Hydrocarbon Transportation by Pipeline Industry Background

Transcription

1 Hydrocarbon Transportation by Pipeline Industry Background Transportation Research Board May 12-13, 2016 PiPRO 2016

2 Summary Pipelines: The Last Five Years The shale revolution was brought about by the favorable conditions of increased supply and demand, high crude prices and improved technology. These conditions provided an economic environment that encouraged many new producers to enter the industry. The Federal and State regulators supported the development of new pipelines, and where not feasible, other modes of transportation were utilized. The primary causes of environmental and safety incidents remain the same: Corrosion Equipment failure Excavation Incorrect operations Material pipe/weld failure Natural force Outside force Other The increase in the number of miles of pipe and the increased volume of crude, natural gas and NGLs has had little impact on incidents and the historical trend of decline has continued.

3 Near term crude oil prices are difficult to predict in today s market but

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5 PPTS vs. PHMSA Data Unique Information in Each System: Some incidents reported to one system but not the other Some incident data / questions different between the systems Use of both systems simultaneously enables robust data analysis. PPTS PHMSA

6 PPTS & PHMSA Report Criteria Changes All releases to water PPTS Costs >$50,000 5 Gallons Fire/Explosion Death/Injury Costs >$1, Bbls or >5 Bbls/day HVL Costs >$5,000 PHMSA Costs >$50,000 5 Gallons CO 2 Releases Reportable Fire/Explosion Death/Injury

7 PHMSA Releases by Year NUMBER OF RELEASES TANK ONSHORE PIPELINE OFFSHORE FACILITY 140, , ,000 BARRELS RELEASED TANK ONSHORE PIPELINE OFFSHORE FACILITY ,000 60, , ,

8 PHMSA Releases by Location RELEASES BY LOCATION ( ) BARRELS RELEASED BY LOCATION ( ) 10% 9% 13% FACILITY 0% FACILITY OFFSHORE OFFSHORE 33% 56% ONSHORE PIPELINE ONSHORE PIPELINE TANK TANK 1% 78%

9 PHMSA Releases by Cause RELEASES BY CAUSE ( ) BARRELS RELEASED BY CAUSE ( ) 7% 4% 4% 2% 21% CORROSION EQUIPMENT FAILURE EXCAVATION 10% 1% 8% 13% CORROSION EQUIPMENT FAILURE EXCAVATION 14% INCORRECT OPERATION MWF 18% INCORRECT OPERATION MWF 4% 44% NATURAL FORCE OTHER OUTSIDE FORCE 32% 6% 12% NATURAL FORCE OTHER OUTSIDE FORCE MWF Material Pipe/Weld Failures

10 PHMSA Pipeline ROW 17% RELEASES BY CAUSE ( ) 3% 5% 5% 28% CORROSION EQUIPMENT FAILURE EXCAVATION INCORRECT OPERATION MWF 11% 0% BARRELS RELEASED BY CAUSE ( ) CORROSION 11% 11% 7% 16% EQUIPMENT FAILURE EXCAVATION INCORRECT OPERATION MWF 7% NATURAL FORCE NATURAL FORCE 10% 25% OTHER OUTSIDE FORCE 40% 4% OTHER OUTSIDE FORCE MWF Material Pipe/Weld Failures

11 PHMSA Facility Releases FACILITY RELEASES BY CAUSE ( ) CORROSION BARRELS RELEASED BY CAUSE ( ) CORROSION 1% 16% 4% 2% 2% 1% 18% EQUIPMENT FAILURE EXCAVATION INCORRECT OPERATION MWF 10% 1% 8% 13% 18% EQUIPMENT FAILURE EXCAVATION INCORRECT OPERATION MWF NATURAL FORCE NATURAL FORCE OTHER 32% 12% OTHER 56% OUTSIDE FORCE 6% OUTSIDE FORCE MWF Material Pipe/Weld Failures

12 Serious Onshore Accidents 12

13 Public Property Damage Cost

14 Public Safety Regulatory Structure Interstate PHMSA Intrastate Minimum standards dictated by PHMSA Process by determined by the individual states involved. National Association of Pipeline Safety Representatives (NAPSR)

15 Regulatory Development Process For Crude and Gas Transmission Pipelines

16 Industry has many methods to ensure and maintain pipeline operations Prevention Evaluating, inspecting, and maintaining pipelines through operator integrity management programs to prevent releases Billions are spent each year Smart pigs high-tech diagnostic devices that travel inside pipelines to identify pipe irregularities; 90% detection rate Mitigation 24/7 control room operators reviewing information from instruments along pipeline Shut-off valves to stop product flow within minutes and isolate pipelines where data indicates a possible leak Response Response Plans are completed and shared with responders to ensure appropriate action Drills are conducted to practice a response

17 Industry has many methods to ensure and maintain pipeline safety Safety Improvement Liquids pipeline incidents are down 50% since Specifically, releases caused by corrosion and third-party damage have decreased by 76% and 78%, respectively. Statistics show that incidents that do occur are very small in size and are contained in facilities, not along the right of way where public and the environment are impacted. 35% of releases in 2013 were smaller than 1 barrel and two-thirds of releases were 5 barrels or smaller 66% of incidents are within operator facilities such as pump stations or tank facilities, and one-third are along a pipeline right of way

18 Natural Gas Pipeline Financial Regulatory Structure Interstate Gas Transportation Once an interstate natural gas pipeline is built, the Federal Energy Regulatory Commission (FERC) has the authority to ensure that pipeline rates are just and reasonable. These rates include operating and maintenance expenses and an allowed return on investment set as a percentage of the capital invested in facilities used to serve customers. Intrastate Public Utility Commissions Process by determined by the individual states involved.

19 FERC Oil

20 FERC Natural Gas

21 FERC Major Pipeline Projects Pending (Onshore)

22 FERC Approved Major Pipeline Projects

23 Eminent Domain Definition

24 Pipeline Conversion PHMSA s Role

25 New Pipelines A Changing Scene

26 A Future Projection

27 A Future Projection

28 A Future Projection

29 A Future Projection