Unfortunately, we may only see portions of the SJV assets sold to nearby operators, but fields like Kern River are here to stay until remediation is complete.
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Everything is always for sale
Anyone who thinks they aren’t continuously evaluating the value of the land vs the liability is misguided. They said they were never leaving San Ramon, look how that turned out. And plenty of others have walked away from California asset with their liability and yet stay in business.
Nobody would want to buy the assets, nobody wants to deal with remediation of the property, and California is likely to revoke prop 13 protections in the near future so taxes on El Segundo and Richmond refineries will be astronomical. It’s a no win situation for Chevron.
They won’t sell. They’ll retain the land that way the company can control the level of environmental remediation. They’ve already been down that road and won’t be doing it again
The time to sell CAlif assets is now before the state further clamps down and destroys value. Every year we hold them their NPV falls.
California essentially subsidizes other States through Federal taxes. It receives approximately 77 cents of Federal spending in the State for every dollar sent to Washington. The net outflow from California is roughly $70 billion per year.
Yep. We will be out of California and California will be out of the USA. California will still be the 7th biggest economy in the USA and the rest of the USA would be behind both Japan and Germany. Hey California haters - Wake up
California has the largest economy in the US at about $3.9 trillion and is the fifth largest in the world. It has a population of nearly 40 million, largest in the US. It is the largest market for jet fuel and second largest for gasoline. Due to CARB requirements that limit imports of gasoline, refineries run at essentially maximum capacity. Natural gas and lubricants are also major markets.
Not unless chevron gives them away AND keeps the long term environmental liability.
No takers….
Cheaper to keep ‘er.
On a real note, Walls mentioned already publicly that if CA keeps tightening the noose, it will not be economically viable to invest in CA.
Glad I got out when I did. There have been reorgs but this one is hitting a little different.
Management has already said that reorgs like this will be not only more frequent but amplified.
Yes, everything is in play. People move first, then sales follow.
Who would buy any oil assets in Newsom’s California? Everyone wants to bail. Phillips66 is just closing the old Unocal refinery in Wilmington/Carson. Imagine the cost of doing that with Richmond and El Segundo. And SJV has been open to sale for years.