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A Chevron Corp. gas station in downtown Los Angeles, California, U.S., on Thursday, July 8, 2021. According to AAA, the average price of regular gasoline in California is $4.308, with some gas stations nearing $6 per gallon. Photographer: Kyle Grillo
EL SEGUNDO, Calif. – Investigators are inspecting the now cooling Chevron El Segundo Refinery after an explosive fire swept through one of its key processing units that might impact prices for auto, truck and aviation fuels. Until Chevron reveals the true extent of the damage, we can’t say exactly if and how much prices will go up.
Chevron’s 114-year-old El Segundo Refinery is Chevron’s second-largest refinery and the largest refinery on the West Coast. It burned from about 9:30 Thursday to mid-morning Friday.
It supplies 20% of L.A.’s voracious gasoline appetite. This refinery is reported to have had four other fires since 2016.
A lengthy bath in raging 500-degree fire, for hours and hours, can soften metal structures supports, tanks, pipes, electrical lines, control boxes, sensors and other equipment.
“How much damage has been done, we’re gonna have to do a wait and see on the with Chevron having obviously having to make some decision there and do a complete inspection on the entire facility,” said Matt McClain of gas price watchdog GasBuddy.com.
The burned unit uses high heat, pressure, and hydrogen to refine heavy petroleum into more valuable lighter products like gas and jet fuel.
GasBuddy says California’s special formula gasoline makes it a fuel island that could now have a statewide shortage.
“The price point for you may just climb slightly higher than even in the Los Angeles area. We’re looking at probably right around the 15 to 20 to 25 cents a gallon range, maybe up to 30 max and that’s for the Bay Area,” said GasBuddy’s McClain.
California’s special gas might have to be imported from offshore, a very time-consuming and expensive option. “What can we really do about a fire that happened so far away? If it’s gonna affect us, it’s gonna affect us I guess. I mean, that’s why we come here; like the cheapest prices in Marin,” said Arco customer Carlos Gutierrez.
Other customers saw it only a bit differently.
“Not so much to me because I have a hybrid car and I don’t drive that much. I’m sure it hits other people. But I’m not opposed to a whole state sharing in problems,” said Arco customer Alice Shaw.
“How many politicians own stock in Chevron? Probably all of them. So, when the people who make the laws are the people that benefit from corporate non-compliance or gouging, then you know of course, they’re just gonna let it happen,” said Arco customer Scott Oliver.
Chevron says the fire is out, no one was hurt and that it’s cooperating with state and regional agencies.
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