Refining, Marketing and Transportation
MAP refines, markets and transports crude oil and petroleum products, primarily
in the Midwest, the upper Great Plains and southeastern United States. RM&T
segment income primarily reflects MAP’s income from operations which depends
largely on the refining and wholesale marketing margin, refinery throughputs,
retail marketing margins for gasoline, distillates and merchandise, and the
profitability of its pipeline transportation operations.
The refining and wholesale marketing margin is the difference between the wholesale
prices of refined products sold and the cost of crude oil and other feedstocks
refined, the cost of purchased products and manufacturing costs.
RM&T operations are primarily conducted by MAP and its subsidiaries, including
its wholly owned subsidiaries, Speedway SuperAmerica LLC (“SSA”) and Marathon
Ashland Pipe Line LLC.
MAP’s refineries include crude oil atmospheric and vacuum distillation, fluid
catalytic cracking, catalytic reforming, desulfurization and sulfur recovery
units. The refineries have the capability to process a wide variety of crude
oils and to produce typical refinery products, including reformulated gasoline.
MAP’s refineries are integrated via pipelines and barges to maximize operating
efficiency. The transportation links that connect the refineries allow the movement
of intermediate products to optimize operations and the production of higher
margin products. For example, naphtha may be moved from Texas City to Robinson
where excess reforming capacity is available; gas oil may be moved from Robinson
to Detroit where excess fluid catalytic cracking unit capacity is available;
and light cycle oil may be moved from Texas City to Robinson where excess desulfurization
capacity is available.
MAP also produces asphalt cements, polymerized asphalt, asphalt emulsions and
industrial asphalts. MAP manufactures petroleum pitch, primarily used in the
graphite electrode, clay target and refractory industries. Additionally, MAP
manufactures aromatics, aliphatic hydrocarbons, cumene, base lube oil, polymer
grade propylene and slack wax.
MAP operates a system of pipelines and terminals to provide crude oil to its
refineries and refined products to its marketing areas.
Other Energy Related Businesses
Marathon operates other businesses that market and transport its own and third-party
natural gas, crude oil and products manufactured from natural gas, such as LNG
and methanol, primarily in the United States, Europe and West Africa. Some of
these businesses, as well as other business projects under development, comprise
Marathon’s integrated gas strategy.