re: Pipelines for Dummies- HELP

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It's not an O&G problem - it's an IT problem - the industrial controls are automated (software) and the security of the software was compromised allowing hackers to access some undefined (so far) level of control of the pipeline. Forensics will determine the source and ultimate threat seriousness - whether that becomes public info is TBD.

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But he’s asking why does a pipeline need software. He’s wondering why can’t you just put gasoline in the pipe and turn the pump on.

It’s just a tiny bit more complex than that

Another Pipelines for Dummies question:

Regarding brand name gas (Exxon, Chevron etc with proprietary additives), are they transported through a major distribution pipeline such as Colonial? If so, how are they kept separate from generic no-name gas? Same question for the different octane levels, do they all flow through the same pipes?

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Regarding brand name gas (Exxon, Chevron etc with proprietary additives), are they transported through a major distribution pipeline such as Colonial?

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Yep.

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If so, how are they kept separate from generic no-name gas?

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They aren’t kept separate.

For most of the country, seeing a “Chevron” or “Shell” sign at a gas station does not mean that the gas being sold came from a Chevron or Shell refinery. The refineries mostly produce blendstock, not finished gasoline. That blendstock goes to a barge, pipeline, etc. and is carried to a blending facility/terminal near the end user. At this point it’s a generic commodity - not a finished, branded product.

Once at the terminal, the blendstock is further - erm - blended with ethanol, additives, and potentially other blendstocks to produce finished gasoline. This is where the gasoline becomes “branded” based on the particular Shell/Exxon/BP/etc. additive packages.

The exception is at fuel stations that are particularly close to refineries. If you buy gasoline at an Exxon station in Baton Rouge, there’s a decent chance it was blended at Exxon’s terminal. But even then it’s not a guarantee and depends (partly) on what agreements that specific refinery has in place with third party blenders/distributors.

Basically you can think about the large integrated oil companies as having three distinct businesses, which don’t necessarily interact much: upstream (oil & gas production), downstream (refining), and retail (finished gasoline, additives, and licensing). The same can be said for any other business units - for example, the raw components of Castrol lubricants don’t necessarily come from a BP refinery even though Castrol is part of BP.