"But it could have serious economic and political impact. It occurred as Gov. Gavin Newsom and other Democratic figures were in the midst of a 180-degree political pirouette: a shift from denouncing makers of gasoline as price gouging polluters, to beseeching them to continue production. California once had dozens of refineries, but today nine are still producing gasoline, diesel fuel and jet fuel for airlines and military warplanes."
"Valero's refinery and the Phillips 66 plant in Southern California together represent about 17% of the state's refining capacity, according to the California Energy Commission. State legislators reportedly have offered Valero state subsidies to keep its Benicia refinery in operation, fearing closure would raise Californians' already high gas prices. Chevron's damaged El Segundo plant, if closed, would double the loss in refinery capacity to more than a third of the state's total, causing a supply crunch that would assuredly result in higher pump prices."
An explosion and fire at Chevron's El Segundo refinery avoided environmental catastrophe but could cause major economic and political fallout. California now relies on nine refineries to supply gasoline, diesel and jet fuel, with two slated to close soon. Valero and Phillips 66 account for roughly 17% of state refining capacity, and legislators have offered subsidies to keep facilities open. Closure of El Segundo would push lost capacity past one-third, creating a supply crunch and higher pump prices. California lacks interstate fuel pipelines, imports are costly, and high state fuel taxes contribute to elevated prices. Newsom pursued measures to penalize perceived excessive refinery profits.
Read at www.mercurynews.com
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