California could lose about 20% of its oil refining capacity in 12 months — with potentially significant implications for prices at the pump.
Two major refineries are poised to depart or make major changes: Phillips 66 has decided to shut down its Los Angeles refinery complex by the end of this year, and Valero Energy Corp announced this week that it may close its Bay Area refinery in Benicia.
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The departures could hasten the state’s push away from fossil fuels but make another problem worse: California’s high gasoline prices.
On Friday, California’s average price per gallon of gasoline was $4.85, which was about $1.69 higher than the national average. Per gallon prices spiked above $6 twice in the last two years, spurring statewide panic and new legislation.
If both refineries close, the number of gasoline producers in the state would drop from nine to seven.
“It’s going to mean more expensive gasoline for motorists, it’s going to mean more expensive jet fuel for airlines, it’s going to be more expensive for farmers and truckers,” Patrick De Haan, head of petroleum analysis with GasBuddy, said.
Experts generally agree that California drivers will likely pay more per gallon if both refineries stop making gasoline, although exactly how much is hard to target.
California refineries bear more expenses than anywhere else in the U.S. due to climate-change fuel composition requirements imposed by our one-party State. It’s a wonder we’ve kept 5 of them so long. If these refineries leave they can produce gas needed by the rest of the U.S. far cheaper and make bigger profits, leaving only 3 refineries to produce the special California fuel. Supply and demand will dictate likely huge increases in our fuel prices, but the Democrats don’t care and will continue or double-down on their laws for the formulations of California gas. I don’t know whether our gas is even marketable anywhere but in California. Wouldn’t be surprised to see European-style fuel pricing at $8-$10/gallon. Even so, our liberal population will just sigh and pay up thinking they’re helping the climate.
Voters in California somehow don’t realize that they are the laughing stock of most of the rest of the Country as they continue to vote for the same propaganda the Left puts out daily . There crippling laws are designed to increase the coffers so that they can continue their “tax and Spend” programs to expand government control over the masses. Politicians in general don’t do anything for the peons unless there is some advantage to themselves.
I agree with Carrie and Donald J. We will probably see “European-style” fuel prices. Airlines will increase flight ticket prices, online vendors will increase delivery charges, local businesses will raise their prices or go out of business, and interstate trucks coming into Kalifornia with their deliveries will also increase prices. Unions controlling the people to obey the politicians. California politicians want a two-class society: the rich and the poor. The politicians want a two-class society, with the rich controlling the politicians and vice versa (both classes as one group) and the poor. Perhaps it is similar to the book 1984 by George Orwell, but not quite. But, a two-class society. Wait and see, or leave Kalifornia. I am just saying.
The Democrats for decades denied top line and efficient upgrades for internal combustion engines that would have reduced both carbon and pollutants.
They then refused to allow new refineries that would have reduced the above and reduced the number of annual “accidents” at the older plants.
There is nothing mysterious here. It was and is intentional, and then Democrats scream and cry about the environment and global warming.
They cry and wring their “collective” hands and allow illegals into the country and then demand they have rights only for Citizens. They spend Billions on welfare, medical, and more while the middle class is being crushed.
It is amazing …. and um-ethical ….by you voted for them.
Follow up comment:
Only an idiot would face an impending crisis knowing that he had made that crisis happen.
That is what the Democrats are doing. Uncaring that the lowest economic sector of the State of Kalif. will bear the majority of the pain with this really stupid energy policies. Every $.50 cent increase in gas prices is at a minimum $100 increase to the working poor and middle class. Calif. is paying almost a dollar 50 more than the rest of the nation.
Only a stupid individual would cheer this point of view. Only a narrow minded uncaring person would create such a problem without a “Bridge Technology”…..that bridge is to carry the most injured over to the other side.
This is not what the Democrats have done. Crushing the energy sector is just mean and degrading to these people.
When are you idiots going to learn. It is you who are fomenting revolution because you don’t like what the workers of the State want.
Vote D??? You really are that stupid.