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Vol. 18, No. 28 Week of July 14, 2013
Providing coverage of Alaska and northern Canada's oil and gas industry
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IHS CERA study finds tanker safety enhanced since Exxon Valdez

Since 1989, great improvements in technology and practices have sharply reduced the chances of another Exxon Valdez, the consulting firm of IHS CERA has concluded in a study assessing the risks of marine transport of oil sands crude on Canada’s Pacific coast.

Tankers are now double-hulled and their cargoes are separated to prevent a vessel from emptying its entire load, said Jackie Forrest, IHS senior director.

She said the technological strides made in shipping are in line with those in the motor vehicle industry and have “drastically reduced the likelihood of oil spills and limited the amount of oil released in the event that a spill occurs.”

Forrest said that despite a doubling of the global tanker fleet in the past 24 years, the frequency and rate of spills was 75 percent lower in the 2003-12 period compared with the previous decade, with the average spill at 7,200 barrels.

She said two and sometimes four tugboats now help maneuver tankers and could take over the steering if tanker engines failed, while one or two pilots who are conversant with the local area are also on board the big vessels.

Heated debate

The study is primarily designed to review oil tanker activity and regulations which contribute to a heated debate surrounding potential tanker traffic on Canada’s West Coast if Enbridge and Kinder Morgan get approval for their plans to ship 1.4 million barrels per day to markets in Asia and California.

It said there is insufficient evidence as to whether bitumen blends sink more rapidly than other crudes of similar density.

Currently, about 500 tankers a year use Canada’s Pacific Coast compared with 3,500 in the Atlantic Coast, but that total will increase by 750 if the Northern Gateway and Trans Mountain expansion projects go ahead.

The study determined that the level of compensation available in Canada in the event of a spill exceeds what is available internationally, while Canada, in addition to being party to two international compensation funds, has established its own layer of domestic compensation.

IHS said the review process for the Pacific-bound pipelines has the potential to answer questions and concerned relating to increased tanker traffic.

One-third of Canadian cargo

It noted that oil already accounts for one-third of all Canadian cargo and is the largest international commodity handled by the shipping industry.

Canada is also party to the same international agreements and rules, such as those set out by the International Maritime Organization, as many other shipping nations, including the requirement for tug escorts and pilotage.

IHS said Port Metro Vancouver is Canada’s busiest port, accounting for more than 20 percent of all cargo loaded and unloaded.

The report said Northern Gateway, with plans to export 525,000 bpd of crude bitumen and import 193,000 bpd of condensate, would see about 220 tankers a year use the northern port of Kitimat, some of them VLCCs, very large crude carriers.

Kinder Morgan currently loads about 60 tankers (a mix of Panamax and Aframax, with upper limits of 600,000 barrels and 900,000 barrels, respectively) and 36 crude and refined product barges.

The Trans Mountain plan would require about 348 new tankers a year using Vancouver, using partially loaded Aframax-size vessels of about 550,000 barrels.

Vancouver also has four other petroleum terminals, all operated by oil companies which mostly use barges.

—Gary Park



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