Category Archives: Valero Benicia Refinery

Mexico’s Pemex now shipping light crude to U.S. West Coast, including Valero Benicia

Repost from Reuters

Mexico’s Pemex quietly resumes light crude sales to U.S. West Coast

May 18, 2014

May 18 (Reuters) – Mexico’s Pemex has quietly begun shipping light Isthmus crude to a variety of West Coast refiners this year, according to U.S. and Reuters data, resuming such sales after a six-year hiatus.

The state-run oil company, which exported only about 100,000 barrels per day (bpd) of Isthmus last year, shipped about 340,000 barrels of the crude to Valero Energy Corp at Benicia, California, in January and February, according to U.S. government data.

It sent another 350,000 barrels (48,000 tonnes) to Tesoro Corp in San Francisco in March, according to Eikon’s trade flow database based on PIERS data. Pemex then exported another 150,000 barrels to Shell Trading at Anacortes, Washington, in May from the Salina Cruz terminal.

Isthmus is typically shipped to Gulf Coast and East Coast ports including Beaumont and Corpus Christi, Texas and Philadelphia, Pennsylvania.

The move is the latest in a series of new export contracts that Pemex has announced, aimed at diversifying the company’s base of clients. Pemex said it began shipping Olmeca crude to Europe in January, and last month said it started shipments of Isthmus to Hawaii.

A sweeping energy overhaul in Mexico passed late last year and pushed by President Enrique Peña Nieto seeks to inject competition into a sector dominated for decades by Pemex and to boost domestic crude output, which has fallen by a quarter since 2004 to about 2.5 million bpd.

Over the same period, the country’s oil export volumes have dropped by a third.

The light, sweet grade of Isthmus crude oil with 33.6 API degrees is mainly produced in the southern Gulf of Mexico’s Campeche zone with a principal loading port at Pajaritos.

Pemex had halted exports of Maya crude to the U.S. West Coast in 2008.

The Mexican oil giant exported a total of 1.2 million bpd of crude oil last year.

Pemex normally supplies Exxon Mobil Corp one monthly cargo of 500,000 barrels in Houston. Pemex also delivers Total Petrochemicals at Port Arthur, Texas, 150,000 barrels of Isthmus monthly.

Citgo Petroleum, PBF Holding, Atlantic Trading, Chevron and Shell also buy varying sized cargoes of Isthmus occasionally.

(Reporting by David Alire Garcia in Mexico and Marianna Parraga in Houston; editing by Jessica Resnick-Ault and G Crosse)

Train Derailment in Benicia Industrial Park

Repost from the Benicia Herald,
http://beniciaherald.me/2013/11/04/no-spillage-none-hurt-in-train-derailment/ 

No spillage, none hurt in train derailment

11/5/13, 10:05am 

Coke dust contained after single rail car came off tracks in Industrial Park on Monday

Staff Report

Derailment in Benicia Industrial Park, 11/4/16

Benicia police said a single rail car carrying coke dust from Valero Benicia Refinery derailed Monday, but no one was injured and no spillage occurred.

The cause of the derailment is under investigation, Benicia police Lt. Frank Hartig said in a news release.

He said Benicia Police Dispatch Center received a call at approximately 12:42 p.m. about the derailment at the intersection of Park and Bayshore roads in the Industrial Park, and Benicia police, Benicia Fire Department and representatives from the the refinery responded.

Hartig said they learned that the rail car loaded with coke dust, a refinery byproduct containing sulfur, carbon and heavy metals, had derailed while leaving the Valero property and crossing Park Road.

The train was traveling in an eastbound direction when the derailment occurred, he said, and the coke dust was contained in the rail car and there was no spillage.

There were no reported injuries to anyone involved, Hartig said.

He said investigators from the Union Pacific Railroad, which owns the rail car, responded to take over as the primary investigating agency, and they will seek to determine whether the derailment was caused by issues with tracks or the rail car, or whether it was caused by operator error.

He said the train engineers are cooperating with Union Pacific investigators, and the train engine is being examined as well.

The derailment caused damage to the roadway at the train crossing site, Hartig said, but the roadway was reopened to vehicular traffic at approximately 2:30 p.m.

The derailed train car remains on scene until machinery can arrive that will rerail the car, he said, and the roadway may have to be closed again until that can be accomplished.

“Through the collaborative efforts of the agencies that responded to this incident, the scene was rendered safe, and in a short amount of time the clearing of the roadway and reopening to vehicular traffic was done quickly and efficiently,” Hartig said.

Benicia Herald op ed: Do Benicians want tar-sands oil brought here?

Repost from The Benicia Herald

Do Benicians want tar-sands oil brought here?

THE RAVAGES OF tar sands extraction in Alberta, Canada. Sierra Club

By Roger Straw

MANY THANKS TO BENICIA HERALD REPORTER Donna Beth Weilenmann for her detailed report, “Valero rail project: City has no control over oil source” (June 12). It is unfortunate that City Manager Brad Kilger is quoted saying, “The city does not have the authority to control the refinery’s crude sources.”

The source of Valero’s crude is important — here in Solano County, and globally. Since the city can’t control it, perhaps those of us who live here should persuade our friendly giant Valero to stay away from Canadian tar-sands oil of its own volition.

The world is dying, not so slowly, from the burning of fossil fuels. The most polluting of these fuels is mined in Alberta, Canada, where investors are extracting a thick, tar-like substance called “bitumen” from deep layers of sand. This sludge is blasted out of the sand with heated water. Millions of gallons of water are used daily, which first must be heated by natural gas, so the process is not energy efficient and can never be truly competitive with regard to “return on investment” after all costs are factored.

Moreover, additional costs are too often not accounted for — in particular the destruction of miles and miles of pristine northern boreal forests, and in their place the creation of a hellish network of open pit mines, wells, roads, pipes and hundreds of toxic “lakes” from the water used in the extraction process. The destruction has expanded to an area larger than Ohio or Pennsylvania.

Next comes the problem of creating a “blend” of crude oil from the tar-like bitumen that is fluid enough to be transportable by pipeline (Keystone XL), or now by rail. The gazillion-dollar heated railroad cars, we are told by Mr. Kilger, who cites a study paid for by Valero, are “specifically designed not to rupture,” and the city, county, state and feds are all well-prepared to take care of any emergency.

Sure. Tell that to the residents who live near Kalamazoo, Mich., where my daughter was born. We have friends and family nearby there, and their story of leaked tar-sands crude is horrific. After spending more than $765 million on a three-year cleanup there, the Kalamazoo River is still plagued by sunken heavy balls of tar-sands bitumen, threatening habitat, wildlife and human health. For background, see “April Flooding Could Affect Cleanup of 2010 Michigan Oil Spill,” by David Hasemyer:

“Removing dilbit (diluted bitumen) from water is more difficult than removing conventional oil because the chemicals used to thin the bitumen gradually evaporate, while the bitumen sinks to the river bottom.”

Imagine that gunk flowing into our Suisun Marsh after a train derailment — what would that look like? For an idea, read InsideClimate News’ Pulitzer Prize-winning authors’ “The Dilbit Disaster: Inside the Biggest Oil Spill You’ve Never Heard Of,” about “a project that began with a seven-month investigation into the million-gallon spill of Canadian tar sands oil into the Kalamazoo River in 2010. It broadened into an examination of national pipeline safety issues, and how unprepared the nation is for the impending flood of imports of a more corrosive and more dangerous form of oil.”

We in Benicia — including our neighbors in positions of influence at Valero — need to do some very important homework and ask a lot of questions before this new crude-by-rail project is approved. Imagine a disaster here, or better yet, imagine no opportunity for one. The hearing at the Planning Commission is set for July 11. Comments should be sent by July 1 to City Manager Brad Kilger at City Hall, 250 East L St., Benicia, or by email to bkilger@ci.benicia.ca.us.

Roger Straw is a Benicia resident.