California Is Falling Into An Unrecoverable Deficit Of Refineries

Despite what out of state friends and families have said for years, California is not going to fall into the Pacific Ocean. But if its policymakers and legislators continue on a path of carbon isolation uber allies, it’s possible that California continues to alienate itself from the rest of the world, sinking economically as an energy island, isolated from the rest of the continental USA by the majestic Sierra Mountains.

As more refinery closures are anticipated in the coming years, more of the demands of 58 million gallons of transportation fuel DAILY, will be dependent on Asian refineries to meet these daily supply chain demands to keep the 4^th largest economy humming:

• 11 million gallons/day for Jet fuel for the States’ 40 military and 9 international airports. California is the nation’s largest jet-fuel consumer. Roughly 20% of supply is now imported, primarily from India and other Asian refiners (South Korea). Imports have surged alongside refinery closures.
• 10 million gallons/day for Diesel for the States’ trucking and construction industries.
• 37 million gallons/day for Gasoline for the States’ more than 36 million vehicles. Gasoline imports are rising to fill the gap left by the shrinking of in-state refining, from refineries in the Bahamas, India, South Korea, and Gulf Coast.
• In addition, Bunker fuel for the 1,000’s of merchant ships serving 3 of the busiest ports in America at Long Beach, Los Angeles, and Oakland.

California’s overall demand for petroleum-based transportation fuels is decreasing slightly over the long term. However, supply of those transportation fuels is dropping even faster due to refinery closures, creating tight market conditions. Thus, California regulations are supporting the increasing profitability of the few remaining refineries by reducing the supply chain to meet the humongous daily demands of transportation fuels.