Do You Know What the PADD Does for the Oil & Gas Industry?Posted on October 23, 2015 by Amy Jerina
If you answered yes to the title of my blog this week, gold star for you! I'm just a little over a year in the oil and gas industry. I had no idea what PADD stood for. With all the current hoopla tied to the possible abolishment of the 40 year old oil export ban I stumbled onto some articles pertaining to the PADD. I think there is some interesting history tied to our industry, so of course, I felt I should share with my readers.
So what the heck does PADD even stand for? It is the Petroleum Administration for Defense Districts, or PADDs. This administration was established during World War II to help organize and, if needed, ration all the different petroleum produces that were being used as fuel such as gasoline and diesel. The PADD established in 1942 as an executive order and at the time was called the Petroleum Administration for War. The PAW was abolished in 1946. However, four (4) years later in 1950, Congress created the Petroleum Administration for Defense and just kept the already created 5 districts. Now, the Petroleum Administration for Defense Districts are managed by the U.S. Department of Interior's Oil and Gas Division.
As the map above shows, there are five (5) different districts.
- PADD 1 covers the east coast from Maine to Florida. Due to the number of people and extent of this District, it is further broken down into three sub districts.
- PADD 1A covers New England, including Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.
- PADD 1B covers the Central Atlantic region including Delaware, the District of Columbia, Maryland, New Jersey, New York, and Pennsylvania.
- PADD 1C covers the Lower Atlantic, including Florida, Georgia, North Carolina, South Carolina, Virginia and West Virginia.
- PADD 2 covers the Midwest. This district includes Indiana, Illinois, Iowa, Kansas, Kentucky, Minnesota, Nebraska, Michigan, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, and Wisconsin.
- PADD 3 covers the Gulf Coast including Alabama, Arkansas, Louisiana, Mississippi, New Mexico and Texas.
- PADD 4 covers the Rocky Mountain region including Colorado, Idaho, Montana, Utah, and Wyoming.
- PADD 5 includes the West Coast. Alaska, Arizona, California, Hawaii, Nevada, Oregon, and Washington.
Two additional Districts (PADDs VI and VII) cover U.S. territories around the world.
Since we no longer ration fuel, AT ALL! You may be asking what is the point of the PADD now? It has become a data collection and analysis tool. Learning where distribution and consumption of fuels are happening around the country is important. It is a great way for the industry to spot trends and patterns happening in each individual district instead of trying to look as the country as a whole.
Topics ranging from the impact of Gulf Coast hurricanes to the Keystone pipeline are easier to understand with this insightful data collection.
Fuel wholesalers, retailers, refineries and producers need to understand how fuel moves within the country. This knowledge helps to understand the problems with supply and demand that occur occasionally.
The graphs below are a bit out of date but they give a perfect example of tracking data of petroleum products moving between the different districts.
So now we all know that if there is a civil war and we all have to deal with a post-apocalyptic situation like Hunger Games, we already have our districts figured out. Big load off your mind, right?! I wonder who would be the capital district, PADD 3 maybe? We do have the biggest supply.....
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Amy Jerina is an Account Representative with Croft Production Systems which is located in Needville, Texas. At Croft she focuses on growing existing customer relationships & helps to develop new client prospects. With a focus on increasing sales of the organization’s products & services. Amy also works with the marketing & business development team members in the office to ensure CROFT is meeting its client needs. She collaborates with field representatives & engineers as a liaison between the company & clients. Amy provides unlimited support to customers over the phone & is able to conduct field visits with clients located in the Continental United States. Amy has over 10 years of management, training & sales experience & over 15 years of customer service skills. She is using this experience to break into the oil & gas industry. By writing this weekly blog Amy is growing her oil & gas knowledge and hope to share that knowledge with anyone who wants to learn.