1. Case Study 1: Pipelines David Levinson

2. Regional Petroleum balances

3. Terminal Restrictions

4. Oil Pipelines are Common Carriers FERC Regulates Rates and Conditions of Service

5. Market Share

6. Where People Stay

7. Supplying Refugees

8. US Crude Oil and Product Pipeline Network

9. Refined Products Oil Pipelines

10. Crude Products Oil Pipelines

11. Natural Gas Pipeline

12. Natural Gas System in US

13. Wolverine Pipe Line System Map

14. Successor companies to Standard Oil: Standard Oil of Ohio - or Sohio now part of BP Standard Oil of Indiana - or Stanolind, renamed Amoco - now part of BP Standard Oil of New York - or Socony, merged with Vacuum - renamed Mobil, now part of ExxonMobil Standard Oil of New Jersey - or Esso (S.O.) - renamed Exxon, now part of ExxonMobil Standard Oil of California - or Socal - renamed Chevron Atlantic and Richfield - merged to form Atlantic Richfield or Arco - now part of BP - Atlantic operations spun off and bought by Sunoco Standard Oil of Kentucky - or Kyso was acquired by Standard Oil of California - now part of Chevron Continental Oil Company - or Conoco now part of ConocoPhillips Standard Oil of Iowa - pre 1911 - became Standard Oil of California Standard Oil of Minnesota - pre 1911 - bought by Standard Oil of Indiana Standard Oil of Illinois - pre 1911 - bought by Standard Oil of Indiana Standard Oil of Kansas - refining only, eventually bought by Indiana Standard Standard Oil of Missouri - pre 1911 - dissolved Standard Oil of Nebraska - eventually bought by Indiana Standard Standard Oil of Louisiana - always owned by Standard Oil of New Jersey (Esso) Standard Oil of Brazil - always owned by Standard Oil of New Jersey (now Esso) Standard Oil of Colorado - a scam to cash in on the Standard Oil brand in the 1930s Standard Oil of Connecticut - A fuel oil marketer in Connecticut not related to the Rockefeller companies

15. Pipeline Timeline (19 th Century) 1859: Colonel Edwin Drake Strikes Oil in Titusville, Pennsylvania 1863: The Teamsters- Oil initially transported by horse to rail terminals by Teamsters using whiskey barrels, giving the Teamsters a local spatial monopoly on delivery. The price to move a barrel of oil 5 miles by horse was greater than the charge to move from Pennsylvania to New York City. 1865: the first wooden oil pipeline built, about 9 miles long bypassing the teamsters. 1870: Standard Oil Company formed by John D. Rockefeller, largely produces kerosene for lighting and oil for heating 1879: Tidewater - The First Crude Oil Trunkline (built by competitors to Standard Oil, soon acquired by Standard Oil interests, extended to Buffalo, Philadelphia, Cleveland, New York) 1880s: The Rise of Russian (now Azerbaijani) Oil - Marcus Samuel developed the first organized kerosene shipping enterprise to compete with Rockefeller and send kerosene to Europe and the Far East. 1880-1905: Oil discovered in Ohio, Oklahoma, Kansas, and Spindletop, Texas

16. Pipeline Timeline (20 th Century) 1905: Crude Oil Pipelines built from the fields in Texas, Oklahoma and Kansas to Eastern refineries. 1908: Henry Ford develops Automobile assembly line, gasoline becomes primary customer of oil, electricity continues to replace kerosene oil lamps. 1912: Sherman Anti-trust act finalized and Standard Oil dissolved. 1913: the Valuation Act was the first attempt at Federal involvement in US pipeline ratemaking. 1917: Crude Oil Pipelines 1920s: Pipeline Mileage Triples 1935: The first product pipelines where built from Whiting, St. Louis and Kansas City to the west. 1945: Product Lines Grow During World War II (oil tankers were sunk frequently, pipelines seen as more reliable). 1944: pipeline regulation became the responsibility of the US Interstate Commerce Commission who introduced the notion of reasonable returns in the 8 percent to 10 percent range. 1954: Stanolind, the Indiana Standard pipeline company, became the largest liquid pipeline carrier in North America. A position it held until the most recent Enbridge expansion. 1968: import refineries on the US Gulf Coast led to the construction of Colonial pipeline to supply the eastern seaboard. Colonial was the largest privately financed undertaking in US history in 1968. 1970 - 1977: The Trans Alaska Pipeline System (TAPS)

17. Fact Sheet Pipelines FACILITIES Mileage of Oil Pipelines – 1998 –Crude trunk and gathering lines 114,000 –Product trunk lines 86,500 –Total 200,500 States in which pipelines operate 50 PERFORMANCE Total ton-miles of crude and products, 1998 619.8 billion Percent of total intercity freight (ton-miles) carried by pipelines, 1998 17.3% Percent of all crude oil and refined products transported (ton-miles) carried by pipelines, 1998 66.6% FINANCIAL Capital investment in oil pipelines, 1998 $ 30.2 billion Operating revenues, 1998 6.9 billion Oil pipelines’ share of national freight bill, 1998 1.6% SAFETY Total transportation fatalities in 1998 43,920 Number of liquid pipeline fatalities in 1998 1 REGULATION AND EMPLOYMENT Number of oil pipeline companies regulated by the Federal Energy Regulatory Commission, 2000 183 Total employees in oil pipeline industry, 1998 16,000

18. How Petroleum Pipelines Work