4861 - Pipeline Transportation of Crude Oil

The transportation of crude oil is a critical component of the energy supply chain, enabling the movement of this vital resource from production sites to refineries and storage facilities. NAICS code 4861 specifically covers the Pipeline Transportation of Crude Oil, a sector essential for maintaining efficient, safe, and reliable crude oil transport. Whether you’re a business owner, contractor, or industry professional, understanding NAICS 4861 is crucial for navigating government contracting opportunities, regulatory compliance, and market analysis.

What Is NAICS Code 4861? Definition and Scope

NAICS code 4861 refers to establishments primarily engaged in the pipeline transportation of crude petroleum. These companies operate the infrastructure required to efficiently move crude oil via pipeline systems, typically spanning large geographical distances.

Key Aspects Covered by NAICS 4861:

• Transporting crude oil through pipelines from extraction points to refineries
• Providing intermediate transportation to storage terminals or distribution centers
• Ensuring maintenance, inspection, and safe operation of crude oil pipelines

This NAICS code does not include pipelines for refined petroleum products or natural gas, which are covered under other specific NAICS codes.

Sector: Transportation and Warehousing

The pipeline transportation of crude oil is classified under the Transportation and Warehousing sector. This sector includes a broad array of activities centered on moving goods and materials, managing logistics, warehousing, and storage.

Common Business Activities under NAICS 4861

• Operating long-haul crude oil pipeline networks
• Pipeline inspection and routine maintenance services
• Managing crude oil logistics and scheduling for transit
• Environmental compliance and safety monitoring related to pipeline operations

Small Business Size Standards for NAICS 4861

Understanding the size standards is crucial for businesses seeking certifications and eligibility for government contracts.

NAICS Code	Industry Title	Size Standard (Employees)	Size Standard (Annual Receipts)
4861	Pipeline Transportation of Crude Oil	1,500 employees (average annual)	$38.5 million (if applicable based on contract)

Note: The small business size standard for pipeline transportation, including crude oil, typically focuses on average employees over a 12-month period, providing a benchmark for eligibility in small business programs.

Examples of Businesses Under NAICS 4861

Here are some examples of typical businesses classified under NAICS 4861:

• Crude Oil Pipeline Operators: Companies owning and operating the pipelines for moving crude oil across states and regions.
• Pipeline Maintenance and Inspection Services: Specialized firms that provide repair, inspection, and monitoring services to ensure pipeline safety and regulatory compliance.
• Crude Oil Transportation Logistics Providers: Businesses managing the scheduling, routing, and coordination of crude oil pipeline shipments.

NAICS Code 4861: Full Code Details Table

Element	Description
NAICS Code	4861
Title	Pipeline Transportation of Crude Oil
Sector	Transportation and Warehousing
Description	Pipeline transportation of crude petroleum from production sites to refineries or storage facilities.
Examples	Crude oil pipeline operators, pipeline maintenance, inspection services, transportation logistics
Small Business Size Standard	1,500 employees (average annual number)

Frequently Asked Questions (FAQ)

What types of pipelines are covered under NAICS 4861?

NAICS 4861 covers pipelines transporting crude oil exclusively, not refined petroleum products or natural gas.

Can a company that both operates pipelines and provides maintenance be classified under NAICS 4861?

Yes. Businesses that operate the pipeline and provide related maintenance and inspection services fall under this NAICS code if crude oil transportation is their primary activity.

Why is knowing the NAICS code important for businesses in pipeline transportation?

Identifying the correct NAICS code enables businesses to qualify for government contracts, participate in relevant small business programs, track industry statistics, and optimize their marketing strategies.

What is the significance of size standards in NAICS 4861?

Size standards determine eligibility for small business certifications and government procurement programs, which can open up additional contracting opportunities.

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Understanding NAICS code 4861 – Pipeline Transportation of Crude Oil is vital for companies involved in crude oil logistics, operators, and service providers. This code not only defines industry classification but also guides businesses through compliance, contracting, and strategic market positioning within the crucial Transportation and Warehousing sector.