Due to the fire at el segundo and the move from San ramon, does it look like we will be shutdown? MW seems to be wanting to sell assets. Is Richmond and El Segundo for sale? After the waves it feels like a lot of folks lost their jobs in manufacturing. Are we doomed? Should I look for other work? The workload we’re about to have looks incredibly high thanks to the bs McKinsey id--ts .
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As long as El Segundo and Richmond are making money, they will keep them. Jet fuel and lube oils make a lot of money. Plus, with other refineries closing in California, the price for gasoline will continue to rise with a larger margin.
Why are all California assets for sale?
I'm hearing of a sale of all CA assets, both refineries, SJV, and all the pipelines. Has anyone else heard this?
@gs Not going to happen. Gulf coast refineries generally do not meet CARB standards for California gasoline. The State does import around 15% of refined products but from Asia via tankers which is far less expensive than building pipelines.
@gs Highly unlikely as gas from gulf refineries generally does not meet CARB standards. Currently, California imports about 15% of refined products from Asian refineries via tankers which is far less expensive than building pipelines.
https://thecrudelife.substack.com/p/oneoks-sun-belt-connector-and-the
New refined product pipelines from the gulf coast will displace CA refining volumes. Part of CA’s “not in my backyard” approach for energy supply.
@ex This is exactly what is going on. Confirmed by LT. There is no future in CA. You need to look for something else. CA assets are going to 0
Plan is to underinvest in older units and then shut them down. Overtime the capacity in the plant will shrink, the workforce will shrink, the capital employed will shrink. Eventually, the refinery will be shut down and it will become an import terminal. If return on cap employed is less than 15%, the opex and new investment will be cut until Return is above 15%.
The Chevron refineries are positioned to out-last the competition in California, most of whom are smaller and non-integrated. Marathon could be the other that lasts, but the rest don't have a prayer. Keep in mind that the same California regulatory environment that makes operating hard for Chevron also keeps the external competition away or punishes internal competition worse.
NO--- we have 15% of California gasoline market; 40% of Southern California jet fuel business
We have to sell while they’re worth something. And they’re likely worth more now, than they may be 2 years from now.
likely gonna sell it
$$$
California is one of the largest fuel markets in the US. El Segundo will be repaired and back on line. Besides, no one would buy refineries giving potential remediation costs from over a century of operations.
@OP I think we are going to be moving out of California altogether. I think that because all of a sudden Newsom has changed his tune and wants to talk to MW after basically blowing him off in a text message last year saying. “No, I’m good.” Now all of a sudden he’s kissing a-s and I think it’s because he knows that we’re leaving and California is going to be FKD without us. California is basically a ghetto now anyway.