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Started By
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re: LA Times: Is California government considering oil refinery takeovers? Yes, it is
Posted on 2/17/25 at 9:15 pm to ragincajun03
Posted on 2/17/25 at 9:15 pm to ragincajun03
Cali is so sure that because of climate change that we need to convert over to electric cars why would there be a need to produce so much gasoline?
0
Posted on 2/17/25 at 9:21 pm to ragincajun03
It’s like they don’t understand basic business in that state.
Posted on 2/17/25 at 10:03 pm to ragincajun03
That’s what a place that turns communist always does
Posted on 2/18/25 at 2:42 am to ragincajun03
How about they stop distorting the market and let consumers choose the platforms they want to use. Crazy I know ....
Posted on 2/18/25 at 3:58 am to ragincajun03
They’ll hire Birdseed to run it.
Posted on 2/18/25 at 4:08 am to ragincajun03
California has become the dumbest state in the union, and that’s saying something.
Posted on 2/18/25 at 5:48 am to ragincajun03
It's Renewable Diesel not Biodiesel. Very little Biodiesel which made with vegetable oil and methanol is passe.
To make Renewable Diesel one needs to have an existing high pressure hydrotreater and hydrocracker in the existing refinery. Plus a source of animal fat, vegetable oil and/or spent deep fryer oil. Ask the attempted conversion of the former Shell refinery in Saraland (Mobile) AL which was converted then couldn't secure enough feedstock in the international market.
This is old news anyway.
California's rising costs for refining are due rapidly depleting oil reserves in the state. It enjoyed some of the least expensive gasoline for 100 years due instate production of heavy crude oil of around 18 API gravity and 3.5% sulfur. All of its refineries had cokers or made asphalt. Importing heavy crude from overseas or from Canada is the only fix.
To make Renewable Diesel one needs to have an existing high pressure hydrotreater and hydrocracker in the existing refinery. Plus a source of animal fat, vegetable oil and/or spent deep fryer oil. Ask the attempted conversion of the former Shell refinery in Saraland (Mobile) AL which was converted then couldn't secure enough feedstock in the international market.
This is old news anyway.
California's rising costs for refining are due rapidly depleting oil reserves in the state. It enjoyed some of the least expensive gasoline for 100 years due instate production of heavy crude oil of around 18 API gravity and 3.5% sulfur. All of its refineries had cokers or made asphalt. Importing heavy crude from overseas or from Canada is the only fix.
This post was edited on 2/18/25 at 5:53 am
Posted on 2/18/25 at 6:02 am to LSUFanHouston
quote:
That’s not why refineries are pulling out
They are pulling out because of the insane regulations environment in the Peoples Republic of CA
Correct. Shell was the first to shutdown its refinery at Wilmington, CA with separate at Carson the Cat Cracking, Reforming, Distillate Hydrotreating and a chemical plant to make synthetic ethanol from cat cracker produced ethane for Scope in 1990, due outrageous requirements of excessive capital investment required by the state. Another smaller refinery was shutdown around the same time with attempt to restart in the mid 1990's and finally dismantled, relocated to Houston for refurbishment before being sent to Romania but that project was cancelled and it still sits in a laydown yard in Houston since then, It necessary would have lost 10% throughput capacity to change from heavy crude to intermediate crude.
Posted on 2/18/25 at 7:03 am to CitizenK
Another step towards becoming North Korea with sunsets
Posted on 2/18/25 at 7:06 am to ragincajun03
Rest of the refineries in the US need to cease selling gas and petroleum products to them if they are going to subsidize what is a private industry. It's unfair competition that arbitrarily lowers the value of the good(s) being sold.
This post was edited on 2/18/25 at 7:06 am
Posted on 2/18/25 at 7:07 am to ragincajun03
Where’s the “takeover” part?
Sounds like they are actually considering building or buying a refinery to keep the flow of higher cost California blend flowing.
Sounds like they are actually considering building or buying a refinery to keep the flow of higher cost California blend flowing.
Posted on 2/18/25 at 7:15 am to TBoy
Well they’re “taking over” refineries because the intelligent and competent people have determined that it’s becoming unprofitable to operate in California.
Any competent government would make policies that are more business friendly.
Any competent government would make policies that are more business friendly.
Posted on 2/18/25 at 7:17 am to Tygerfan
quote:
Best thing one can do is open a car dealership on the Nevada side of the Nevada/California border.
And best thing a car manufacturer can do is freeze the 2034 model and continue labeling it that for many years
Posted on 2/18/25 at 7:19 am to ragincajun03
Who would want to work in a refinery for the state of California? The best people at those places would GTFO of there?
Posted on 2/18/25 at 7:31 am to LSU alum wannabe
As is Chevron.
Welcome to Texas, CVX.
Welcome to Texas, CVX.
Posted on 2/18/25 at 7:37 am to ragincajun03
The supply issue is caused by the California government to begin with. They penalize and tax the crap out of any O&G company that wants to do business in the state, so they just quit producing or selling their product in the state. Ask yourself why gas costs several more dollars per gallon in Cali than in any other state, and that's only with government caps on price. Those companies aren't making money. Case in point: Phillips 66 shutting down in California.
Posted on 2/18/25 at 9:06 am to Tygerfan
quote:
Best thing one can do is open a car dealership on the Nevada side of the Nevada/California border.
There is a railyard in Arizona that does this with propane to southern cal
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