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Western Governor’s - WEIB

Western Governor’s - WEIB. Petroleum in the West Dave Smith, bp Oct. 2, 2002. Petroleum in the West. Problem Statement - Shortfall?? Oil industry – historical reliable source of product Short/Long term issues Extent/duration of the problem Role of Government?

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Western Governor’s - WEIB

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  1. Western Governor’s - WEIB Petroleum in the West Dave Smith, bp Oct. 2, 2002

  2. Petroleum in the West • Problem Statement - Shortfall?? • Oil industry – historical reliable source of product • Short/Long term issues • Extent/duration of the problem • Role of Government? • Boutique fuels – not the only issue • Performance specifications preferred • Regional harmonization??

  3. Petroleum in the West • Product Inventories • Costs vs risks • Las Vegas - KM response • Imports to the West • Period of transition – short term • Increase overall supply options - long-term • Longer supply lines • Fed. Energy Legislation – oxygen mandate • Phoenix summer oxy requirement – EPA approval? • Eliminate unneeded winter oxygenate programs • Pipelines: KM & Longhorn Pipeline

  4. Petroleum in the West • California (CO2 Limits) & Federal CAFÉ – impact • Don’t forget diesel efficiency – Arizona classification of ULSD + PM traps as a clean fuel • Auto’s plans to encourage clean diesel use

  5. Petroleum in the West • Antitrust Issues • Compliance Plans – CBG 3 • Contingency Planning – CEC/Industry • Information & Analysis Role – Contact Point • Variances – federal, state, local • CARB model • Know your options – Las Vegas?? • Contacts • Communications to Key Opinion Leaders • Uniform message

  6. Petroleum in the West • Government’s Role: • Clear rules – performance driven • Enforce rules • Plan for the unexpected • Provide reliable source of information to key stakeholders • Provide leadership in short-term disruptions • Work cooperatively with stakeholders for long term solutions

  7. SFR ISSUES • “..if we build it, they will come”. • The existence of an SFR will not lead to a reduction in privately-held inventory • How much inventory is in California? • How big a SFR is needed? • Estimate of “refinery growth” was too low. • SFR must accept components as refill, and have the capability to blend into CARBOB. • Summer gasoline only.

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