california transportation fuel overview & changing … › ... › 2018 › 08 ›...

49
California Transportation Fuel Overview & Changing Crude Oil Trends Prevention First 2014 Long Beach, CA Crude by Rail/Pipeline Session October 7, 2014 Gordon Schremp Energy Assessments Division California Energy Commission [email protected]

Upload: others

Post on 03-Jul-2020

0 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

California Transportation Fuel Overview & Changing Crude Oil Trends

Prevention First 2014 Long Beach, CA

Crude by Rail/Pipeline Session

October 7, 2014

Gordon Schremp Energy Assessments Division

California Energy Commission [email protected]

Page 2: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Transportation Fuel Infrastructure Overview

10/7/2014 2

Page 3: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

California On-road Transportation Fuels

• 14.54 billion gallons of gasoline consumed in 2013

• Base gasoline demand down 13.4 percent between 2003 and 2013 • Ethanol use increasing due to

Renewable Fuel Standard • Ethanol use up to 1.46 billion

gallons during 2013 • 148 percent increase since

2003 • Ethanol accounted for 10

percent of total gasoline gallon during 2013

10/7/2014

0

2,000,000,000

4,000,000,000

6,000,000,000

8,000,000,000

10,000,000,000

12,000,000,000

14,000,000,000

16,000,000,000

18,000,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Gallo

ns

California Gasoline & Ethanol Demand2003 - 2013

Base Gasoline Ethanol

3

Page 4: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

California On-road Transportation Fuels

• 3.48 billion gallons diesel consumed during 2013

• Base diesel fuel demand unchanged between 2003 and 2013 • Biodiesel use increasing due

to Renewable Fuel Standard and the Low Carbon Fuel Standard (LCFS)

• 49 MM gallons during 2013

• Renewable diesel fuel use up to 136 MM gallons during 2013 due to LCFS

• Combined renewable component accounted for 5.3 percent of total diesel gallon

10/7/2014

0

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

3,000,000,000

3,500,000,000

4,000,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Gallo

ns

California Diesel, Biodiesel & Renewable Diesel Demand 2003 - 2013

Diesel Fuel Renewable Diesel Biodiesel

4

Page 5: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Fuel Infrastructure – Key Elements

• The California transportation fuel “infrastructure” consists of several interconnected assets operated by a combination of refiner and third-party companies • Refineries • Pipelines • Marine terminals • Storage tanks • Rail

• Crude oil and petroleum product infrastructure assets are separate and distinct from one another – not interchangeable

• Unlike with the electricity distribution system, Northern California is not directly connected to Southern California

10/7/2014 5

Page 6: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

AnacortesSeattle

Portland

Chico

SF

LA

Bakersfield

LasVegas

Reno

Phoenix

TucsonEl Paso, TX

8

15SD

20

7

1

23

4

5

9

10

18

14

17

11

12Fresno

16 19

6

21

13

22

24

23

Western States – Fuel Flows

10/7/2014

Source: Stillwater Associates.

1 Foreign Imports into Northern California2 Foreign Imports into Southern California3 US Gulf Coast Imports into Northern California4 US Gulf Coast Imports into Southern California5 Ship/barge - San Francisco to Los Angeles6 Ship/barge - San Francisco to Portland7 Ship/barge - Washington to San Francisco and Los Angeles8 Kinder Morgan - San Francisco to Chico9 Truck - Chico into Southern Oregon

10 Kinder Morgan - San Francisco to Reno11 Kinder Morgan - San Francisco to Fresno12 Kinder Morgan - Bakersfield to Fresno13 Truck - Imperial Terminal to Western Arizona14 Kinder Morgan - Los Angeles to Las Vegas15 Kinder Morgan - Los Angeles to San Diego16 Kinder Morgan - Los Angeles to Imperial17 Kinder Morgan - Los Angeles to Phoenix18 Kinder Morgan - El Paso to Phoenix19 Kinder Morgan - El Paso to Tucson20 Longhorn Pipeline (Magellan Midstream Partners, L.P.)21 Ship/barge - San Francisco to Eureka22 UNEV - Salt Lake City to Las Vegas23 Foreign Exports from Southern California24 Foreign Exports from Northern California

6

Page 7: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Key Elements - Refineries

• 3 primary refinery locations • 13 refineries produce

transportation fuels that meet California standards

• 8 smaller refineries produce asphalt and other petroleum products

• California refineries provide majority of transportation fuel to neighboring states

• Process over 1.6 million barrels per day of crude oil

10/7/2014 7

Page 8: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Key Elements - Refineries

• Refineries are a primary hub of logistical activity • Raw materials imported & finished products

shipped

• Crude oil receipts during 2013 received by • Marine vessels (foreign) - 866.1 TBD • Marine vessels (Alaska) – 201.7 TBD • California source via pipelines – 627.0 TBD • Rail/truck – 17.3 TBD

• Process units operate continuously at or near maximum capacity, except during periods of planned maintenance or unplanned outages

10/7/2014 8

Page 9: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Key Elements – Refineries (cont)

• Output from the refineries is usually placed in intermediate tanks prior to blending the finished products

• The majority of gasoline, diesel and jet fuel is shipped from the refinery by pipeline to over 60 distribution terminals

• Tanker trucks then transport fuel to retail & non-retail stations • Several truck trips during 2013

• Gasoline – 39.84 MM gal/day • 4,980 tanker deliveries/day

• Diesel fuel – 9.53 MM gal/day • 1,191 tanker deliveries/day

10/7/2014 9

Page 10: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Key Elements – Pipelines

• Pipelines are used throughout the distribution infrastructure to interconnect key elements

• Intra-state pipelines are used to convey petroleum products within California’s borders

• Interstate pipelines are used to export transportation fuels to Arizona and Nevada • NV – Over 90% of supply • AZ – Over 50% of supply

• As is the case with refineries, pipeline systems normally operate on a continuous basis

• Pipelines can only operate if transportation fuels are available to push liquid through the system

10/7/2014 10

Page 11: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Key Elements - Pipelines (cont) • The pipeline infrastructure in California is controlled by a combination of

common carrier and private companies • Kinder Morgan is the sole common carrier of petroleum product pipelines in

the State and transports the majority of fuels through its system every day • Other companies, such as Chevron, ExxonMobil, Shell, and Tesoro operate

proprietary systems or segments that handle the balance of transportation fuels

10/7/2014 11

Page 12: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Key Elements - Pipelines (cont)

• Kinder Morgan’s Southern California system is not connected to its Northern California system.

• Fuel re-supply by pipeline from Northern California not possible

• Tanker trucks quickest, viable option to bring in additional fuel

10/7/2014 12

Page 13: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Key Elements – Marine Facilities

• Marine facilities are located in sheltered harbors with adequate draught to accommodate typical sizes of petroleum product tankers and crude oil vessels

• Wharves usually have adjacent storage tanks that are used to temporarily hold petroleum products prior to transfer to a subsequent location

• Most refiners operate a proprietary dock • Third party storage provides access to majors and independents

• Kinder Morgan • Pacific Atlantic • NuStar • Petro-Diamond

10/7/2014 13

Page 14: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Key Elements – Storage Tanks

• Storage tanks are vital to the continuous flow of petroleum products into and through California

• Tanks are located at docks, refineries, terminals and tank farms • Tanks serve different storage purposes:

• Unload marine vessels • Receive pipeline shipments • Feed truck-loading facilities • Hold inventories in advance of planned maintenance • Strategic storage that can be used for emergencies or periods of rapid price increases

10/7/2014 14

Page 15: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Rail Logistics - Ethanol • State receives ethanol via rail unit trains at two locations

• Lomita Rail Terminal in Carson • West Colton Rail Terminal

• Ethanol is then trucked to gasoline distribution terminals • – 4.0 MM gal/day during 2013 or 500 tanker truck deliveries/day

10/7/2014 15

Page 16: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

6,296,754

26,415,608

521,948

1,156,898 660,553

122,898 1,460,108 455,410

2013 California Rail Imports (Barrels)

Crude Oil

Ethanol

Biodiesel

Propane

Refinery Feedstocks

Gasoline, Diesel & Jet Fuel

Gasoline Blending Components

Other Unidentified Petroleum Products

Source: California Energy Commission

10/7/2014 16

Ethanol accounted for 71.2 percent of volume during 2013, crude oil 17.0 percent.

Page 17: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Rail Logistics – Other Uses • Refiners use rail cars to routinely ship propane and seasonally

send out and receive butane • Rail cars are also used to deliver refinery feedstock such as gas

oils and sulfuric acid for alkylation units • More recently, California refiners have started using rail cars to

import crude oil from Canada and domestic sources outside the state due to changing trends of increasing oil production and discounted prices

10/7/2014 17

Page 18: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

California Refineries – Crude Oil Sources

10/7/2014 18

Declining CA & Alaska sources replaced by additional foreign imports.

Page 19: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

10/7/2014 19

Page 20: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

10/7/2014 20

Page 21: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

10/7/2014 21

Page 22: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Crude Oil Sources – Southern Calif. Refineries

10/7/2014 22

• Southern California refineries processed 926.8 thousand barrels per day of crude oil during 2013 • 488.4 TBD foreign marine imports • 302.4 TBD pipeline shipments • 122.2 TBD ANS marine imports • 9.5 TBD Canada rail imports • 4.3 TBD domestic rail imports

• Southern California refineries processed 54.2 percent of total crude oil

• Increased crude-by-rail likely to back out marine receipts of similar quality

• Rail capability increases flexibility to enhance supply options & reduces risk of crude oil receipt curtailment

Page 23: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Jan-

1981

Dec-

1981

Nov-

1982

Oct

-198

3

Sep-

1984

Aug-

1985

Jul-1

986

Jun-

1987

May

-198

8

Apr-

1989

Mar

-199

0

Feb-

1991

Jan-

1992

Dec-

1992

Nov-

1993

Oct

-199

4

Sep-

1995

Aug-

1996

Jul-1

997

Jun-

1998

May

-199

9

Apr-

2000

Mar

-200

1

Feb-

2002

Jan-

2003

Dec-

2003

Nov-

2004

Oct

-200

5

Sep-

2006

Aug-

2007

Jul-2

008

Jun-

2009

May

-201

0

Apr-

2011

Mar

-201

2

Feb-

2013

Jan-

2014

Thou

sand

s of

Bar

rels

Per D

ay

US Crude Oil Production Alaska

North Dakota Texas

California + OCS Rest of US

Source: Energy Information Administration (EIA)

8.531 million barrels per dayHighest since July of 1986

3.074 million barrels per dayHighest since 1976 annual average

Chart peak of 9.173 million barrels per day - Feb. 1986All-time peak of 10.044 million barrels per day - Nov. 1970

1.093 million barrels per day

U.S. Crude Oil Production Rebounding

10/7/2014 23

Page 24: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

1,976

857

462

-11 -156

-500

0

500

1,000

1,500

2,000

2,500

Texas North Dakota Rest of U.S. California Alaska

Thou

sand

s of

Bar

rels

Per D

ayChange in Crude Oil Production

January 2010 vs. June 2014

Source: Energy Information Administration (EIA)

U.S. crude oil production has increased from 5.402 million barrels per day in January 2010 to 8.531 million barrels per day during June 2014

10/7/2014 24

Page 25: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

1,130,153

1,516,609

1,680,781

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Jan-

07Ap

r-07

Jul-0

7O

ct-0

7Ja

n-08

Apr-

08Ju

l-08

Oct

-08

Jan-

09Ap

r-09

Jul-0

9O

ct-0

9Ja

n-10

Apr-

10Ju

l-10

Oct

-10

Jan-

11Ap

r-11

Jul-1

1O

ct-1

1Ja

n-12

Apr-

12Ju

l-12

Oct

-12

Jan-

13Ap

r-13

Jul-1

3O

ct-1

3Ja

n-14

Apr-

14Ju

l-14

Barr

els P

er D

ay

Bakken Eagle FordPermian

Source: EIA Drilling Productivity Report

U.S. Crude Oil Production Rebounding

10/7/2014 25

Ghawar (Saudi Arabia) – Peak 5.0 MM BPD in 2005, now 4.5 MM BPD Samotlor (Russia) – Peak 3.0 MM BPD in 1980, now 0.84 MM BPD Burgan (Kuwait) – Peak 2.4 MM BPD in 1972, now 1.7 MM BPD Cantarell (Mexico) – Peak 2.1 MM BPD in 2003, now 0.41 MM BPD Rumaila (Iraq) – Peak 1.6 MM BPD in 1980, now 1.3 MM BPD Safaniya (Saudi Arabia) – Peak 1.5 MM BPD in 1990s, now 1.2 MM BPD Kirkuk (Iraq) – Peak 1.2 MM BPD in 1980, now 0.23 MM BPD Daqing (China) – Peak 1.1 MM BPD in 1997, now 0.75 MM BPD

Page 26: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

863 838

3,220

-838

366

-599

741

-291

621

341

-629

713

209

-395 -100

219

-832-689

259

546

-123

-1,500

-1,000

-500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Saud

i Ara

bia

Russ

ian

Fede

ratio

n US Iran

Chin

a

Vene

zuel

a

Cana

da

Mex

ico

Unite

d Ar

ab E

mira

tes

Kuw

ait

Norw

ay

Iraq

Nige

ria

Alge

ria

Ango

la

Braz

il

Liby

a

Unite

d Ki

ngdo

m

Kaza

khst

an

Qat

ar

Indo

nesia

Thou

sand

s of

Bar

rels

Per D

ay

Sources: 2014 BP Statistical Review and Energy Commission Analysis

Global Crude Oil Production 2013 vs. 2008

10/7/2014 26

Page 27: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Crude Oil Pipeline Projects

10/7/2014 27

No crude oil pipelines into California…none planned.

Page 28: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Crude Oil – Export Restrictions

10/7/2014 28

• Domestically-produced crude oil exports to foreign destinations are allowed under specific "license exceptions" identified under federal statute. Those primary exceptions include: • Alaska crude oil shipped on the Trans-Alaska Pipeline System (TAPS) and

exported via a Jones Act vessel directly from Valdez Harbor • California heavy crude oil production with API gravity of 20.0 degrees or

lower, limit of no more than 25,000 barrels per day • First export license for California heavy crude oil was granted on December 9,

1991 – no heavy crude oil exports for several years

• Exports of domestic crude oil to Canada for processing by Canadian refineries • Exports in connection with refining or exchange of Strategic Petroleum

Reserve crude oil • Companies can also apply to the federal Bureau of Industry and Security

(BIS) for an export license that basically requires Presidential approval

Recent export licenses for “processed” condensate approved.

Page 29: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Crude Oil Discounts Enable Rail Shipment

10/7/2014 29

Source: Barclays CEO Energy-Power Conference, Tesoro, September 2013

Page 30: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

U.S. Crude-by-Rail Movements

10/7/2014 30

10.80%

0%

2%

4%

6%

8%

10%

12%

0

200

400

600

800

1,000

1,200

1,400

2003

2004

2005

2006

2007

2008

1Q 0

92Q

09

3Q 0

94Q

09

1Q 1

02Q

10

3Q 1

04Q

10

1Q 1

12Q

11

3Q 1

14Q

11

1Q 1

22Q

12

3Q 1

24Q

12

1Q 1

32Q

13

3Q 1

34Q

13

1Q 1

4

Perc

enta

ge o

f U.S

. Cru

de O

il Pr

oduc

tion

Qua

rter

ly C

rude

Oil

Rail

Activ

ity O

rigin

atin

g in

U.S

.

Carloads Per Day

Percentage of U.S. Crude Production

Each rail car assumed to carry approximately 714 barrels of crude oil.

Source: Energy Commission analysis of data from the Energy Information Administration and the Association of American Railroads.

Page 31: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

California Crude-by-Rail Imports

• 2012 CBR imports – 1.1 MM Bbls

• 2013 CBR imports – 6.3 MM Bbls • Average of 17,251 barrels/day • Approximately 9,600 rail tank cars • Average of 660 barrels/rail tank

car

10/7/2014

California Energy Commission 2013 2013Country or State of Origin

for RailcarsCalifornia TotalsCanada 3,472,050 55.14%Colorado 500,707 7.95%New Mexico 411,725 6.54%North Dakota 1,348,681 21.42%Utah 59,004 0.94%Wyoming 441,398 7.01%Other States 63,207 1.00%

Subtotals 6,296,772 100.00%

Northern CaliforniaCanadaColorado 157,836 12.53%New MexicoNorth Dakota 1,075,861 85.41%UtahWyomingOther States 25,952 2.06%

Subtotals 1,259,649 100.00%

Bakersfield & Southern CaliforniaCanada 3,472,050 68.93%Colorado 342,870 6.81%New Mexico 411,725 8.17%North Dakota 272,820 5.42%Utah 59,004 1.17%Wyoming 441,398 8.76%Other States 37,255 0.74%

Subtotals 5,037,122 100.00%

Other States include Illinois, Nebraska, Oklahoma, Texas and Washington.

Total Barrels

2013 Crude-By-Rail Imports

Percentage

31

Page 32: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Northern California – CBR Activity

10/7/2014 32

• Two locations currently receiving CBR deliveries • Kinder Morgan – Richmond Rail Facility • SAV Patriot – McClellan

• Combined deliveries during 2013 amounted to 1.26 million barrels or 3,451 barrels per day • Two facilities are permitted to receive a

maximum of 21,354 barrels per day of crude oil via rail tank car

• Crude oil transferred to trucks

• Kinder Morgan facility can receive crude oil unit trains Source: Patriot Rail

Page 33: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Southern California – CBR Activity

10/7/2014 33

Source: Google Map image of Kern facility.

• Four locations currently receiving CBR deliveries • Bakersfield, Carson, Long Beach and

Vernon • Combined deliveries during 2013

amounted to 5.04 million barrels or 13,800 barrels per day • Maximum permit off-loading

capability being determined • Manifest rail cars of crude oil being

delivered but no full unit trains to these locations

Page 34: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

California CBR Imports Expected to Grow

• 2014 CBR imports, first 7 months • 3.649 MM barrels • Average of 17,214 barrels/day • 54 percent higher than same period in 2013

• Four CBR projects seeking permits • 2 Northern California • 1 Bakersfield area - approved • 1 San Luis Obispo County

• One CBR project under construction • Plains All American - Bakersfield

• Could grow up to 22 percent by 2016, assuming: • Permits issued, customers signed up,

financing approved, constructed & operated at capacity – 376,000 BPD

10/7/2014 34

Page 35: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Crude-by-Rail Projects – Northern California

10/7/2014 35

• Valero – Benicia Crude Oil By Rail Project – Permit Review • Benicia refinery • Up to 70,000 BPD • Construction will take 6 months • Could be operational by 2015 • Draft EIR released June 17, 2014 • Comments closed Sept. 15 • Lead agency – City of Benicia • http://www.ci.benicia.ca.us/ind

ex.asp?Type=B_BASIC&SEC=FDE9A332-542E-44C1-BBD0-A94C288675FD

Page 36: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Crude-by-Rail Projects – Northern California

10/7/2014 36

WesPac Energy Project – Pittsburg – Permit Review • Rail receipt average capability of 50,000 barrels per day (BPD) • Includes marine terminal for receipt and loading – average of 192,000 BPD • Combined average receipt capability of 242,000 BPD • Connection to KLM pipeline – access to Valero, Shell, Tesoro & Phillips 66 refineries • Connection to idle San Pablo Bay Pipeline – access to Shell, Tesoro & Phillips 66

refineries • Construction of the first phase for the rail facility and associated storage tanks could

be completed within 12 to 15 months of receiving all permits • Could be operational by 2016 • A recirculated draft environmental impact report (RDEIR) will be developed and a

new comment period set for those applicable sections • There is currently no scheduled release date for the RDEIR • Lead agency – City of Pittsburg • http://www.ci.pittsburg.ca.us/index.aspx?page=700

Page 37: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

WesPac Project – Refinery Connections

10/7/2014 37

Page 38: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Crude-by-Rail Projects – Bakersfield

10/7/2014 38

Source: KernGoldenEmpire.com

Alon Crude Flexibility Project - Approved • Alon – Bakersfield Refinery • 2 unit trains per day • 150,000 BPD offloading capacity • Will be able to receive heavy crude oil • Oil tankage connected to main crude

oil trunk lines – transfer to other refineries

• Kern County Board of Supervisors approved permits for the project on September 9, 2014

• Construction will take 9 months, could be complete by 2015

Plains All American – Bakersfield Crude Terminal – Under Construction • Up to 65,000 BPD • Connection to additional crude oil line via

new six-mile pipeline • Draft EIR will be developed for that

pipeline later this year • PAA – “operational by October 2014”

Page 39: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Crude-by-Rail Projects – San Luis Obispo

10/7/2014 39

Source: Phillips 66 Draft EIR – November 2013

Phillips 66 – Santa Maria Refinery – Permit Review • Up to 41,000 BPD • Revised Draft EIR to be re-circulated during

October of 2014 • Construction 9 to 12 months to complete • Lead agency – County of San Luis Obispo Planning

Commission • Planning Commission hearing could occur during

January 2015 • http://www.slocounty.ca.gov/planning/environm

ental/EnvironmentalNotices/railproject.htm

Valero – Wilmington Refinery – Cancelled • Up to 60,000 BPD • Withdrew permit application

Page 40: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Crude-by-Rail Projects – Not Included

10/7/2014 40

Source: Questar Pipeline customer meeting, March 2014

Two Projects not included in CBR projection by Energy Commission

Targa – Port of Stockton – Planned • Up to 65,000 BPD • Receive rail, load barges

Questar Project - Planned • East of Desert Hot Springs • Nearly 2 unit trains per day • 120,000 BPD offloading

capacity • Connection to Los Angeles

basin crude oil pipeline network

• Company is still performing an engineering analysis

Page 41: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Rail Routes Into and Within California

10/7/2014 41

CBR Routing Information - California • Energy Commission does not track

routes of CBR deliveries – only source states/provinces, destinations within California, and volumes

• Counties transited by trains carrying more than 1 MM gallons of Bakken crude oil are reported by Class 1 railroads to OES

• Crude oil from Canada, North Dakota and Wyoming will likely traverse the state from north to south

• Crude oil from Colorado, New Mexico and Texas will likely traverse the state from east to west

Page 42: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

(4) Tesoro – Anacortes Refinery – Operational • Up to 50,000 BPD • Operational September 2012

(1) BP – Cherry Point Refinery – Operational • Up to 60,000 BPD • Operational December 2013

(5) Global Partners – Clatskanie, OR – Operational • Originally up to 28,600 BPD • 8/19/14 - permit revised to 120,000 BPD

(2) Phillips 66 – Ferndale Refinery – Operational • Up to 20,000 BPD, mixed freight cars • Permits received for expansion to 40,000 BPD in 2014 – ready by late 2014

(10) U.S. Oil and Refining – Tacoma Refinery – Operational • Up to 6,900 BPD • Seeking permits to expand capacity to 48,000 BPD

CBR off-loading capacity up to 260,900 BPD, could reach 300,000 BPD by end of 2014

CBR Projects – Pacific Northwest

10/7/2014 42

Source: Skagit Valley Herald

Page 43: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

CBR Projects – Pacific Northwest

10/7/2014 43

(3) Shell – Anacortes Refinery Project – Permit Review • Rail receipts of unit trains • Capacity up to 50,000 BPD • Seeking a Mitigated

Determination of Nonsignificance permit

• Lead agency – Skagit County Planning & Development Services

• Possible initial start-up during early 2016

• http://www.skagitcounty.net/Departments/PlanningAndPermit/shellpermit.htm

Page 44: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Northwest Washington CBR Facilities

10/7/2014 44

3

1

2

4

3

4

1

2

Source: WSDOT State Rail & Marine Office map and Energy Commission

Page 45: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

CBR Projects – Pacific Northwest

10/7/2014 45

(9) Tesoro – Savages, Port of Vancouver Project – Permit Review • Rail receipts of unit trains & loading of marine vessels • Initial capacity up to 120,000 BPD • Tesoro will have off-take rights to 60,000 BPD • Expansion capability of up to 280,000 BPD • Lead agency - Energy Facility Site Evaluation Council • 8-1-14 EFSE Council determines that “the Applicant’s proposed Site is

consistent and in compliance with the City of Vancouver’s Comprehensive Plan 2011-2030 and the City of Vancouver’s applicable zoning ordinances”

• Permit decision delayed until February 2015 • http://www.efsec.wa.gov/Tesoro-Savage.shtml

Page 46: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

(6) Imperium Renewables, Port of Grays Harbor – Permit Review • Up to 75,000 BPD • Washington Department of Ecology and City of Hoquiam are co-lead agencies • Initial start-up date uncertain

(7) NusStar, Port of Vancouver – Permit Review • Up to 41,000 BPD • Initial start-up date uncertain

(8) Targa Sound, Tacoma Terminal – Permit Review • Up to 41,000 BPD • Initial start-up date uncertain

(11) Westway Terminals, Port of Grays Harbor – Permit Review • Up to 26,000 BPD first phase & up to 48,900 BPD second phase • Washington Department of Ecology and City of Hoquiam are co-lead agencies • Initial start-up date uncertain

Additional CBR off-loading capacity up to 182,000 BPD, uncertain time-line

CBR Projects – Pacific Northwest

10/7/2014 46

Page 47: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

SW Washington & NW Oregon CBR Facilities

10/7/2014 47

5

9 7

116

810

Source: WSDOT State Rail & Marine Office map and Energy Commission

Page 48: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Rail Routes Into and Within Washington

10/7/2014 48

CBR Routing Information – Washington • Crude oil from Canada, North Dakota and Wyoming will likely enter

through Idaho before heading north to Puget Sound refineries

Source: Washington Department of Ecology.

Page 49: California Transportation Fuel Overview & Changing … › ... › 2018 › 08 › PF2014_Crude-CA.pdf2014/10/07  · Crude Oil – Export Restrictions 10/7/2014 28 •Domestically-produced

Questions?

10/7/2014 49

Queensway Bay and Queen Mary, Long Beach, California 12-3-04