Crude oil is the term used for oil that is taken straight out of the ground. Crude oil is a "fossil fuel," which means that it formed from organic remains over a period of millions of years. Crude oil can be refined into various forms of energy such as gasoline, diesel fuel and heating oil. It also is a key component in a broad variety of products. For example, crude oil is an important ingredient in plastics, medicines, crayons and tires. About 90 percent of the world's energy consumption comes from fossil fuels. In the United States, approximately 40 percent of all energy used comes from various petroleum products that start out as crude oil.

SemGroup Energy Partners’ network of crude oil assets provides customers the flexibility to access multiple points for the receipt and delivery of crude oil. We do not take title to, or take marketing responsibility for, the crude oil that we gather, transport, terminal and store. We generate revenues by charging a fee for services provided at each transportation stage as crude oil is shipped from its origin at the wellhead to its destination. Final destination points include storage terminals, such as the Cushing Interchange, refineries in Oklahoma, Kansas and Texas, or to pipelines.

SemCrude, L.P. is our primary customer and, pursuant to a Terminalling Agreement, pays SemGroup Energy Partners a fee based on the number of barrels we terminal or store for SemCrude. The company also has committed to utilize our services at certain minimum levels.