[Willie Green]

By your definition only the refinery has created any value. Is that correct?

Other than the labor that was utilized to actually extract the oil from the ground, that is correct.
One can also validly claim that wealth was created by those who constructed the well head, the pipeline, the terminals, the tankers and the refinery. Those are all examples of the creation of wealth. But as far as the actual production of petroleum products, you are correct, only the extraction of the oil and the refinery are value-added. The transport of the oil does not add value.

[ffusco]

The transport of the oil does not add value.

Wrong again WG.

Oil that Isn't available to the consumer has no value to him. Oil that is delivered to my home for heating does have added value. It is useable to do work. Oh what's the use even trying .....

[Toddsterpatriot]

The transport of the oil does not add value.

So, if there is no added value, why is oil at the refinery more valuable than at the well head in Saudi Arabia?

[SauronOfMordor]

The transport of the oil does not add value.

If I'm thirsty in the desert, a gallon of water in a supermarket a hundred mailes away from me has no value TO ME. But a gallon of water in my hand DOES have value TO ME. The act of transporting the gallon of water TO ME so I can USE IT, has indeed added value.

Value is not an intrinsic property of an object. The value of an object is relative to a person, otherwise trade would not occur.