• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 2 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 4 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 5 days Enbridge Pipeline Expansion Finally Approved
  • 5 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 6 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 6 days Aramco Says No Plans To Shelve IPO
Alt Text

Mass EV Adoption Could Lead To $10 Oil

As the adoption of electric…

Alt Text

Goldman Sachs: Inventory Drawdowns Will Not Continue

Goldman Sachs has reported that…

This Is Why Californians Pay More For Their Gasoline?

This Is Why Californians Pay More For Their Gasoline?

The price of gasoline in Southern California is the highest in the nation, in large part because an Exxon Mobil Corp. refinery in Torrance has been out of commission since an explosion there in February, and the state’s environmental regulations are hampering the company’s efforts to quickly get it back to full production.

The refinery is now operating at under 20 percent of its potential, mostly because the explosion damaged its two pollution control units, according to Mohsen Nazemi, the deputy executive officer for engineering and compliance of California’s Sourth Coast Air Quality Management District.

ExxonMobil has sought permission to use a previous model of the unit until the newer version can be installed, but was denied because the older unit emits between two and six times more greenhouse gases than the newer model, which would violate state regulations. To use the older equipment, he said, the company would need to show the state that it can contain offset these increased emissions. Related: These Factors Will Send Oil Prices Down Even Further

In the meantime, ExxonMobil is working to repair the newer pollution control units by replacing about 1,300 plates that trap the emissions, which are made of a fine dust. “That’s not going to happen next week or next month,” Nazemi told the Los Angeles Times. “You’re probably looking at the end of the year.”

This means only higher gasoline prices for Southern Californians at a time when motorists in much of the rest of the United States are benefiting from bargains at the pump due to the plunge in the average global price of oil during the past year.

At one point last week, drivers in Los Angeles County were paying an average of $4.24 per gallon for regular gasoline, an increase of 69 cents from the previous week and 57 more than the average price in June. The same is true in neighboring San Bernardino County, with regular gasoline selling for an average of 63 cents more than the previous week and 51 percent over June’s average. Related:OPEC, Get Ready For The Second U.S. Oil Boom

And these are just average prices. Several service stations in the city of Los Angeles were selling regular gas at $4.99 per gallon, and one had a cost of $5.29 per gallon.

The highest costs are in Southern California, while the northern part of the state is suffering much less, according to Allison Mac, an analyst with the fuel-tracking website GasBuddy.com. “[Northern California] prices have gone up maybe 15 to 20 cents a gallon,” she told the San Gabriel Valley Tribune, “but [in Southern California] we’ve gone up over 60 cents at the same time.”

ExxonMobil’s Torrance refinery isn’t the only reason for the higher gasoline prices, according to Marie Montgomery of the Automobile Club of Southern California. A refinery in Carson California outside Los Angeles owned by the Tesoro Corp. of San Antonio, Texas, also is offline for annual maintenance, she said. Related: More Job Losses Coming to U.S. Shale

And then there’s the pipeline breach in Santa Barbara County on May 19 that interrupted the flow of ExxonMobil oil to refineries in Southern California, amounting to 150,000 barrels of crude per day. ExxonMobil filed an emergency application to have trucks move the oil until the pipeline is repaired, but the request was denied on the grounds that the situation wasn’t an emergency.

This led ExxonMobil to shut down production at three offshore oil platforms until the flow can resume.

By Andy Tully Of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Albert on July 21 2015 said:
    This is ridiculous!
    I just came from Louisiana and the price of gas was about $2.60/gallon.
    We are being robbed! How many gallons/day are consumed in Southern California? Multiply that by the dollar and a half extra we are paying when compared with the rest of the country.
    They have to stop the refinery in Carson for maintenance this week? They cannot postpone the maintenance for a few weeks in order to save money for their customers?
    It is unbelievable how much and for how long we are being robbed by the oil industry in collusion with the government.
  • Bob on July 22 2015 said:
    Dear Albert,

    Were you robbed in LA? Your former governor needs this money more than even CA.

    OK then why the difference:

    - first of all your LA fuel tax at the pump was 38 cents, you are now paying 60 cents (see the maps on api.org)

    - the CA grade of gasoline is the highest in the country and few refineries produce it so when a refinery is out of product it cannot be brought in from other states so the CA consumer will suffer

    - the CA environmental costs and restrictions are like no other in the country; google: CA AB32; LCFS standard, carbon tax, childhood lead fee even though lead has not been in gas for many years, etc.

    No collusion by the oil industry but the burden comes from the CA environmentalists on the backs of the CA consumer. It will get worst and the oil industry will continue to be blamed by the press. Up to the CA voters if this continues.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News