Commonality of GoM Lightering Experience with GoM Shuttling · 2012. 5. 13. · J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 2 SKAUGEN PETROTRANS What is Lightering?

$Page 1: Commonality of GoM Lightering Experience with GoM Shuttling · 2012. 5. 13. · J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 2 SKAUGEN PETROTRANS What is Lightering?$
J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 1SKAUGEN PETROTRANS

Commonality of GoM Lightering Experience with GoM Shuttling

Commonality of GoM Lightering Experience with GoM Shuttling

FPSO Global WorkshopSeptember 25, 2002

FPSO Global WorkshopSeptember 25, 2002John M. EllisJohn M. Ellis


What is Lightering?

What: Lightering is defined as the process involving ship-to-ship transfer of oil cargo.

Why: This process is used because economical shipment of crude oil from its source to the United States requires the use of extremely large tankers called very large crude carriers (VLCCs) and ultra large crude carriers (ULCCs). In turn, ports may not be deep enough, or have narrow entrances, or have small berths such that these large tankers cannot be accommodated. Thus, lightering allows offshore unloading of the crude oil cargoes of the very largest tankers.

How: The lightering process consists of maneuvering a smaller tanker (service vessel) alongside the larger tanker or STBL (ship to be lightered), typically with both vessels underway. The two vessels are moored together with lines while using large rubber bumpers called fenders between the two vessels to prevent damage. A portion of the crude oil cargo from the larger ship is discharged through hoses connected between the two vessels to the smaller ship. The two vessels may be anchored or may continue underway while the transfer takes place depending upon sea conditions.

Where: Lightering locations are dictated primarily by water depth and traffic. In the Gulf of Mexico, this process takes place twenty (20) to sixty (60) miles from land.

When: All the time!


Lightering Coastline







Increasing Consumption plus Decreasing Production = Strong Imports

The US Petroleum Market

Source: Department of Energy

1975919451

16879

16975

17674 17555

1816018445

18568

19212 19317

5837 5916

91818851

640063876469656066466850

7223

5951 5838

6848

5913

6551

7102

75127843

84448595

8823

15000

16000

17000

18000

19000

20000

YTD8/92

YTD8/93

YTD8/94

YTD8/95

YTD8/96

YTD8/97

YTD8/98

YTD8/99

YTD8/00

YTD8/01

YTD5/02

Consumption

'000 bbls/day

5000

6000

7000

8000

9000

10000

Prod

uctio

n,Im

port

s

Petroleum Consumption Crude Production Crude Imports


Us Crude Imports by Country of Origin

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

'000 bbls/day

M. East W. Africa North Sea Americas Asia Other

M. East, W. Africa and North Sea = Lighterable (or Long-Haul)


History of Lightering in US Gulf

Skaugen PetroTrans was the first independent lightering company when started in 1981 (prior to this, the oil companies conductedtheir own lighterings)

Over 9,800 operations completed

More than 4,433,164,000 barrels lightered

Approximately 14% of total U.S. sea born crude imports in 2001

SPT alone handles more than 1.1m barrels per day

Skaugen PetroTrans was the first independent lightering company when started in 1981 (prior to this, the oil companies conductedtheir own lighterings)

Over 9,800 operations completed

More than 4,433,164,000 barrels lightered

Approximately 14% of total U.S. sea born crude imports in 2001

SPT alone handles more than 1.1m barrels per day


The US Petroleum Market

Source: US Energy Information Administration, SPT

Long Haul = Middle East + Africa

SPT Lightering Volumes vs. Long Haul Imports

0

500

1000

1500

2000

2500

3000

3500

4000

4500

1982

1983

1984

1985

1986

1987

1988

1989 190

1991 192

1993

1994

1995

1996

1997

1998

1999

2000

2001

Long Haul '000 bbls/day

0

200

400

600

800

1000

1200

SPT Volume '000 bbls/day

Long Haul Imports SPT Volume

Source: US Energy Information Administration, SPT

Since 1995, SPT has essentially doubled volumes, whilst Long Haul Imports have grown only 45%


Our customers are International Oil Companies and Traders, such as:

SPT Customers

Addax Marathon AshlandTotalFinaElf Morgan StanleyBayoil MurphyBP N-Terminal/Waterway/GunvorChevronTexaco PetrobrasCitgo PDVSAConoco Phillips PremcorCrown Resources Saudi Petroleum InternationalEl Paso SempraExxonMobil ShellGlencore StatoilHunt SunocoKoch TrafiguraLion Oil ValeroLyondell/Citgo Western/Taurus

Williams Energy


Lightering Safety Record

“Oil Spill Risks From Tank Vessel Lightering”

“…confirms results of previous studies of lightering safety that very few spills are related directly to lightering and, with rare exceptions, they are small spills”

“Oil Spill Risks From Tank Vessel Lightering”

“…confirms results of previous studies of lightering safety that very few spills are related directly to lightering and, with rare exceptions, they are small spills”

National Research Council:

USCG Authorization Act of 1996 required USCG to coordinate with Marine Board of the National Research Council to conduct studies on risks of oil spills from lightering operations off US coasts. “Oil Spill Risks From Tank Vessel Lightering” is the report of committee established to conduct those studies.


Success Criteria for a Lightering Company

What makes a good lightering company?

1) Safety Record

• Demonstrated ability to do it right – every single time

• Hiring, training and retaining the best of the best ship handlers

2) Critical mass (scheduling, asset utilization)

3) Dependability - On-time performance

4) Cost competitiveness

=> The same will apply to shuttle tanking

What makes a good lightering company?

1) Safety Record

• Demonstrated ability to do it right – every single time

• Hiring, training and retaining the best of the best ship handlers

2) Critical mass (scheduling, asset utilization)

3) Dependability - On-time performance

4) Cost competitiveness

=> The same will apply to shuttle tanking


Berge Banker incident 2/95 accounts for 850 bbls

SPT Performance Record

Lost to the environment <900 bbls, or about 0.00002% of barrels handled

Back-to-back First Runner Up for the US Coast Guard’s William M. Benkert Award for environmental excellency, 1998 and 2000

Winner of the 1998 Texas General Land Office’s OSPRA Award for Excellence in Oil Spill Preparedness, Prevention and Response

Recipient of Public Service Commendation from USCG


Similarities between lightering and shuttling

SIMILARITIESVery short voyage to discharge portSame success criteria

• Safety is priority No. 1• Dependability – on-time

performance• Critical mass• Cost competitiveness

Same watersSame customersSame discharge ports

SIMILARITIESVery short voyage to discharge portSame success criteria

• Safety is priority No. 1• Dependability – on-time

performance• Critical mass• Cost competitiveness

Same watersSame customersSame discharge ports

DIFFERENCESOffshore loading – underway vs. stationaryStandard tankers vs. DP II purpose-built tonnage

DIFFERENCESOffshore loading – underway vs. stationaryStandard tankers vs. DP II purpose-built tonnage

⇒ Main difference: Shuttling will use a more sophisticated vessel to accommodate for stationary loading

⇒ Otherwise very similar to lightering – a proven concept used by all the majors on a daily basis, and that accounts for some 35% of the daily crude imports to the US Gulf Coast

Documents

Commonality of GoM Lightering Experience with GoM Shuttling · 2012. 5. 13. · J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 2 SKAUGEN PETROTRANS What is Lightering?