Any rumors on layoffs CA refineries LA and Richmond? Wonder if they will sale? ....
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Those refineries earn a fortune so they will not be sold unless it is for a huge NPV.
Cuts will come, as they should, to the refiners in this org chart 'atweaking
It costs a lot of money to clean up the sites, especially given how old these refineries are. The cleanup/rehabit period would probably be closer to 30-40 years. The worst case scenario is that chevron will turn the sites into terminals, and layoff 95% of the workforce. Foreign oil companies may try to put in an offer, but i don’t think newsome would allow that.
ExxonMobil has been slowly dumping or disconnecting from all CA assets. If CVX is trying to be EM, then wouldnt they do the same?
The problem with selling the refineries is the Superfund mandatory clean-up that would result from said activity. Much better to shutter the refineries and turn the land into tanks and blending farms, something that's been looked at way more than once. Years ago, rumor had it that China tried to buy the Richmond refinery processing units, disassemble the whole collection and ship it over somewhere in the far east, but the sale fell through because CA intervened to prevent the tax revenue loss. My money is on CVX never selling either CA refinery.
Quite a bit of California envy here, sure is better than the flat topography of the nations ugliest city, with the worst weather, thunder dome traffic, biting insects, and rednecks.
Who would buy them anyway?
Asian JV refineries are next on the chopping board
I love the giving them away idea - call it a donation to the CSR - California Socialist Republic
It was noted in the WSJ on Monday that Chevron HAS considered shutting them down. It’s in the article titled inside big oils divorce with California
No layoffs
For what it's worth, CC said Chevron's California refineries are "here to stay" in the Manufacturing Townhall and AW walked back his recent threats to close the refineries if the regulatory environment worsens. I wouldn't worry at this point.
I would give them away for free. People republic of California will sue and sue
Their value is less today than could be achieved in a sale if the economic landscape adjusts over the course of the current administration. If they are to sell, better to sell high (not low).