Marianna Pararaga and Gary McWilliams

(Reuters) – One of America’s largest diesel retailers has assembled a fuels processing, trading and distribution machine that can transform a truck stop operated by Warren Buffett (NYSE:) into the Walmart of petroleum.

Pilot Company is best known for its Pilot Flying J service stations. The company has also hired experienced energy traders to expand into Latin America’s fuels market. Buffett has been a key figure in the expansion of Pilot Company’s capabilities to buy, distribute, and market fuels.

Shameek Konar is a Castleton Commodities former executive and this year was made Pilot’s chief executive. He stated that its moves into international markets, oil trading, and processing are complementary to the North American retail operation.

Konar said, “What is going on in markets, agricultural markets? It is important.” He said that the best way to see spreads in markets is to be there, referring to trades on fuels and feedstocks.

Strategy consultants say that Pilot’s strategy shows a decline in conventional motor fuels sales in North America, which has encouraged retailers to seek growth in other markets.

After Buffett’s Berkshire Hathaway, (NYSE:), took a 39% interest in Pilot and committed to increasing its stake to 80% by 2023, the expansion was underway. Berkshire invested separately in Japanese commodities trading companies after the Pilot agreement.

Greg Abel (head of Berkshire Energy) declined to discuss how energy trading fits in with Berkshire Investments.

A MOVE INTO MEXICO

Pilot’s international trading began with deals in Mexico, and other Latin American nations. A person with knowledge of the matter said that it plans to start gasoline distribution in Mexico.

The trading arm of the company is the biggest U.S. startup in energy commodities since Freepoint Commodities launched in 2011, according to a consultant. This was due to his work with other energy firms.

Tennessee-based firm’s petroleum and oil trading has about 100 employees. That is a small number compared to the larger companies Freepoint Commodities Mercuria and Vitol.

It has added financial traders and Mexican diesel supply specialists from Vitol, Noble Group and Vitol to the company’s business. Exxon Mobil People familiar with the company said that it is (NYSE:).

Pilot purchases 750,000 barrels per day of gasoline and diesel for U.S operations. Konar said that the expansion to Latin America gives them a “good outlet for their product.”

Latin America’s push comes at a time when other traders have been embroiled within scandals.

BIODIESEL PUMP

Konar reported that Pilot, one of the biggest U.S. biodiesel buyers, is now evaluating stakes for biodiesel processing businesses.

While he didn’t rule out buying an oil refining plant, it is not his top priority at the moment.

Tony Portera from BCG Business Consulting, the managing director, says that as oil refiners expand their sales, fuel retailers have made a move into production. Parkland Fuel Corp purchased a Chevron The refinery is located at (NYSE) while the oil processors Irving Corp. and Royal Dutch Shell (LON) purchased retail outlets.

Brian Gray is the head of Accenture’s convenience and global fuel retail consulting.