Inventory Management

Transcription

1 Inventory Management Alyeska Pipeline Service Company RCAC Briefing January 23, 2014 Presented by Betsy Haines, Oil Movements Director

2 Oil Movements Department ensures oil is scheduled, moved, measured and accounted for in accordance with TAPS Operating Agreement, all applicable laws, regulations and other agreements. Every Barrel Counts!

3 Definition of Terms Overview

4 Producers, Field Operators, Connectors Producers Provide production estimates to Alyeska each month Lift, Process, and deliver crude oil to TAPS 2 Field Operators BPXA ConocoPhillips Alaska, Inc. 5 Connections to TAPS at PS 1 Sadlerochit (Greater Prudhoe Bay) OTL Northstar Pipeline Company Kuparuk Pipeline Company Lisburne OTL Endicott Pipeline Company APSC 1/23/14 5

5 TAPS Owners and Percentage (as of July 2013) BP Pipelines (Alaska), Inc % ConocoPhillips Transportation Alaska Inc % ExxonMobil Pipeline Company % Union Pipeline Company (Chevron) % APSC 1/23/14 6

6 Carriers Each owner is obligated to conduct the operation of its undivided interest in the system as a common carrier facility. Separately publish and file tariffs in its own name. Separately solicit and receive nominations of Petroleum from Shippers. APSC 1/23/14 7

7 Oil Shippers Oil Owners who buy the oil from the Working Interest Owners Shippers arrange with a Carrier to transport the Shippers oil in the Carrier s pipeline. APSC 1/23/14 8

8 Marine Shippers APSC 1/23/14 9

9 Marine Shippers Marine Shippers own the vessels or tankers that carry the oil to market. Marine Shippers contract with Oil Shippers and occasionally with other Marine Shippers to transport specific parcels of oil. APSC 1/23/14 10

10 Valdez Marine Terminal Currently 2 Berths in service 200,000 bph loading capacity, both with Vapor Recovery 18 Storage Tanks built originally - 510,000 bbl. each or 9.18 million bbl. total capacity Currently 14 tanks in service Working Inventory defined as volume between minimum level 2.5 and max level 58.5 times number of tanks in service Less Relief tank capacity of 65,000 bbl 14 tanks working inventory equals 6.8 million bbl APSC 1/23/14 11

11 Inventory Management Overview

12 TAPS Optimization PS ,000 bbls. Capacity Maximize oil production Minimize slowdown or shutdown TAPS Transport 530,000 bbls. /day Vessels 20 per month avg VMT 6.8 million bbls. 14 Storage Tanks VDZ Incoming 500,000 bbls./day 13 day Capacity APSC 1/23/14 13

13 Process Flow Working Interest Owner Owns Oil in Ground Producer Lift, Process, & Deliver to TAPS Oil Shipper WIO, buyer, or custodian Owns TAPS Carriers/Owners Scheduled to Load & Remove Ballast H2O Marine Shippers Valdez Marine Terminal Oil Measured, Stored & Loaded Refinery Connection Facilities Feeds Refineries and Residual taken back APSC 1/23/14 14

14 Pipeline Nominations Receive Production Estimates from Producers Send Consolidated Estimates to Carriers Producers Carriers Send Production Estimates Send Pipeline Nominations TAPS Scheduler Receive Pipeline Nominations Consolidate Pipeline Nominations Enter nominations into oil accounting system APSC 1/23/14 15

15 Vessel Nominations Contract with Marine Shippers to lift Oil Send Vessel Nominations to Carriers Receive Vessel Nominations from Oil Shippers Send Vessel Nomination to Alyeska Carriers Oil Shippers Monitor compliance of Nominations Receive Weekly Vessel Nominations from Carriers Consolidate Vessel Nominations Validate that Vessels are in balance Send out 28 day schedule (daily) Marine Shippers OCC TAPS Scheduler APSC 1/23/14 16

16 High Inventory Occurs when the VMT Working Inventory (6.8 mm barrels 100%) is at 75% or higher. Invokes use of procedure to manage capacity prorations Working Inventory Forecast of 85% OCC will advise North Slope producers of anticipated high inventory conditions Will coordinate possible pipeline slowdown/shutdown or proration Prolonged events trigger escalation of issue to executive management Escalation process includes activation of the Crisis Management Team if necessary APSC 1/23/14 17

17 Inventory Management Penalties Lifting Penalty occurs when a vessel exceeds their allowable berth time. For vessels 225,000 Dead Weight Ton (DWT) or approximately 1,656,000 Bbl or less, the allowable time is 24 hours Working Inventory Penalty occurs when the VMT inventory (6.8 mm barrels 100%) is at 75% or higher and any individual Carrier is above their allotted 100%. APSC 1/23/14 18

18 Inventory Reporting for 2013 System Working Inventory Statistics % 90% 80% 7,000,000 6,000,000 70% 60% 50% 40% 5,000,000 4,000,000 3,000,000 30% 20% 10% 0% 1/1 2/1 3/1 4/1 5/1 6/1 7/1 8/1 9/1 10/1 11/1 12/1 2,000,000 1,000,000 0 Actual (%) Limit (%) Capacity (bbls) APSC 1/23/14 19

19 Questions APSC 1/23/14 20