“They consume most if not all of their own production and when they need to import to meet demand it has to come from the other side of the Rockies.”
I would have t take issue with that statement. I cross the Benica Bridge sometimes on a daily basis, so I see the movement of tankers that bring oil to the Shell, Tosco, and the large refinery in Benica that’s been sold so many times, I don’t know who owns it now. I also pass by the Union refinery in Hercules and the Standard Oil refinery in Richmond both of whom have active in-shipment of oil by tanker. I highly doubt that that oil is coming from “east of the rockies.”
There’s a lot of dishonesty to go around, and the oil companies are part of it.
And while California is a regulation nightmare, I also don’t believe for one minute that market forces are responsible for the wild swings in retail prices.
ExxonMobil importing Asian gasoline for the first time since LA-area refinery explosion
http://www.platts.com/latest-news/shipping/houston/exxonmobil-importing-asian-gasoline-for-the-first-21642766
It is why the West Coast is processing less crude oil than in recent years.
http://eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WCRRIP52&f=W
And is importing more Refined Products from other nations and from other areas of the country.
http://eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WTXIM_R50-Z00_2&f=W
http://eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MPEMXP5P41&f=M
http://eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MPEMXP5P31&f=M
It is the California special recipe that makes it more difficult and more expensive to source gasoline from outside sources when conditions are upset. The special blend must be made outside of normal runs.
It was amazing how, a few months ago when gas got cheap, there was another refinery fire and gas went back to where it was. Seems like those fires never happen when gas is high.
Valero acquired the Benicia Refinery in 2000. Built as a grass-roots project in 1968, this plant has undergone significant modifications and upgrades to become what it is today one of the most complex refineries in the United States. Approximately 70 percent of the refinery’s product slate is CARB gasoline, California’s clean-burning fuel. The refinery also has significant asphalt production capabilities and produces 35 percent of the asphalt supply in northern California. Currently, the refinery processes domestic crude from the San Joaquin Valley in California and the Alaska North Slope, along with foreign sour crudes.
http://www.valero.com/ourbusiness/ourlocations/refineries/pages/benicia.aspx
California’s refining capabilities are over 2 million barrels a day, their entire production is below 600 thousand BPD. Where do you think the other 1.5 mil is coming from? You have oil coming in from the east by pipeline and from Canada by rail and from foreign countries by sea. California is a net importer of oil.
Prior to the Refinery explosions, the west coast was getting ~200,000 BPD of crude oil from East of the Rockies.
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrmx_r50-r20_1&f=m
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrmxp5p31&f=m
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrmx_r50-r40_1&f=m