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Gas could rise to $8 per gallon in California

yikes, we were out there in March and I could find anything cheaper than $4.39 a gallon

Whats great is its being done for environmental reasons.
Now cal will be getting its oil from mexico and Venezuela whose refineries pollute well above the levels of the ones closing.
You just can’t fix stupid sometimes.
 
yikes, we were out there in March and I could find anything cheaper than $4.39 a gallon

Why would the closure of 2 in-state refineries cause huge increases in CA alone?

Don't gas stations in CA compete in national and global markets?

A tax difference between CA and some other states would account for a price increase at the pump, but a shift in suppliers shouldn't have that big of an effect.

What am I missing? Because if I'm not missing something, this guy's wingnut rant fails Econ 101.
 
Why would the closure of 2 in-state refineries cause huge increases in CA alone?

Don't gas stations in CA compete in national and global markets?

A tax difference between CA and some other states would account for a price increase at the pump, but a shift in suppliers shouldn't have that big of an effect.

What am I missing? Because if I'm not missing something, this guy's wingnut rant fails Econ 101.

US refinery output doesn't cross back and forth over the Rockies,.. California exists pretty much as a gasoline island.
 
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Blame Democrats.
Yes… special anti-pollution fuels cost $$… Californians feel the added expense is worth it. Folks living in “the Valley” of Az. pay an additional .50/gallon for special anti-pollution blend gasolines too. Pollution is a very real problem in some areas of America..
My advice PF is that you don’t refuel your car(s) in California.
 
Californians are still going to use 38 million gallons of gasoline every day. Now it will just be refined somewhere else. Which means the finished product will have to be transported to California. But the refinery mess will be in someone else’s backyard. And of course fewer refineries and additional transportation costs means the price goes up for everyone.

But Californians will be able to feel a little more superior about themselves. So it’s kind of a lose/win/lose/win situation.
 
Why would the closure of 2 in-state refineries cause huge increases in CA alone?

Don't gas stations in CA compete in national and global markets?

A tax difference between CA and some other states would account for a price increase at the pump, but a shift in suppliers shouldn't have that big of an effect.

What am I missing? Because if I'm not missing something, this guy's wingnut rant fails Econ 101.
Here's the report.

 
Californians are still going to use 38 million gallons of gasoline every day. Now it will just be refined somewhere else. Which means the finished product will have to be transported to California. But the refinery mess will be in someone else’s backyard. And of course fewer refineries and additional transportation costs means the price goes up for everyone.

But Californians will be able to feel a little more superior about themselves. So it’s kind of a lose/win/lose/win situation.
Sure. Ever been to an oil refinery? I have. They are filthy. They can be slightly less filthy, but that eats into profits. This is a dance to gain concessions from Newsom, who the oil companies know is running for president in 2028, and is anxious to cut a deal. Long term companies might be looking at lower demand as renewables and EVs take hold. You might want to take what Vincent Fong says with a grain of salt, too. He isn't an honest broker.
Things aren't great air quality wise all the time, but you are old enough to remember how bad things could get in places like LA and Phoenix. Higher refinery costs are partially responsible for better air quality.
 
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Why would the closure of 2 in-state refineries cause huge increases in CA alone?

Don't gas stations in CA compete in national and global markets?

A tax difference between CA and some other states would account for a price increase at the pump, but a shift in suppliers shouldn't have that big of an effect.

What am I missing? Because if I'm not missing something, this guy's wingnut rant fails Econ 101.
This has been going on for about 20 years. The big three have been purchasing independent refineries and then shutting them down. We're just seeing the end result of a monopoly. It's clearly collusion and has been going on for decades. Every new governor says he'll look into it and then nothing happens.
 
Thanks.

"With the announced shutdown of Valero’s Benicia refinery complex accompanied by its $1.1
billion charge-off...."

I don't understand the mechanics of charge-offs. Does CA have any control over this? Would they be closing the refinery if they couldn't get the tax break?

What else could be done if you wanted to prevent or ameliorate this problem?
 
My first thought is "great, step up renewables, EVs and whatnot." Sure it costs money, but it's the right direction to head, and closing refineries is just a prod to move faster in that right direction.

My second thought is that if there's a good argument to keep these refineries operating, but Big Oil is just putting itself ahead of the people, state or nation, nationalize (or "state-ize") the refineries and keep them going until shutting them down is more convenient for CA and its people.

It's OK for capitalism to cause problems but God forbid using socialism to fix them.
 
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Thanks and I just found out there are 42 gallons of beer in a barrel.
Forty-two gallons of beer on the wall....forty-two gallons of beer.
You take one down, pass it around....forty-one gallons of beer on the wall.

Forty-one gallons of beer on the wall...forty-one gallons of beers.
You take one down, pass it around...forty gallons of beers on walls.

Fortsy ballons of beers on wall.....fortsy ballons of beers.
You take down, pass around...one....fort.....thirt....thirdy-nine ballons of beers on wall.

Thirdy-nine walls of beer around....thirdy-wall.
You drink it and pass it............and..........then...........something......around.
 
Sure. Ever been to an oil refinery? I have. They are filthy. They can be slightly less filthy, but that eats into profits. This is a dance to gain concessions from Newsom, who the oil companies know is running for president in 2028, and is anxious to cut a deal. Long term companies might be looking at lower demand as renewables and EVs take hold. You might want to take what Vincent Fong says with a grain of salt, too. He isn't an honest broker.
Things aren't great air quality wise all the time, but you are old enough to remember how bad things could get in places like LA and Phoenix. Higher refinery costs are partially responsible for better air quality.
You’ve missed my point once again.

Sigh.
 
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