Oil & Gas Stories
Wall St. Journal
October 18, 2012
CALIFORNIA'S GAS PRICE: IS THERE A VILLAIN?
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The article is somewhat misleading. Gasoline can't really be shipped into CA from other states unless the refinery changes its product to comply with CA requirements (unique within the US 50 states), which is unlikely. So we are truly stuck, and at the mercy of the in-state refineries. The Chevron refinery that caught on fire a few months ago will be down for some time, so it won't get much better.
Steve P--- Is that not the problem-- you would think Ca would loose up some of their regulations. Plus there has not been a new refinery constructed in the USA in > 30 years. You can not get the WTI Crude to the refinery in Ca. they have to get supplies from imports at higher prices. I think Ca is your home state so what if anything can be done? Ca does allow you to drive into the state with a full tank of gasoline from other states they do not meet Ca Regs
Adubu, as Steve said the issue in California is the special blend gasoline that is unique to the state. So any interruption in production by a California refinery creates an immediate shortage.
The West Coast actually imports less of its crude oil supply (51%) than the rest of the US (63%). The largest suppliers of imported crude oil to the West Coast are Saudi Arabia, Canada & Ecuador in that order.
There will not be any change as California government officials do not live on this planet and continue to mislead the residents.
Les B ---I understand the Ca issues as Steve outlined which you confirmed with your last sentence "the Ca Gov do not live on this planet" If they would allow some permits for a few new refineries Ca could enjoy gasoline closer to USA avg price per gal. But then again they would just use the opportunity add addition Taxes on the gasoline
Comes from breathing too much smog.
Got same problem in North East due to refineries can not get lower price crude to maintain any profit margin with all the Regs.on old refinery so they just shut down
"it comes from breathing too much smog" ... that's close to accurate. I have a former Californian for a friend. He was telling me about the pollution problems in the big cities and the laws passed to clean the air.
These laws and blends were in response to visible, breathable smog - not nearly as bad as in China, but almost everyone who remembers that old 50's-70's smog in Calif is worried it can return.
There were a lot of things that happened under the Clean Air Act or some such legislation. Some good, some bad, but you never hear about Acid Rain anymore or see photos of huge dark clouds over American cities.
Everyone's clothes got smog on them and in some areas it was like black dandruff. People did not like that grey/black dust on their clothes and it was also visible evidence of what they were breathing.
PS: my gas comes from Calif and I am paying about $4. a gallon now for regular. I am mad as hell about it because we could have more pipelines, more refineries and oh yes, more natural gas!
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