Cali about to lose 20% of gas supply

9,538 Views | 72 Replies | Last: 8 mo ago by HollywoodBQ
Logos Stick
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State produced, that is. Two refineries are closing. One closing in October and one in April. There are only 3-5 refineries, all overseas, that can make their blend to make up for it.

They will now be importing 10 million gallons of gas per day across the ocean.

They may end up getting it from Singapore. Know where Singapore gets its oil? The US. So we send oil overseas to Singapore, they refine it, and ship it back across the ocean to Cali as gas.


Cali is the definition of insanity!


IslanderAg04
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Good. They also dont allow pipelines, so everything has to be by ship or truck.
ttha_aggie_09
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All by design. You'll have to get an electric vehicle because gas is going to be 4x the cost of the rest of the country.
TX_COWDOC
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Phillips 66 in Los Angeles is set to close in October 2025, and Valero in Benicia is scheduled to close by April 2026


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TyHolden
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ttha_aggie_09 said:

All by design. You'll have to get an electric vehicle because gas is going to be 4x the cost of the rest of the country.
or we just bump up US production....mainly Texas
Logos Stick
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Well good luck. They don't have the electrical infrastructure or capacity to support that.
Ag87H2O
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Good luck. Let's see how that bite of the socialist apple tastes.
MemphisAg1
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I was in SoCal a couple months ago and gas prices there were about $2 higher than Houston.

That was before these refineries close.
Detmersdislocatedshoulder
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tbis coupled with the potential closing of the strait of hormuz is only an idea a liberal could come up with. hope you enjoy your 20 dollar a gallon gas.
ttha_aggie_09
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Bumping our production doesn't really help CA. They have insane standards and blend requirements no other state has. They're complete morons…

Further there is almost no infrastructure to get refined products into CA. Virtually no pipelines exist going into the state that are capable of carrying refined products.

Logos Stick
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TyHolden said:

ttha_aggie_09 said:

All by design. You'll have to get an electric vehicle because gas is going to be 4x the cost of the rest of the country.
or we just bump up US production....mainly Texas


There are no refineries outside Cali in the US that makes the gas blend that Cali uses. And there won't be in the future.
TyHolden
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ttha_aggie_09 said:

Bumping our production doesn't really help CA. They have insane standards and blend requirements no other state has. They're complete morons…

Further there is almost no infrastructure to get refined products into CA. Virtually no pipelines exist going into the state that are capable of carrying refined products.


well damn. the exodus to texas will continue....
HollywoodBQ
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TyHolden said:

ttha_aggie_09 said:

Bumping our production doesn't really help CA. They have insane standards and blend requirements no other state has. They're complete morons…

Further there is almost no infrastructure to get refined products into CA. Virtually no pipelines exist going into the state that are capable of carrying refined products.


well damn. the exodus to texas will continue....
And I felt like I waited too long to make the move.

Relevant to this thread, during the price peak a couple years ago, the highest I paid in California was about $6.70/gal
AlaskanAg99
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This is old news. You're also missing changes to their laws on the blend of the low carbon gas, they will see the first price hike 7/1 of 65c/gallon.

Part of the reasons the refiners are closing is:
A. There has t been a new refinery built since the 70's. This requires are than normal maintenance.
B. They're now required to keep finished product on site in order to keep "disruptions" down, but this increases operating costs.
C. New fuel blend requirements. Also increasing costs.
D. Those idiots think they ban all new ICE vehicles by 2035. So why spend billions now for a declining customer base.

I'll be in San Diego mid July. Will be interesting to see how much people are *****ing.

https://calmatters.org/environment/climate-change/2024/10/california-low-carbon-fuel-standard-gas-prices/

Also an interesting article as CARB has their heads so far up their butts they've stated any increases at the pump will be due to evil oil companies not eating the legislation mandated increases. They even had to retract their low estimated cost impact because so many people called BS.

Their ultimate goal of Net Zero emissions by 2045 has "forced" them to do this.

It will be hilarious when tourism drops off a cliff.

Last point is some parts of AZ & NV are supplied by CA refineries. So even outside of CA will be impacted.
Sid Farkas
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another bad political decision in Ca? it's nothing another $1/gallon won't fix.
rocky the dog
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Elections are when people find out what politicians stand for, and politicians find out what people will fall for.
Enviroag02
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Will be interesting to see if a certain smaller scale refiner with inland based refineries can capitalize on this opportunity with their pipelines and storage in the Northwest with direct pipeline to the Las Vegas area.
Aggie Spirit
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What kind of sanctuary are you providing if your illegal immigrants can't afford transportation?
Funky Winkerbean
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And they'll not make a single change in leadership.
AgLiving06
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there's only one refinery that I'm aware of that can get to Las Vegas outside of California, and it's unreliable at best.

The vast majority of product to Las Vegas (and Reno) comes from California. Refiners like making it because it's just standard conventional fuel (though Reno does go to a true 7.8 in the summer).

California is a mess though. Mostly everything are imports already and that's only going to get worse.

The next step is actually going to be trying to push stations to E15 vs E10 to get fuel costs down. Expect this to start rolling out in the next couple of months.

California is leading the way with their LCFS and Cap at the Rack fees which are significant costs before taxes. It's interesting that many of your standard liberal states (New York and Illinois) are very resistant to these programs because of the cost increases they see in the states that have implemented it.



Logos Stick
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rocky the dog said:




Lol
Stone Choir
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AlaskanAg99 said:

This is old news. You're also missing changes to their laws on the blend of the low carbon gas, they will see the first price hike 7/1 of 65c/gallon.

Part of the reasons the refiners are closing is:
A. There has t been a new refinery built since the 70's. This requires are than normal maintenance.
B. They're now required to keep finished product on site in order to keep "disruptions" down, but this increases operating costs.
C. New fuel blend requirements. Also increasing costs.
D. Those idiots think they ban all new ICE vehicles by 2035. So why spend billions now for a declining customer base.

I'll be in San Diego mid July. Will be interesting to see how much people are *****ing.

https://calmatters.org/environment/climate-change/2024/10/california-low-carbon-fuel-standard-gas-prices/

Also an interesting article as CARB has their heads so far up their butts they've stated any increases at the pump will be due to evil oil companies not eating the legislation mandated increases. They even had to retract their low estimated cost impact because so many people called BS.

Their ultimate goal of Net Zero emissions by 2045 has "forced" them to do this.

It will be hilarious when tourism drops off a cliff.

Last point is some parts of AZ & NV are supplied by CA refineries. So even outside of CA will be impacted.


A number of companies are building pipelines and storage terminals in the Rockies to account for the ******ed California changes. Arizona and Nevada may start getting their gasoline from Texas soon.
annie88
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California has made their bed and now they have to lie in it.

Absolutely no sympathy.
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AlaskanAg99
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Most of the people I've spoken to like to laugh and ouff their chests out for having an EV.

Then I remind them this will impact every aspect of their lives as everything is shipped via diesel and delivered via gas. And as companies cost start increasing due to this., they pass along their cost of business via higher fees and product price increases.

If CA doesn't change, the exodus of business will increase and individuals will start moving independently.
Logos Stick
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Bump this thread after your visit and let us know the mood and opinions.
Detmersdislocatedshoulder
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rocky the dog said:




californians are so stupid they would shoot the horse for ****ting to much.
Fightin_Aggie
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Logos Stick said:

State produced, that is. Two refineries are closing. One closing in October and one in April. There are only 3-5 refineries, all overseas, that can make their blend to make up for it.

They will now be importing 10 million gallons of gas per day across the ocean.

They may end up getting it from Singapore. Know where Singapore gets its oil? The US. So we send oil overseas to Singapore, refine it for Cali, and ship it back to them as gas. Cali is the definition of insanity.


That's the way Mexico does it.

Way to go Cali, well on your path to becoming 3rd world hell hole
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Enviroag02
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I didn't say they could provide the full 240,000 bbl per day into California through their terminal in LAs Vegas, only that they might be able to capitalize on the opportunity. Also, that one refinery outside California that serves Las Vegas is also connected via product pipelines to refineries in Wyoming as well.
TexasAggie_97
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ttha_aggie_09 said:

All by design. You'll have to get an electric vehicle because gas is going to be 4x the cost of the rest of the country.
And how are they going to supply the increase in electricity for all these cars? They don't allow nuclear and they already have brownouts and blackouts every summer. What will happen when they add millions of cars to the grid?
B-1 83
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More windmills…..on the hills around Malibu
Being in TexAgs jail changes a man……..no, not really
AlaskanAg99
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Logos Stick said:

Bump this thread after your visit and let us know the mood and opinions.


A favorite left coast talking point is that O&G companies gouge all the time. They've bought in that its O&G issue being evil and not policy driving cost.
Mathguy64
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The hilarious thing is that the discovery of oil in the LA area is one of the things that made the city. Well that and basically stealing water.

The hypocrisy is just mind boggling.
AgLiving06
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Enviroag02 said:

I didn't say they could provide the full 240,000 bbl per day into California through their terminal in LAs Vegas, nearly that they might be able to capitalize on the opportunity. Also, that one refinery outside California that serves Las Vegas is also connected via product pipelines to refineries in Wyoming as well.

Oh. I see what you're saying.

No, that won't happen.

Las Vegas is supplied in two methods (primarily).

1. KinderMorgan pipeline from Los Angeles to a KinderMorgan Las Vegas terminal (there's a secondary terminal that is smaller as well).

2. HollyFrontier has a terminal that's only supplied via its own pipeline to its own terminal (the Wyoming refinery).

Neither options are particularly reliable and Las Vegas faces supply shortages annually in the summer. Some product grades are already really short.

I don't see a world where any of those terminals would carve out tankage for someone to bring CARB gasoline in to then be trucked back into Los Angeles and no way is KinderMorgan going to reverse their pipeline.

Like I said, the first step is going to be for California to move to E15 which will take some strain off the gasoline supply. There are a couple other options at play which will have marginal benefit on gasoline supply, but really California is going to have to rely more on imports than ever before.
ttha_aggie_09
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Liberals don't tend to think about the consequences of their actions. They just do stuff because it feels good
agent-maroon
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TexasAggie_97 said:

ttha_aggie_09 said:

All by design. You'll have to get an electric vehicle because gas is going to be 4x the cost of the rest of the country.
And how are they going to supply the increase in electricity for all these cars? They don't allow nuclear and they already have brownouts and blackouts every summer. What will happen when they add millions of cars to the grid?

You're quite correct, but your facts and rational thinking are NOT welcome in the Golden State.
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