Aftermath of Harvey and Irma: Oil Industry Perspective Southern States Energy Board Charleston, SC September 24, 2017
API plays two primary roles for the industry in preparing for hurricanes. First, API communicates generally how the industry prepares for and responds to significant events, before, during and after the event to alleviate some of the burden on the companies who are actively responding to potentially damaging events. Second, API works with member companies, other industries and with federal, state and local governments to prepare for hurricanes and return operations as quickly and as safely as possible.
State Petroleum Council s help prepare for emergency situations by briefing State officials in advance of actual events. (This occurs annually in advance of hurricane season.) When disruptions occur, API & the SPC s follow a specified protocol to assess if an extreme and unusual supply circumstance exists. SPC activities include working with state officials to obtain various waivers that maximize our industry s ability to meet supply demands in the most efficient manner possible. SPC s also respond to media inquires and in many cases serve as a liaison between member companies and state officials
The Gulf Coast region of Louisiana, Mississippi, Alabama and Texas is the heart of the nation s oil and natural gas industry. According to Energy Information Administration (EIA) statistics in 2015, this area accounted for over 50 percent of U.S. refining capacity and Federal waters in the Gulf of Mexico accounted for about 18 percent of the oil and 5 percent of total natural gas production.
Alabama Oil and Natural Gas Extraction 1,831 Refining 1,418 Transportation 2,946 Wholesale 2,744 Retail 17,790 Pipeline Construction 1,260 Oilfield Machinery 0
Louisiana Oil and Natural Gas Extraction 50,599 Refining 11,576 Transportation 4,572 Wholesale 3,247 Retail 19,098 Pipeline Construction 15,528 Oilfield Machinery 0
Texas Oil and Natural Gas Extraction 287,091 Refining 24,763 Transportation 24,654 Wholesale 18,111 Retail 74,240 Pipeline Construction 39,413 Oilfield Machinery 52,646
Mississippi Oil and Natural Gas Extraction 5,432 Refining 466 Transportation 1,616 Wholesale 1,859 Retail 14,259 Pipeline Construction 2,964 Oilfield Machinery 206
Anticipation and Preparation 8-24-17 API conducts team call to review hurricane/emergency preparedness efforts and waiver protocols. State Petroleum Council s review and distribute emergency fuel waiver contact lists to state working group members. 21.5% of oil production and 23.2% of natural gas production are shut in as a precaution
8-24-17 Homeland Security Update (2:00 EDT) Hurricane Harvey 335 SE of Corpus Christi Maximum winds at 85 mph Forecast 12-20 in. of rain/isolated maximum 30 in.
Landfall 8-25-17 Hurricane Harvey makes landfall around 11:00 p.m. between Port Aransas and Port O Connor, Texas as Cat 4. Strongest storm to hit Texas since 1961 First Cat 4 to make landfall in U.S. since Charley in 2004
8-26-17 Industry Impacts All 6 refineries in Corpus Christi shut down or shutting down. Two more operating at reduced rates. Ports closed in Brownsville, Corpus Christi, Freeport, Galveston, Houston and Texas City 8-29-17 14 refineries shut down, 5 more operating at reduced rates 8-31-17 Pipeline between Houston & Herbert, Texas closed Intermittent service east from Lake Charles, LA
DATE SHUT DOWN RESTARTING REDUCED RATES 26-Aug 6 3 27-Aug 6 4 28-Aug 10 4 29-Aug 14 5 30-Aug 10 6 2 31-Aug 10 6 2 1-Sep 10 6 4 2-Sep 9 7 4 3-Sep 9 7 4 4-Sep 8 8 4 5-Sep 6 5 7 6-Sep 5 6 7 7-Sep 6 5 6 8-Sep 6 5 5 9-Sep 5 6 5 10-Sep 5 6 5 11-Sep 4 7 4 12-Sep 4 5 6 13-Sep 4 5 6 14-Sep 3 5 6 15-Sep 3 5 6 16-Sep 3 5 6 17-Sep 3 5 6 18-Sep 3 5 6 19-Sep 3 2 8 20-Sep 3 2 8 21-Sep 3 2 8 22-Sep 3 1 9
8-28-17 Response State Petroleum Council s begin contacts with state officials urging their assistance in requesting fuels waivers from EPA 8-30-17 EPA issues emergency fuel waiver requirements for reformulated gasoline and low volatility gasoline through September 15 in Alabama, Florida, Georgia, Kentucky, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, Texas, Louisiana and the District of Columbia. 8-31-17 EPA expands waiver issued on 8-30 to include an additional 26 states (total of 39 states now covered)
ASTM RVP Requirement State Response Department / Authority Action Thru Sept. 15 Sept 16 - Sept 30 Oct Nov Alabama 9.0 11.5 11.5 13.5 Dep't of Agriculture and Industries Emergency rule 11.5 RVP thru 9/30 Arkansas 9.0 11.5 13.5 13.5 Agriculture Dept. Waiver 11.5 RVP thru 9/15 Connecticut 9.0 13.5 13.5 15.0 Dep't Energy & Environmental Protection waiver 11.5 RVP through 9/15 Delaware 9.0 11.5 13.5 15.0 Department of Agriculture Enforcement Discretion 13.5 RVP thru 9/15 - (likely error, seems they meant class C, not D) Florida 9.0 11.5 11.5 13.5 Dep't Agriculture and Consumer Services Rule 11.5 (C-3 class) thru 9/15 Georgia 9.0 11.5 11.5 13.5 Dep't of Agriculture / Enforcement discretion 11.5 RVP and 1.0 RVP waiver for <9% etoh thru 9/15 Illinois N 46 Lat 9.0 11.5 13.5 15.0 Illinois S 46 Lat 9.0 11.5 13.5 13.5 Dep't of Agriculture 11.5 Through 9/22 Indiana 9.0 11.5 13.5 15.0 Governor Waiver 11.5 through 9/15 Iowa 9.0 11.5 13.5 15.0 Secretary of Agriculture Enforcement Discretion 11.5 through 9/15 Kansas 9.0 10.0 11.5 13.5 Dep't of Agriculture Waiver 11.5 (C-3 class) thru 9/30 Kentucky 9.0 11.5 13.5 15.0 Governor Executive Order 11.5 RVP and comingling thru 9/15 Louisiana 9.0 11.5 11.5 13.5 Dep't of Agriculture and Forestry Emergency rule Statewide 11.5 RVP and RFG comingling restriction thru 9/15 Maine 9.0 13.5 13.5 15.0 Dep't of Environemntal Protection Waiver 11.5 and Conventional in RFG areas thru 9/15 Maryland 9.0 11.5 13.5 15.0 Comptroller of MD 11.5 thru 9/15 and Conventional in RFG areas Massachusetts 9.0 13.5 13.5 15.0 Dep't Environmental Protection email No state rules to waive Michigan 9.0 13.5 13.5 15.0 Governor Executive Order / State of Emregency RVP requirements waived thru 9/15 Minnesota 9.0 11.5 13.5 15.0 Governor Letter Supports EPA's wavier Mississippi 9.0 11.5 11.5 13.5 Dep't of Agriculture and Commerce Emergency Rule 11.5 RVP thru 9/15 Missouri 9.0 11.5 13.5 13.5 Dept of Agriculture enforcement descriotion 11.5 RVP thru 9/15 Nebraska 9.0 10.0 11.5 13.5 Dep't of Agriculture Waiver 11.5 RVP thru 9/30 New Hampshire 9.0 13.5 13.5 15.0 Dep't Environmental Services email No state rules to waive New Jersey 9.0 13.5 13.5 15.0 Dep't Environmental Protection Enforcement Discretion 11.5 through 9/15 New Mexico 9.0 10.0 11.5 13.5 Dept of Agriculture Waiver 11.5 RVP thru 9/30 New York 9.0 13.5 13.5 15.0 NY Dept't Environmental Conservation Enforcement Discretion 11.5 thru 9/15 North Carolina 9.0 11.5 13.5 13.5 Dep't Agriculture and Consumer Services waiver 11.5 RVP plus 1.0 RVP and TV/L waived thru 9/15 North Dakota 9.0 11.5 13.5 15.0 Ohio 9.0 11.5 13.5 15.0 Summit County (only Co. in state w/ ASTM requirement) Waiver 11.5 RVP thru 9/15 Oklahoma 9.0 10.0 11.5 13.5 None neded No state rules to waive Pennsylvania 9.0 13.5 13.5 15.0 Governor Announcement / press release RVP waived in Pitt area, RVG waived in Phila. Rhode Island 9.0 13.5 13.5 15.0 Department of Labor and Training enforcement waiver Waived ASTM 4814 through 10/5 South Carolina 9.0 11.5 13.5 13.5 Dep't of Agriculture Waiver 11.5 RVP and RFG comingling permitted thru 9/15 South Dakota 9.0 10.0 11.5 13.5 Governor's Executive Order 11.5 Through 9/30 Tennessee 9.0 11.5 13.5 13.5 Department of Agriculture waiver 11.5 RVP plus 1.0 RVP thru 9/15 Texas 9.0 10.0 11.5 13.5 Texas comission on Environemtal Quality Waiver 11.5 thru 9/15 Vermont 9.0 13.5 13.5 15.0 Agency of Natural Resources Wavier 11.5 RVP through 9/15 Virginia 9.0 11.5 13.5 15.0 Governor - Emergency Waiver 11.5 RVP thru 9/15 Washington, D.C. 9.0 11.5 13.5 15.0 No rules to waive West Virginia 9.0 11.5 13.5 15.0 Division of Labor Waiver RVP waived thru 9/15 Wisconsin 9.0 11.5 13.5 15.0 Dept of Agriculture, Trade and Consumer Protection Waiver 11.5 thru 9/15 and Conventional in RFG areas
Restoring Operations Our number one priority is insuring the safety of our workers. Initially must assess and repair damage In most cases, power must be restored Refinery operations can be hampered by a lack of crude oil feedstock if offshore production platforms or ports and pipelines have sustained damage or loss of power supply. Restart process can take several days to several weeks depending on the extend to the damage Our workers are dealing with the same personal loss and hardships as others in the impacted area.
On Harvey s Heels 9-10-17 Hurricane Irma crashes ashore demolishing the Keys and south Florida, with damage all the way into Georgia. Industry worked closely with Governor Scott and participated in his daily briefings Throughout the storm Florida Petroleum Council personnel were imbedded with the Florida State Emergency Operations Center FPC and industry personnel worked to secure additional waivers to enhance access to additional supply Fuel tankers received police escorts to replenish supply along evacuation routes
Lessons Learned Preparation and advance planning are key Coordination and cooperation at all levels Government and industry working together to quickly remove hurdles is paramount in reducing impacts of any supply disruption and ultimately restoring normalcy
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