California may lose two more refineries, would have to rely on gas from abroad

[Doc7505]

California may lose two more refineries, would have to rely on gas from abroad​

Valero announced its profit is down significantly due to very low margins from its refinery business, prompting a question during its earning call about its costly California refineries.​

California may lose two more refineries, would have to rely on gas from abroad

Valero announced its profit is down significantly due to very low margins from its refinery business, prompting a question during its earning call about its costly California refineries.

justthenews.com

25 Oct 2024 ~~ By Kenneth Schrupp

Short on the heels of another major refinery closure, Valero signaled it is considering closing its two California refineries that produce over 14% of the state’s gasoline. Refinery closures already have the state importing 8% of its gasoline supply, which means the state could soon have to significantly increase its imports of refined products such as gasoline, on top of its existing reliance on the Middle East and South America for the majority of its crude oil.
Valero announced its profit is down significantly due to very low margins from its refinery business, prompting a question during its earning call about its costly California refineries.
Valero CEO Lane Riggs responded the company has already “minimized strategic [capital expenditures]” in the state and “California is increasing its regulatory pressure on the industry, so we’re really considering everything — all options are on the table.”
~Snip~
New laws making it more difficult to drill for oil in California have brought production levels to half of what they were in 2008. Then, California produced 249 million barrels of oil, meeting 38% of state needs, with 13.5% imported from Alaska and the remaining 48.5% from foreign countries. In 2023, California produced just 124 million barrels of oil, meeting 23.4% of state needs, while importing 15.9% from Alaska and 61% from abroad. California’s foreign oil mostly comes from Iraq and Saudi Arabia in the Middle East and Ecuador and Columbia in Latin America.
Losing a quarter of the state’s refining capacity would necessitate replacement with products refined abroad, which would end up being a lot more expensive than shipping in crude oil to be refined in California, which in turn is more expensive than producing oil in-state and refining it.
~Snip~
Should California adopt more strict Low Carbon Fuel Standard requirements in November, which could include having more strict requirements on refineries and raising their costs, even more refineries may shut down rather than continue operating in California. Under the Low Carbon Fuel Standard program, refiners must either produce low carbon fuels, or purchase credits; should the new standards pass in, California estimates they would add another 47 cents to the cost of each gallon of gasoline and 59 cents in 2025 to each gallon of diesel.


Commentary:
Pain is a powerful teacher. When the residents of this Marxist Socialist totalitarian state have had enough they will revolt.
A world wide product will get refined somewhere. I remember Alaskan crude was not meant for the Ca. refineries. The OPEC embargo pushed the pipeline in Alaska forward. Then there’s the Jones Act saying American oil had to be refined in the US-something like that. Alaskan oil should have gone to Asia all along.
Asian airlines that fly to Hawaii have to go back-can’t continue on to a 2nd US stop. Same for Guam. Think of how much tourism they'll miss out on. Bad news-Trump would disagree with me.

 

[Mac-7]

California may lose two more refineries, would have to rely on gas from abroad​

Valero announced its profit is down significantly due to very low margins from its refinery business, prompting a question during its earning call about its costly California refineries.​

California may lose two more refineries, would have to rely on gas from abroad

Valero announced its profit is down significantly due to very low margins from its refinery business, prompting a question during its earning call about its costly California refineries.

justthenews.com

25 Oct 2024 ~~ By Kenneth Schrupp

Short on the heels of another major refinery closure, Valero signaled it is considering closing its two California refineries that produce over 14% of the state’s gasoline. Refinery closures already have the state importing 8% of its gasoline supply, which means the state could soon have to significantly increase its imports of refined products such as gasoline, on top of its existing reliance on the Middle East and South America for the majority of its crude oil.
Valero announced its profit is down significantly due to very low margins from its refinery business, prompting a question during its earning call about its costly California refineries.
Valero CEO Lane Riggs responded the company has already “minimized strategic [capital expenditures]” in the state and “California is increasing its regulatory pressure on the industry, so we’re really considering everything — all options are on the table.”
~Snip~
New laws making it more difficult to drill for oil in California have brought production levels to half of what they were in 2008. Then, California produced 249 million barrels of oil, meeting 38% of state needs, with 13.5% imported from Alaska and the remaining 48.5% from foreign countries. In 2023, California produced just 124 million barrels of oil, meeting 23.4% of state needs, while importing 15.9% from Alaska and 61% from abroad. California’s foreign oil mostly comes from Iraq and Saudi Arabia in the Middle East and Ecuador and Columbia in Latin America.
Losing a quarter of the state’s refining capacity would necessitate replacement with products refined abroad, which would end up being a lot more expensive than shipping in crude oil to be refined in California, which in turn is more expensive than producing oil in-state and refining it.
~Snip~
Should California adopt more strict Low Carbon Fuel Standard requirements in November, which could include having more strict requirements on refineries and raising their costs, even more refineries may shut down rather than continue operating in California. Under the Low Carbon Fuel Standard program, refiners must either produce low carbon fuels, or purchase credits; should the new standards pass in, California estimates they would add another 47 cents to the cost of each gallon of gasoline and 59 cents in 2025 to each gallon of diesel.


Commentary:
Pain is a powerful teacher. When the residents of this Marxist Socialist totalitarian state have had enough they will revolt.
A world wide product will get refined somewhere. I remember Alaskan crude was not meant for the Ca. refineries. The OPEC embargo pushed the pipeline in Alaska forward. Then there’s the Jones Act saying American oil had to be refined in the US-something like that. Alaskan oil should have gone to Asia all along.
Asian airlines that fly to Hawaii have to go back-can’t continue on to a 2nd US stop. Same for Guam. Think of how much tourism they'll miss out on. Bad news-Trump would disagree with me.

This has been the lib goal ever since the man-made global warming doomsday scam was launched

Libs want to drive oil companies out of business

 

[shockedcanadian]

China convinced the West to undermine their economies because of climate change. Even to sign a Paris Aggord to pay them for the pleasure of allowing them to poison the planet. All the while they focused on influencing and placing spies in California, NY and D.C. Brilliant work from the MSS really.

 

[Harry Dresden]

good...now maybe Nevada will get their gas from a cheaper source,,,

 

[1srelluc]

CA is so retarded they would go after bicycle tire and shoe leather "pollution" next.

 

[Captain Caveman]

California are imploding.

 

[AZrailwhale]

California are imploding.

In this one case I agree with you. I spent most of my life in the "golden state" and watched it deteriorate into the mess it is in now. Things had to get very bad for me to walk away from the ability to be in the mountains, deserts, beaches, oceans or hundreds of world-class entertainment venues within an hour of leaving my front door. As small as the UK is, it had nothing to compare with California in terms of quality of life until the liberals ruined it for everyone.

 

[Yarddog]

Our leaders here just suck. Liberals just hollow out everything they touch. I only live here for someone else, as probably most conservatives who remain do.

 

[Failzero]

California may lose two more refineries, would have to rely on gas from abroad​

Valero announced its profit is down significantly due to very low margins from its refinery business, prompting a question during its earning call about its costly California refineries.​

California may lose two more refineries, would have to rely on gas from abroad

Valero announced its profit is down significantly due to very low margins from its refinery business, prompting a question during its earning call about its costly California refineries.

justthenews.com

25 Oct 2024 ~~ By Kenneth Schrupp

Short on the heels of another major refinery closure, Valero signaled it is considering closing its two California refineries that produce over 14% of the state’s gasoline. Refinery closures already have the state importing 8% of its gasoline supply, which means the state could soon have to significantly increase its imports of refined products such as gasoline, on top of its existing reliance on the Middle East and South America for the majority of its crude oil.
Valero announced its profit is down significantly due to very low margins from its refinery business, prompting a question during its earning call about its costly California refineries.
Valero CEO Lane Riggs responded the company has already “minimized strategic [capital expenditures]” in the state and “California is increasing its regulatory pressure on the industry, so we’re really considering everything — all options are on the table.”
~Snip~
New laws making it more difficult to drill for oil in California have brought production levels to half of what they were in 2008. Then, California produced 249 million barrels of oil, meeting 38% of state needs, with 13.5% imported from Alaska and the remaining 48.5% from foreign countries. In 2023, California produced just 124 million barrels of oil, meeting 23.4% of state needs, while importing 15.9% from Alaska and 61% from abroad. California’s foreign oil mostly comes from Iraq and Saudi Arabia in the Middle East and Ecuador and Columbia in Latin America.
Losing a quarter of the state’s refining capacity would necessitate replacement with products refined abroad, which would end up being a lot more expensive than shipping in crude oil to be refined in California, which in turn is more expensive than producing oil in-state and refining it.
~Snip~
Should California adopt more strict Low Carbon Fuel Standard requirements in November, which could include having more strict requirements on refineries and raising their costs, even more refineries may shut down rather than continue operating in California. Under the Low Carbon Fuel Standard program, refiners must either produce low carbon fuels, or purchase credits; should the new standards pass in, California estimates they would add another 47 cents to the cost of each gallon of gasoline and 59 cents in 2025 to each gallon of diesel.


Commentary:
Pain is a powerful teacher. When the residents of this Marxist Socialist totalitarian state have had enough they will revolt.
A world wide product will get refined somewhere. I remember Alaskan crude was not meant for the Ca. refineries. The OPEC embargo pushed the pipeline in Alaska forward. Then there’s the Jones Act saying American oil had to be refined in the US-something like that. Alaskan oil should have gone to Asia all along.
Asian airlines that fly to Hawaii have to go back-can’t continue on to a 2nd US stop. Same for Guam. Think of how much tourism they'll miss out on. Bad news-Trump would disagree with me.

Nope , the Social Liberalism is so strong that many would rather face personal ruin than gravitate away from it .