Developments in Oil Pipeline Expansions and Safety

Peter LidiakAPI Pipeline Director

Florida Energy Pipeline AssociationSummer Symposium

July 19, 2012

Significant growth in North American energy productionCanadian Oil SandsBarnettEagle FordMarcellusPermian BasinUticaWilliston Basin/Bakken

North American energy independence by 2024 when coupled with greater access on the East and West Coasts and in the Eastern Gulf

“Keystone isn’t the only pipeline”Keystone XL (Cushing to Gulf; Northern segment to Cushing)Enbridge-Enterprise Seaway ReversalEnbridge Flanagan-Cushing projectEnbridge Line 9 reversal; Sarnia to MontrealEnbridge Northern Gateway to West CoastOneOK Bakken Crude Express; ND-CushingOneOK Bakken NGL pipeline ND to KS (via Overland Pass Pipeline)KM Pony Express Guernsey, WY to CushingKM Trans Mountain ExpansionMagellan Longhorn Reversal; El Paso-HoustonSunoco W. Texas-Nederland Access projectEnterprise/Anadarko/DCP Denver-Julesburg Basin-TX NGL pipeline

Overall Impact?

Domestic crude production increased from 5.1 mbpd in 2007 to 5.5 mbpd in 2010 (EIA, AEO 2012)

EIA reference case for AEO 2012 projects 6.7 mbpd in 2020 (EIA)

Canadian oil sands production grows from 1.6 to 3 mbpd from 2011 to 2020 (CAPP)

Additional 2 million bpd of crude to Gulf Coast by 2015 (CNNMoney)

Add 1 million+ bpd to West Coast by 2017 (Kinder

Morgan+Enbridge)

Significant Pipeline Accidentsin 2010 and 2011Salt Lake City, UTMarshall, MISan Bruno, CAAllentown, PALaurel, MT

All contributed to greater attention from the public, legislators and regulators

Safety Oversight Activity

Pipeline Safety Act enacted in JanuaryProposed rule on federal enforcement of One-CallProposed rule on HL Pipeline SafetyExpect NTSB report & recommendations on

Marshall releaseImplementation of Control Room Management by

August 1Recent MOP/MAOP advisory; gas pipeline reviews of

MAOP documentation w/in 1 year

Liquid pipeline operators strive to do more• Since 1999 – Pipeline Performance Tracking System

“You can’t improve what you don’t measure”o Started with spills of 5 gallons or more when

regulations only required reports for spills of 2,100 gallons or more to be reported.

o Used to produce operator advisories for the industry – available to the public on our web site

• Performance Excellence Team – how do we do better going forward?

• Since 2008 – Pipeline Information eXchange – Learning from incidents and near misses

1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

Safety Improvement in the Onshore Spill Record

Progress has been uneven

Large Releases Drive the Volumes; Barrels Lost by Spill Size Ranges

Reductions in all major spill causes

What about aging infrastructure -- are operators “harvesting” assets? Answer is NO!

API & AOPL Pipeline Safety Principles1. Zero Incidents 2. Organization-Wide Commitment 3. A Culture of Safety 4. Continuous Improvement 5. Learn from Experience 6. Systems for Success 7. Employ Technology 8. Communicate with Stakeholders

Eight Pipeline Safety Initiatives Started:

• Leak Detection• Excavation Damage Prevention• Improved Integration of Data• Improved Industry Learning and Knowledge

Sharing• Research & Development and Enhanced

Technology• Industry Strategic Planning• Better Communication with Non-Industry

Stakeholders • Emergency Response1220 L Street, NW • Washington, DC 20005-4070 •

www.api.org

Improving Safety into the Future• Continue to measure and learn from industry

performance• Expand the sharing of learnings from across the

industry• Continue to develop new and maintain existing

recommended practices and standards• Conduct R&D to identify new technologies and

solutions• Engage regulators, other industries and public in

positive change

1220 L Street, NW • Washington, DC 20005-4070 • www.api.org

THANK YOU