Proceedings Of The Marine

FALL 2015

Proceedings magazine is a communication tool for the Coast Guard's Marine Safety & Security Council. Each quarterly magazine focuses on a specific theme of interest to the marine industry.

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22 Proceedings Fall 2015 not insignifcant — are not as great as had been previously perceived. These assessments and any subsequent policy adjustments will incorporate risk-based and risk-informed decision making. Energy Renaissance and Maritime Growth Within the past fve years, the United States has become the world's largest producer of hydrocarbon liquids and natural gas. 1 Recent advances in deep water and horizontal drilling and hydraulic fracturing have allowed the oil and gas industry to tap into previously inaccessible deposits, launching America's Energy Renaissance. These vast quan- tities of crude oil and natural gas then must be transported from the exploration sites to refneries and other facilities. Maritime conveyances are expected to fulfll a signifcant role, as a substantial portion of America's crude oil storage and refning infrastructure is located in or near commercial ports. Pipelines and rail cars are used to transport crude oil extracted from inland felds to intermodal ports, such as St. Louis or Albany, among others, where the crude oil is transferred to U.S. fag tank barges and/or tank ships for further transport. Additionally, energy companies are constructing new facili- ties or modifying existing import facilities to expand LNG export capacity. The future geographical impact can be roughly forecasted using the list of permit requests for liq- uefed natural gas facilities, which includes projects in New England, the Mid-Atlantic, the Gulf Coast, the Pacifc North- west, and Alaska. According to a recent U.S. Government Accountability Offce report, since 2010, the Department of Energy has received 35 applications from companies to export LNG while the Federal Energy Regulatory Committee (FERC) has received 17 applications to construct LNG export facilities. 2 As of January 2015, the FERC has approved fve export terminals, four of which are already under construction. Four of the approved applications are for export terminals in Gulf Coast ports. The ffth approved application is for an export termi- nal in a Mid-Atlantic port. 3 Further, the combination of increased availability of low-cost liquefed natural gas and more strin- gent limits on the main air pollutants in ships' exhaust gas are fostering numerous LNG-fueled vessel construction and/or conversion projects. The prospect of LNG-fueled vessel operations and LNG bunkering operations for these vessels is materializing in numerous U.S. ports. Crude Oil Risk Mitigation Crude oil is a mixture of fammable and combustible liq- uids. The "light end" content (dissolved fammable gases), varies and is generally less than 15 percent by weight or volume. Improper handling and accidental or intentional releases create potential human health and environmental risks. Also, vessels, waterfront facilities, and maritime criti- cal infrastructure and key resources (MCIKR) engaged in transporting, transferring, and storing crude oil are poten- tial targets for numerous maritime attack modes. The Coast Guard Maritime Security Risk Analysis Model assesses the risks associated with crude oil and other fam- mable liquids as relatively low. As a result, the maritime security risks associated with them are largely mitigated through the maritime industry's compliance with Maritime Transportation Security Act of 2002 regulations, developing and maintaining maritime domain awareness, and in some cases, aerial, shoreside, and waterside patrols. Bakken crude oil's "light end" content is comparable to that found in other light crude oils. Likewise, the improper han- dling, accidental releases, and intentional releases of Bak- ken crude oil have potential human health and environ- mental risks. 4 The perceived risks associated with crude oil, including Bakken crude oil, have not changed appreciably and remain relatively low. As a result, the Coast Guard will likely apply its current risk mitigation approach for crude oil and fammable liquids to Bakken crude. LNG Risk Mitigation Liquefied natural gas is generally not flammable unless it is vaporized. It, too, has potential human health and The Coast Guard provides a security zone for a liquefed natural gas shipment. Art by Nina Buxton, U.S. Coast Guard art program.

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