Fuel Oil & LP Gas Dealers
Companies in this industry sell fuel oil and liquefied petroleum (LP) gas. Major companies include AmeriGas, Ferrellgas, and Star Group (all based in the US), as well as Mitsui & Co (Japan), SHV (Netherlands), and Ultrapar (Brazil).
The US and China are the two of the largest consumers of oil globally, with a total of 19.1 million and 14.3 million barrels per day (b/d), respectively, according to Statista. The Organization of the Petroleum Exporting Countries (OPEC) crude oil demand is expected to reach 2.25 million b/d in 2024, according to Reuters.
The US fuel oil and LP gas dealer (fuel dealer) industry includes about 8,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $30 billion. Volatility in the price of crude oil impacts revenue for fuel oil dealers.
Competitive Landscape
Residential, commercial, industrial, and agricultural heating needs drive demand. The profitability of individual companies depends on efficient operations, low-cost purchasing, and competitive pricing. Large companies have advantages in purchasing, finance, and distribution. Small companies can compete effectively by serving a local market, offering unique products, or providing special services. Fuel dealers compete with suppliers of other energy sources, including electricity and natural gas. The US fuel dealer industry is fragmented: the top 50 companies account for about 40% of sales.
More recently, economic stagnation from the coronavirus pandemic caused oil prices to plummet as supply outstripped demand, causing gasoline and heating oil prices to fall. Petroleum has been the largest major energy source for the total annual US energy consumption, according to the US Energy Information Administration (EIA). The US petroleum consumption has reached an average of about 20 million barrels per day (b/d) in 2022.
Products, Operations & Technology
Major products of companies in the industry include LP gas, which accounts for about 40% of the industry revenue. This is followed by products that include
... plus:
Sales & Marketing
,
Finance & Regulation
,
Regional & International Issues
,
Human Resources
Also includes the following chapters:
Quarterly Industry Update
,
Industry Indicators
,
Business Challenges
,
Trends and Opportunities
,
Call Preparation Questions
,
Financial Information
,
Industry Forecast
,
Industry Websites
,
Glossary of Acronyms