1. Fuel Source Storage and Distribution In the Bay Area 03/21/2013 Public Fleet Supervisor’s Association

2. 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

3. California Oil Refinery Locations and Capacities Refinery NameBarrels Per Day CARB DieselCARB Gasoline BP West Coast Products LLC, Carson Refinery240,000Yes Chevron U.S.A. Inc., El Segundo Refinery276,000Yes Chevron U.S.A. Inc., Richmond Refinery245,271Yes Tesoro Refining & Marketing Company, Golden Eagle (Avon/Rodeo ) Refinery 166,000Yes Shell Oil Products US, Martinez Refinery156,400Yes ExxonMobil Refining & Supply Company, Torrance Refinery149,500Yes Valero Benicia Refinery132,000Yes ConocoPhillips, Wilmington Refinery139,000Yes Tesoro Refining & Marketing Company, Wilmington Refinery103,800Yes Valero Wilmington Refinery78,000Yes ConocoPhillips, Rodeo San Francisco Refinery78,400Yes ALON USA, Bakersfield Refinery66,000Yes Paramount Petroleum Corporation, Paramount Refinery50,000NoYes ConocoPhillips, Santa Maria Refinery41,800No Edgington Oil Company, Long Beach Refinery26,000No Kern Oil & Refining Company, Bakersfield Refinery26,000Yes San Joaquin Refining Company Inc., Bakersfield Refinery15,000YesNo Greka Energy, Santa Maria Refinery9,500No Lunday Thagard, South Gate Refinery8,500No Valero Wilmington Asphalt Refinery6,300No 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.

4. Kinder Morgan System

5. 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

6. OPIS GAS

7. OPIS Diesel

8. SF CARBOB VS NYMEX

9. SF CARB #2 VS NYMEX HEATING OIL

10. SF CARFG 10% VS SJ CARFG 10%

11. SF CARB ULSD VS SJ CARB ULSD

12. 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

13. Questions?

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