NOW READ OUR ARTICLES IN 40 DIFFERENT LANGUAGES.
HOME PAGE SUBSCRIPTIONS, Print Editions, Newsletter Magazines Advertising READ THE BAKKEN NEWS ARCHIVE! BAKKEN EVENTS PETROLEUM MINING

SEARCH our ARCHIVE of over 14,000 articles
Vol. 18, No. 17 Week of April 28, 2013
Providing coverage of Bakken oil and gas

Moving Bakken oil to West Coast

U.S. refiner Tesoro and supply system provider Savage Cos. have rolled out a joint venture to build and operate a 120,000-barrels-per-day crude-by-rail unloading and marine loading facility on the Washington State coast to deliver Bakken oil to West Coast refineries.

The partners believe their plan, which needs approval by commissioners at the Port of Vancouver near Portland and regulatory agencies, could cost up to $100 million, be operational in 2014 and eventually get expanded to 280,000 bpd.

Wells Fargo analyst Roger Read said the ultimate capacity could position the port as a hub for North American crude deliveries and make it the “preferred supplier of Bakken crude to ... California.”

He said Tesoro’s two existing California refineries, plus a 265,000 bpd facility at Carson, Calif., that Tesoro has agreed to buy from BP, can process up to 190,000 bpd of Bakken-type crudes.

Macquarie analyst Chi Chow said the joint venture would likely result in Tesoro swapping California heavy, waterborne Alaska and foreign crudes in its West Coast system for Bakken or Canadian heavy crudes.

Tesoro Chief Executive Officer Greg Coff said the project builds on the success of a 50,000 bpd rail unloading facility at the company’s 120,000 bpd Anacortes, Wash., refinery which has received Bakken crude by rail since last year.

“This is the ideal next step for Tesoro as we drive additional feedstock cost advantage to the remaining refineries in our West Coast system,” he said.

The Anacortes facility has already backed out about 40,000 bpd of Alaska North Slope and foreign crudes, the company said in a February conference call.

—Gary Park



Did you find this article interesting?
Tweet it
TwitThis
Digg it
Digg
Print this story |
Email it to an associate.

Click here to subscribe to Petroleum News for as low as $69 per year.


Petroleum News Bakken - Phone: 1-907 522-9469 - Fax: 1-907 522-9583
circulation@PetroleumNewsBakken.com --- http://www.petroleumnewsbakken.com ---
S U B S C R I B E

Copyright Petroleum Newspapers of Alaska, LLC (Petroleum News Bakken)©2013 All rights reserved. The content of this article and web site may not be copied, replaced, distributed, published, displayed or transferred in any form or by any means except with the prior written permission of Petroleum Newspapers of Alaska, LLC (Petroleum News)(PNA). Copyright infringement is a violation of federal law subject to criminal and civil penalties.