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
Marine oil spills: 2012 - 2014
California marine oil spills
Note: 2014 to date and estimated for full year.
1000
750
Telephone
500
Advised
Physical
No response
250
0
2012
2013
2014
3
Inland oil spills: 2012 - 2014
California inland oil spills
Note: 2014 to date and estimated for full year.
500
400
300
Telephone
Advised
Physical
200
No response
100
0
2012
2013
2014
4
California’s Crude Oil Supply in 2012
Where crude
comes from
How crude gets
here
13%
Alaska
52%
tanker
overseas
5%
California - offshore
30%
pipeline
California - inland
California’s Crude Oil Supply in 2016
Where crude
comes from
How crude gets
here
7%
Alaska
36%
tanker
overseas
25%
rail
Bakken/North Dakota
4%
California - offshore
28%
pipeline
California - inland
8
Total Production
Bakken oil production
2010-2050
We are here
9
Projected Crude-by-Rail Deliveries to California
Direct by rail-to-refinery or rail-to-pipeline-to-refinery
Valero (Benecia)
25.6
Valero (Wilmington)
21.9
Tesoro (Martinez)
2.0
Plains (Bakersfield)
25.6
Alon (Bakersfield)
54.8
Kern (Bakersfield)
unknown
Phillips 66 (Santa Maria) 13.5
TOTAL
143 million bbls/yr
~6 trains/day
Rail-to-barge via Portland/Vancouver area
Capacity 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)
10
Crude-by-Rail Facilities in California
Carson Oil/Sac
SAV Patriot/Sac
3 5
Valero/Benecia
26
4
19
WesPac/Pittsburg
26
Targa/Stockton
#
Currently operational
#
About to be operational
#
Reviewing Draft EIR comments
#
Proposed for future
# million bbls/yr capacity
KinderMorgan/
Richmond
If all are operational at full capacity:
233 million bbls/yr (40% of Calif’s oil)
~ 10 trains per day
Plains/Bakersfield
24
15
55
9
Alon/Bakersfield
Kern Oil/Bakersfield
Phillips 66/Santa Maria
Questar/Coachella
ExxonMobil/Vernon
Tesoro/Carson
1 1
4 Alon/Long Beach
44
11
Possible Routes for Crude-by-Rail
Redding
Chico
Yuba City
Sacramento
Richmond
5
Truckee
Roseville
Benecia
Stockton
Pittsburg
# of refineries at each location
Fresno
Bakersfield
Santa Maria
2
3
Mojave
Barstow
Palmdale
Santa Clarita
10
San Bernardino
Long Beach
12
Possible Routes for Crude-by-Rail
7,000+
waterway
crossings by
railroad
13
Possible Routes for Crude-by-Rail
5,000+
waterway
crossings by
pipeline
14
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
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
• Industry’s self-determined “reasonable worst-case scenario” = loss of one tank car
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
• Average accident size in 2013 = 20 tank cars
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
COSCO BUSAN
=
+
18
The Predicament We Faced
OSPR’s efforts were limited to marine oil spills
Marine
Inland
19
Marine vs Inland Oil Spills
2012
Marine
Inland
# Spills/yr
Volume gal/yr
1,015
61,121
1,145
1,024,705
Dedicated Staff
Funding/yr
160
$30 million
0
$0
20
Marine vs Inland Oil Spills
2012
Marine
Inland
# Spills/yr
Volume gal/yr
1,015
61,121
1,145
1,024,705
Dedicated Staff
Funding/yr
160
$30 million
0
$0
21
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 Use
How crude gets
here
Where crude
comes from
Where crude is
processed
Where
product goes
7%
Alaska
36%
tanker
overseas
100%
25%
51%
refineries
rail
Bakken/North Dakota
fee collection points:
Refineries and marine terminals
4%
California - offshore
28%
California - inland
pipeline
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
Key Benefits:
• Fewer oil spills from all sources
• Improved spill response
• Coordinated incident command with agencies and indus
• 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
26
27