Gas prices up, why?

[sammyg2]

Gas prices are way up in So Cal, jumping 20 cents a day at some stations.
I paid $3.85 this morning and that was at the cheapest station around, most are well over $4.
Why?

The news said it was because of a shortage as some refineries have had production problems, which ones?
I am not aware of any, but I'm not as embedded in that industry as I used to be.
It can't be a hold-over of the saudi attacks, that turned out to be a nothing burger and crude prices barely bounced.

[Sooner or later]

Maintenance issues at the Chevron and Marathon refineries in LA county.

Cali has different gas requirements so they just can't ship in gasoline from out of state refiners

I am getting killed too. Up to $2.21

[stevej37]

$2.23 here in MI

[Sooner or later]

One other thing, Sammy.

Your Cali refineries are set up to heavy crude from the ME. The oil boom in the US produces light sweet so your refineries can't benefit without major overhaul.

You all are getting exactly what your state legislature wants.

[pwd72s]

Paid $4.41 per gallon of 91 octane here. I only use no booze "clear" in the Mustang. bought on the 26th of Sept.

Regular with 10% booze for the Camry, bought on Sept. 6th (we don't drive much) $3.39 think it's 87 octane.

Oregon gas taxes now about the same as Californicate because we're saving the planet.

[Sooner or later]

Here ya go


https://stillwaterassociates.com/west-coast-crude-oil-supply/


There is a huge scramble to build pipeline capacity to move this oil to market on the U.S. Gulf Coast. Since the U.S. refineries east of Rockies are full of light sweet crude oil, because of the “Shale Revolution”, all this crude oil will be exported to markets outside of the U.S.

Meanwhile, refiners in California refine about 1.7 million barrels per day to meet transportation energy demand. The crude oil they run comes from production in the state and offshore federal waters, Alaska North Slope, and the balance (about a million barrels per day) is imported to refineries in San Francisco Bay and Los Angeles/Long Beach Harbors.

Figure 3. Crude Oil Supply Sources to California Refineries


Figure 3 shows the decline in California crude oil production, along with the drop in supply from Alaska as that state’s production has also declined. Foreign crude makes up the difference. The main suppliers to California from abroad are Saudi Arabia, Ecuador, and Iraq.

There are no crude oil pipelines connecting California with the rest of the country. The Texans are building about 5 million barrels per day of pipeline capacity to the U.S. Gulf Coast, but none to the West Coast. Why?

Their answer was in three parts:

There is no pull from the California refineries. The California refineries are configured to run a heavy sour crude slate and can’t optimize on a light sweet crude like WTI without investing in different refining technologies. Getting a permit to construct new facilities in a California refinery is expensive and time-consuming. One of the panelists, a refiner, said his firm decided to not restart their refineries in California, but would deploy their capital elsewhere.

Crude oil producers want the option to export to the Pacific Basin. Permitting issues make it unlikely that crude oil export facilities can be constructed in California.

The panel was very clear that there is no way to get a pipeline built in California. Another of the panelists, the CEO of a North American pipeline company, made a wry face when talking about doing business in California. In short, they have better opportunities elsewhere.

Bottom line: California’s reliance on crude oil imports will continue to grow while record volumes of oil are exported off the Gulf Coast.

[Sooner or later]

Here is figure 3

[p911dad]

The WSJ had an article today on this. Basically, CA gets a lot of crude by ship from Saudi. That type of crude is used in the remaining CA refineries, and it is basically too difficult to build new refineries because of the permitting process. CA is subject to mid-east price shocks while the rest of the US now has lots of domestic oil as a price buffer.

[Sooner or later]

Originally Posted by p911dad

The WSJ had an article today on this. Basically, CA gets a lot of crude by ship from Saudi. That type of crude is used in the remaining CA refineries, and it is basically too difficult to build new refineries because of the permitting process. CA is subject to mid-east price shocks while the rest of the US now has lots of domestic oil as a price buffer.

That is correct.

The west coast has cut themselves off from the rest of the country. No pipelines and they don't want any. Refinery reliance on heavy crude that we produce very little. Different gasoline standards so facilities outside Cali can't ship finished product.

They got what they wanted. High energy costs to force transition to green energy. And they will pay dearly for years to come.

[Tobra]

It is because the place is run by a bunch of GD idiots.

This is the cause of a lot of the problems here, maybe all of them.

[Sooner or later]

Originally Posted by Tobra

It is because the place is run by a bunch of GD idiots.

This is the cause of a lot of the problems here, maybe all of them.

Their intentions are good....

[pwd72s]

The Oregon idiots ask the California idiots how it's done...

[sammyg2]

A refinery that can run heavy crude, can run light sweet crude easier.
It would actually result in increased throughput and less refining costs and less lower value byproducts like sulfur and coke.

The only reason a refinery runs heavy or sour crude is to take advantage of the discount.
Light sweet crude is more expensive to buy that heavy or sour, or heavy sour.
They could run the good stuff easier, and it would tear up the equipment less, but would not be as economical if the cheap stuff is ... cheaper.


according to the department of energy, the price of west coast crude has gone up 21 cents over the past 6 weeks.

Wholesale prices of gasoline in PADD 5 (west coast) are up 25 cents.

The average retail price of regular gasoline in California over the past 6 weeks is up 50 cents.

[GH85Carrera]

I filled up my 911 yesterday afternoon. $2.99 for 100% premium gasoline. It is $2.11 for gasohol regular.

[Sooner or later]

They can make the change but it isn't just turning a switch. Yes, heavy crude is cheaper.

The problem isn't with the refiners. It is with harsh Cali regs that make spending money to update refineries or build pipelines unprofitable.

If they did switch to plentiful light sweet where will they get the light sweet from? You ain't gotz any pipelines to bring the sweet into the state. Most of Cali and Alaska crude is mid to heavy grade. So they have to tanker in the shortfall of heavy from the ME.

You all have built yourself an energy island and the blame rests on your leaderships shoulders.

Switching to light crude refinery tactics would lead to idle refineries because they wouldn't have the light crude to refine.

[BeyGon]

Originally Posted by Sooner or later

Their intentions are good....

this extra money we pay is for the children, of illegals.

[Sooner or later]

In the middle of the greatest oil boom in decades you idiots are on the outside looking in. And then whining about it.

[Sooner or later]

Well, some of your idiots are whining about it.

[MBAtarga]

This is all in-line with CA government's planning - where they succeed from the union.

[sammyg2]

Originally Posted by Sooner or later

They can make the change but it isn't just turning a switch. Yes, heavy crude is cheaper.

The problem isn't with the refiners. It is with harsh Cali regs that make spending money to update refineries or build pipelines unprofitable.

If they did switch to plentiful light sweet where will they get the light sweet from? You ain't gotz any pipelines to bring the sweet into the state. Most of Cali and Alaska crude is mid to heavy grade. So they have to tanker in the shortfall of heavy from the ME.

You all have built yourself an energy island and the blame rests on your leaderships shoulders.

Switching to light crude refinery tactics would lead to idle refineries because they wouldn't have the light crude to refine.

There are many refiners on the west coast that were built for just one thing: to run ANS. Alaskan north slope crude.
it is medium spec. gravity, not too sour, and it is fairly easy to turn into finished products.
I've been inside 4 of them along the west coast that were originally built for that porpoise.

But ANS is running out, because the wackos protest drilling in places they've never seen or heard of or been. Flow through the trans-Alaska pipeline has been steadily drying up.






So one by one, those refineries have convertws to run the heavy stuff. Building delayed coker units, added more sulfur recovery capacity, more hydrotreaters, etc

The majority of refiners on the west coast have marine terminals and get their crude from ships and barges, not pipelines.
it can be shipped from down south, from Canadia, indonesia, wherever. Even from the gulf of meheeko.
Most refiners on the west coast can run whatever crude slate is available.
Heck some of em make changes to their crude diet several times a month, buying whatever is crude or slop or junk is "on sale".
And they do it with nary a hiccup.
The last place I worked would buy up whatever crude it could get cheap and blend it during the charge process to keep from rocking and rolling the towers.

But yer right, the finished products they make in Cali have to meet incredibly tight standards that most refiners outside this area can't or won't bother to make.
A captured, isolated, and manipulated market. The bane of free-market enterprise.