Contracting decisions in the crude oil transportation market: Evidence from fixtures matched with AIS data

In response to industry demand, Hardisty Caverns Limited Partnership (HCLP) has developed cost effective underground storage facilities with a capacity to store 480,000 m3 (3 million barrels) of crude oil. This project is unique through the integration of existing underground salt caverns into a significant North American crude oil transportation hub. Annually, 64 million cubic meters (400 million barrels) of oil move through this hub. This project utilizes existing caverns developed in the late 1960’s. Significant work was required to upgrade the cavern facilities and to construct new surface facilities to integrate the caverns into the crude oil transportation hub. Remote operation of the facility is performed from a control centre in Edmonton. In this paper, the key features of the design and construction of the Hardisty Cavern Storage Project will be presented. Of particular interest are the unique challenges presented due to hydraulic considerations related to cavern operation with multiple product characteristics and to provide crude oil movements exchanges between the cavern storage facilities and both low flow rate feeder pipelines and high flow rate transportation pipelines.

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Drag Reducer Selection for Oil Pipeline Based Laboratory Experiment

Modern Applied Science ◽

10.5539/mas.v12n1p112 ◽

2017 ◽

Vol 12 (1) ◽

pp. 112 ◽

Cited By ~ 2

Author(s):

Leksono Mucharam ◽

Silvya Rahmawati ◽

Rizki Ramadhani

Keyword(s):

Crude Oil ◽

Large Scale ◽

Oil And Gas ◽

Energy Requirement ◽

Pipeline System ◽

Chemical Application ◽

Oil Pipeline ◽

Pipeline Flow ◽

Oil Transportation ◽

Pump Stations

Oil and gas industry is one of the most capital-intensive industry in the world. Each step of oil and gas processing starting from exploration, exploitation, up to abandonment of the field, consumes large amount of capital. Optimization in each step of process is essential to reduce expenditure. In this paper, optimization of fluid flow in pipeline during oil transportation will be observed and studied in order to increase pipeline flow performance.This paper concentrates on chemical application into pipeline therefore the chemical can increase overall pipeline throughput or decrease energy requirement for oil transportation. These chemicals are called drag reducing agent, which consist of various chemicals such as surfactants, polymers, nanofluids, fibers, etc. During the application of chemical into pipeline flow system, these chemicals are already proven to decrease pump work for constant flow rate or allow pipeline to transport more oil for same amount of pump work. The first application of drag reducer in large scale oil transportation was in Trans Alaskan Pipeline System which cancel the need to build several pump stations because of the successful application. Since then, more company worldwide started to apply drag reducer to their pipeline system.Several tedious testings on laboratory should be done to examine the effect of drag reducer to crude oil that will be the subject of application. In this paper, one of the testing method is studied and experimented to select the most effective DRA from several proposed additives. For given pipeline system and crude oil type, the most optimum DRA is DRA A for pipeline section S-R and for section R-P is DRA B. Different type of oil and pipeline geometry will require different chemical drag reducer.

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Logistics for world-wide crude oil transportation using discrete event simulation and optimal control

Computers & Chemical Engineering ◽

10.1016/j.compchemeng.2003.09.025 ◽

2004 ◽

Vol 28 (6-7) ◽

pp. 897-911 ◽

Cited By ~ 70

Author(s):

Lifei Cheng ◽

Marco A. Duran

Keyword(s):

Optimal Control ◽

Crude Oil ◽

Discrete Event Simulation ◽

World Wide ◽

Discrete Event ◽

Event Simulation ◽

Oil Transportation

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Comparative Study on the Transportation Charge of Crude Oil Between Pipeline and Railway in China

2010 8th International Pipeline Conference, Volume 3 ◽

10.1115/ipc2010-31154 ◽

2010 ◽

Author(s):

Xiaokai Xing ◽

Changchun Wu ◽

Bing Liu

Keyword(s):

Comparative Study ◽

Crude Oil ◽

Construction Projects ◽

Loading Rate ◽

Rate Of Return ◽

Pipe Network ◽

Railway Transportation ◽

Rail Network ◽

Oil Transportation ◽

China National Petroleum Corporation

Economic contrast of crude oil transportation charge between pipeline and railway affects the pipe network and rail network planning of the area, and the relevant studies have not been seen in literature. On the basis of evaluation methods and parameter and other relevant provisions of construction projects regulated by China National Petroleum Corporation (CNPC), the paper conducted a comparative study on the transportation charge of crude oil by the pipeline and railway. The transportation charge by the pipeline was calculated based on the minimum attractive rate of return (MARR). The results show that transportation charge is 0.06∼0.14 CNY/ton·km and will decrease with the size of the diameter of the pipe and increase with the distance of the transportation. The study on railway transportation charge shows that the charge is 0.13∼0.25 CNY/ton·km, which will decrease with the distance but has no relation with the amount of crude oil. The thicker the diameter of pipe, the lower the charge is by the pipe, which is relevant to the loading rate. When the loading rate is 38–72%, the transportation charge by the two ways are almost the same.

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Maritime crude oil transportation – A split pickup and split delivery problem

European Journal of Operational Research ◽

10.1016/j.ejor.2011.09.046 ◽

2012 ◽

Vol 218 (3) ◽

pp. 764-774 ◽

Cited By ~ 26

Author(s):

F. Hennig ◽

B. Nygreen ◽

M. Christiansen ◽

K. Fagerholt ◽

K.C. Furman ◽

...

Keyword(s):

Crude Oil ◽

Split Delivery ◽

Delivery Problem ◽

Oil Transportation

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Complexities of Oil Spill Contingency Planning for Railroads – Lessons Learned In Washington State

International Oil Spill Conference Proceedings ◽

10.7901/2169-3358-2017.1.2096 ◽

2017 ◽

Vol 2017 (1) ◽

pp. 2096-2109

Author(s):

Linda Pilkey-Jarvis ◽

Nhi Irwin

Keyword(s):

Crude Oil ◽

Oil Spill ◽

Distribution Systems ◽

The United States ◽

Washington State ◽

Lessons Learned ◽

Regulatory Requirement ◽

State Regulations ◽

Oil Transportation ◽

Contingency Plans

Abstract 2017-405 With the energy renaissance in the United States and the lack of inland pipeline distribution systems, increasingly railroads are transporting crude oil to coastal ports for refining and for further distribution over the water. In Washington State, rapidly changing modes of crude oil transportation, shifting away from vessel and towards rail delivery, resulted in a regulatory requirement for rail operators to develop state approved oil spill contingency plans. Oil spill planning for railroads can be complex, for instance, planning for spills in all types of terrains, environments and habitats, as railroads cross both inland and marine waters. Washington State regulations for railroad contingency plans have been developed in response to changes in oil movement and this paper presents lessons learned from that endeavor. During the rule process, a unit train carrying Bakken crude oil derailed in the Columbia River Gorge, providing an opportunity to draw those lessons into the final rules as adopted. This paper describes the State’s approach to working with large and small rail operators and concerned citizens, and shares the lessons that address the obstacles and opportunities unique to complex railroad oil spill planning.

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