Chevron’s El Segundo refinery in California is producing fuels at reduced rates following last week’s massive fire, the supermajor said on Tuesday, adding it is working to restart units that were shut down after the incident.
Following an explosion of a yet-to-be-determined nature, a large fire broke out on Thursday night at Chevron’s 280,000-bpd refinery in El Segundo in the Los Angeles area. The fire was later contained, the police in El Segundo said, adding there wasn’t a call for residents to evacuate.
“The refinery continues to operate and create transportation fuels, although at diminished rates,” Chevron said on Tuesday, as carried by Reuters.
“While we do not predict market activity, we do note that PADD V inventories are heavier than usual – meaning there is more oil product in storage tanks around the (U.S. West Coast) than usual,” Chevron noted.
The El Segundo Refinery, which began operations in 1911, is one of the few that oil majors aren’t closing due to California’s assault on the oil and gas sector in recent years.
Between Phillips 66’s LA facility to close by the end of 2025 and Valero’s Benicia refinery, scheduled to close in 2026, the state is set to lose roughly 17% of its refining capacity—and that’s likely to drive the high gasoline prices even higher.
The U.S. national average price of gasoline dipped last week, but California should prepare for some pain ahead, due to the fire at El Segundo refinery, Patrick De Haan, head of petroleum analysis at GasBuddy, said on Monday.
“While OPEC again agreed over the weekend to boost oil production for November, the real story for motorists has been regional variation — especially in areas served by California’s supply system,” De Haan wrote.
“Though the damage from the fire appears limited, the West Coast is likely to see prices climb, while most other areas can expect relative stability or slight declines.”
By Charles Kennedy for Oilprice.com
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