supply chain management
Lieo95
Marathon-SupplyChain.pptxOn-Campus Presentation
November 2, 2017
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Background and MPC Career Path Riley Morman
Columbus Grove, OH
Tiffin University- May, 2010
Bachelor’s in Marketing, minor in Finance
Track & Field
August – December 2009: Brand Marketing (Internship)
Romulus, MI
July 2010- December 2011: Asphalt Marketing: Scheduler (Petroleum Coke)
Findlay, OH
January 2012 – October 2013: Asphalt Marketing: Territory Manager
Romulus, MI
November 2013 – May 2015: Brand Marketing: Territory Manager
Raleigh, NC
June 2015 – June 2017: Wholesale Marketing: Territory Manager (Truckstops, Rail, Utility & Marine)
Findlay, OH
June 2017 – Present: SD&P: Adv. Analyst (Crude Oil Strategy & Analysis)
Findlay, OH
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Information about the guest speaker.
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Over 125 years in business
Fortune 55 company headquartered in Findlay, Ohio
3rd largest U.S. refiner (Largest in MW)
Geographically and strategically aligned operations
Industry leader emphasizing safety and environmental responsibility
Consistently a top performer on an operating income per barrel basis
Characterized by safe and reliable operations
Employees: Approximately 45,440
Approximately 2,730 Speedway convenience stores
Approximately 5,600 Marathon Brand retail outlets
Extensive terminal and pipeline network
Marathon Petroleum Corporation
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Fortune 25 company
Established in 1887
Fourth largest U.S. refiner
Largest in Midwest
2014 revenues and other income: $98.1 billion
2014 net income attributable to MPC: $2.52 billion
Employees: approximately 45,340
Headquartered in Findlay, Ohio
Approximately 2,760 Speedway convenience stores
Approximately 5,600 Marathon Brand retail outlets
Extensive terminal and pipeline network
Focused and Integrated Network
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Pipelines
Terminals
Coastal Water Terminals
Inland Water Terminals
Refineries
Speedway
Brand Marketing
Biodiesel/Ethanol Facilities
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Marketing Area
MPC Refineries
Light Product Terminals
MPC owned and Part-owned
Third Party
Asphalt/Heavy Oil Terminals
MPC Owned
Third Party
Water Supplied Terminals
Coastal
Inland
Pipelines
MPC Owned and Operated
MPC Interest: Operated by MPC
MPC Interest: Operated by Others
Pipelines Used by MPC
Ethanol Facility
Biodiesel Facility
Tank Farms
Butane Cavern
Crude Oil and Products Pipelines
Barge Dock
MarkWest Facility
Refining and Marketing
Seven-plant refining system with ~1.8 MMBPCD capacity
One biodiesel facility and interest in three ethanol facilities
One of the largest wholesale suppliers in our market area
One of the largest producers of asphalt in the U.S.
~5,500 Marathon brand retail outlets across 19 states
~300 retail outlet contract assignments primarily in the Southeast and select Northeast states
Owns/operates 61 light product terminals and 18 asphalt terminals, while utilizing third-party terminals at 120 light product and two asphalt locations
2,210 owned/leased railcars, 173 owned transport trucks
Speedway
~2,770 locations in 22 states
Second largest U.S. owned/operated c-store chain
Midstream
Owns, leases or has interest in ~8,400 miles of crude and refined product pipelines
18 owned and one leased inland waterway towboats with 205 owned barges and 14 leased barges
Owns/operates more than 5,000 miles of gas gathering and NGL pipelines
Owns/operates >50 gas processing plants, >10 NGL fractionation facilities and one condensate stabilization facility
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Rated Crude Oil Refining Capacity
System capacity: 1,817,000 BPCD
Garyville, Louisiana 543,000 BPCD
Texas City, Texas 86,000 BPCD
Catlettsburg, Kentucky 273,000 BPCD
Detroit, Michigan 132,000 BPCD
As of Jan. 1, 2017
BPCD = barrels per calendar day
Canton, Ohio 93,000 BPCD
Robinson, Illinois
231,000 BPCD
Galveston Bay, Texas 459,000 BPCD
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1977 – Garyville (Source: EIA)
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Refining 101 for Supply Chain Majors
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Refinery
Crude Oil
Propane
Gasoline
Jet/Kerosene
Diesel
Fuel Oil
Asphalt
Pet Coke
Various Petrochemicals
2016 Refinery Throughput and Consolidated Sales
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*Includes refined products purchased for resale.
MBPD = thousand barrels per day
B GAL = billions of gallons
Crude Throughput
Refinery Yields
Sales*
1,699 MBPD
1,883 MBPD
35 B GAL
Other
Feedstocks
151 MBPD
Canada
19%
Other International
23%
U.S.
58%
Other
308
Distillate
617
Gasoline
900
Asphalt
58
Asphalt & Other
16%
Speedway
17%
Marathon Brand
14%
Wholesale/Spot
53%
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Extensive Retail Network
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Speedway
Largest company-owned and -operated c-store chain east of the Mississippi
~2,730 locations in 21 states(1)
Marathon Brand
~5,600 branded locations in 19 states(2)
One of the largest asphalt marketers in the country
Quality supplier into wholesale and secondary product markets
Speedway
Brand
| Conn. | 1 |
| Del. | 4 |
| Mass. | 110 |
| N.J. | 71 |
| R.I. | 20 |
488
304
310
147
115
64
60
39
115
2
52
278
62
241
235
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857
811
645
573
291
41
47
117
117
69
286
627
223
403
255
105
80
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(1)As of Aug. 31, 2017
(2)As of June 30, 2017
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Supply, Distribution & Planning
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SD&P Crude Logistics Example and Overview
MPC’s schedulers and optimization team work in conjunction with Traders, Feedstock Coordinators, Refining, Pipeline, Marine, Product Quality, and other stakeholders to develop supply plans for MPC’s refineries
Multiple Crude Grades and Sources
Segregated Grades (Photo)
Transit Times
Strategic and economic focus on inventory management
Balancing Ample Supply and Containment
Maintain safety stock to manage variability in supply, sales and refinery production issues
Problem solving and contingency planning
Long Term Strategic Planning
Permian Production
Bakken Production
GOM Production
Canadian Production
Various Imported Crude Production
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Cushing, OK Storage Hub
Rockies Production
Source: SD&P
Source: SD&P
Source: SD&P
Source: SD&P
Source: SD&P
Source: SD&P
Source: SD&P
Refining and Marketing
Seven-plant refining system with ~1.8 MMBPCD capacity
One biodiesel facility and interest in three ethanol facilities
One of the largest wholesale suppliers in our market area
One of the largest producers of asphalt in the U.S.
~5,500 Marathon brand retail outlets across 19 states
~300 retail outlet contract assignments primarily in the Southeast and select Northeast states
Owns/operates 61 light product terminals and 18 asphalt terminals, while utilizing third-party terminals at 120 light product and two asphalt locations
2,210 owned/leased railcars, 173 owned transport trucks
Speedway
~2,770 locations in 22 states
Second largest U.S. owned/operated c-store chain
Midstream
Owns, leases or has interest in ~8,400 miles of crude and refined product pipelines
18 owned and one leased inland waterway towboats with 205 owned barges and 14 leased barges
Owns/operates more than 5,000 miles of gas gathering and NGL pipelines
Owns/operates >50 gas processing plants, >10 NGL fractionation facilities and one condensate stabilization facility
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US Crude Flow Trends
Canadian
Bakken
Capline
Seaway
Permian
2000
Foreign Imports
via Gulf Coast
2025E
Foreign Imports
via Gulf Coast
Seaway
Bakken
Canadian
Utica
Permian/
Eagle Ford
Canadian
Bakken
Capline
Seaway
2017
Foreign Imports
via Gulf Coast
Permian/
Eagle Ford
Utica
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Source: MPC Econ 2017 Production Forecast, CAPP, SD&P
2000 vs. 2017 vs. 2025E
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Increased Production Infrastructure Buildout
Cushing
Superior
Clearbrook
Montreal
Burnaby
Chicago
Guernsey
Wood River
Patoka
Sarnia
Port Arthur / Beaumont / Nederland
Houston
St James
Houma
Flanagan
Memphis
Midland
Express
Enbridge
Platte
Ozark
Capline
Zydeco
Basin
Mustang
Mid-Valley
Trans Mountain
Line 9
MPC Refineries
2010-2017 - Major Project / New Pipeline
Pre-2010 Pipeline
2017+ Planned Pipeline
Spearhead
Spearhead
WTG
Midland to Sealy
Seaway
BridgeTex/
Longhorn
Keystone
Pony Express
White Cliffs
Marketlink
Enbridge
Superior
Clearbrook
Guernsey
Spearhead/
Flanagan South
Steele
City
SAX
PE
Line 9
DAPL
ETCOP
Saddlehorn/ Grand Mesa
Bayou Bridge
Trans Mountain
Expansion
Wood River
Memphis
Keystone XL
Bayou Bridge Extension
EPIC, Cactus, Others
Basin Twin
Diamond
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Source: Publically Available Information, SD&P
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SD&P Light Products Logistics Overview
Marketing Area
MPC Refineries
Light Product Terminals
MPC owned and Part-owned
Third Party
Asphalt/Heavy Oil Terminals
MPC Owned
Third Party
Water Supplied Terminals
Coastal
Inland
Pipelines
MPC Owned and Operated
MPC Interest: Operated by MPC
MPC Interest: Operated by Others
Pipelines Used by MPC
Ethanol Facility
Biodiesel Facility
Tank Farms
Butane Cavern
Crude Oil and Products Pipelines
Barge Dock
MarkWest Facility
MPC’s schedulers and optimization team work in conjunction with internal stakeholders…
Marketing, Refining, Pipeline, Marine, Product Quality, and other stakeholders to develop supply plans for MPC’s terminals and refineries
…and external stakeholders
Pipelines, Inspectors, Terminals, Ethanol,
Multiple Products
Refining producing multiple gasoline and distillate grades
Products must be segregated
Strategic and economic focus on inventory management
Maintain safety stock to manage variability in supply, sales and refinery production issues
Extensive use of linear program based distribution models to develop tactical & strategic supply plans
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Refining and Marketing
Seven-plant refining system with ~1.8 MMBPCD capacity
One biodiesel facility and interest in three ethanol facilities
One of the largest wholesale suppliers in our market area
One of the largest producers of asphalt in the U.S.
~5,500 Marathon brand retail outlets across 19 states
~300 retail outlet contract assignments primarily in the Southeast and select Northeast states
Owns/operates 61 light product terminals and 18 asphalt terminals, while utilizing third-party terminals at 120 light product and two asphalt locations
2,210 owned/leased railcars, 173 owned transport trucks
Speedway
~2,770 locations in 22 states
Second largest U.S. owned/operated c-store chain
Midstream
Owns, leases or has interest in ~8,400 miles of crude and refined product pipelines
18 owned and one leased inland waterway towboats with 205 owned barges and 14 leased barges
Owns/operates more than 5,000 miles of gas gathering and NGL pipelines
Owns/operates >50 gas processing plants, >10 NGL fractionation facilities and one condensate stabilization facility
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Marketing Scheduling
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Asphalt, Coke and Heavy Fuel Oil; Petrochemicals
Asphalt, Coke and Heavy Fuel Oil
One of the largest U.S. asphalt producers in terms of capacity
18 owned and two third-party asphalt terminals
Customer base includes asphalt paving contractors, government entities and asphalt roofing shingle manufacturers
Fuel-grade coke
Used for power generation and in miscellaneous industrial applications
Anode-grade coke
Used to make carbon anodes for the aluminum smelting industry
Heavy fuel oil
Produce and market heavy residual fuel oil, including slurry, at all of our refineries
Petrochemicals
Feedstocks and petrochemicals
Market these products domestically to customers in the chemical, agricultural and fuel-blending industries
Product availability varies by refinery
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MPC Owned Terminals
Third-Party Terminals
Asphalt Production Refinery
Non-Asphalt Refinery
As of June 30, 2017
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Petrochemical Products Used Every Day
Off Gas (PVC Pipes)
Propylene
(Storage Totes))
Xylene (Printer Ink, Plastic Bottles)
Propylene (Polymer Carpeting)
Cumene (Appliances, Sauder Furniture, CDs, Taillight Covers)
Toluene (Paint Thinner)
Propane
(Vinyl Siding)
Propane (Grill)
Sulfur (Fertilizer)
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Pipeline Operations Center
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Pipeline Operations Center
MPC owns leases or has ownership in approximately 10,800 miles of pipeline
Crude and light products pipelines
Monitor and control pipeline flows
Operates 24/7/365 – 12 hour shifts
Extensive Training and Emergency Response
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Updates?
The safety stock mitigates a portion of the risk for specialty light products which may be difficult to produce and/or purchase
TT&R Transport Operations
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TT&R Transport Operations
Proprietary fleet
163 trucks, 330 drivers
(12-hours shifts, 24/7/365)
250,000 loads hauled per year
2.0 billion gallons hauled per year
15.0MM miles driven per year
Transport Scheduling
41 schedulers (24/7/365)
Utilizing both MPC and third party fleets
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Global Procurement
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What is Global Procurement at Marathon?
Global Procurement (GP) is accountable for managing commercial, material, and system processes to support refining, pipelines, marine assets, terminals, and service stations.
Global Procurement Functions:
Category Management
Supplier Relations Management
Contract Negotiation
Material Procurement
Material Control
Logistics
Systems & Compliance
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Unlimited Career Potential
Affords the opportunity for a individualized and flexible career path
Provides the chance to cross-train in different divisions to gain well-rounded perspective on the business as a whole
www.joinMPC.com
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Thank You!
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