Reply With QuoteFOCKERS!
Wonder why Califonia Gas Prices are so High? Here's some of the reasons:
Bakersfield refinery shutdown questioned
An investigation is ongoing by state Attorney General’s office
By Doug Abrahms
Desert Sun Washington Bureau
April 7th, 2004
WASHINGTON -- Shell Oil is reaping big profits from a Bakersfield refinery it plans to close Oct. 1, raising questions about whether the company is trying to keep gasoline prices high by reducing California’s already tight refining capacity, a consumer watchdog said.
Company documents obtained by the Foundation for Taxpayer and Consumer Rights show refining margins at Shell’s Bakersfield refinery were three times higher than at its Gulf Coast refineries during late March.
Yet, Shell plans to close the facility, leaving California with only 12 refineries.
A lack of refining capacity is partly to blame for California’s high gasoline prices. Regular gas prices averaged nearly $2.20 a gallon Tuesday in Riverside and San Bernardino counties, according to the American Automobile Association, compared to the national average of $1.77.
"This is a national example of how refiners cheat rather than compete in the restriction of supply by artificial means," said Jamie Court, president of the Santa Monica-based watchdog group. The group said it obtained the documents from company sources.
A Shell spokesman said the documents showing the refinery making substantial money in March are accurate, but only represent a snapshot in time and not a long-term financial picture.
"Two out of the last three years we did not make money in the Bakersfield refinery," Shell spokesman Cameron Smyth said. "That refinery was built over 70 years ago atop its crude source. The crude in the ground is declining."
Shell would consider selling the refinery at a reasonable price, he said.
Shell’s refining margins, the difference between the cost of crude oil and the price of the gasoline created, were $7.19 to $10.19 a barrel during late March for plants in the Gulf Coast and Delaware.
Refining margins for Shell’s three California plants were at least $21.82, and Bakersfield was the most profitable at $23.01, according to the documents obtained by the watchdog group.
"This is a really major fraud on the public to close a refinery that creates 2 percent of the gas in the state," Court said. "This evidence should also spur a national moratorium on all further domestic refinery closures."
The foundation wrote state Attorney General Bill Lockyer asking him to file a lawsuit to prevent Shell from shutting down the Bakersfield refinery.
The attorney general’s office had no immediate comment on the request but has been investigating the Bakersfield refinery’s closing for months to see if it raises any anti-competitive issues, said Lockyer’s spokesman Tom Dresslar.
"Our investigation will continue to be aggressive. It will be thorough," he said. "But there’s no guarantee that this problem can be solved by law enforcement."
FOCKERS!
Theres more to this subject than what that article spells out. The reason that this particular refinery is shutting down is because the Crude oil that supplies this plant in running out! Crude oil that supply's this facility is pumped from the San Jauquin valley and it is almost dried up, If this refinery is kept in operation then they will need to pipeline the crude there and that is really going to raise the cost of production. So if this plant is kept in service you would probably see those production costs passed on to you, the comsumer. I work for ChevronTexaco and granted I dont work for Shell but there is no way that an Oil company would shut down a refinery that is profitable just to lower the supply in california. We (chevron) cannot keep up with the supply and there are many upgrades going on at both of our Californa Refinery's to make more gasonline. This is also true for the other oil company's as well.
Dont hate me for who I work for, it cost alot to do buisness in California and we also have a cali only formulated gas that does cost more to produce.
Originally posted by 100+Placecraft
we also have a cali only formulated gas that does cost more to produce.
That's part of the problem!
You are right it is passed on to all of us from the government. Be prepared for more costs too. Do you remember that MTBE stuff that was outlawed a few years ago?? Well that chemical was used as an additive to pass emissions regulations, it was later outlawed and the california refinery's were given a grace period on certain emissions testing. Well that time is almost up and we will start to add a new addative and rest assured this cost will not be small for the california refinery's and the cost will probably once again go up a little.
Also remember my post a couple of months ago about Shell/Texaco double billing on credit cards between them and Exxon still not paying the fisherman and not doing a total cleanup form the Valdez spill. doesn't leave you a lot of chosses for fuel in calif. :yuk:
Originally posted by 100+Placecraft
Theres more to this subject than what that article spells out. The reason that this particular refinery is shutting down is because the Crude oil that supplies this plant in running out! Crude oil that supply's this facility is pumped from the San Jauquin valley and it is almost dried up, If this refinery is kept in operation then they will need to pipeline the crude there and that is really going to raise the cost of production. So if this plant is kept in service you would probably see those production costs passed on to you, the comsumer. I work for ChevronTexaco and granted I dont work for Shell but there is no way that an Oil company would shut down a refinery that is profitable just to lower the supply in california. We (chevron) cannot keep up with the supply and there are many upgrades going on at both of our Californa Refinery's to make more gasonline. This is also true for the other oil company's as well.
Dont hate me for who I work for, it cost alot to do buisness in California and we also have a cali only formulated gas that does cost more to produce.
The industry estimates the there are 35 YEARS MORE OIL AT THE CURRENT PUMPING RATES IN THE VALLEY!
Why is ChevronTexaco drilling more wells and Shell abandoning the refinery?
Originally posted by 100+Placecraft
You are right it is passed on to all of us from the government. Be prepared for more costs too. Do you remember that MTBE stuff that was outlawed a few years ago?? Well that chemical was used as an additive to pass emissions regulations, it was later outlawed and the california refinery's were given a grace period on certain emissions testing. Well that time is almost up and we will start to add a new addative and rest assured this cost will not be small for the california refinery's and the cost will probably once again go up a little.
The "new" additive is Ethanol - mandated by the Federal Govenment. It wasn't a surprise to anybody as the cats in Washington are helping the farmer's in the mid west at the expense of CA drivers.
The Shell Bakersfield refinery processes 6% of the oil in California. It is a OLD tech refinery. The oil will be sent (via pipelines) to higher tech refineries in northen and southern California, which are running at less than 85% of capacity right now. The loss of the Bakersfield unit will NOT have a direct impact on the price of fuel.
Why is it people sceam at the oil companies and NOT at the state and fed's for taxing fuel at such a high rate?
OG (not a cut and paste junkie) Shocker
When the shell refineries in CA make 3X higher margins than the Shell oil refineries in the gulf states people will stop screaming.
To carify...the Bakersfield refinery provide 2% of the gasoline produced in CA and 6% of the diesel.
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