The Journey of Oil

From the Field to the Refinery With Integrated Services & Logistics

Introduction

A Well-Oiled Machine

Every oil field in the world, from Brazil to Colombia to Africa to the North Sea, produces a different quality of crude oil. Supplying Ergon’s specialty refineries requires sourcing and transporting rare crude from around the globe through a finely tuned logistics network built on industry relationships, internal collaboration and the highest standards of safety.

The responsibility for making sure the right crude reaches the right place at the right time belongs to the teams within Ergon’s Integrated Services & Logistics companies.

The journey begins with the Ergon Oil Purchasing (EOP) Team that identifies and secures crude to supply our refineries. When a promising crude is identified, a is reviewed by the lab team at the Ergon Refining Pilot Plant in Vicksburg, Mississippi. If the data looks favorable, samples are tested. Only after rigorous evaluation does Ergon move forward with a purchase.

In this story, we follow one of the largest crude purchases in company history to see how Ergon teams work together to move quality crude safely throughout our part of the supply chain.

Part I

The Right Crude

Darden Bourne hard at work — *Darden Bourne,*

Senior Crude Trader

Ergon Oil Purchasing

Senior Crude Trader Darden Bourne brings more than 40 years of industry experience and a global network of contacts to EOP. Known to some as “Professor Bourne,” he can name at least one crude grade per oil-producing country, including its price per barrel and the geopolitical forces it fuels.

Ergon’s specialty oil refinery in Vicksburg is a special place, said Darden. We make a very particular type of high-value base oil that has specific chemical characteristics. The refinery requires a special type of crude known as a crude that’s hard to find and available in limited supply. Virtually any other type of crude would result in an off-spec specialty oil.

Pure naphthenic crudes are limited worldwide. Ergon sources much of our supply from the North Sea and West Africa.

One oil field lies about 80 miles off the coast of Angola, Africa. From this location, about 7,000 miles from Vicksburg, Mississippi, Ergon sources some of the high-quality naphthenic crude essential to producing our slate of specialty oil products.

In October 2024, Darden secured 950,000 barrels of naphthenic crude from an offshore field near Angola in a $70 million transaction. At that time, it was one of the largest single cargos in company history.

“The oil trading industry is old school, in a positive way … It’s based on relationships. This is a high-value business dealing with a lot of money, and I think it's a human characteristic to want to do that kind of business with people you know and trust. Building those kinds of relationships takes face-to-face, personal interaction.”

Darden Bourne, Senior Crude Trader, Ergon Oil Purchasing

Success in specialty crude trading depends on more than product knowledge.

The oil trading industry is old school, in a positive way, said Darden. It’s based on relationships. This is a high-value business dealing with a lot of money, and I think it's a human characteristic to want to do that kind of business with people you know and trust. Building those kinds of relationships takes face-to-face, personal interaction.

The Sweet Spot

While knowing what to buy and maintaining relationships are important, timing matters just as much.

The decision when to close the sale is based on EOP and leadership at the refinery working together to identify the needs of the refinery and of Ergon’s customers, the amount of crude required to fill those needs and the ideal timing for the crude delivery.

Between the field and the refinery, how many teams “touch” a barrell of oil?

Seller
Trader
Ship Logistics
Lightering Crew
Customs Inspectors
River Pilots
Terminal Crew

Miles

7.2K

Miles

Right Place and Right Time

Once purchased, the crude was loaded onto a Suezmax tanker capable of transporting nearly one million barrels. From the Angolan coast, the 20-day voyage began toward the Gulf of Mexico.

While Darden remained involved, day-to-day oversight shifted to EOP Contract Manager Jera Hood. From loading to arrival at Ergon’s St. James, Louisiana, terminal (Ergon - St. James/St. James), she tracked every detail.

Part of Jera’s role is clearing a Suezmax for making the trip and giving instructions for the voyage. The ship tanks will need to be stripped of any remaining oil from its previous cargo before loading. After loading she monitors multiple daily emails from the ship Captain as well as the Agent and Inspectors nominated to help deliver the Suezmax to the Gulf for lightering. As the ship nears the Gulf, two more vessels (Aframax’s) will need to be cleared for the lightering operation before making their way up river to Ergon St James.

The dock at Ergon St James has very specific draft and dimension requirements Jera said. I like to be sure Shane is OK with anything coming his way.

Jera Hood smiles in natural light — *Jera Hood,*

Contract Manager

Ergon Oil Purchasing

When the Suezmax reached the Gulf, it anchored at the Southwest Pass. Because the vessel was too large to travel up the Mississippi River, two smaller Aframax tankers each conducted a roughly 12-hour ship-to-ship transfer known as

A fully loaded ship might have as little as three feet of space between the bottom of its hull and the river bottom. Constant communication with the ships’ pilots ensured the vessels can safely travel through shallow areas, or if the river is high, beneath bridges. The safety of the ships’ pilots and crews, many of whom have a longstanding relationship with Ergon, is the top priority.

With the lightering complete, the first Aframax began its journey from the Gulf up the Mississippi River to the St. James terminal, after which, the second Aframax began the 12-hour lightering process.

Before and throughout this process, Jera works to ensure everything is in order to clear the shipments through U.S. Customs before entering U.S. waters. Once on U.S. waters, the ship captains that bring the vessels to the U.S. turn them over to pilots who take them from Southwest Pass to Ergon’s dock at St. James.

Part II

Arriving at St. James

From Dock to Tank, Going with the Flow

Ergon’s St. James terminal (Ergon - St. James/St. James) includes a quarter-mile dock on the Mississippi River and a tank farm with eight storage tanks totaling two million barrels of capacity. The largest tank stands 34 feet tall and 343 feet in diameter — about the size of a football field including the end zones — and holds 550,000 barrels. The remaining tanks hold between 100,000 and 300,000 barrels each.

When barges or tankers arrive, crude is transferred from the vessels into storage tanks where it remains until needed at Ergon’s refineries.

St. James is a critical link in the Ergon supply chain. If operations stalled, vessels arriving from around the world would have nowhere to offload cargo and refinery supply would quickly tighten.

While the process may sound straightforward, transferring crude is complex and demands constant monitoring and strict safety standards. Commerce on the lower Mississippi River represents billions of dollars in activity, and the St. James Team’s focus on consistency and safety helps keep that commerce moving.

Shane Rougee on the job site — *Shane Rougee,*

Facility Manager

Ergon St. James

The transfer process is managed by a skilled Operations Team with more than 90 years of combined experience, led by Facility Manager Shane Rougee. Shane has worked at St. James since 1991 and understands both the operation and the rhythm of the river.

Once the boat gets a quarter of a mile from the facility, it’s no longer under power. And boats don’t have brakes, said Shane. Tugboats assist it to the dock. There’s a docking pilot on board the vessel who communicates with the tugs, and they work together to guide the vessel safely to the loading arm we instruct them to use.

The terminal has three hydraulic loading arms that connect to a 30-inch pipeline running from the dock to the tank farm. Once secured to capstans, the Aframax ship remains in place for a transfer that can take up to 24 hours.

Once the ship is secured, my team boards the vessel for a pre-transfer conference with the master of the vessel, Shane said. They go over all of the safety protocols and discuss the

An independent inspection company gauges each compartment before transfer begins, ensuring the cargo matches documentation. After safety checks are complete and the loading arm is connected, the crude is transferred/flowed into the tank farm a quarter mile away.

“This is not just an employee I have here. I have a friend here. And I know that friend’s family. I know his wife, his mama, his daddy, his kids and his cousins. So, when it comes to his safety, I’m not just dealing with him. I’m making sure he goes home safe to his entire family."

Shane Rougee, Facility Manager, Ergon St. James

Initial flow rates range from 10,000 to 15,000 barrels per hour while operators check for leaks and verify system integrity. Once confirmed, rates increase to approximately 30,000 barrels per hour.

During the 20- to 24-hour transfer, three operators work 12-hour shifts: one Coast Guard-certified operator monitors vessel levels, one monitors flow rates and one verifies systems and procedures.

When the transfer is complete, an independent inspector once again gauges both the vessel and the tanks to confirm that every barrel has been safely moved.

The entire transfer is a constant, moving verification of every detail, said Shane. If you’re pumping gas into your car and you put too much in, you get a little splash. If you’re transferring oil at 30,000 barrels an hour, with each barrel holding 42 gallons, and you have a leak, you've just shut down business and traffic on the Mississippi River for at least a 100-mile radius — that could be billions of dollars. And you’ve caused an environmental hazard that could take years to correct.

Our operators have a responsibility not only to keep Ergon’s business moving and our facility safe, but a responsibility to the businesses along the river, as well as the river itself, Shane continued. It's a critical job and they don’t take it lightly.

The Key Word Is Safety

From slippery docks and gangways to metal ladders leading to tank tops, the terminal presents constant hazards, often compounded by darkness or severe weather.

We train constantly on safety, said Shane. We detail why your job is important, why you follow the steps we lay out and what the consequences can be if you don’t follow those steps. No one, including operators who’ve been here for 30 years, is allowed to get complacent.

Most of my crew members grew up together, and we’ve worked here together for a long time, Shane added. This is not just an employee I have here. I have a friend here. And I know that friend’s family. I know his wife. I know his mama, his daddy, his kids and his cousins. So, when it comes to his safety, I’m not just dealing with him. I’m making sure he goes home safe to his entire family. That’s on everyone’s mind here at St. James. We’re a family, and everybody here is looking out for everybody else.

Calendar on the month of February — 24/7, 365 Days a Year

In a typical year, the St. James terminal handles 12 to 15 tanker transfers and averages one barge delivery per day. Operations run 24 hours a day, seven days a week, year-round, including holidays. The only exception is a hurricane.

Part III

Reaching the Refinery

As with every step in the oil transportation business, timing is critical. If crude arrives at the refinery too early, storage may be limited. Too late, and supply tightens. The Ergon Oil Purchasing (EOP) Team coordinates with Magnolia Marine Transport Company (Magnolia Marine or MMT) to ensure the crude is transferred from St. James to Vicksburg at exactly the right time.

Barging In

Over his 18 years with the Ergon family, Chris Eldridge has served in multiple roles including Maintenance Engineer, Terminal Manager and Regional Manager. Today, as Operations Manager for EOP, he oversees crude from the field across oceans and rivers to Ergon’s refinery, working closely with Magnolia Marine to keep product moving.

Everything on my end begins with my relationship with the refinery team and my understanding of their needs, said Chris. From there, I work with MMT to ensure the crude is delivered to the refinery on time.

Chris Eldridge smiles in natural light — *Chris Eldridge,*

Operations Manager

Ergon Oil Purchasing

With a fleet of more than 30 towboats and over 110 barges, MMT operates one of the largest transportation fleets on the U.S. inland waterways and Gulf Intracoastal canals.

Careful planning ensures that these vessels, constantly moving up and down the inland waterways, are in the right place and at the right time, meet today’s needs and always ready for tomorrow’s new journey. In nearly six decades of operation, Magnolia Marine has never faced a significant risk of the refinery running out of crude, a testament to disciplined coordination and a strong safety culture.

Sam Thigpen, Vice President — Sales & Marketing for MMT began working for Magnolia Marine as a youngster, moving from a part-time parts runner to his current leadership role.

I’ve just enjoyed the challenge of tracking a large fleet of boats and barges over more than 5,000 miles of inland waterways, said Sam. We’re working with multiple customers, each with pressing deadlines — just like our Ergon refinery — all while ensuring the safety of our crews and the integrity of the product as it reaches its destination.

Sam Thigpen, Vice President — Sales & Marketing, MMT

Mile

437

Mile

Rolling on the River

The St. James terminal sits at mile 160 on the lower Mississippi River. The Vicksburg refinery is located near mile 437, off the river along the Yazoo Canal. When it is time to move crude, Chris contacts Sam to initiate the transfer using MMT towboats and barges.

We send exactly the number and type of barges needed to move the specific amount of crude required, said Chris. The number one job is to keep the boats moving. If they’re tied up at the dock, it adds costs all the way down the supply chain — and the refinery feels it first.

The trip between St. James and Vicksburg covers 277 river miles and takes about three days upriver. Each barge, roughly the length of a football field, carries tens of thousands of barrels. Loading typically requires 24 - 36 hours depending on conditions.

Barges are arranged in a specific configuration for safety and efficiency. A with a long, angled bow leads the tow, followed by rectangular box barges. Even at a steady six miles per hour, coordination is constant.

Blueprint style drawing of towboat and barge formation

A crew of 7 - 10 operates the towboat and barges. Captains and pilots run the vessel from the wheelhouse. Engineers maintain engines, generators, pumps and heaters. A mate oversees deckhands who rotate watch 24 hours a day, inspecting cables, lines and winches. Life aboard is team-driven, with everyone contributing to daily operations.

As the tow approaches the refinery, precision matters most. Barges do not have brakes, and safe docking depends on the experience of a seasoned captain.

Captains often spend years working their way up from deckhand, learning navigation and river conditions from veteran leaders. With steady hands and steady nerves, they guide the 120-foot towboat and the barges behind it safely to the refinery dock.