By BEN LEFEBVRE
Tesoro Corp. is looking for ways to bring more Canadian
crude oil to its West Coast refineries via rail cars or barges
in a plan that might ultimately affect Alaskan oil exports, CEO
Greg Goff said Thursday.
Tesoro has been aggressive in expanding its crude-oil
sources as a way to bring down costs at its refineries along
the West Coast, home to the vast majority of its operations.
Tesoro and other US refiners have been steadily increasing
their use of a domestic oil supply strongly bolstered by recent
developments in drilling technology.
San Antonio-based Tesoro could use barges to bring heavy
Canadian crude oil to the US Pacific Northwest and then ship
the crude oil via rail to its California refineries, Mr. Goff
West Canadian crude oil is heavily discounted because a lack
of pipelines keeps it from easily reaching markets, creating a
As more of it travels via rail or barge to the West Coast --
home to 17% of the total US refining capacity -- the consumption
of Alaska North Slope crude oil in that region could start to
decline, Mr. Goff said. That, in turn, could lead to ANS crude
oil being exported abroad, an analyst from Tudor Pickering Holt
& Co. noted.
ANS crude oil is one of the few exceptions to the US ban on
"It depends on the amount of crude available to the West
Coast but it could have an impact with ANS," Mr. Goff said
during a conference call with investors.
Tesoro consumed 40,000 bpd of crude oil from North
Dakota and 5,000 bpd of Canadian light oil at its refinery in Anacortes, Wash., which
displaced ANS and foreign crude oil, a Tesoro executive said
during the call.
Tesoro plans to run its refineries at 90% of capacity on
average in the first quarter, up from 89% in the fourth
quarter. California fuel sales were improving from the low
levels brought about by a slow economy, Mr. Goff said.
Maintenance work was scheduled to
end at its refinery in Wilmington, Calif.,
during the first quarter, Mr. Goff said. Maintenance work at its Anacortes refinery would end early in the
Dow Jones Newswires