AB-32 Has Consequences – BP Refining Leaving California

Russ Steele

Joining a long parade of business exiting the state, BP has announced that they will divest it self from all refineries in Carson CA and Texas City, TX, halve the companies U.S. refining capacity.

SAN FRANCISCO — As political maneuvering continues over the fate of the controversial proposed Keystone XL pipeline, one of the world’s largest energy companies — BP — is already signaling the direction it plans to take: it’s positioning itself to tap the burgeoning supply of Canadian tar sands oil.

BP announced it will divest from its oil refineries on the Southern West Coast — in Carson, Calif. — and Texas City, TX, and expand its operations in the Pacific Northwest and the Midwest — a move that would halve the company’s U.S. refining capacity. 

More details HERE. Some good news for the Northern California, BP owns the ARCO brand and will continue to supply fuel to ARCO stations in Northern California.

“They don’t want to be in refining and marketing in the Pacific Southwest — Southern California, Southern Nevada, and Arizona,” he said.

The company has significant market share in these states, Hackett says, through the ARCO brand, which BP bought in the ‘90s. The company will continue to operate and supply fuel to ARCO stations in Northern California and the Pacific Northwest.

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About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

One Response to AB-32 Has Consequences – BP Refining Leaving California

  1. Sean says:

    Russ,

    In a post earlier this week, you noted that gasoline deliveries have gone from 60 million gallons per day to 40 million gallons per day. This has got to leave excess capacity so something has to give. The move of refining capacity from Texas City to someplace in the upper Midwest also probably makes sense to be closer to the source of crude. And with the Keystone pipeline up in the air and the Canadians looking to hedge their bets with a pipeline to the Pacific, putting a refinery in the Pacific Northwest also makes perfect sense. It’s closer to the source. Keep in mind also that the crude from Canada is priced like west Texas Intermediate crude rather than the benchmark Brent Crude for world oil prices so it costs $15 to $20 a barrel less. That’s a heck of an incentive to move. I’ll give you this though, California give you no incentive to stay, particularly in the LA Basin South Coast Air Quality Management District.

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