Commonality of GoM Lightering Experience with GoM Shuttling

Transcription

1 Commonality of GoM Lightering Experience with GoM Shuttling John M. Ellis J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 1 FPSO Global Workshop September 25, 2002

2 What is Lightering? What: Why: How: Where: When: Lightering is defined as the process involving ship-to-ship transfer of oil cargo. 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. 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. 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. All the time! J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 2

3 Lightering Coastline J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 3

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9 The US Petroleum Market Increasing Consumption plus Decreasing Production = Strong Imports Consumption '000 bbls/day Production, Imports /92 8/93 8/94 8/95 8/96 8/97 8/98 8/99 8/00 8/01 5/ Petroleum Consumption Crude Production Crude Imports Source: Department of Energy J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 9

10 Us Crude Imports by Country of Origin '000 bbls/day M. East W. Africa North Sea Americas Asia Other M. East, W. Africa and North Sea = Lighterable (or Long-Haul) J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 10

11 History of Lightering in US Gulf Skaugen PetroTrans was the first independent lightering company when started in 1981 (prior to this, the oil companies conducted their 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 J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 11

12 The US Petroleum Market SPT Lightering Volumes vs. Long Haul Imports Long Haul '000 bbls/day SPT Volume '000 bbls/day Since 1995, SPT has essentially doubled volumes, whilst Long Haul Imports have grown only 45% Long Haul Imports SPT Volume Long Haul = Middle East + Africa Source: US Energy Information Administration, SPT J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 12

13 SPT Customers Our customers are International Oil Companies and Traders, such as: Addax TotalFinaElf Bayoil BP ChevronTexaco Citgo Conoco Phillips Crown Resources El Paso ExxonMobil Glencore Hunt Koch Lion Oil Lyondell/Citgo Marathon Ashland Morgan Stanley Murphy N-Terminal/Waterway/Gunvor Petrobras PDVSA Premcor Saudi Petroleum International Sempra Shell Statoil Sunoco Trafigura Valero Western/Taurus Williams Energy J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 13

14 Lightering Safety Record National Research Council: 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 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. J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 14

15 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 J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 15

16 SPT Performance Record Lost to the environment <900 bbls, or about % 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 Berge Banker incident 2/95 accounts for 850 bbls J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 16

17 Similarities between lightering and shuttling SIMILARITIES Very short voyage to discharge port Same success criteria Safety is is priority No. 1 Dependability on-time performance Critical mass Cost competitiveness Same waters Same customers Same discharge ports DIFFERENCES Offshore loading underway vs. stationary Standard tankers vs. DP II II purposebuilt 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 J:\joint\presentations\FPSO Workshop Presentation 0902.ppt, page 17