Bakken oil destined for New Jersey
Phillips 66 has signed a five-year contract to use Global
Partners LPs rail transloading, logistics and
transportation system to deliver crude oil from the North
Dakota Bakken region to the Phillips 66 Bayway refinery in New Jersey. The terms of
the contract include a take-or-pay commitment from Phillips 66
to receive approximately 91 million barrels of crude oil over
the contract term, which equates to approximately 50,000 bpd.
The contract will utilize Globals network of loading facilities and offloading terminals.
Phillips 66 is one of the first energy companies to move shale
crude to the East Coast. Last year, the company expanded its
capability to deliver shale crude to its refineries by truck,
rail, barge, ocean going vessels and pipeline.
The American Fuel and Petrochemical Manufacturers (AFPM)
has petitioned the US Environmental Protection Agency (EPA) to
waive the 2012 cellulosic biofuel mandate, citing a lack of
domestic supply available for commercial use. The AFPM said the
EPA Moderated Transaction System (EMTS) demonstrates that there
has been, and continues to be, an inadequate domestic supply of
cellulosic biofuel. In 2011, American refiners were required to
use 6 million gallons of cellulosic biofuel to meet the
EPA-established mandate, yet according to EMTS, zero cellulosic
biofuel was actually produced. To date in 2012, just 20,069
gallons of cellulosic biofuel has been produced, all of which
was exported. This amount falls far short of the EPA-mandated
10.45 million ethanol-equivalent gallons of cellulosic biofuel.
In addition, since the cellulosic biofuel that actually was
produced was exported, refiners cannot use credits generated
from these biofuels for complying with the federal mandate. The
AFPM has stated that if the EPA fails to grant the waiver,
refiners will be forced to pay several million dollars for a
product that does not exist. The industry group further
believes that this mandate is a hidden tax on the refining industry and is not what
Congress intended when it incorporated the waiver provisions
into the RFS.