Fuel Source Storage and Distribution In the Bay Area03/21/2013

Public Fleet Supervisor’s Association

AGENDA Introduction Brief overview of Nor-Cal Petroleum Distribution System Bay Area Refineries Kinder Morgan pipeline system/storage terminals Significant Events effecting California Petroleum Prices OPIS Daily Index-Gas and Diesel -2 NYMEX Graphs Gas and Diesel -2 SF vs. SJ Graphs -2 My Crystal Ball Questions

California Oil Refinery Locations and Capacities

Refinery Name BarrelsPer Day

CARB Diesel CARB Gasoline

BP West Coast Products LLC, Carson Refinery 240,000 Yes Yes

Chevron U.S.A. Inc., El Segundo Refinery 276,000 Yes Yes

Chevron U.S.A. Inc., Richmond Refinery 245,271 Yes Yes

Tesoro Refining & Marketing Company, Golden Eagle (Avon/Rodeo) Refinery 166,000 Yes Yes

Shell Oil Products US, Martinez Refinery 156,400 Yes Yes

ExxonMobil Refining & Supply Company, Torrance Refinery 149,500 Yes Yes

Valero Benicia Refinery 132,000 Yes Yes

ConocoPhillips, Wilmington Refinery 139,000 Yes Yes

Tesoro Refining & Marketing Company, Wilmington Refinery 103,800 Yes Yes

Valero Wilmington Refinery 78,000 Yes Yes

ConocoPhillips, Rodeo San Francisco Refinery 78,400 Yes Yes

ALON USA, Bakersfield Refinery 66,000 Yes Yes

Paramount Petroleum Corporation, Paramount Refinery 50,000 No Yes

ConocoPhillips, Santa Maria Refinery 41,800 No No

Edgington Oil Company, Long Beach Refinery 26,000 No No

Kern Oil & Refining Company, Bakersfield Refinery 26,000 Yes Yes

San Joaquin Refining Company Inc., Bakersfield Refinery 15,000 Yes No

Greka Energy, Santa Maria Refinery 9,500 No No

Lunday Thagard, South Gate Refinery 8,500 No No

Valero Wilmington Asphalt Refinery 6,300 No No

Note: Data on this table represents total crude oil capacity not gasoline, distillate production, diesel fuel production or production of other products. Production potential varies depending on time of year and status of the refinery. A rule of thumb is that roughly 50 percent of total capacity is gasoline production (about 1.0 million barrels of gasoline - 42 million gallons - is produced per day).Source: California Energy Commission Fuels Office Staff.

Kinder Morgan System

Significant Petroleum Events • 1992 All Calif gas must meet BMW spec• 1998 Doublewall Tanks-lines• Carb phase 1, ulsd dyed diesel• MTBE-ban• CARB Phase ll-California becomes a Gasoline Island • Ethanol Mandate• Nymex allows refined product trading• Major trading houses getting into making markets-supply and demand out

the window• AB 32, GHG

OPIS GAS SAN FRANCISCO, CA 2013-03-21 10:01:08 EDT **OPIS CONTRACT BENCHMARK FILE** **OPIS GROSS CARFG ETHANOL (10%) PRICES** Move Terms Unl Move Mid Move Pre Move Date Time PSX u N-10 295.00 + 5.00 304.00 + 5.00 313.00 + 5.00 03/20 14:00 Tesoro u N-10 295.00 + 4.00 305.00 + 4.00 315.00 + 4.00 03/20 19:00 Valero u N-10 299.25 + 2.50 308.25 + 2.50 317.25 + 2.50 03/20 15:45 Beacon b N-10 302.70 - 1.25 310.70 - 1.25 318.70 - 1.25 03/20 18:00 Valero b N-10 302.70 - 1.25 310.70 - 1.25 318.70 - 1.25 03/20 18:00 PSX b 1-10 305.56 - 7.07 313.64 - 7.07 321.72 - 7.07 03/19 18:00 Shell b 1-10 305.56 - 5.05 314.65 - 5.05 322.73 - 5.05 03/19 18:00 Chevron b 1-10 305.80 - 5.00 313.80 - 5.00 321.80 - 5.00 03/19 18:00 Texaco b 1-10 305.80 - 5.00 313.80 - 5.00 321.80 - 5.00 03/19 18:00 LOW RACK 295.00 304.00 313.00 HIGH RACK 305.80 314.65 322.73 RACK AVG 301.93 310.50 318.97 OPIS SAN FRANCISCO DELIVERED SPOT (SRI) FOB SAN FRANCISCO 298.92 303.78 311.07 BRD LOW RACK 302.70 310.70 318.70 BRD HIGH RACK 305.80 314.65 322.73 BRD RACK AVG 304.69 312.88 320.91 UBD LOW RACK 295.00 304.00 313.00 UBD HIGH RACK 299.25 308.25 317.25 UBD RACK AVG 296.42 305.75 315.08 CONT AVG-03/21 301.93 310.50 318.97 CONT LOW-03/21 295.00 304.00 313.00 CONT HIGH-03/21 305.80 314.65 322.73 SAN FRANCISCO, CA LOW RETAIL 387.43 AVG RETAIL 418.13 LOW RETAIL EX-TAX 322.13 AVG RETAIL EX-TAX 351.36

OPIS Diesel SAN FRANCISCO, CA 2013-03-21 10:01:08 EDT **OPIS CONTRACT BENCHMARK FILE** **OPIS GROSS CARB ULTRA LOW SULFUR DISTILLATE PRICES** No.2 No.2 Move Terms No2 Move RD Move NRLM Move Date Time PSX u N-10 303.25 + 2.00 303.75 + 2.00 -- -- -- -- 03/20 14:00 Shell u N-10 303.48 + 1.14 303.98 + 1.14 -- -- -- -- 03/20 18:00 IdemitsuA u N-10 303.50 + 2.00 304.00 + 2.00 -- -- -- -- 03/20 19:00 Valero u N-10 304.00 + .50 306.00 + .50 -- -- -- -- 03/20 15:45 PSX b N-10 304.25 + 2.00 304.75 + 2.00 -- -- -- -- 03/20 18:00 Tesoro u N-10 306.00 + 2.00 306.50 + 2.00 -- -- -- -- 03/20 14:00 Shell b 1-10 306.55 + 1.15 -- -- -- -- -- -- -- -- 03/20 18:00 Beacon b N-10 306.60 + 3.05 -- -- -- -- -- -- -- -- 03/20 18:00 Valero b N-10 306.60 + 3.05 -- -- -- -- -- -- -- -- 03/20 18:00 Chevron b N-17 310.20 + 1.20 -- -- -- -- -- -- -- -- 03/20 18:00 Texaco b N-17 310.20 + 1.20 -- -- -- -- -- -- -- -- 03/20 18:00 LOW RACK 303.25 303.75 -- -- HIGH RACK 310.20 306.50 -- -- RACK AVG 305.88 304.83 -- -- OPIS SAN FRANCISCO DELIVERED SPOT (SRI) FOB SAN FRANCISCO 304.15 304.50 -- -- BRD LOW RACK 304.25 304.75 -- -- BRD HIGH RACK 310.20 304.75 -- -- BRD RACK AVG 307.40 304.75 -- -- UBD LOW RACK 303.25 303.75 -- -- UBD HIGH RACK 306.00 306.50 -- -- UBD RACK AVG 304.05 304.85 -- -- CONT AVG-03/21 305.88 304.83 -- -- CONT LOW-03/21 303.25 303.75 -- -- CONT HIGH-03/21 310.20 306.50 -- --

SF CARBOB VS NYMEX

SF CARB #2 VS NYMEX HEATING OIL

SF CARFG 10% VS SJ CARFG 10%

SF CARB ULSD VS SJ CARB ULSD

Looking ahead through my crystal ball

• AB 32 GHG• RINS(anity)• Fracking-will it last?• GTL• US exports more and more products• Volatility is the new normal

Questions?

Thank you!!MARKETERS & MANUFACTURERS OF PETROLEUM PRODCUTS SINCE 1935