the most-populous U.S. state and biggest gasoline market, more
than doubled the volume of oil it received by train in the
first quarter as deliveries from Canada surged.
third-largest oil-refining state unloaded 1.41 million
bbl in the first quarter, up from 693,457bbl a year ago, data
on the state Energy Commissions website showed yesterday.
Canadian deliveries made up half the total and were eight times
shipments a year earlier. Supplies from New Mexico jumped 71%
to 173,081 bbl. Those from North Dakota slid 34 % to 277,046
West Coast refiners including Tesoro Corp. and Valero Energy
Corp. are developing projects to bring in more oil by
rail from reserves across the middle of the US and Canada to
displace more expensive supplies. Crude production in PADD 5,
which includes California and Alaska, has dropped every year
since 2002 while drillers are extracting record volumes from
shale in states including North Dakota and Texas.
surging flows of domestic oil to California reflect a
continuing improvement in crude-by-rail receiving facilities here, David
Hackett, president of Stillwater Associates, an energy
consultant, said by phone from Irvine, California.
shipments still account for a small fraction of
Californias oil demand. In February, the state imported
more than 20 million bbl of crude from abroad, data from the US
Energy Information Administration show.
from North Dakota and Canada trades at a discount to Alaska
North Slope oil, which rose 36 cents to $107.78/bbl at 9:09
a.m., data compiled by Bloomberg show. Western Canada Select, a
heavy, sour blend, gained 36 cents to $82.88. North
Dakotas Bakken crude also gained 36 cents to
costs $9/bbl to $10.50/bbl to send North Dakotas Bakken
oil by rail to California, according to Tesoro, the West
Coasts largest refiner.
are bringing more to California even as projects face more regulatory
scrutiny after a series of accidents involving rail cars
carrying fuel. The most recent was on April 30, when a CSX
Corp. crude train derailed in Lynchburg, Virginia, igniting a
fire and triggering an evacuation. A derailment in Quebec last
July killed 47 people.
US Transportation Department is studying changes to shipping
oil by rail, and in February railroads agreed to slow such
trains in urban areas. Canada ordered a phase-out of older tank
cars last week.
regulators said yesterday that theyre delaying an environmental report on a
rail-offloading complex that Valero has proposed at its Benicia
refinery in Northern California to
June. The San Antonio-based company originally planned to
finish the project by the end of last
is six to eight weeks behind schedule in receiving regulatory
permits for a rail-to-marine crude transloading terminal in
Washington state, the company, also based in San Antonio, said
yesterday. It now expects to receive the permits late this year
or in early 2015, with construction taking about 12 months,
Scott Spendlove, the chief financial officer, said on a
conference call with analysts.
oil output has declined every year since 2002 as the yield from
existing wells shrinks. Alaska North Slope crude production
averaged 555,987 bpd in April, up from 546,087 bpd a year
earlier, data posted on the Alaska Department of Revenues
website yesterday showed.