathering lines 2 to 8 inches in diameter. The oil is measured, and the producer is paid for the quantity of oil gathered from field tanks.
Some oil is hauled locally to the refinery by tank trucks, but the greatest pipeline competitors are sea-going tankers and barges on the inland waterways. Transporting oil may be much less costly by water than by pipeline, and tankers and barges can cover routes where no pipeline exists or would be possible.
Our Hoosier State Beneath Us: Oil and Gas