32411 - Petroleum Refineries
The North American Industry Classification System (NAICS) code 32411 plays a crucial role in identifying the petroleum refining sector within the manufacturing industry. Whether you're a business owner, government contractor, or researcher, understanding this code helps classify establishments refining crude petroleum into essential products like gasoline, diesel, and lubricants. In this blog post, we'll dive deep into NAICS 32411 - Petroleum Refineries, its scope, sector, and the types of businesses it encompasses.
What Is NAICS Code 32411?
NAICS code 32411 is designated for Petroleum Refineries, a specialized category within the manufacturing sector. This industry comprises establishments primarily engaged in the chemical and physical transformation of crude petroleum into various refined petroleum products.
Key Activities Under NAICS 32411:
- Distillation of crude oil
- Cracking processes (breaking down complex hydrocarbons)
- Reforming hydrocarbons to improve fuel quality
- Producing gasoline, diesel fuel, jet fuel, and lubricants
These processes convert raw crude petroleum into usable products crucial for transportation, heating, and industrial uses.
Sector and Typical Business Activities
Sector: Manufacturing
Within this sector, NAICS 32411 represents businesses that operate large-scale refinery operations, working with complex chemical engineering and mechanical processes to produce finished petroleum products.
Typical Business Types and Activities:
- Crude oil refining: Processing raw crude oil into marketable fuels.
- Production of gasoline and diesel fuel: Creating core energy fuels for vehicles.
- Manufacture of lubricants and other petroleum-based products: Producing specialty oils and greases used across various industries.
These businesses form an essential part of the energy supply chain and support numerous downstream industries.
Size Standards for NAICS 32411 Eligibility
To qualify under NAICS 32411 for government contracting or statistical purposes, the Small Business Administration (SBA) sets specific size standards based on annual receipts.
| Attribute | Size Standard |
|---|---|
| Employee Count | Not typically used (refineries are generally large-scale) |
| Annual Receipts | $38.5 million or less (for small business classification) |
Note: Because petroleum refining requires significant capital investment, most refineries do not fall under small business classifications, but smaller petroleum product manufacturers might.
Examples of Businesses Under NAICS 32411
- Large-scale petroleum refining companies: Operating extensive facilities that convert crude oil to multiple petroleum products.
- Mid-sized refineries: Regional players refining specialized fuels or products.
- Petroleum-based lubricant manufacturers: Producing various grades of engine oils, hydraulic fluids, and greases.
Examples include major oil companies with refinery operations, independent refining firms, and manufacturers focused on synthetic lubricants.
NAICS Code 32411 Summary Table
| NAICS Code | Title | Sector | Description | Size Standard (SBA) | Typical Business Types |
|---|---|---|---|---|---|
| 32411 | Petroleum Refineries | Manufacturing | Establishments refining crude petroleum into gasoline, diesel, jet fuel, lubricants via distillation, cracking, reforming processes | $38.5 million annual receipts for small business | Crude oil refining, fuel production, lubricant manufacturing |
Frequently Asked Questions (FAQ) About NAICS 32411
1. What products are made by businesses classified under NAICS 32411?
Businesses primarily produce gasoline, diesel fuel, jet fuel, lubricants, heating oils, and other petroleum-based products.
2. Does NAICS 32411 cover the distribution of petroleum products?
No, NAICS 32411 specifically covers refining activities. Distribution and wholesale fall under different NAICS codes.
3. Can small businesses be classified under NAICS 32411?
Yes, if their annual receipts do not exceed $38.5 million, they can be considered small businesses under this code. However, due to the capital-intensive nature of refining, most refineries are large enterprises.
4. What processes do petroleum refineries typically use?
Common refining processes include distillation, catalytic cracking, reforming, and treating to convert crude oil into usable products.
5. Which sector does NAICS code 32411 belong to?
It belongs to the Manufacturing sector.
Conclusion
NAICS code 32411 - Petroleum Refineries represents a vital manufacturing industry segment responsible for transforming crude oil into essential products like gasoline and lubricants. Understanding this NAICS code helps businesses and government agencies classify refinery operations properly for regulatory, statistical, and contracting purposes. By recognizing the characteristics, typical activities, and size standards of this industry, stakeholders can better navigate the complex energy manufacturing landscape.
For more insights on government contracting and industry classifications, stay tuned for our future posts!
