Fueling Governments. Gas, Oil and other Purchases.

While governments throughout the U.S. are making millions of dollars in gas and oil leases, businesses are benefitting greatly through government agency purchases of oil, gas, diesel, and a variety of other related products. That’s right. Ordinary citizens in the United States are in no way the only consumers of fuel products in this country. In 2015, according to the U.S. Energy Information Administration (EIA), “the United States imported approximately 9.4 million barrels per day (MMb/d) of petroleum from about 88 countries.”

Despite those figures, that leaves a lot of room for domestic production, with a huge customer base at the ready.

With our headquarters in Texas, and the greater Houston area nearby, our surrounding area serves as ground zero for a significant portion of the petroleum industry in the United States. As a result, we have a somewhat unique awareness of this industry. Moreover, and as would be expected, local and regional news provides a substantial degree of coverage for the industry.

To further elevate this topic in our consciousness, the client support team I lead at BidPrime communicates daily with businesses involved in providing gas, oil, diesel, propane, and other petroleum industry products, equipment, and services to state, local, military, and federal agencies. Fuels are needed to keep vehicles moving, aircraft flying, facilities heated, etc., but governments require these resources for a variety of other reasons as well. Our marketing team created the infographic found below, while I led a research team that compiled the bid request/RFP data and applicable inquiry and analysis.

Ranken Energy projects that we each consume petroleum products at a rate of three-and-a-half gallons of oil and more than 250 cubic feet of natural gas per day each! Again using EIA as our source, “of the 7.13 billion barrels of total U.S. petroleum product consumption in 2015, 47% was motor gasoline (includes ethanol), 20% was distillate fuel (heating oil and diesel fuel), and 8% was jet fuel. With literally 1,000’s of products made from petroleum, that leaves a lot of relevant purchasing activity by U.S. public sector entities.

Overview of bid request activity for fueling U.S. governments: