Residual fuel is what remains after the distillate fuel oils and lighter hydrocarbons are distilled away in the refining process. The refining process results in residual fuel of various grades, including No. 5 and No. 6 fuel oils.
Residual fuel is used for numerous applications: steam-powered vessels, inshore power plants, electric power production, space heating, vessel bunkering and various industrial purposes. The major consumers of residual fuel and the market share each represents are: utilities, 45 percent; bunkers, 36 percent; commercial and industrial, 18 percent.
Residual fuel is among the least expensive liquid fuels available. The total demand for residual fuel is in excess of 300 million barrels per year. Demand for residual fuel oil is driven by several factors, including general economic conditions, weather and the price of natural gas.
The value of residual fuel typically trades between that of coker feedstock, which is driven by unleaded gasoline, and its BTU value at the burner-tip markets.
SemGroup’s Involvement
With an industry legacy of more than 75 years, SemMaterials has extensive experience in marketing and supplying the finest residual fuel to United States and Canadian customers. SemMaterials employees have the resources to deliver fuel when it’s needed, on short-term, long-term or spot-sale basis.
The heavy fuel can be blended/stored at SemMaterials terminals located throughout the United States to meet the specific needs of industrial customers from coast to coast. For additional information, please see the menu on the left side of this page for options.