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OAR Box 1865 

Prepped by Charmelle Mathews 

Document Number: 

140) VI-B-5 

Docket Number: 

A-83-27 

Printed 12/3/2008 3:22:20 PM Sheet 140 of 198 
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R.TM*»! A-83-27 

VI-B-5 

MEMORANDU M 

TO: Industrial Boiler S02 Docket 

FROM: Irene Kuo, Radian Corporation 

DATE: November 3, 1988 

SUBJECT: Summary of Historical Data on the Availability of 0.3 Percent 

Sulfur Oil in Hawaii 

This memorandum examines the availability of 0.3 percent sulfur oil in 

the State of Hawaii, based on data from the United States Department of 

Energy (DOE) for the years 1985, 1986, and 1987. These reports include the 

"Cost and Quality of Fuels used by Electric Utility Plants," the "Petroleum 

Marketing Annual," and the "Petroleum Supply Annual." 

The Cost and Quality report contains information on the quantity and 

average costs of petroleum fuels used by steam-electric plants of 

50-megawatt capacity or greater. This information is subdivided by 

petroleum sulfur content and listed by State (residual oil only) and by 

plant (both residual and distillate oils). Data from the Cost and Quality 

report indicate that roughly 10 to 20 percent of the residual oil used by 

Hawaiian Electric Company (HECo) was 0.3 percent sulfur (or less) in 1985 and 

1986, with the balance being between 0.3 and 0.5 percent sulfur oil. 

Distillate oil accounted for less than 1 percent of the total oil used. The 

1986 data suggest that 0.3 percent sulfur oil ($2.42/million Btu) did not 

have a premium when compared with the 0.3 to 0.5 percent sulfur oil 

($2.97/million Btu). Hawaiian Electric reported that of all the oil it 

burned in 1987, about 99 percent was 0.3 to 0.5 percent sulfur residual oil 

and less than 1 percent was distillate oil. 

The "Petroleum Supply Annual" contains data on the sulfur content of 

imported foreign oil, listed by State of initial entry into the 
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i i 

United States. These data, shown in Table 1, indicate that of the total 

foreign residual oil Imported into Hawaii (I.e., from outside the 

United States), the percentages of less than 0.3 percent sulfur oil are as 

follows: 7 percent 1n 1985, 15 percent in 1986, and 85 percent 1n 1987. 

The absolute quantities of imported oil less than 0.3 percent sulfur in 1985 

and 1986 suggest that the additional 0.3 percent sulfur residual oil was 

either shipped to Hawaii from another State in the United States (possibly 

from California, a State known to have supplies of 0.3 percent sulfur 

residual oil) or produced in Hawaiian refineries to meet HECo's consumption 

needs. 

The "Petroleum Marketing Annual" contains the volumes of first sales to 

consumers of distillate and residual fuel oils to each State. A summary of 

these data for Hawaii, presented in Table 1, indicate that HECo accounted 

for about 60 to 65 percent of the total amount of distillate and residual 

oil sold in Hawaii in 1985 and 1986. These data suggest that HECo consumed' 

roughly 80 percent of the residual oil sold to the State of Hawaii. No data 

were available for 1987. Detailed data on fuel oil sulfur are not reported. 

In conclusion, DOE data on oil imports and volumes of first sales 

indicate that oil with 0.3 percent sulfur or less was available in Hawaii in 

1985, 1986, and 1987. HECo reported use of 0.3 percent sulfur residual oil 

in 1985 and 1986, but did not report using any such fuel in 1987. The 

imports and first sales data also indicate that residual and distillate oils 

are shipped to Hawaii both from other States in the United States and from 

foreign countries. Based on these data, it appears that the availability of 

0.3 percent sulfur oil in Hawaii is comparable to that in the 

continental United States. 
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Table 1: DOE Information on Petroleum Consumption in Hawaiia 

a. All values are listed in million gallons/yr. 

Source 

Cost and Quality 

of Fuels 

Petroleum 

Supply Annual 

Petroleum 

Marketing 

Annual 

Description 

<0.3% S Residual 011 

0.3%-0.5% Residual Oil 

Distillate and Residual 

Oil 

Imported Residual 011 

0-0.3% S 

0.3-1% S 

>1% S 

Volume of First Sales 

Distillate 

Residual 

1985 

42.4 

342.5 

385.9 

(?0.43% S 

10.9 

88.4 

47.4 

107.6 

486.9 

1986 

80.91 

313 

395 

00.39% S 

36.9 

119.5 • 

86.5 

119.6 

503.9b 

1987 

433.6 

435.7 

00.45% S 

88.8 

2.2* 

13.1 

N/A 

N/A 

b

' 503.9 x IO6 gallons/yr of <1% S residual oil .