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HomeMy WebLinkAboutMITIGATION (7) Shell Bakersfield Refinery T meet future energy demands, the Shell Bakersfield Refinery is matching the knowledge and skills of professionals with the 21 st Century technology of today's refining. Since 1932, the plant has been in integral part of the oil industry in Kern County, California. Throughout its 70-year history, the facility has symbolized a tradition of technical innovation, environmental progress, and production advances. Located in Bakersfield, California on approximately 250 acres of land, the refinery uses state of the art equipment to process 70,000 barrels of crude oil per day into products such as automotive gasoline, diesel, coke, fuel oils, liquefied petroleum gas, asphalt, sulfur, and other products. The refinery uses advanced equipment, a space-age control room, environmental protection facilities, terminal operations, maintenance shops, office buildings, storage tanks, and warehouses. It is a city within the greater Bakersfield area with its own medical facilities, fire department, security, and other services. Effective operation of technologically advanced equipment is highly dependent on the knowledge and expertise of more than 200 men and women. They are highly skilled professionals who ensure the refinery operates efficiently and safely 24 hours a day. The technical staff plans and implements equipment maintenance and facility improvements with guidelines for both efficiency and safety. Engineers and inspectors monitor equipment for operational performance. Laboratory technicians work with the refinery to both maintain and improve product quality. Highly qualified personnel provide purchasing, finance, environmental affairs, health and safety, communications, human resources, public affairs, and training activities. These professionals and the many who came before represent an historical energy cavalcade as the Shell Bakersfield Refinery has become part of the San Joaquin Valley community. We are proud of the long- standing relationship and of our determination to conduct business safely, efficiently, and with a continuing awareness of the energy needs of the community. 5 California/Central Valley Leader California and Kern County are rich in petroleum history. Through much of that saga, the Shell Bakersfield Refinery has played a major role. The plant's history dates back to 1932 when it opened as the Mohawk Refinery, processing approximatelyl,500 barrels of crude oil per day. In 1935, the plant added a cracking unit that increased capacity to over 9,000 barrels of crude per day. Processing continued at levels between 10,000 and 20,000 barrels per day until World War II. Between 1942 and 1945, the plant operated jointly with an adjacent refinery to produce military fuel from local heavy valley crude. After the war, the Mohawk Refinery expanded operations, increasing its daily capacity to about 40,000 barrels per day. In1970, Reserve Oil and Gas Company acquired the plant. In 1980, Getty Oil Company bought Reserve Oil and Gas and increased daily production to about 45,000 barrels per day. The company also added a high-tech loading facility. Following its merger with Getty Oil Company in 1984, Texaco took over the Bakersfield facility which then became the Texaco Bakersfield Plant. As a part of its long- range planning, Texaco initiated a number of refinery expansion projects. By 1987, Texaco had purchased the nearby Tosco Refinery, integrated its facilities, and doubled the output of gasoline production. Within a year of the Tosco purchase, Texaco acquired the Independent Valley Energy Company, adding a delayed coker and sulfur recovery facilities to the plant. Those acquisitions set the stage for significant increases in refining capacity and an expanded line of products. In 1998, the Bakersfield facility became part of the Shell/Texaco joint venture that created Equilon Enterprises LLC, one of the largest refining and marketing operations in the country. By 1999, Equilon-Bakersfield Refining Company had reached the milestone of processing approximately 70,000 barrels of crude oil per day. In early 2001, the Equilon-Bakersfield Refining Company and Northern California's Equilon-Martinez Refining Company formed the Bay Valley Refining Complex with combined processing capacity of approximately 235,000 barrels of crude oil per day. In the fall of 2001, Shell Oil Company purchased the Texaco Inc. interest in Equilon Enterprises LLC following the merger of Texaco with Chevron. What began as three separate sites, and with several owner-operators, continues to advance its operations as a major downstream facility in the San Joaquin Valley. The Processes Before petroleum is usable, it must go though the refining process. Facilities like the Shell Bakersfield Refinery use temperature, pressure, and catalysts to separate, reshape, and break apart hydrocarbon molecules to create a wide range of products. Crude oil is a complex mixture of hundreds of such hydrocarbon compounds, composed mainly of hydrogen and carbon but also including sulfur, nitrogen and other elements. These hydrocarbons range in density from materials as light as natural gas to those as heavy as road asphalt. In crude oil, these substances are thoroughly intermingled. Each compound boils at a different temperature. Distillation technology involves heating the hydrocarbon liquids, separating these substances through boiling the liquid, condensing vapors, and collecting the resulting liquids. Raise the temperature of crude oil and butane and other light gases detach. If heated further, gasoline components do the same. This process continues until only the heaviest hydrocarbon compounds remain. At each stage, the refinery takes these "fractions" for processing to get the most out of a barrel of crude. The Shell Bakersfield Refinery processes California's Central Valley heavy crude oil. And through its specialized refining processes the plant meets particular challenges to recover needed products. These heavy oil-targeted refinery operations include crude and vacuum distillation, hydrotreating, hydrocracking, delayed coking, hydrogen generation, catalytic reforming and sulfur recovery. Bottom product from the atmospheric crude distillation column is the feedstock for the vacuum distillation facilities. The best method to get good products from this bottom feed is to process it under reduced pressure within a vacuum tower. If the pressure is reduced, boiling takes place at a lower temperature. 8 At lower temperatures, the lighter portion of the bottom feedstock can be distilled without cracking. Hydrocracking takes intermediate oils, mixes them with hydrogen, and passes the mixture over a catalyst at high pressure and moderate temperatures. This process converts the oils and hydrogen into gasoline and diesel components. The delayed coking process converts hydrocarbon molecules, which are too large for use in gasoline and diesel, and thermally "cracks" them down into smaller, usable varieties. One of nature's additives to hydrocarbons in crude oil is sulfur. Depending on the source of the crude, the sulfur content can range from a tenth-weight percent to about 30 times as great. The gas oil desulfurization process removes about 90 percent of the sulfur from the gas oil feed. The refinery can then use this product in combination with other available oils to produce a wide range of low-sulfur fuel oils. Making sure that the temperatures are normal, that pressures are satisfactory, and that liquids are circulating correctly is the responsibility of the technicians in the control room. Consoles provide immediate information on plant processes from the multiple stages of product refining throughout the complex. The control room includes a state-of-the-art alarm system, tracking and shutdown systems on multiple screens. Such consoles allow operators to efficiently manage all systems and monitor the crude process flow from start to finish. Refinery crude oil, intermediate stocks, and saleable products are stored on site. The refinery requires a large storage capacity for variations in crude supply, process unit operations, and product demand. Product blending facilities using large capacity pumps and proportioning devices blend various product components. The refinery blends final diesel and naptha products with other additives to make gasoline and diesel that meet specified clean air requirements. The plant also produces gasoil for use in fuel oil and for further processing conversion to gasoline and diesel at other plants. Coke produced at the refinery is used in cogeneration and other final markets around the state and the world. With the advanced tools of their trade, laboratory testers ensure the quality and uniformity of company products. Control of the finished product begins with crude oil testing and continues through all phases of the refining process. It is completed with the quality testing of finished products. The Products Shell Bakersfield Refinery produces three grades of gasoline (unleaded regular, unleaded intermediate and unleaded premium). It also produces diesel fuel, raw gas oil, desulfurized gas oil, LPG, butane, fuel oil, asphalt, coke, sulfur, and ammonia. Within this range of products, fuels constitute the largest volume of the oil processed as gasoline and diesel. Motor gasoline is the major product, using over 36 percent of the refinery's daily processing of crude oil. Most of the gasoline is sold in California as a reformulated product meeting the state's environmental requirements. Diesel, the second largest product produced, using 21.5 percent of the daily crude, is a basic fuel that busses, boats, farm equipment, train engines, cars, and trucks use commercially. The refinery also produces coke which is a solid carbon substance resembling coal, and is used as a fuel for utilities and industry. Large ships use fuel oils as a bunker fuel. Utility and industrial boilers are also markets for the thick, heavy liquid fuels. As a bottled gas, LPG becomes the product of choice for many recreational vehicles, farm equipment, and for stoves, water heaters, and furnaces. Sulfur, also a product from the crude oil, is part of the manufacturing process for fertilizers and acids. Throughout California and the nation, business and residential energy users have critical needs for a variety of products from refined crude oil. The mission of Shell Bakersfield Refinery is to provide top quality refined products to meet the nation's energy needs. Safety, Health and the Environment As a major energy facility in the Central Valley, Shell Bakersfield Refinery promotes the health and safety of its employees and others who work at the plant; protects the environment; and minimizes impacts on the businesses and residences near the site. Critical to that success are both the attitudes and actions of employees. They know the importance of these responsibilities for themselves, their co-workers, and for the surrounding community. Since employees and the company focus on health and safety, the plant ranks as one of the safest refining operations in the nation. Organizations like the National Petroleum Refining Association have recognized it's positive records on safety. Refinery safety, health and environmental specialists constantly monitor the workplace, and employees regularly inspect facilities and suggest improvements. Included in the program are training workshops, safety and environmental studies, drills, seminars, firefighting workshops, and first-aid instruction. There are also strict requirements for wearing proper protective equipment. Another aspect of the refinery's safety program is a comprehensive industrial hygiene program. Professional hygienists provide guidance in the handling of product and substances used in local manufacturing. This staff monitors health surveillance to gather, evaluate, and store important health data on each employee. Should there be a worker injury or illness, a modem medical facility is located at the facility and is staffed by a plant nurse who helps employees with medical problems and questions. The plant also has professional firefighters who receive their training from such organizations as the University of Nevada in Reno and Texas A & M. They also work closely with local community firefighting organizations, jointly attending safety training. The facility is equally committed to related air, water, odor, and noise issues within the environment. Instrumentation accurately measures emission levels from heaters, boilers, fuel gas supply sources and sulfur recovery units. Communications links route emission data directly to control room operators for continuous monitoring. Through pollution control technology, wastewater treatment facilities, and health and safety practices, the company has repeatedly demonstrated it will meet or exceed state as well as national environmental standards. To facilitate that process, the plant staff maintains excellent working relationships with regulatory agencies monitoring Central California's natural resources. Refinery environmental staff regularly meet with these agencies to ensure that the facility complies with all laws protecting the air, water, and land. Community Involvement Wile the Shell Bakersfield Refinery is a major processor of petroleum products, it also plays an major civic role within Bakersfield and other Central Valley communities. As an economic force, the plant provides more than 200 jobs and approximately $30 million annually in payroll. It also pays about $3 million each year in state and local taxes. Built on extensive company and employee involvement, community service is a major priority. Employees, retirees, and contractors contribute to the quality of life in Bakersfield and the surrounding area as participants in a variety of civic, social, religious, and academic endeavors. This activity translates into hundreds of hours of volunteer time and thousands of dollars in contributions from both the company and individuals. For several years, the "Fueling Up for the Fight" employee team has participated in the Bakersfield area American Cancer Society "Relay for Life". This annual, two-day team relay event involves employee efforts to raise funds to support cancer research and education. Other activities include scheduling blood drives, providing a site for community drop-off recycling, helping to build homes for Habitat for Humanity, participating in health fairs, supporting Alzheimer research, assisting Toys for Tots, serving at the Bakersfield Rescue Mission, helping to honor Beautiful Bakersfield winners. These activities represent a creative relationship, a significant contribution to the community, and an enthusiastic working together to solve the mutual challenges in the local area. Another refinery initiative is to keep Bakersfield and the Central Valley informed of what is happening at the refinery. An expanded Public Affairs function serves as a link to the surrounding area. In this liaison role, Public Affairs provides information on plant activities to neighbors, key community leaders, the news media, elected officials and others. Working with a community advisory panel of civic and business representatives, Public Affairs monitors community attitudes, concerns, and issues critical to both the local plant and the management of Shell Oil Products US. Shell Bakersfield Refinery In January 1998, Shell Oil and Texaco formed Equilon Enterprises LLC. This joint venture was a refining and marketing powerhouse for the West and Midwest. As a major division of this alliance, the Bakersfield plant became the Equilon-Bakersfield Refining Company. In October 2001, Shell Oil Products Company acquired the Texaco interest in the Equilon Alliance. Now Shell Oil Products US west coast refining and marketing operations include three other refineries, two in California, in Los Angeles and Martinez, and a third at Anacortes in Washington. Combined crude oil processing at the four facilities approaches approximately 500,000 barrels per day. Refining is a vital element of Shell Oil Products US business and a major factor in its presence in California. Every phase of its operation is found in the state from refining to marketing. The movement of oil from well to company refineries and the delivery of product from refinery to service station are achieved by a comprehensive transportation system including ocean tankers, railcars, barges, thousands of miles of pipeline, storage terminals and tanker trucks. More than 9,000 Shell service stations, the company's main connection with consumers, are in California. Shell Oil Products US refines and markets gasoline and other petroleum products under the Shell brand name in all or part of 31 western states. A major part of that mission is supplying the energy needs of California and the West. The Shell Bakersfield Refinery works around the clock to meet this goal. It is a vital facility for California and the West and is fully committed to serving your energy needs. 15 ' Shell Bakersfield Refinery P.O. Box 1476 Bakersfield, CA 93302