Crude oil is refined into many petroleum products so refineries at production areas need a complex and expensive distribution system to get these products to the end users. Transporting crude oil, by pipeline or supertanker, from production regions to refineries in more convenient locations is far cheaper.
The working life of a refinery is usually greater than the reserves of oil in any one production area so it doesn't often make sense to site the refinery at the well head, and there are also other reasons, such as geographical convenience, maintenance convenience, and political clout, which lead refineries to be sited where they are.What and why are the reasons for oil companies deciding to base oil refining remote from areas of production?.
To centralize the operation. This has 2 benefits. Bring in oil from several locations (i.e. off-shore and inland) in order to have a central shipping hub of operations. Also, you cut down on having to build multiple facilities, which lowers cost.
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