Following on October 19's "Oil company Phillips 66 says it will shut down Los Angeles-area refinery" (PSX) we see this at OilPrice, October 24:
Last week, Phillips 66 said it would shut down its Los Angeles oil refinery by the end of next year. Now, refining peer Valero Energy Corp is suggesting it could be next.
Valero, the United States’ second-largest refiner by capacity, is keeping all options “on the table” for its two California refineries. According to the company’s Chief Executive Lane Riggs, this is due to the increasing regulatory pressure that has pervaded California.
Oil refiners in California saw lower-than-average margins in late spring/early summer this year as lower operating capacity failed to deliver higher margins. According to the EIA, this is because refiners increased their existing capacity utilization rates.
Despite the lower margins, California boasts the most expensive gasoline in the United States—a condition that the California Governor’s Office blames on refiners. In an attempt to hold refiners accountable, the Office has threatened to penalize them for price gouging.
California, however, has the highest excise duty on gasoline of all the states....
....MUCH MORE
If everyone could switch to low-cost electric vehicles it wouldn't be a problem but they can't.
And sometimes during the summer California's electrical supply is less reliable than Venezuela's:
- "'We've returned to the Middle Ages' – life in Venezuela's blackout"
- "Venezuela energy crisis: President tells women to stop using hairdryers and go with 'natural' style to save electricity"
- Second Blackout: "'Horror, fear, despair': Venezuela's oil capital shattered by 'tsunami' of violent looting"
If interested see also ""New California Bill Will Pay Residents $1,000 for Not Owning a Car"
This
ties in to our operating thesis that the goal is not to replace
internal combustion engine vehicles but to herd people to public
transit....
