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California Update. Pacific States/British Columbia Oil Spill Task Force Annual Meeting Thomas Cullen OSPR Administrator Portland, Oregon October 1, 2014. Topics. Spill trends and 2014 highlights California’s adjustment to shifting trends in crude oil transport. - PowerPoint PPT Presentation
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CALIFORNIA UPDATE
Pacific States/British Columbia Oil Spill Task Force
Annual Meeting
Thomas CullenOSPR Administrator
Portland, OregonOctober 1, 2014
Topics
• Spill trends and 2014 highlights
• California’s adjustment to shifting trends in crude oil transport
3
Marine oil spills: 2012 - 2014
2012 2013 20140
250
500
750
1000
California marine oil spillsNote: 2014 to date and estimated for full year.
Telephone (est)Advised (est)Physical (est)No response (est)
4
Inland oil spills: 2012 - 2014
2012 2013 20140
100
200
300
400
500
California inland oil spillsNote: 2014 to date and estimated for full year.
Telephone (est)Advised (est)Physical (est)No response (est)
California’s Crude Oil Supply in 2012
Alaska
overseas
California - offshore
California - inland
tanker
pipeline
52%
30%
13%
5%
Where crude comes from
How crude gets here
Alaska
overseas
Bakken/North Dakota
California - offshore
California - inland
28%
7%
4%
25%
Where crude comes from
How crude gets here
36% tanker
pipeline
rail
California’s Crude Oil Supply in 2016
8
Tota
l Pro
ducti
on
9
We are here
Bakken oil production 2010-2050
10
Projected Crude-by-Rail Deliveries to CaliforniaDirect by rail-to-refinery or rail-to-pipeline-to-refinery Valero (Benecia) 25.6Valero (Wilmington) 21.9Tesoro (Martinez) 2.0Plains (Bakersfield) 25.6Alon (Bakersfield) 54.8Kern (Bakersfield) unknownPhillips 66 (Santa Maria) 13.5TOTAL 143 million bbls/yr
~6 trains/day
Rail-to-barge via Portland/Vancouver areaCapacity will be ~200 million bbls/yr, some of which will be shipped to California via barge
Total projected crude-by-rail deliveries to California by 2016
100 to 200 million bbls/yr (Note: 150 million bbls/yr = 25% of Calif’s crude oil supply)
11
Crude-by-Rail Facilities in California
Valero/Benecia
Plains/Bakersfield
Phillips 66/Santa Maria
5
14
1
3
264
15
19
55
26
44
924
Alon/BakersfieldKern Oil/Bakersfield
WesPac/Pittsburg
Targa/Stockton
SAV Patriot/SacCarson Oil/Sac
KinderMorgan/Richmond
Questar/Coachella
Tesoro/Carson
Alon/Long Beach
ExxonMobil/Vernon
#
#
#
#
Currently operational
About to be operational
Reviewing Draft EIR comments
Proposed for future
# million bbls/yr capacity
If all are operational at full capacity:233 million bbls/yr (40% of Calif’s oil)~ 10 trains per day
12
Possible Routes for Crude-by-Rail
Sacramento
Stockton
Roseville
Truckee
Redding
Richmond Benecia
Pittsburg
Bakersfield
Long Beach
Santa Clarita
Yuba City
San Bernardino
BarstowMojave
Fresno
Palmdale
Chico
10
5
3
2Santa Maria
# of refineries at each location
13
Possible Routes for Crude-by-Rail
7,000+ waterway crossings by railroad
14
Possible Routes for Crude-by-Rail
5,000+ waterway crossings by pipeline
15
Typical crude oil “unit train”
• 75-100 DOT-111 tank cars• 714 bbls (30,000 gal) per car• 64,000 bbls (2.7M gallons) per train
COSCO BUSAN
16
Typical crude oil “unit train”
• 75-100 DOT-111 tank cars• 714 bbls (30,000 gal) per car• 64,000 bbls (2.7M gallons) per train
• Industry’s self-determined “reasonable worst-case scenario” = loss of one tank car
17
Typical crude oil “unit train”
• 75-100 DOT-111 tank cars• 714 bbls (30,000 gal) per car• 64,000 bbls (2.7M gallons) per train
• Industry’s self-determined “reasonable worst-case scenario” = loss of one tank car• Average accident size in 2013 = 20 tank cars
18
Typical crude oil “unit train”
• 75-100 DOT-111 tank cars• 714 bbls (30,000 gal) per car• 64,000 bbls (2.7M gallons) per train
• Industry’s self-determined “reasonable worst-case scenario” = loss of one tank car
+=
• Average accident size in 2013 = 20 tank cars
COSCO BUSAN
19
Marine
Inland
The Predicament We FacedOSPR’s efforts were limited to marine oil spills
20
Marine vs Inland Oil Spills2012Marine Inland
# Spills/yr 1,015 1,145Volume gal/yr 61,121 1,024,705Dedicated Staff 160 0Funding/yr $30 million $0
21
Marine vs Inland Oil Spills2012Marine Inland
# Spills/yr 1,015 1,145Volume gal/yr 61,121 1,024,705Dedicated Staff 160 0Funding/yr $30 million $0
CA Senate Bill 861 Overview(a.k.a. the “statewide program”)
• Extends the current 6.5 cent fee to inland and imported crude oil entering CA refineries
• Creates a single statewide program to cover spills of oil or oil products from all sources in marine and inland waters
• Applies industry contingency plan, drill, and financial responsibility requirements statewide
• Stabilizes funding for OWCN and expand the OWCN to inland areas
• Makes OSPR’s spill response trust fund accessible for responses to all oil spills.
• Removes 42 gallon threshold for spill response
California’s Oil Supply and UseWhere crude comes from
How crude gets here
Where crude is processed
Where product goes
Alaska
overseas
Bakken/North Dakota
California - offshore
California - inland
tanker
pipeline
railrefineries
100% 51%
fee collection points:Refineries and marine terminals
36%
28%
7%
25%
4%
OSPR Implementation Teams• Hire new positions• Regulations/Contingency plans/Drills• Outreach/Communication/Agency
Coordination• Training• Geographic response plans• Wildlife operations• Field Response Teams (interim and long
term)• Spill Communication and Data Unit
25
26
Key Benefits:• Fewer oil spills from all sources• Improved spill response• Coordinated incident command with agencies and industry• Improved efficiency and effectiveness of response• Oil Spill Response Organization (OSRO) oversight
• Reduced impacts, damages, and liabilities• Improved public and environmental safety • Improved public confidence
27