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Title: Transport woes threaten California production

Journal Article · · Oil and Gas Journal; (United States)
OSTI ID:7178898

California oil producers face a loss of production this year because of constraints on pipeline and tanker transportation to Los Angeles area refineries. The potential bottleneck is occurring at a time when Outer Continental Shelf production is near capacity from Chevron Corp.'s Point Arguello project at the same time production is increasing from Exxon Corp.'s nearby Santa Ynex Unit (SYU) expansion. Both megaprojects must compete for pipeline space with onshore crude producers, notably in California's San Joaquin Valley (SJV). Recent development limiting transportation options include: An indefinite shutdown of Four Corners Pipe Line Co.'s 50,000 b/d Line No. 1, damaged by the Jan. 17 earthquake; Loss of a tanker permit by Chevron and partners for offshore Point Arguello production; Permanent shutdown of Exxon's offshore storage and treatment (OST) facility, which since 1981 has used tankers to transport about 20,000 b/d of SYU production from the Santa Barbara Channel to Los Angeles. The OST, the first commercial floating production system in the US -- placed in the Santa Barbara Channel in 1981 after a decade of precedent setting legal and political battles -- was shut down Apr. 4. The paper discusses these production concerns, available options, the OST shutdown, and the troubled history of the OST.

OSTI ID:
7178898
Journal Information:
Oil and Gas Journal; (United States), Vol. 92:21; ISSN 0030-1388
Country of Publication:
United States
Language:
English

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