Any word on cali chevron refineries closing? Will they keep operating? P66 just announced LA refinery closure after new bill signed by Gav. NEWSOM ...
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Valero Wilmington (85,000 BPD, 5.2% of CA capacity), is rumored to follow Phillips 66 (139,000 BPD, 8.6% of CA capacity). This is enough capacity loss to significantly raise prices. There is a theory that refineries overseas or Washington might make CARB grade gasoline and export it to California if the profit margin is there (higher gasoline prices). Bit that will not happen until a shortfall of gasoline raises the profit margin sufficiently to make capital improvements.
Newsom's scheme to "prevent oil company price gouging " is going to backfire and gasoline will go to $10/gal. But Newsom doesn't care as all he really wants is to wean CA drivers off gasoline to electric for which technology and drivability really don't work very well right now. PS, more gasoline price increases are on the way with the latest proposed CARB reformulations.
Chevron refines about 32% of CA capacity and will probably stay unless Newsom pulls more stupid stunts.
Moving the HQ to Texas’s is the first step in avoiding the CA legal long arm. Refinery closures will be next year.
“Superfund” is perhaps a catch all for expensive site investigation and remediation programs. The California refineries would fall under State programs that address hazardous substances and water quality. Both refineries have been subject to various requirements and studies for decades but an actual shutdown could trigger more aggressive and expensive cleanup efforts. Much more likely is a sale, or continued operation by CVX, or conversion to an import terminal to supply needed volumes for the State.
How much would a “superfund cleanup” cost? Anyone know?
Chevron will enjoy being the last Major in California. They will not care how much they lose as long as they can keep those “new energies” projects going to show they are playing ball when the greenies.
There's been rumors for years that the Richmond Refinery EQUIPMENT would be sold, dismantled and shipped to China to be reconstructed and operated there. But will the property where the Richmond Refinery sits EVER be sold? Not likely. Converted to something marginally useful, like a tank farm, or a blending facility, or distribution terminal or all of the above. But the hard truth is a sale of the land would trigger SuperFund Clean-up requirements, and that price of that would be astronomical. It ain't happenin. Just look across Castro Street at the old pesticide facility. Wonder why CVX still owns that property?
Offload on some DEI made up entity at a loss to avoid cleanup costs. Will be a win in the long run
They're toast! You combine the CA regulation culture with the current refinery management that wants to cut every corner and take every shortcut and its not going to be a good result.
Other companies see the handwriting on the wall, cut their losses, and get out. Chevron, out of "loyalty" (a euphemism for inept management with their heads buried in the sand) sticks around and bleeds money slowly.
Like all Chevron efforts, Chevron will be the last one out of California with the greatest loss.
I doubt the refineries can be sold at any reasonable value.
They are a century old, who knows who decided to put what under the ground 60 years ago.
If anything, sold cheap. They can’t afford the massive cleanups involved in closing.
The refineries will be sold off as a loss, write-off. Shell did this bone-head move and smaller players took over and are making record profits. Not sure how this will plays out in California. They might get some Co-mie Demorat Hollywood DEI type to take over then Gavin Twosome Newsome, CARB, etc. will look the other way because a DEI type now "owns" the refinery. so that is like a pollution offset.
MW is done with California. The refineries are being spiffed up and painted for a sale in 2025.
closing no
sale of refinery more likely
El Segundo will be the last one standing.
I doubt it. If all the CA refineries close, where would this foreign oil be refined into products for Cali?
Once Chevron bailed on San Ramon, the nail was in the coffin. The only remaining decision is how much money we'll lose closing those refineries.
He’s going to drive all oil refineries to close and claim climate victory while importing all oil from foreign counties who produce it way less cleaner than we do in Cali and people will love him for it. They will ignore the massive amounts of Co2 these tankers create and the destruction of other countries due to less clean methods of extraction. Gas will be $10 a gallon and only then will voters realize they’ve been lied to