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Oil Industry on the Delaware River: a Changing Landscape

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Oil Industry on the Delaware River: a Changing Landscape PRSRT STD U.S. POSTAGE PAID WILMINGTON, DE PERMIT NO. 1635 THE MARITIME EXCHANGE Serving Delaware, New Jersey and Pennsylvania 240 Cherry Street BEACON Philadelphia, PA 19106 Winter 2013 ADDRESS SERVICE REQUESTED Volume 23, No 4 http://www.maritimedelriv.com w [email protected] Oil Industry on the Delaware River: Interview With A Changing Landscape Kelly Anderson Just when Don Glenn, sales director for one of the in size and about 40 percent in number – from a high Philadelphia Water Department largest barge carriers on the Delaware River, thought of 1,043 arrivals in 2006 to 631 in 2012. Tankers rep- Delaware Valley Early Warning System business had tanked for good, he was swamped with resent about 30 percent of all ship traffic. customers. Rail cars, on the other hand are in such hot demand “We’re busy. Very busy, thanks to the development that NuStar Asphalt LLC expects to wait two years be- in domestic crude. Seems like overnight there has been fore getting its order, said Rod Pullen, director of op- an explosion in rail lines and a shortage of barges on erations for the Paulsboro plant. NuStar began rail the East Coast,” said Glenn of Vane Brothers. “It’s been service in 2011 from Western Canada to third-party ter- a game changer and a great time to be in the barge busi- minals in Baltimore. From there, crude is barged to ness.” Paulsboro. Not a bad time for the rail business either. About 35 percent of the company’s crude today ar- North American crude production – locked mid- rives by rail and barge. That number will grow sub- continent in Western Pennsylvania, North Dakota and stantially when NuStar completes a rail upgrade to Canada – is projected to increase 53 percent by 2020. handle a 100-car train, said Pullen. The new order is focused on moving it East via a com- PBF Energy, Inc., which purchased the former bination of pipeline, rail, truck and barge to the Valero refinery in Paulsboro and Delaware City, is Delaware River, reversing trends that stoked the region using a fleet of 2,400 cars to haul about 60,000 barrels and the maritime time industry for decades. per day of light Bakken crude and 35,000 barrels per Tankers on the river hauling imported crude and day of heavy crude from Alberta, Canada to Delaware. other chemicals from around the world have declined The cost of the 1,800-mile journey from North Dakota to Delaware which takes about six days by rail is $8 to Exchange Receives $10 a barrel less than imported crude, depending on Kelly Anderson is Source Water Protection Program market conditions. By 2015, PBF expects to own or Manager with the Philadelphia Water Department. Her lease 5,900 cars. responsibilities include the development and operation of “Seafarer’s Friend” Award a major electronic notification project designed to help To date, the Parsippany-based company has in- protect the regional waterways. With a portion of the vested more than $100 million on a double–loop track project funded through the federal Port Security Grant at Delaware City capable of discharging crude from a Program, not only will the system serve as an invaluable 100-car-plus unit train in 14 hours. The double loop is tool in the event of an accidental or terroristic oil or reserved for light, sweet Bakken crude which is more chemical spill, it will also serve the tri-state region on a costly to refine, while heavier, sour crude is discharged daily basis protecting water quality. Ms. Anderson was from a separate rail siding. kind enough to spend some of her time providing an up- date for this issue of The Beacon. continued on page 4 Q: Can you tell us a little bit about the system? A: The Delaware Valley Early Warning System (EWS) is CAPT Kathy Moore: a computerized alert system designed to provide warn- ings about surface water contamination events in the Among the First On-Scene Schuylkill and lower Delaware River watersheds. The Five months after U.S. Moore spent 18 days on Philadelphia Water Department (PWD) began develop- Port of Wilmington Executive Director Gene Bailey (l) Coast Guard Capt. Kathy site coordinating some 250 ment of the EWS in 2002 with the objective of improving joins Joan Lyons in presenting the Seafarer’s Friend Moore arrived in Philadel- government, industry and the safety of the region’s drinking water supplies by pro- Award to Exchange President Dennis Rochford. phia to take command at contractor responders per day viding real-time surface water quality monitoring and pol- In 2004, the Seamen’s Center of Wilmington Sector Delaware Bay, involved in the clean-up. lution event notifications to drinking water systems and Board of Directors decided to annually recognize Hurricane Sandy blew in, The two incidents illus- regulatory agencies. Startup funding was provided by the one group or individual, church, business or organi- tossing ships like toddlers trate the breadth of chal- Pennsylvania Department of Environmental Protection zation that helps the Center to greet and assist sea- on a trampoline. Though lenges to the Coast Guard’s and the United States Environmental Protection Agency farers. most of the maritime dam- mission which is to keep key and, in 2004, the EWS was fully deployed for authorized “This year we are thrilled to honor the Maritime age occurred north of her waterways and the people users. Exchange,” said SCW Executive Director Joan Lyons. jurisdiction, the Delaware who live and work around “As an organization and as individuals, the Exchange Bay turned into a parking them safe. The system comprises four principal components: and its employees stand united in our cause. Just lot for ships from around Moore’s jurisdiction in- about the entire staff has given some of their time Partnership: The Partnership brings together EWS stake- the world looking for a cludes two-thirds of Pennsyl- holders and includes representatives from public and pri- and expertise, from help with TWIC implementation, place to divert and hide vania, south of Shark River in vate drinking water supply systems in the coverage area, to web page design, support for the annual from the storm. Monmouth County, New Jer- fundraiser, to computer network assistance – and One month later in No- sey and all of the Delaware industries who withdraw water from the Schuylkill and anything else we need – makes them a true stand- vember 2012, an 82-car Coast, in addition to the Delaware Rivers, and government agencies involved in out in our maritime community. There is not a week freight train derailed on a Delaware River and Bay. protecting water quality. goes by that I don’t find myself grateful for their help and support.” Conrail swing bridge in “I love this port,” said Notification System: The EWS notification system pro- Exchange President Dennis Rochford said the or- Paulsboro, dropping four Moore whose last post was vides fast automated telephone alerts and email notifica- ganization is happy to be of assistance. “We know cars with vinyl chloride Corpus Christi, Texas. “It’s tions to members about water quality events. the SCW has limited staff and relies heavily on its gas, one of which was so diverse, and it is evolving. volunteers, including ship visitors, drivers and even breached, into Mantua Nothing is static here. I’ve Monitoring Network: The water monitoring network con- bookkeeping,” he said. “It’s our distinct pleasure to Creek. The accident learned from these incidents sists of on-line, real time water quality and flow monitoring be helpful in any way we can.” raised concerns about how well all the members of stations using US Geological Survey monitoring sites and The award was presented on November 12 dur- ownership and mainte- the community – including water treatment plant intakes. ing the Port of Wilmington Maritime Society annual nance of the nation’s rail dinner. bridges. continued on page 9 continued on page 13 The Beacon 2 Winter 2013 The Times They Are a Changin’…The New Energy Marketplace of foreign crude oil each day to the seven refineries And this resiliency is important to the overall along the Delaware River. It is the port that has economic viability of our tri-state port system. The adapted to dramatic changes in how energy is both import and export of petroleum and related cargos produced and consumed throughout our country and complement the movements of all other cargos tran- the world. siting the Delaware River. From pilots and tug op- The adaptive and resilient nature of the petro- erators and other service providers to the Corps of In this leum industry operating in our port has manifested Engineers, the Coast Guard, Customs and other edition of itself in any number of ways. government agencies, petroleum cargos make a sig- The Beacon, Between 2009 and 2010, three refineries were nificant contribution to the overall strength and we have focused shuttered and another threatened to discontinue op- competitiveness of our port. on how changes in the erations. Of these four facilities, all are operational And of course, this translates into protecting and global and domestic energy marketplaces are im- today with significant investments already made creating good paying, family sustaining blue and pacting our regional port complex. Over the past and/or planned to upgrade their capabilities and en- white collar jobs. several years, we have seen oil refineries shut down hance their competitiveness in this global energy These dramatic changes in the energy market- and then reopen, a significant portion of crude oil marketplace. place have even reached to the Aker Philadelphia tanker traffic replaced by railroad tank cars, and ex- Shipyard with its contracting to build six American panded refining and export opportunities related to Two of these facilities continue to process crude oil to produce the full array of refined products, one Flag petroleum product tankers, again protecting new North American crude production in the United and creating thousands of jobs throughout this re- facility is utilized to store and transfer crude and re- States and Canada and the Marcellus Shale gas ex- gion.
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