James Kelley CEM Manager Emergency Preparedness 1 Presentation Outline I SPR Mission and Management SPR Design amp Development SPR Stockpiling Sites SPR Operations amp Readiness V SPR Drawdown Policy amp Capabilities ID: 1048701
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1. United States Strategic Petroleum Reserve James Kelley, CEMManager, Emergency Preparedness
2. 1 Presentation OutlineI. SPR Mission and ManagementSPR Design & DevelopmentSPR Stockpiling SitesSPR Operations & ReadinessV. SPR Drawdown Policy & Capabilities
3. 2Strategic Petroleum ReserveEstablished by U.S. Law: Energy Policy & Conservation Act (EPCA) December 1975 Mission: To ensure U.S. Energy Security:To reduce the impacts of potential disruptions in U.S. petroleum suppliesTo carry out U.S. obligations under International Energy Program (Treaty)Program Implementation: Managed By U.S. Dept of EnergyFederally Owned & FinancedNo Industry Obligations1973 Arab Oil EmbargoInternational Energy Program
4. 3Strategically Located for DistributionGulf Coast contains almost 50% of the U.S. refining capacityGulf Coast is place of entry for approx. 70% of U.S. Non-Canadian importsSPR has both PIPELINE and MARINE distribution capabilities for max. flexibility
5. Salt Storage TechnologySALTLowest Cost Storage Technology:Drill wells into saltSolution mine storage cavitiesOil Storage in Salt Caverns: Proven Storage TechnologyAssured Containment Utmost Safety and SecurityEasy to get in and outOil does not dissolve saltNo Evaporation or Air Emissions 4
6. 5SPR Storage Cavern DesignCavern Size & Shape10 Million Barrels (1.59 million m3)Cylindrical shape ~ 200 ft Diameter ~ 2000 ft TallStorage Depth Top >-2000 ft Bottom <-5000 ft Two Wells/CavernSalt Dome230 m
7. SPR Storage Cavern New OrleansSuperdome273 FtWashingtonMonument555 FtEiffel Tower1,050 FtHeight Comparison SPR Cavern2,000 Ft6
8. SPR Oil Storage Sites: Texas (2), Louisiana (2) Storage Capacity: 727 Million Barrels Current Inventory: 696 Million Barrels (83 Days of Net U.S. Imports)Drawdown Capability: 4.25 Million Barrels/Day (50% of U.S. Import Rate) SPR Storage Facilities7
9. SPR Bryan Mound SiteSite Acquired: 1977Location: Freeport, TXSite Development:Converted 4 Industry CavernsConstructed 16 New CavernsCompleted 1986Storage Capacity: 254 MMBDrawdown Rate: 1,500 MB/DDistribution Capability: 2,260 MB/DHouston/Texas City RefinersFreeport RefineryMarine: 2 TerminalsSPR’s Largest Oil Storage SiteSPR’s Largest Single Cavern - 35 Million Barrels8
10. SPR Big Hill Site9Site Acquired: 1982Location: Winnie, TXSite Development:Undeveloped SiteConstructed 14 New CavernsCompleted 1991Storage Capacity: 171 MMBDrawdown Rate: 1,100 MB/DDistribution Capability: 2,825 MB/D*Beaumont/Port Arthur RefinersShell Pipeline to HoustonMidValley Pipeline to MidwestMarine: 2 TerminalsSPR’s “Award Winning” Site Design Storm Surge Covered Site in Hurricane Ike in 2008* Distribution capability of Big Hill and West Hackberry combined due to shared distribution system
11. SPR West Hackberry Site10Site Acquired: 1977Location: Hackberry, LASite Development:Converted 5 Industry CavernsConstructed 17 New CavernsCompleted 1988Storage Capacity: 228 MMBDrawdown Rate: 1,300 MB/DDistribution Capability: 2,825 MB/D*Beaumont/Port Arthur RefinersLake Charles RefinersMidValley Pipeline to MidwestMarine: 1 TerminalLargest Number of Storage CavernsManages SPR Pipelines & Emergency Spill Response Program* Distribution capability of Big Hill and West Hackberry combined due to shared distribution system
12. SPR Bayou Choctaw Site11Site Acquired: 1977Location: Plaquemine, LASite Development:Converted 5 Industry CavernsConstructed 1 New CavernCompleted 1987Adding New Cavern in 2012Storage Capacity: 74 MMBDrawdown Rate: 515 MB/DDistribution Capability: 1,170 MB/DMississippi River RefinersBaton Rouge RefinersCapline Pipeline to MidwestMarine: 1 Terminal
13. SPR Storage Operations12
14. SPR System ReadinessRapid Drawdown Capability Is Paramount!Most disruptions are shortBeing able to drawdown & distribute the inventory quickly is criticalOperational Readiness Is Important!Built systems with in-line spares, flexibility and made easy to repairHave formal plans & procedures for responding to potential crisesEstablished sales process & release plansPeriodic training & exercises13
15. SPR Readiness AssuranceSPR Systems and EquipmentFull drawdown test (STE) of SPR sites to demonstrate maximum drawdown capabilityQuarterly Drawdown Readiness Reviews to verify system & equipment readinessSPR Inventory SPR crudes are degassed to maintain availability SPR crudes are sampled and tested to assure high product qualitySPR Personnel TrainingRegular personnel readiness and training exercisesFull Simulated Drawdown Exercises (Bi-Annually)Operators proficiency maintained by Site Simulators14
16. SPR Emergency ResponseEmergency Response Team TrainingInitial Training RequirementsERT AcademyQuarterly Training RequirementsMedical Refresher TrainingICS Training100, 200, 700, 800 (all ERT & management staff)300 & 400 for management staffPosition SpecificAnnual Exercises & InspectionPREPNo Notice (boom deployment)Operational AssessmentsCOOP15
17. Protection & Preservationof Wetlands and Wildlifewhile providing U.S. Energy SecuritySPR has set aside nearly 80 Acres for Habitat Enhancement Environmental Responsibility16
18. SPR Distribution CapabilityPipeline Capabilities: 39 Refineries (Imports of >5 MMB/D)Marine Capabilities: 5 Terminals (Capacity of 2.5 MMB/D) 17
19. 18Prior SPR Oil ReleasesSPR Drawdowns (IEA Actions): 1991 Iraq War: 17.3 MMB 2005 Hurricane Katrina: 11.0 MMB2011 Libya Situation: 30.6 MMBSPR Test Sales: 1985 Test Sale: 1.0 MMB1990 Test Sale: 3.9 MMB2014 Test Sale: 5.0 MMBEmergency Exchanges (Loans):Seaway Emergency (1996): 1.0 MMBShip Channel Closure (2000): 1.0 MMBTime Exchange 2000: 30 MMBHurricane Ivan (2004): 5.4 MMBHurricane Katrina (2005): 9.8 MMBShip Channel Closures (2006): 1.6 MMBHurricane Gustav/Ike (2008): 5.4 MMB1991 Iraq War2005 Hurricane Katrina
20. 77% of All Deliverieswere withinU.S. Gulf Coast 79% of All Deliverieswere by Marine VesselsSPR Deliveries by Transportation Mode and Destination19SPR Drawdown 2011
21. 20Questions? Thank You FromThe U.S. SPR