Selling Your Crude to Oleum Operations

We purchase crude oil directly from producers operating across East Texas, Arkansas, Louisiana, and southeastern Oklahoma. Here is exactly what to expect — from first contact through monthly settlement.

How It Works

From Lease Tank Battery to Settlement

Our process is built around the producer — not the other way around. We schedule around your run schedule, test at your tank battery, and settle on a transparent monthly cycle with no surprises.

Initial Contact & Volume Assessment

Reach out by phone or email to discuss your production volumes, lease location, and frequency of available crude. We will determine whether your crude falls within our purchasing parameters and set up an initial site visit or sample request if needed.

Pickup Scheduling & Route Coordination

Once a purchasing arrangement is in place, our logistics team schedules regular pickups directly from your lease tank battery. We coordinate around your run schedule and production cycle — you are not waiting on a third-party broker to find a truck.

On-Site Testing at the Tank Battery

Our driver or field representative performs quality testing at the time of pickup, directly at your lease. Results are documented on a run ticket and shared with you at the time of load. No surprises at settlement.

Load & Run Ticket Documentation

All crude is loaded under a documented run ticket that includes the gross and net volumes, BS&W percentage, API gravity, and load timestamp. This ticket is your record and ours — it forms the basis for settlement.

Settlement & Payment

Payment is made on a monthly settlement cycle based on the WTI monthly average posted price for the delivery month, adjusted for quality. We do not delay settlements or issue retroactive deductions without prior notice.

Quality Testing

What We Test For at Pickup

BS&W and API gravity are tested at the lease tank battery at time of load. Results are documented on the run ticket and provided to the producer on-site. These measurements directly inform pricing adjustments and are conducted to recognized ASTM standards.

BS&W — Basic Sediment & Water

Basic Sediment and Water content is measured using a centrifuge test at time of pickup. BS&W directly impacts your net payment volume — crude with elevated water content is measured and documented accordingly.

API Gravity

API gravity is measured on-site at the time of each load using a hydrometer carried on the truck. The reading is taken at the tank battery before the load is finalized and recorded on the run ticket provided to you at pickup.

Pricing Structure

How We Price Your Crude

Oleum Operations prices crude oil against the WTI Monthly Average — the arithmetic average of all daily WTI NYMEX front-month settlement prices during the calendar month of delivery. This is a straightforward, transparent benchmark that producers can independently verify.

Quality adjustments are applied based on the API gravity and sulfur content of each individual load, as measured at the lease. These adjustments are agreed upon in advance and documented in your purchasing agreement — there are no retroactive deductions applied without prior disclosure.

Settlement statements are issued within a reasonable time following month-end and include a full load-by-load breakdown of volumes, quality measurements, pricing, and any applicable deductions.

Pricing Basis

WTI NYMEX Monthly Average

Delivery Month

Calendar month of physical load

Quality Differential

Based on API gravity & sulfur at load

BS&W Deduction

Net volume basis — water not purchased

Settlement Cycle

Monthly, following calendar month-end

Settlement Detail

Load-by-load volume and quality breakdown

Retroactive Deductions

None without prior written notice

Who We Buy From

Producers of All Sizes

Single-Well Operators

We do not have minimum volume requirements. If you have a producing well and need a consistent buyer, we can work with you.

Multi-Lease Operators

We accommodate operators with multiple producing leases across different locations in our service area.

Independent Producers

We work directly with independent operators — no intermediary required. You deal with the people who are actually buying and moving the crude.

Service Area

East Texas, Arkansas, Louisiana, and southeastern Oklahoma. Contact us to confirm coverage for your specific lease location.

Ready to discuss a purchasing arrangement?

Contact our team with your lease location, estimated volumes, and production schedule.