Monday, November 18, 2013

Why gasoline costs so much in California

Not only is it because of taxes and special formulations, other events are converging to make gasoline in CA way too expensive:

For example, Rocky Mountain refineries paid $96.63 per barrel of oil in August, according to the U.S. Energy Information Administration. During the same month, California refineries paid $108.05.With no oil pipelines connecting California to other states, refineries here often pay more for petroleum than do their counterparts elsewhere. The difference rises and falls over time.

Finally, several California refineries experienced technical problems this year that trimmed their production, said Gordon Schremp, senior analyst with the California Energy Commission. But the state's current gasoline inventories are normal for this time of year, he said.

So, can we expect any pipelines linking the source to CA refineries?  Not on your life.

I shudder to think about what will happen when the refineries have to start paying for carbon.

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