Crude Oil
Overview & Changing Trends
IEPR Commissioner Workshop − Trends in
Crude Oil Market and Transportation
July 20, 2015
Gordon Schremp
Energy Assessments Division
California Energy Commission
Gordon.schremp@energy.ca.gov
Workshop Purpose
• Follow-up to IEPR workshop in Berkeley on June 25, 2014
• Significant changes in crude oil markets and prices
• Progress of West Coast crude-by-rail projects slowed by
opposition
• Safety concerns of transporting hazardous materials have
spurred additional state, federal, and international actions
7/20/2015
2
Topics
• California Overview
– Refineries, oil production, other sources & infrastructure
• United States Overview
– Rising oil production & decreasing imports & increasing transportation
of crude oil by rail tank car
• Global Overview
– Rising excess supply & price decline
• Crude-by-Rail (CBR)
– Increasing transportation of crude oil by rail tank car
– Status of CBR projects – West Coast
• Agency Roles & Responsibilities
7/20/2015
3
California Overview
7/20/2015
4
California Refineries
• 3 primary refinery locations
• 12 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
7/20/2015
5
California Refineries
• Refineries are a primary hub of logistical
activity
• Raw materials imported & finished products
shipped
• Crude oil receipts during 2014 received by
•
•
•
•
Marine vessels (foreign) - 787.1 TBD
Marine vessels (Alaska) – 190.5 TBD
California source via pipelines – 664.8 TBD
Rail/truck – 15.7 TBD
• Process units operate continuously at or
near maximum capacity, except during
periods of planned maintenance or
unplanned outages
Valero Benicia refinery
7/20/2015
TBD = Thousands of Barrels Per Day
6
California Crude Oil Production
Source By Geographic Region
450
423.86
Production has declined by 49.7 percent between 1985 and 2012.
400
Production has increased by 5.03 percent between 2012 and 2014.
Millions of Barrels
350
300
250
223.77
200
Federal OCS
State Waters
State Onshore
150
100
50
Sources: CEC analysis of CA Division of Oil, Gas & Geothermal Resources data
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0
7/20/2015
7
California Crude Oil Production
Onshore - Producing Wells & Output
Barrels of Crude Oil Per Well Per Day
16
52,000
50,000
Increased number of producing wells has had marginal
impact on average level of output per well per day.
14
48,000
12
15.66 Barrels per
Day per Well
46,000
10
49,295 Producing Wells - March 2015
2.85 percent increase since July 2012
44,000
10.58 Barrels per Day per Well - March 2015
1.32 percent rise since July 2012
42,000
8
6
CA Onshore
4
40,000
Number of Producing Wells
41,823 Producing Wells
38,000
2
Sources: CEC analysis of CA Division of Oil, Gas & Geothermal Resources data
7/20/2015
Jan-15
Jul-14
Jan-14
Jul-13
Jan-13
Jul-12
Jan-12
Jul-11
Jan-11
Jul-10
Jan-10
Jul-09
Jan-09
Jul-08
Jan-08
Jul-07
Jan-07
Jul-06
Jan-06
Jul-05
Jan-05
Jul-04
Jan-04
Jul-03
36,000
Jan-03
0
8
Producing Crude Oil Wells
18
Crude Oil Pipeline Projects
No crude oil pipelines into California…one project being examined.
7/20/2015
9
Crude Oil Sources for CA Refineries
800
700
600
Millions of Barrels
Foreign
328.2 million barrels
500
Alaska
67.4 million barrels
400
51.6 Percent
300
200
California & Other
Domestic Lower
48 Sources
10.6 Percent
240.1 million barrels
37.8 Percent
100
Source: California Energy Commission.
0
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Declining CA & Alaska sources replaced by additional foreign imports.
7/20/2015
10
Pipeline Access Important
• Northern California refineries
processed 754.8 thousand barrels
per day of crude oil during 2014
• 261.6 TBD pipeline shipments
• 35 percent of crude oil received
• State Fire Marshal’s Office
• Intrastate pipeline oversight
• 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
7/20/2015
11
7/20/2015
12
Marine Terminals Receive Imports
• Marine facilities are located in sheltered harbors with adequate
draught to accommodate typical sizes of petroleum product tankers
and crude oil vessels
• State Lands Commission has oversight of marine terminal building
standards – also track loading and discharges
• Most refiners operate a
proprietary dock
• Absent growth in crudeby-rail imports, volume
of imported oil and
utilization of existing
marine oil terminals
could increase over the
near-term
7/20/2015
13
United States Overview
7/20/2015
14
U.S. Tight Oil Production – Jan. ’07-June ‘15
2,500,000
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
1,642,342
1,223,350
1,500,000
3 U.S. fields each exceed 1 MM barrels per day
Combined 4.904 MM BPD
1,000,000
Bakken
Permian
500,000
Eagle Ford
Source: EIA Drilling Productivity Report
7/20/2015
May-15
Jan-15
Sep-14
May-14
Jan-14
Sep-13
May-13
Jan-13
Sep-12
May-12
Jan-12
Sep-11
May-11
Jan-11
Sep-10
May-10
Jan-10
Sep-09
May-09
Jan-09
Sep-08
May-08
Jan-08
Sep-07
May-07
0
Jan-07
Barrels Per Day
2,000,000
2,038,656
15
U.S. Crude Oil Production – Jan. ‘81-Apr. ‘15
12,000
9.701 million barrels per day
Highest since April of 1971
Chart peak of 9.173 million barrels per day - Feb. 1986
All-time peak of 10.044 million barrels per day - Nov. 1970
Thousands of Barrels Per Day
10,000
8,000
US Crude Oil Production
Alaska
North Dakota
Texas
California + OCS
Rest of US
6,000
3.711 million barrels per day
Highest since March 2015
4,000
1.169 million barrels per day
2,000
7/20/2015
Dec-2014
Jan-2014
Feb-2013
Apr-2011
Mar-2012
Jun-2009
May-2010
Jul-2008
Aug-2007
Oct-2005
Sep-2006
Dec-2003
Nov-2004
Jan-2003
Feb-2002
Mar-2001
Apr-2000
May-1999
Jul-1997
Jun-1998
Sep-1995
Aug-1996
Oct-1994
Nov-1993
Jan-1992
Dec-1992
Feb-1991
Apr-1989
Mar-1990
Jun-1987
May-1988
Jul-1986
Aug-1985
Oct-1983
Sep-1984
Dec-1981
Nov-1982
0
Jan-1981
Source: Energy Information Administration (EIA)
16
Change in Crude Oil Production
January 2010 vs. April 2015
3,000
2,613
U.S. crude oil production has increased from 5.403 million barrels per day in
January 2010 to 9.701 million barrels per day during April 2015
Thousands of Barrels Per Day
2,500
2,000
California output nearly unchanged after
more than five years.
1,500
933
1,000
886
500
Source: Energy Information Administration (EIA)
0
Texas
North Dakota
Rest of U.S.
California
-4
Alaska
-130
-500
7/20/2015
17
U.S. Imports of Crude Oil Decline
4,000
3,696
3,500
Millions of Barrels
3,000
2,500
2,678
2,000
2014 oil imports 2.79 million BPD lower
than 2005 peak of 10.13 million BPD.
1,500
1,000
500
Source: Energy Information Administration.
7/20/2015
2014
2010
2006
2002
1998
1994
1990
1986
1982
1978
1974
1970
1966
1962
1958
1954
1950
1946
1942
1938
1934
1930
1926
1922
1918
1914
1910
0
18
Global Overview
7/20/2015
19
Global Demand Growth Outlook
Europe
180
North
America
480
FSU
150 120
-100
-230
140
-150
160 210 130
-20
Middle
East
210 150 80
Latin
America
Asia
560 550
770
160
40 70
Africa
Thous. Bbls/Day
2013 vs. 2012
2014 vs. 2013
2015 vs. 2014
Source: International Energy Agency (IEA) – Oil Market Report – June 11, 2015
2015 outlook 93.97 MB/D vs. 92.57 MB/D in 2014 (up 1.51%).
7/20/2015
20
Global Crude Oil Production Change
2014 vs. 2008
6,000
4,860
5,000
U.S. increase more than 3 times greater than the other
top 20 countries combined – 4,860 vs. 1,522
thousands of barrels per day.
Thousands of Barrels Per Day
4,000
3,000
2,000
Sources: 2015 BP Statistical Review and Energy Commission Analysis
1,000
1,085
842 887
857
686
432
337
533
447
248
216
7/20/2015
Indonesia
Qatar
Libya
Brazil
Angola
Nigeria
Algeria
-444 -189
Kazakhstan
-572
Iraq
Norway
Kuwait
Mexico
-381
United Kingdom
-502
Canada
Venezuela
China
US
Iran
-782
United Arab Emirates
-2,000
Russian Federation
-1,000
Saudi Arabia
0
-153
-1,322 -705
21
Global Crude Supply Imbalance
Excess global crude oil supplies increase into 2015.
Millions of Barrels Per Day
1.85
1.47
95
94
2.0
1.39
Source: California Energy Commission analysis of IEA data.
1.5
1.01
1.0
93
0.5
0.48
92
-0.09
91
0.0
-0.29
90
-0.5
89
Supply
-0.80
-1.0
Demand
88
-1.08
Supply Imbalance
1Q 2015
4Q 2014
3Q 2014
2Q 2014
1Q 2014
4Q 2013
3Q 2013
2Q 2013
-1.5
1Q 2013
87
7/20/2015
Millions of Barrels Per Day
96
22
Steep Price Decline
• Crude oil prices peaked during June of 2014
–
–
–
–
June 19, 2014 – Brent - $115.06 per barrel
June 20, 2014 – Alaska North Slope (ANS) - $114.51 per barrel
June 20, 2014 – WTI - $107.95 per barrel
June 24, 2014 – San Joaquin Valley (SJV) - $99.65 per barrel
• Prices dropped at least 50 percent within 7 months
–
–
–
–
Brent down 59.5 percent to $46.59 on 1/13/15
ANS down 60.6 percent to $45.10 on 1/28/15
WTI down 59.2 percent to $44.08 on 1/28/15
SJV down 68.7 percent to $31.14 on 1/21/15
• Prices have since rebounded a bit before easing back down
7/20/2015
23
Daily Brent Crude Oil Prices (2011 – 7/17/15)
140
Crude oil prices were remarkably stable between 2011 and June of 2014
Dollars Per Barrel
120
100
80
60
40
20
2011
2012
2013
2014
46.7 percent lower than
same time last year.
2015
Source: Energy Information Administration & OPIS.
7/20/2015
Dec
Nov
Oct
Sep
Aug
Jul
Jul
Jun
May
Apr
Mar
Feb
Jan
0
24
Crude Oil Prices – West Coast, Brent & WTI
120
Following a late spring rebound, prices now
softening from continued global supply surplus.
110
100
Sources: ANS - Alaska Department of Revenue, SJV & Brent - OPIS, WTI - EIA.
Dollars Per Barrel
90
80
Alaska North Slope
Brent North Sea
West Texas Intermediate
San Joaquin Valley
70
60
50
40
7/20/2015
7/16/2015
7/2/2015
6/18/2015
6/4/2015
5/21/2015
5/7/2015
4/23/2015
4/9/2015
3/26/2015
3/12/2015
2/26/2015
2/12/2015
1/29/2015
1/15/2015
1/1/2015
12/18/2014
12/4/2014
11/20/2014
11/6/2014
10/23/2014
10/9/2014
9/25/2014
9/11/2014
8/28/2014
8/14/2014
7/31/2014
7/17/2014
30
25
Crude Oil – Export Restrictions
• Domestically‐produced crude oil exports to foreign destinations allowed
under specific "license exceptions" identified under federal statute 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.
7/20/2015
26
1,800
1,600
1,400
1,200
1,000
Oil Rig Deployment Declines with Price
Number of rigs deployed specifically for U.S. oil drilling 60.3
percent lower than the peak level on October 10, 2014
Y-T-D down 56.9 percent
1,601
Gradual impact on oil production likely to continue manifesting
itself over the next several months
Biggest drops in Permian (-319), Williston (-125), and
Eagle Ford (-125) basins
800
Source: Baker Hughes data – through July 17, 2015.
600
638
400
200
7/17/1987
3/18/1988
11/18/1988
7/21/1989
3/23/1990
11/23/1990
7/26/1991
3/27/1992
11/27/1992
7/30/1993
3/31/1994
12/02/1994
8/04/1995
4/05/1996
12/06/1996
8/08/1997
4/10/1998
12/11/1998
8/13/1999
4/08/2000
12/15/2000
8/17/2001
4/19/2002
12/20/2002
8/22/2003
4/23/2004
12/23/2004
8/26/2005
4/28/2006
12/29/2006
8/31/2007
5/02/2008
1/02/2009
9/04/2009
5/07/2010
1/07/2011
9/09/2011
5/11/2012
1/11/2013
9/13/2013
5/16/2014
1/16/2015
0
7/20/2015
27
Crude-by-Rail (CBR)
Source: KinderMorgan rail yard in Richmond – Chris Jordan-Bloch, Earthjustice
7/20/2015
28
U.S. Crude-by-Rail Transportation
1,200
14%
Thousands of Barrels Per Day
9.05 percent of U.S. production as of April
2015. Excludes Canadian import movements.
10%
Crude-by-rail volumes include oil from U.S.
production and Canadian rail imports.
8%
800
600
National CBR Movements
6%
Percentage of U.S. Production
400
4%
Source: Energy Information Administration
200
7/20/2015
0%
Mar-2015
Jan-2015
Nov-2014
Sep-2014
Jul-2014
May-2014
Mar-2014
Jan-2014
Nov-2013
Sep-2013
Jul-2013
May-2013
Mar-2013
Jan-2013
Nov-2012
Sep-2012
Jul-2012
May-2012
Mar-2012
Jan-2012
Nov-2011
Sep-2011
Jul-2011
May-2011
Mar-2011
Jan-2011
Nov-2010
Sep-2010
Jul-2010
May-2010
Mar-2010
Jan-2010
0
2%
29
Percentage of U.S. Production
12%
1,000
California Crude-by-Rail Imports
• 2013 CBR imports – 6.3 MM
Barrels
• 2014 CBR imports – 5.7 MM
Barrels
• Average of 15,720 barrels/day
• Approximately 8,700 rail tank cars
• Average of 660 barrels/rail tank car
2014 Crude-By-Rail Imports (January - December)
California Energy Commission
2014
2014
Country or State of Origin
Total Barrels
Percentage
for Railcars
California Totals
Canada
1,520,288
26.50%
Colorado
147,488
2.57%
New Mexico
1,159,712
20.21%
North Dakota
1,191,758
20.77%
Utah
933,632
16.27%
Wyoming
694,101
12.10%
Other States
90,699
1.58%
Subtotals
5,737,678
100.00%
Northern California
Canada
Colorado
New Mexico
North Dakota
Utah
Wyoming
Other States
Subtotals
0
74,937
15,268
1,191,758
0
0
2,891
1,284,854
0.00%
5.83%
1.19%
92.75%
0.00%
0.00%
0.23%
100.00%
Bakersfield & Southern California
Canada
Colorado
New Mexico
North Dakota
Utah
Wyoming
Other States
Subtotals
1,520,288
72,552
1,144,444
0
933,632
694,101
87,807
4,452,824
34.14%
1.63%
25.70%
0.00%
20.97%
15.59%
1.97%
100.00%
Other States include Illinois, Louisiana, Missouri, Nebraska, Arkansas.
7/20/2015
30
Northern California – CBR Activity
• One location currently receiving CBR
deliveries
• Kinder Morgan – Richmond Rail Facility
• Facility is permitted to receive an
average maximum of 16,000 barrels
per day of crude oil via rail tank car
• Crude oil transferred to trucks
• Kinder Morgan facility can receive
crude oil unit trains
• SAV Patriot in McClellan had permit
rescinded and operations ceased in
early November 2014
• Current permit capacity of 58,000
barrels per day for state, excluding
Plains All American in Taft
7/20/2015
Source: Patriot Rail
31
Rail Routes Into and Within California
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 million 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
7/20/2015
32
California Crude Oil Imports
Via Rail Tank Cars
1,400,000
1,200,000
CBR numbers for Y-T-D 2015
down 46.2 percent compared
2014 (761,514 barrels versus
1,415,605 barrels).
Canada
Colorado
Barrels Per Month
1,000,000
New Mexico
North Dakota
Utah
800,000
Source: California Energy Commission
Wyoming
Other Lower 48 States
600,000
400,000
200,000
7/20/2015
March-15
February-15
January-15
December-14
November-14
October-14
September-14
August-14
July-14
June-14
May-14
April-14
March-14
February-14
January-14
December-13
November-13
October-13
September-13
August-13
July-13
June-13
May-13
April-13
March-13
February-13
January-13
0
33
Crude Discounts vs. California CBR Imports
$45
60
Eagle Ford/New Mexico
Utah
$40
North Dakota Sweet
50
Colorado Average
$35
California CBR Imports
Canada Sweet
Canada Heavy
$30
40
$25
30
$20
$15
20
Thousands of Barrels Per Day
Crude Oil Price Discount Versus Brent
North Dakota Sour
$10
10
$5
Sources: Plains All American crude oil price bulletins & CEC crude-by-rail data from Class 1 railroads.
$0
7/20/2015
Mar-15
Feb-15
Jan-15
Dec-14
Nov-14
Oct-14
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Feb-14
Jan-14
Dec-13
Nov-13
Oct-13
Sep-13
Aug-13
Jul-13
0
34
California CBR Imports Expected to Grow
• One CBR project operational
• Plains All American – near Bakersfield
• One CBR project received permits
• Alon USA - Bakersfield
• Two CBR projects seeking permits
• Valero & Phillips 66
• One CBR project modified
• WesPac in Pittsburg
• CBR imports during 2015
• Could approach 4 percent if Plains All
American facility operates at capacity
• Could grow up to 22 19 percent by 2016 2017
assuming:
• Permits issued, customers signed up, financing
approved, construction completed & facilities
operated at capacity
7/20/2015
35
Crude-by-Rail Projects – Bakersfield
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
 Contract awarded for initial
engineering work – May 2015
 Construction will take 9 months, could
be complete by 2016 assuming
customers sign long-term agreements
and financing is approved
7/20/2015
Plains All American – Bakersfield Crude
Terminal – Operational
 Up to 65,000 BPD
 Connection to additional crude oil line via
new six-mile pipeline
 Initial delivery during November 2014
 Poor rail economics have limited deliveries
 Litigation underway regarding permit
Source: KernGoldenEmpire.com
36
Crude-by-Rail Projects – Northern California
• 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 2016
Recirculated Draft Environmental
Impact Report (RDEIR) will be
released August 31, 2015
• 45-day comment period
• Lead agency – City of Benicia
• http://www.ci.benicia.ca.us/inde
x.asp?Type=B_BASIC&SEC={FDE9
A332-542E-44C1-BBD0A94C288675FD}
7/20/2015
37
Crude-by-Rail Projects – Northern California
WesPac Energy Project – Pittsburg – Revised Permit Review
 Will no longer include rail access
 Includes marine terminal for receipt and loading – average of 192,000 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
 Could be operational by 2017
 Notice of Preparation (NOP) of a Second Recirculated Draft EIR is now available for a
30-day public review – comments due July 31, 2015
 Lead agency – City of Pittsburg
 http://www.ci.pittsburg.ca.us/index.aspx?page=700
7/20/2015
38
WesPac Project – Refinery Connections
Project will no longer include rail access.
7/20/2015
39
Crude-by-Rail Projects – Central California
Phillips 66 – Santa Maria Refinery – Permit Review
 Average of 37,142 BPD
 Construction 9 to 10 months to complete
 Could be operational by 2016
 Planning and Building Department is currently working toward releasing a Final
Environmental Impact Report
 Lead agency – County of San Luis Obispo

http://www.slocounty.ca.gov/planning/environ
mental/EnvironmentalNotices/Phillips_66_Com
pany_Rail_Spur_Extension_Project.htm
Source: Phillips 66 Draft EIR – October 2014
7/20/2015
40
Crude-by-Rail Projects – Planned
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
 Could be operational by
late 2017
7/20/2015
Source: Questar Pipeline customer meeting, March 2014
41
Washington CBR Projects
7/20/2015
42
Active CBR Facilities – Pacific Northwest
Tesoro – Anacortes Refinery – Operational
 Up to 50,000 BPD
 Operational September 2012
BP – Cherry Point Refinery – Operational
 Up to 60,000 BPD
 Operational December 2013
Global Partners – Clatskanie, OR – Operational
 Originally up to 28,600 BPD
 8/19/14 - permit revised to 120,000 BPD
Source: Skagit Valley Herald
Phillips 66 – Ferndale Refinery – Operational
 Up to 20,000 BPD, mixed freight cars
 Permits received for expansion to 40,000 BPD in 2014
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 280,900 BPD
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CBR Projects – Pacific Northwest
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 360,000 BPD
 Revised draft EIS to be released late November 2015
 Lead agency - Energy Facility Site Evaluation Council
 http://www.efsec.wa.gov/Tesoro-Savage.shtml
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CBR Projects – Pacific Northwest
Shell – Anacortes Refinery Project –
Permit Review
 Rail receipts of unit trains
 Capacity up to 62,000 BPD
 Draft EIS to be developed after
Shell appeal to obtain a
Mitigated Determination of
Non-Significance was denied in
May 2015
 Lead agency – Skagit County
Planning & Development
Services
 Possible initial start-up during
late 2016
 http://www.skagitcounty.net/D
epartments/PlanningAndPermit
/shellpermit.htm
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Agency Roles & Responsibilities
Source: California Energy Commission
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Agency Roles & Responsibilities
Source: California Energy Commission
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Additional Q & A
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