Definition - What does Throughput Volume mean?
Throughput Volume, also known as Throughput, is the total volume of crude oil that is actually available to the buyer after transfer from seller to buyer. This crude oil can be processed to more useful petroleum products. If the trade takes place between natural gas, then the throughput volume of natural gas would be the actual amount of natural gas which is available to the buyer.
Petropedia explains Throughput Volume
For crude oil, the throughput volume can be expressed in terms of Crude Throughput and Refinery Throughput.
Every oil refinery is designed and constructed with certain refining capacities. The higher the refining capacity of a refinery, the more complex nature of a refinery would be, and thus, the higher the Nelson’s Complexity Number of a particular refinery. This means that the complex refinery would able to process more volume of crude oil and have higher refining capacities and throughput. Refining throughput is therefore, the maximum volume of crude oil which is converted into more useful petroleum products in large volumes or large refinery throughput, thereby providing higher gross refinery margins.
Since the refining throughput is higher for a complex refinery, it will definitely tend to purchase large volumes of crude oil and thus, the crude throughput will also be higher for such refinery.