Gasoline prices to be a hot topic in California

13,508 Views | 143 Replies | Last: 11 hrs ago by InfantryAg
fullback44
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Logos Stick said:

EMY92 said:

I know that Newsome has been pressing the oil companies to keep the refineries open, so far, he has not received a warm response.

Phillips 66 & Valero are closing refineries in a few months.

But, California uses the same blend that Singapore users, so they can import from there. I'm sure that will help consumers.

https://www.wsj.com/business/energy-oil/california-wants-to-halt-oil-industry-exodus-after-years-of-climate-focus-e5da733e?gaa_at=eafs&gaa_n=ASWzDAgzRRPRm4z266x5oVrtjS_ay_KJTOK5o0tjd3UVQyC9AQFOnOZWAA7Z6awszdw%3D&gaa_ts=68dfbe6e&gaa_sig=MaES7hcCqGTFGgvsjs0jSEt2BhVEgM1cD62dzo3fQ8qlVBKbEMHboj7DQ6HM8fSh0VauKpDDjq-i8QkdLlKkbg%3D%3D




Philips is closing this month. It's a done deal. Valero is closing in April. It's possible it might not close.

They have now approved 2000 drilling permits in Kern county, but the experts are not convinced the oil companies will pursue them.

I hope the oil companies pack their bags and just pull out.. the greed and corruption in California is going to catch up to those idiots and will bite them in the ass. It needs to happen in order to get fixed.. big oil can just go somewhere else. California will be just like other 3rd world countries that bring in all their fuels by sea going ship... what a bunch of dumb asses if they let it get to that point, if its not already there for 20-40 % of their fuels -- -IDIOTS
akaggie05
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fullback44 said:

HumbleAg04 said:

BigOil said:

That refinery supplies most of the jet fuel to LAX. Could be much worse ramification depending on the damage.


Yep. Short term LAX will be in a fuel crisis. Wonder what their inventory situation looks like.

I really dont see an LAX av gas fuel problem just because if you really absolutely had too, you could truck it in from other places until you lined up ships/barges/rail from other refineries. There is simply too many sources for that type of product, although it may cost them ALOT more money to truck in that much fuel, but its something even a small logistics company could put together fairly easily. sure it could possibly cause a mess on the freeway bringing in that many trucks, however most likely, trucks would go to an off-site terminal to off-load and then the av gas would get pipelined in the way it probably gets there now... hell most likely av gas fuel would be brought to the tanks at the refinery that is currently down and sent to LAX the way it goes now.


Avgas and jet fuel are two different things.

Avgas is basically a high octane version of what you fill up your car with (but it's leaded). Used in small piston-engined planes.

Jet fuel is basically kerosene with additives to prevent freezing at low temperature during flight. Used in turbine powered (jet and turboprop) aircraft. Very similar to diesel fuel.

The demand for jet fuel at LAX is orders of magnitude higher than avgas.
Logos Stick
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fullback44 said:

Logos Stick said:

EMY92 said:

I know that Newsome has been pressing the oil companies to keep the refineries open, so far, he has not received a warm response.

Phillips 66 & Valero are closing refineries in a few months.

But, California uses the same blend that Singapore users, so they can import from there. I'm sure that will help consumers.

https://www.wsj.com/business/energy-oil/california-wants-to-halt-oil-industry-exodus-after-years-of-climate-focus-e5da733e?gaa_at=eafs&gaa_n=ASWzDAgzRRPRm4z266x5oVrtjS_ay_KJTOK5o0tjd3UVQyC9AQFOnOZWAA7Z6awszdw%3D&gaa_ts=68dfbe6e&gaa_sig=MaES7hcCqGTFGgvsjs0jSEt2BhVEgM1cD62dzo3fQ8qlVBKbEMHboj7DQ6HM8fSh0VauKpDDjq-i8QkdLlKkbg%3D%3D




Philips is closing this month. It's a done deal. Valero is closing in April. It's possible it might not close.

They have now approved 2000 drilling permits in Kern county, but the experts are not convinced the oil companies will pursue them.

I hope the oil companies pack their bags and just pull out.. the greed and corruption in California is going to catch up to those idiots and will bite them in the ass. It needs to happen in order to get fixed.. big oil can just go somewhere else. California will be just like other 3rd world countries that bring in all their fuels by sea going ship... what a bunch of dumb asses if they let it get to that point, if its not already there for 20-40 % of their fuels -- -IDIOTS


As far as the refinery, I would only continue if Cali agreed to pay all capex to keep the refinery open going forward. I'm not sinking a single dollar into a plant in a state that hates me and could easily change their mind a year from now! Too much risk!
fullback44
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Im in the fuel business I understand that, there is no way LAX runs out of fuel for the jets, my opinion is you just wont see it. But hey, I could be wrong but I doubt it

anyway, I actually hope they due run out of fuel for the jets at LAX, that would be funny as hell
akaggie05
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fullback44 said:

Im in the fuel business I understand that, there is no way LAX runs out of fuel for the jets, my opinion is you just wont see it. But hey, I could be wrong but I doubt it

anyway, I actually hope they due run out of fuel for the jets at LAX, that would be funny as hell


Agreed. You hate to see it!
CDUB98
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Quote:

. hell most likely av gas fuel would be brought to the tanks at the refinery that is currently down and sent to LAX the way it goes now.

This is likely correct.

How do I know? I was part of a project a couple of decades ago that replaced the aging jet fuel pumps that sent to fuel to LAX. No reason to depart from that setup as the refinery can store large amounts and use the airport tanks as, effectively, day tanks.

Edit to add: Yes, I'm thinking jet fuel, not avgas, and I took fullback's post to mean jet fuel, but he happened to use the wrong term.
CDUB98
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fullback and aka05 have the best, most accurate posts on the thread.
fullback44
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very cool, interesting that you worked on a project about this very subject.
Kenneth_2003
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fullback44 said:

HumbleAg04 said:

BigOil said:

That refinery supplies most of the jet fuel to LAX. Could be much worse ramification depending on the damage.


Yep. Short term LAX will be in a fuel crisis. Wonder what their inventory situation looks like.

I really dont see an LAX av gas fuel problem just because if you really absolutely had too, you could truck it in from other places until you lined up ships/barges/rail from other refineries. There is simply too many sources for that type of product, although it may cost them ALOT more money to truck in that much fuel, but its something even a small logistics company could put together fairly easily. sure it could possibly cause a mess on the freeway bringing in that many trucks, however most likely, trucks would go to an off-site terminal to off-load and then the av gas would get pipelined in the way it probably gets there now... hell most likely av gas fuel would be brought to the tanks at the refinery that is currently down and sent to LAX the way it goes now.


Isn't LAX a MAJOR hub for long haul trans-Pacific routes? There's a lot out of SFO, I know...

Generally airports have dedicated pipelines from the refinery. I don't think you could physically truck in the required amounts of fuel. Do they even have capability to hook up and tie in the start steam of trucks that will/world be required?

My hunch is they probably have on site a few days, maybe a couple weeks of fuel.
YouBet
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CanyonAg77 said:

Doesn't California impose strict regulations on trucks from out of state?


I believe they follow the same rules as in state trucks. The entire zero emissions commercial truck debacle in California is a primo lesson in Economics that Democrats will simply ignore.

Their zero emission law that was to go into effect in 2024 resulted in operators all loading up on diesel trucks (which would be banned post law) which then resulted in more undesirable trucks on the road. The exact opposite of what California wanted. They did this because EV trucks didn't exist at scale, were totally unreliable, and exorbitantly expensive.

California has since dropped the law altogether in January of this year by using the easy out of Trump as the reason why when in reality it was always a fantasy law that would have destroyed shipping in California.

Democrats are morons. News at 11.
YouBet
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Kenneth_2003 said:

fullback44 said:

HumbleAg04 said:

BigOil said:

That refinery supplies most of the jet fuel to LAX. Could be much worse ramification depending on the damage.


Yep. Short term LAX will be in a fuel crisis. Wonder what their inventory situation looks like.

I really dont see an LAX av gas fuel problem just because if you really absolutely had too, you could truck it in from other places until you lined up ships/barges/rail from other refineries. There is simply too many sources for that type of product, although it may cost them ALOT more money to truck in that much fuel, but its something even a small logistics company could put together fairly easily. sure it could possibly cause a mess on the freeway bringing in that many trucks, however most likely, trucks would go to an off-site terminal to off-load and then the av gas would get pipelined in the way it probably gets there now... hell most likely av gas fuel would be brought to the tanks at the refinery that is currently down and sent to LAX the way it goes now.


Isn't LAX a MAJOR hub for long haul trans-Pacific routes? There's a lot out of SFO, I know...

Generally airports have dedicated pipelines from the refinery. I don't think you could physically truck in the required amounts of fuel. Do they even have capability to hook up and tie in the start steam of trucks that will/world be required?

My hunch is they probably have on site a few days, maybe a couple weeks of fuel.


Yes, once you get past the FedEx and UPS hubs and ANC, LAX and MIA are the largest cargo hubs in the US simply because of where they are. Pretty much everything from Asia comes through LAX, Port of Los Angeles, and Long Beach.
fullback44
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Someone mentioned the fuel additives that go into aviation fuels, we used to purchase a product from Dow that was a glycol ether (very light product ) that was used in jet fuels to keep ice crystals from forming, it also did other things like drop cloud point, reducing pour point etc. Anyway, we used it in gasolines for clouding and the Dow rep said that tons of that stuff went into prime aviation fuels including military jet fuels. I think it was the DM ether series which is a common glycol ether produced around the world.
IIIHorn
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Most people are unaware that a significant portion of the price of a gallon of gasoline is local, state and federal taxes.
CDUB98
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fullback44 said:

very cool, interesting that you worked on a project about this very subject.

Did a few small cap and mid-cap projects for that plant way back in the day. Even then, the California requirements were full ******.
normalhorn
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fullback44 said:

HumbleAg04 said:

BigOil said:

That refinery supplies most of the jet fuel to LAX. Could be much worse ramification depending on the damage.


Yep. Short term LAX will be in a fuel crisis. Wonder what their inventory situation looks like.

I really dont see an LAX av gas fuel problem just because if you really absolutely had too, you could truck it in from other places until you lined up ships/barges/rail from other refineries. There is simply too many sources for that type of product, although it may cost them ALOT more money to truck in that much fuel, but its something even a small logistics company could put together fairly easily. sure it could possibly cause a mess on the freeway bringing in that many trucks, however most likely, trucks would go to an off-site terminal to off-load and then the av gas would get pipelined in the way it probably gets there now... hell most likely av gas fuel would be brought to the tanks at the refinery that is currently down and sent to LAX the way it goes now.

Technically, you're right. Getting a logistical setup to long-haul the jet fuel can be done.

Napkin math doesn't make it sound quite as simple -

LAX averages about 1,200 domestic commercial flights. Say that each plane is just a 737, you're going to need about 6,800 gallons of jet fuel for each flight. Convert 6,800 GALLONS to BARRELS, and you end up with appx 160 BBLS needed per flight.
The average crude/gas tanker can haul 180 bbls on a highway, but they typically carry a bit less, so assume that an 18-wheeler is needed for each flight.
Just my guess is that it's not as simple as picking up a phone and finding 1,200 rigs, tanks and Hazmat certified drivers that aren't already contracted to haul other product.
For reference, between the Permian and Delaware Basins, there are anywhere between 1,000-1,500 crude trucks moving product each day.

TLDR: Kalifornia needs to prepare their bungholes to get puckered up if they can't easily and readily source more jet fuel, and I'm loving every minute of it.
...take it easy on me, I'm a normal horn
CDUB98
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fullback44 said:

Someone mentioned the fuel additives that go into aviation fuels, we used to purchase a product from Dow that was a glycol ether (very light product ) that was used in jet fuels to keep ice crystals from forming, it also did other things like drop cloud point, reducing pour point etc. Anyway, we used it in gasolines for clouding and the Dow rep said that tons of that stuff went into prime aviation fuels including military jet fuels. I think it was the DM ether series which is a common glycol ether produced around the world.

Methyl Glycol Ether

You are correct.
CDUB98
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IIIHorn said:

Most people are unaware that a significant portion of the price of a gallon of gasoline is local, state and federal taxes.

Far too many.

Idiots rant and rave about the price of fuel and blame it on the greedy oil companies, when, in reality, federal, state, and local taxes accrue more revenue each from taxes than the refiner on each gallon of fuel.
Stone Choir
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MemphisAg1 said:

fullback44 said:

My thought is that California is just so corrupt on so many levels that' it built into everything they do. If you started out manipulating voting then from their the corruption just breeds itself in all types of areas. The gsoline / fuels / refining issue is just one example. They use regulation to advance someone's cause and then it eventually gets them in trouble, the gasoline / refining situation will bite them in the ass - just as those electricity issues will eventually- shipping power across state lines from Arizona is another stupid thing they do because they over regulated power to fill someone's pockets

It would be nice to see that state hit rock bottom and eventually fix all this stuff- it has to be corruption- none in f what they are doing makes any sense

Yep. I've worked for three different manufacturing companies in two different industries over 34 years that had facilities in California, and they all had one thing in common... CA's ridiculous regulations increase costs for businesses to the point that they ultimately shut down their plants in CA. If there were enough customers left to justify it economically, we shipped product to them from other states and let the CA customers eat the extra freight and inventory costs.


No one can operate in California and make money. They don't allow companies to delay making repairs of leaking components to the next planned process unit shutdown. This means that if a plant has to shutdown to repair or replace a single valve, then they have to do it. The total costs of this is huge because shutting down operations to replace a single valve with no leeway beyond 15 days is insane.

The leak detection and repair regulations alone are enough to cause these refineries to shutdown and that's just one small part of the overall regulatory issues there.
evan_aggie
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LOYAL AG said:

They keep trying to convince us he's the answer for the Dems nationally but my God his record is a disaster. California is a complete train wreck with crime, fires destroying whole communities, publicly funded homelessness, runaway spending on infrastructure projects that never even get started, etc etc etc. That state is the best example ever of what happens when you get away from small government. The idea of the U.S. was a bunch of states experimenting with different ideas of governance and California is proof that leftwing ideas are abject failures. If he's their answer they're in deep trouble.


Publicly funded homelessness is a problem with Dallas, Houston, SA, Austin, and even El Paso. I'd actually argue it's getting worse in Texas as the cities grow with transplants from the West Coast and Northeast. "I hate how much it costs to live in CA!, but I'm definitely saying yes to Prop XYZ on the ballot for 1) parks 2) homeless support 3) general funds"
YouBet
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normalhorn said:

fullback44 said:

HumbleAg04 said:

BigOil said:

That refinery supplies most of the jet fuel to LAX. Could be much worse ramification depending on the damage.


Yep. Short term LAX will be in a fuel crisis. Wonder what their inventory situation looks like.

I really dont see an LAX av gas fuel problem just because if you really absolutely had too, you could truck it in from other places until you lined up ships/barges/rail from other refineries. There is simply too many sources for that type of product, although it may cost them ALOT more money to truck in that much fuel, but its something even a small logistics company could put together fairly easily. sure it could possibly cause a mess on the freeway bringing in that many trucks, however most likely, trucks would go to an off-site terminal to off-load and then the av gas would get pipelined in the way it probably gets there now... hell most likely av gas fuel would be brought to the tanks at the refinery that is currently down and sent to LAX the way it goes now.

Technically, you're right. Getting a logistical setup to long-haul the jet fuel can be done.

Napkin math doesn't make it sound quite as simple -

LAX averages about 1,200 domestic commercial flights. Say that each plane is just a 737, you're going to need about 6,800 gallons of jet fuel for each flight. Convert 6,800 GALLONS to BARRELS, and you end up with appx 160 BBLS needed per flight.
The average crude/gas tanker can haul 180 bbls on a highway, but they typically carry a bit less, so assume that an 18-wheeler is needed for each flight.
Just my guess is that it's not as simple as picking up a phone and finding 1,200 rigs, tanks and Hazmat certified drivers that aren't already contracted to haul other product.
For reference, between the Permian and Delaware Basins, there are anywhere between 1,000-1,500 crude trucks moving product each day.

TLDR: Kalifornia needs to prepare their bungholes to get puckered up if they can't easily and readily source more jet fuel, and I'm loving every minute of it.


Prepare for shipping SLAs to plummet for higher value goods with a downdraft to lower value goods. That will cause some angst in many circles. Everything air will have to download to trucking and then trucking will get cornholed and backed up until they can match supply to that demand.

Never mind upstream from that having to send ocean vs air on the front end.

That will be fun!
Dr. Mephisto
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normalhorn said:

fullback44 said:

HumbleAg04 said:

BigOil said:

That refinery supplies most of the jet fuel to LAX. Could be much worse ramification depending on the damage.


Yep. Short term LAX will be in a fuel crisis. Wonder what their inventory situation looks like.

I really dont see an LAX av gas fuel problem just because if you really absolutely had too, you could truck it in from other places until you lined up ships/barges/rail from other refineries. There is simply too many sources for that type of product, although it may cost them ALOT more money to truck in that much fuel, but its something even a small logistics company could put together fairly easily. sure it could possibly cause a mess on the freeway bringing in that many trucks, however most likely, trucks would go to an off-site terminal to off-load and then the av gas would get pipelined in the way it probably gets there now... hell most likely av gas fuel would be brought to the tanks at the refinery that is currently down and sent to LAX the way it goes now.

Technically, you're right. Getting a logistical setup to long-haul the jet fuel can be done.

Napkin math doesn't make it sound quite as simple -

LAX averages about 1,200 domestic commercial flights. Say that each plane is just a 737, you're going to need about 6,800 gallons of jet fuel for each flight. Convert 6,800 GALLONS to BARRELS, and you end up with appx 160 BBLS needed per flight.
The average crude/gas tanker can haul 180 bbls on a highway, but they typically carry a bit less, so assume that an 18-wheeler is needed for each flight.
Just my guess is that it's not as simple as picking up a phone and finding 1,200 rigs, tanks and Hazmat certified drivers that aren't already contracted to haul other product.
For reference, between the Permian and Delaware Basins, there are anywhere between 1,000-1,500 crude trucks moving product each day.

TLDR: Kalifornia needs to prepare their bungholes to get puckered up if they can't easily and readily source more jet fuel, and I'm loving every minute of it.


When I joined Texags, I was told there would be no math.
CDUB98
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Quote:

They don't allow companies to delay making repairs of leaking components to the next planned process unit shutdown. This means that if a plant has to shutdown to repair or replace a single valve, then they have to do it. The total costs of this is huge because shutting down operations to replace a single valve with no leeway beyond 15 days is insane.

Ummmm, if you are actually in this industry, then you must not be paying attention.

All refineries, chem plants, and petrochem plants worth their salt have a no leak policy themselves. A freaking hydraulic line breaks on a fork lift and you have to report it immediately to plant operations and clean up.

A leak is a bomb waiting to happen. You don't just blow it off until the next schedule turnaround which could be 3 years away.
normalhorn
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Dr. Mephisto said:

normalhorn said:

fullback44 said:

HumbleAg04 said:

BigOil said:

That refinery supplies most of the jet fuel to LAX. Could be much worse ramification depending on the damage.


Yep. Short term LAX will be in a fuel crisis. Wonder what their inventory situation looks like.

I really dont see an LAX av gas fuel problem just because if you really absolutely had too, you could truck it in from other places until you lined up ships/barges/rail from other refineries. There is simply too many sources for that type of product, although it may cost them ALOT more money to truck in that much fuel, but its something even a small logistics company could put together fairly easily. sure it could possibly cause a mess on the freeway bringing in that many trucks, however most likely, trucks would go to an off-site terminal to off-load and then the av gas would get pipelined in the way it probably gets there now... hell most likely av gas fuel would be brought to the tanks at the refinery that is currently down and sent to LAX the way it goes now.

Technically, you're right. Getting a logistical setup to long-haul the jet fuel can be done.

Napkin math doesn't make it sound quite as simple -

LAX averages about 1,200 domestic commercial flights. Say that each plane is just a 737, you're going to need about 6,800 gallons of jet fuel for each flight. Convert 6,800 GALLONS to BARRELS, and you end up with appx 160 BBLS needed per flight.
The average crude/gas tanker can haul 180 bbls on a highway, but they typically carry a bit less, so assume that an 18-wheeler is needed for each flight.
Just my guess is that it's not as simple as picking up a phone and finding 1,200 rigs, tanks and Hazmat certified drivers that aren't already contracted to haul other product.
For reference, between the Permian and Delaware Basins, there are anywhere between 1,000-1,500 crude trucks moving product each day.

TLDR: Kalifornia needs to prepare their bungholes to get puckered up if they can't easily and readily source more jet fuel, and I'm loving every minute of it.


When I joined Texags, I was told there would be no math.

Fair enough.....

Insert Doc Holiday "Let's Have a Spelling Bee" .gif
...take it easy on me, I'm a normal horn
Dr. Mephisto
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fullback44 said:

They truly are dumbasses, some of their octane mandates are dumber than dumb. They are the only state that I know of that requires the refiners to use the component "octane" in their gasoline at a certain percentage. You make synthetic octane by reacting olefins together then hydrotreating them, much more expensive than your run of the mill alkylate, reformates, aromatics (toluene, xylenes, etc) to boost your octane to 87+ - Anyway just stupid uncalled for regulations on gasoline. Valero in Corpus is one of the big producers of synthetic octene / octanes which ship that stuff all the way to California - so dumb when those refiners out there can make their own octane enhancers . There was also an octene plant in Canada shipping all the way to California- truly stupid uncalled for cost when every single refiner out there could just make their own product


Yeah!

Duuuhh!

Everyone knows this, right?

I mean, come on! Really!

You'd have to be some kind of moron not to know this!




Maybe you could explain it for the dumber people who don't know as much as we do, you know, just to be safe.


CDUB98
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I'm just glad we're finally talking about a subject I actually have some knowledge on.
Ag87H2O
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Glad nobody got hurt in the fire.

Having said that, anything that accelerates the fall of California and exposes the Democrat's failed policies is a good thing. I pray it falls apart in short order and they suffer the realities enough that Newsome is cooked as far as running for a national office. The Democrats have tried to subvert a presidency and two national elections. They've radicalized folks to the point they are now justifying political assassinations. They've gone after our children. They are about to take over NYC. Hate to be so harsh, but we are at war with the left. We can embrace all the niceties after we win. Until then, I hope they fail miserably and get to wallow in the crap they made in their own bed.
Stone Choir
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CDUB98 said:

Quote:

They don't allow companies to delay making repairs of leaking components to the next planned process unit shutdown. This means that if a plant has to shutdown to repair or replace a single valve, then they have to do it. The total costs of this is huge because shutting down operations to replace a single valve with no leeway beyond 15 days is insane.

Ummmm, if you are actually in this industry, then you must not be paying attention.

All refineries, chem plants, and petrochem plants worth their salt have a no leak policy themselves. A freaking hydraulic line breaks on a fork lift and you have to report it immediately to plant operations and clean up.

A leak is a bomb waiting to happen. You don't just blow it off until the next schedule turnaround which could be 3 years away.


I know this. My point is that you need delay of repair because you cannot continuously shut down a plant to repair a single valve or connector or pump. These plants lose millions when they shut down. California is the only state that does not allow for delays until the next planned process unit shutdown.

This is an insane policy. It's not at all a shocker companies are leaving in droves. It's not possible to weld everything so they have no choice but to shut them down now.
normalhorn
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CDUB98 said:

I'm just glad we're finally talking about a subject I actually have some knowledge on.

Fingers crossed that California starts attacking the bbq and woodworking worlds so I can see agrams chime in with some expertise....
...take it easy on me, I'm a normal horn
No Spin Ag
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CDUB98 said:

I'm just glad we're finally talking about a subject I actually have some knowledge on.


Can you, then, provide insight as to why gas prices haven't shot up, at least in the LBK area when in the past if so much as a bird dropping hit a refinery prices would jump.

Thanks in advance.
There are in fact two things, science and opinion; the former begets knowledge, the later ignorance. Hippocrates
YouBet
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Ag87H2O said:

Glad nobody got hurt in the fire.

Having said that, anything that accelerates the fall of California and exposes the Democrat's failed policies is a good thing. I pray it falls apart in short order and they suffer the realities enough that Newsome is cooked as far as running for a national office. The Democrats have tried to subvert a presidency and two national elections. They've radicalized folks to the point they are now justifying political assassinations. They've gone after our children. They are about to take over NYC. Hate to be so harsh, but we are at war with the left. We can embrace all the niceties after we win. Until then, I hope they fail miserably and get to wallow in the crap they made in their own bed.


The only bad thing about this is that it will have massive ripple effects throughout the country. California can legitimately use Texas's "what starts here changes the world" slogan. We will feel it if they fail.

Doesn't mean they shouldn't fail so everyone else can learn from it but it will impact us.
Jock 07
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Ha, I talked with they guy who owns heritage bbq in San Juan Capistrano one time when I was living out there. IIRC he mentioned opening up in Orange County instead of la county due to all the dumbass laws banning smokers there and would've been forced to use an oyler which he didn't want to do.
fullback44
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You can do all the math, and that would be a ton of trucks, Im very familiar with the two big Helena terminals in the Eagle ford that can unload 500 plus trucks a day, its definitely possible. but whoever has those fuel contracts with LAX has to have contingencies in place already and probably are required to have them to even get the contract. I dont think there is any way they will not meet their contractual obligations. By the time they exit those contracts (which is a big if) other logistics / supply agreements will be in place. I would suspect if LAX uses 150,000 +/- bbls per day of fuel then that refinery probably has 10-15 days of product available, thats not that much product in the big scheme of things. Trucks could possibly handle a large portion but Im sure sea going vessels / barges local to that region would fill the need and are probably already part of the contingencies in place. Just dont see this ever being a problem.. anyway, just my opinion, I could be wrong
fullback44
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No Spin Ag said:

CDUB98 said:

I'm just glad we're finally talking about a subject I actually have some knowledge on.


Can you, then, provide insight as to why gas prices haven't shot up, at least in the LBK area when in the past if so much as a bird dropping hit a refinery prices would jump.

Thanks in advance.

Im waiting for them to go up too, we mark more margin on fuels when prices are high.. lets go to $90 bbl please
Tony Franklins Other Shoe
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normalhorn said:


Just my guess is that it's not as simple as picking up a phone and finding 1,200 rigs, tanks and Hazmat certified drivers that aren't already contracted to haul other product.
For reference, between the Permian and Delaware Basins, there are anywhere between 1,000-1,500 crude trucks moving product each day.

TLDR: Kalifornia needs to prepare their bungholes to get puckered up if they can't easily and readily source more jet fuel, and I'm loving every minute of it.

That is the key, breaking into the already established schedule. You can do it, but it will be costly and not at the rate you likely want. Also can't just say, "hey driver, you want some overtime?" Excellent point.

Person Not Capable of Pregnancy
CDUB98
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No Spin Ag said:

CDUB98 said:

I'm just glad we're finally talking about a subject I actually have some knowledge on.


Can you, then, provide insight as to why gas prices haven't shot up, at least in the LBK area when in the past if so much as a bird dropping hit a refinery prices would jump.

Thanks in advance.

Which refinery? Where does Lubbutt get its fuel?

HF Sinclair Artesia
HF Sinclair El Dorado
Phillips 66 Borger

Just to name three.

Gasoline prices are a global commodity, with wholesale prices set there. Regional prices going up or down can be dependent on a multiple of factors.

Also, your question structure throws me off a bit. Prices level with an unplanned shutdown? Doesn't sound right or likely.......so maybe you're just yanking my chain. Well played, if so.
 
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