Showing posts with label Oil. Show all posts
Showing posts with label Oil. Show all posts

16 September 2010

Marthon Oil Project set to create Construction Jobs in Detroit

Detroit Free Press

After a lengthy delay, Marathon Oil plans to significantly ramp up work next summer that will expand its oil refinery in southwest Detroit, creating more than a thousand new construction jobs.

The Houston-based oil company is on track to complete the $2.2-billion refinery expansion by the fourth quarter of 2012, said Gary Heminger, Marathon’s executive vice president of downstream operations.

Currently, 650 Michigan concrete contractors are working on the project but those numbers will rise to 1,800 to 2,000 by next summer. The company also has started the process of hiring 135 new employees for the refinery, half of whom will be contract workers.

The expansion of Michigan’s only oil refinery was originally supposed to be completed in this year’s fourth quarter. But in October 2008, Marathon delayed the project because of the downturn in the economy. The refinery supplies 20% of Michigan’s gasoline.

When Michigan concrete construction is complete, the refinery will be able to process 120,000 barrels of oil a day, up from the current 106,000 barrels. But in a major change, most of the oil will be heavier crude from Canada’s oil sands rather than light crude from the Gulf of Mexico, Oklahoma and other areas.

16 August 2010

Enbridge CEO Says Spills are an Inherent Risk of Oil Pipelines

MLive

In the mid-morning hours of July 26, Patrick Daniel, the president and CEO of Enbridge Inc., was in his Calgary office, preparing for a board of directors meeting the next day when Steve Wuori, a close colleague, walked into the room with unsettling news.

“He said, ‘We have a spill in Michigan,’” Daniel said, referring to Wuori, vice president for liquids and pipelines for Enbridge, “A lot of things started going through my mind. But the first was a great concern.”

In a 30-minute interview with the Kalamazoo Gazette on Saturday, Daniel, who has been at the helm of Enbridge for the past 10 years, spoke about his company’s response to the oil spill, whether  the BP disaster in the Gulf of Mexico brought more attention on his company than it would have if the gulf incident never happened and how this event — one of the largest oil spills in Midwest history — has changed him.

Details of the spill were few and far between on that Monday morning. What the company did know was that the river was running high due to heavy rain in the days prior to the spill.

“We knew that the extent of the spill would be larger than it otherwise might be,” Daniel said. “There was, again, a deep concern and a need to get there as quickly as possible with all of our resources.”

Daniel and Wuori raced home to grab field equipment and pack suitcases. The two then got on an Enbridge jet and arrived in Michigan on Monday evening. Driving on I-94 on his way to the spill site, Daniel could smell the crude oil that at that time was stretching bank to bank on the Kalamazoo River, making its way downstream from the Marshall area.

Daniel then took a brief tour of the spill site in Marshall Township. It was too dark to see the black crude. That would have to be left for the next day, the beginning of one of the most challenging stretches of his professional life.

'Deep concern'
 
At daybreak on July 27, he flew over the river, noting the volume of oil on the surface of the water. The company estimates that about 840,000 gallons spilled, but the federal government has pegged the amount at more than 1 million gallons.

FACT SHEET
Patrick Daniel

Age: 63

Hometown: Edmonton, Alberta

Position: President and chief executive officer of Calgary, Alberta-based Enbridge Inc., a job he’s held for 10 years.

Education: Bachelor of Science degree from University of Edmonton; master’s degree in chemical engineering from University of British Columbia; advanced management program at Harvard University.

Personal: Married with two sons.


Enbridge Inc.

    * Enbridge is one of the largest pipeline companies in the world, with 5,500 miles of liquid pipeline and 12,400 miles of natural gas pipeline in the United States. It’s also one of the largest corporations in Canada.

    * Last year, the company grossed nearly $1.6 billion in Canadian dollars.

    * The company expects to have $12 billion in new oil, natural gas and green energy projects online by next year.

“Deep concern is the only was I can describe it,” he said of his first look at the river.

In the days since then, the company has come under criticism from nearly all fronts.

U.S. Rep. Mark Schauer, D-Battle Creek, has opened a formal Congressional investigation into how the spill happened and if Enbridge was not adhering to pipeline safety and operational regulations. A hearing has been set for Sept. 15.

The U.S. Environmental Protection Agency took over emergency operations for the spill early on, citing Enbridge’s slow initial response. The agency has several times rejected the company’s long-term remediation and testing plans for the areas affected by the spill.

Documents from federal agencies charged with regulating pipelines surfaced revealing that regulators had called into question Enbridge’s pipeline integrity maintenance programs on its 6B pipeline, which runs from Griffith, Ind. to Sarnia, Ontario, and on which the ruptured section is located.

Journalists from around the state and nation descended on the area, peppering Daniel with questions at every opportunity and questioning if the company knew of the spill hours before it reported it. Two lawsuits could be filed against the company seeking millions of dollars in damages.

The oil spill killed fish, birds and small mammals. It coated riverbanks and floodplains in tar-like blackness. It made people who live close to the river wary about groundwater contamination, air pollution and reduced property values.

When asked if there would have been such an intense light shone on the company had the BP event had never taken place, Daniel said he doubted it.

“Probably not,” he said. “In the aftermath of BP there is a heightened level of public awareness. The one thing that will be the same is the level of follow-up, not only in the response to the spill but in the level of follow-up on pipeline integrity and remediation.”
Added Daniel, “We’ve always been in compliance with those (maintenance and monitoring) plans.”

Staying here
 
And he has tried to calm the anxieties of the people most affected by the spill.

After a recent public meeting in Battle Creek, he was surrounded by concerned area residents, calmly answering their questions as many more stood outside the circle, observing him as he spoke in slow, measured tones akin to his management style, which is “transparent and approachable,” he said.

Daniel hasn’t left the area since arriving, and stays in a motel room. He’s met with people almost daily at two community centers the company has opened in Battle Creek and Marshall, in their living rooms and on their front porches.

A few weeks ago, he announced that the company would purchase the homes of those had their houses for sale and live within 200 feet of the river who believed the spill had reduced their property values. So far, three homeowners have stepped forward.

The company has taken 800 claims from people who believe the spill negatively affected them, and will continue to take claims well into the future.

More than 1,000 Enbridge employees and contractors — as well as EPA workers — have contained the oil and began an aggressive cleanup that should last months.

“It may sound surprising, but I’ve been just amazed at how warm and friendly and understating everyone is considering the mess that we made,” Daniel said. “It’s been nothing but support.”

Still, Daniel said he feels no personal guilt for the spill.

“It was an accident,” he said.

He declined to say whether or not any Enbridge employees were or might be disciplined for the spill, citing an ongoing National Transportation Safety Board investigation into the cause of the spill. He was also mum on how much the company has spent so far on cleanup efforts and claims.

The last time Enbridge had a spill of the size in Marshall Township was in 1991, when 630,000 gallons of oil spilled from a pipeline near Grand Rapids, Minn. Daniel insists that Enbridge’s reputation in the pipeline industry has not taken a hit as a result of the July spill.

“Our reputation in terms of our response has been very much validated,” he said. “We are an honest, approachable and transparent company.”

Emotions run high
 
What has Daniel learned over the past several weeks from the people, the river and the inherent risks that are always there with pipeline operations, no matter how prepared a pipeline company is?

At the moment, no one personal take-away is lodged in his mind.

“It’s something I’ll have to reflect on as time passes,” he said.

But that’s not to say that he hasn’t been personally moved by the stories he’s heard about how the oil that spilled from his company’s pipeline has devastated areas and soiled cherished memories.

“Often the meetings started with anger, which is appropriate, and a lot of emotion,” he said. “Emotion that we have disrupted their lives and in some cases their landscapes. Maybe it was a favorite tree. Maybe it was a memory of the river and it being quiet, peaceful.”

If there is one thing that the people of the region have learned about the oil spill, it’s that there are pipelines beneath their communities, near their waterways and close to some of their homes.

That’s a reality that exists in the modern industrialized world, Daniel said, but not one he takes lightly.

“The value and importance of energy to society is so critical,” he said. “We all wish that we didn’t have to have pipelines. And we all wish that we didn’t have to experience accidents. We must remain vigilant.”

Daniel is an avid outdoorsman. He’s a hiker, a mountain climber and an avid fly fisherman, spending much of his time outdoors in the Canadian Rockies, near Calgary, and where he’s climbed several mountains.

He’s told people in the area affected by the spill that once he leaves and the river makes its comeback, he plans on returning to the area to share it with them in a way that it was meant to be enjoyed.

“I’ve told people I’d like to drop in a dry fly into the water and see what I can find,” he said. “I’d like to go fishing with them.”

04 August 2010

Enbridge Offers to Buy 200 Homes Near Spill

The Detroit Free Press

The company that spilled oil into the Kalamazoo River near Marshall said today it is offering to buy as many as 200 homes of people who might have been affected by the accident.

For those whose homes were already listed for sale pre-spill, Enbridge Energy Partners will pay the full list price. For homeowners who want to sell but whose homes weren't listed, the company will buy them for their appraised value before the spill.

Enbridge CEO Patrick Daniel said the move was a first for Enbridge, which operates pipelines in the U.S. and Canada, and a way to show confidence that its cleanup will be thorough. "This is the result of feedback I've gotten over the last eight days," he said. "Some people feel their homes are diminished in value. We believe if we buy them, we will not lose money."

Daniel said he has no idea how many homeowners might take the company up on the offer. It covers 61 homes in a voluntary evacuation zone around the spill where benzene levels were high after the spill that health officials asked residents to leave, as well as homes within 200 feet of the Kalamazoo River as far as 30 miles downstream from the spill.

Benzene levels have dropped in the past few days, health officials said Monday, but the evacuation zone is still in place. It was not mandatory and only about a dozen homeowners relocated.

At least one couple in the evacuation zone already had listed their home for sale. The company said it has no idea how many others were already for sale.

29 July 2010

Enbridge Michigan Line Stays Shut as Oil Spill Spreads to Kalamazoo River

Bloomberg

Enbridge Energy Partners LP, the Houston-based pipeline company, has crews working to clean up an oil spill from a pipeline in southern Michigan that spread from a creek to the Kalamazoo River, affecting birds and fish.

The leak on line 6B, part of Enbridge’s Lakehead System, was detected at about 9:30 a.m. yesterday when pressure on the line dropped, the company said.

An estimated 19,500 barrels of crude oil spilled into a creek near the company’s Marshall, Michigan, pump station before valves on either side of the leak were shut down, Enbridge Chief Executive Officer Patrick Daniel said on a conference call today.

“Oil entered the Tallmadge Creek and found its way to the Kalamazoo River,” Daniel said. “Teams have been working through the night and day working on the containment and clean up.”

Oil has already traveled about 16 miles (26 kilometers) downstream from the spill site, he said. The Kalamazoo River flows into Lake Michigan. The spill is “the second- or third- largest for the company,” Daniel said.

Line 6B is a 30-inch pipeline that can transport 190,000 barrels a day of light synthetics and heavy and medium crude oil to Sarnia, Ontario from Griffith, Indiana. The cause of the leak is under investigation, Daniel said.

Skimmers, Vacuum Trucks

Enbridge has crews using a temporary dike, containment booms, oil skimmers and vacuum trucks to gather oil and stop the spill spreading, he said.

The pipeline serves refineries in areas including Toledo, Ohio, Detroit and Sarnia, Daniel said. These include plants in Toledo run by BP Plc and Sunoco Inc., refineries in the Detroit area including Marathon Oil Corp.’s plant and Sarnia facilities run by Imperial Oil Ltd., Suncor Energy Inc., and Royal Dutch Shell Plc.

“Line 6B is shut down and we can’t estimate when it will restart,” Daniel said. The company previously forecast the line would be repaired in time to be restarted tomorrow.

Enbridge’s Line 5 also serves the refineries and that remains in service, Daniel said.

So far, refineries served by the line remain unaffected by the supply disruption. Suncor’s spokesman Dany Laferriere said there was no significant impact on its operations at the company’s Sarnia plant.

“Marathon’s Detroit refinery does receive some supply from the Enbridge line,” said Robert Calmus, a company spokesman. “Operations are normal.”

Kristina Zimmer, a spokeswoman for Shell’s refinery in Sarnia, said the plant wasn’t expecting the pipeline disruption to affect operations.

Air and water quality in the affected area is being monitored and containment specialists trained to handle wildlife coated in oily residue are on site, Enbridge said.

“Enbridge will do what it takes to clean this up and to restore the natural beauty of this area,” Daniel said.