Calif refinery work behind gasoline rise: Regulator

Spanish Market: Oil products
13/09/24

Current refinery maintenance is driving a "significant" gasoline price increase in California and a "troubling" lack of supply, the state's Division of Petroleum Market Oversight (DPMO) said in a letter to governor Gavin Newsom (D) today.

Several maintenance events at refineries across California and declining gasoline inventories are contributing to the increased prices, which are most noticeable in the north of the state, the DPMO said in the 13 September letter. "California is once again seeing a significant spike in gasoline prices," it said.

This is the first instance of the DPMO commenting on emerging price increases in California, fulfilling its mandated role of state petroleum market watchdog established with its creation as an independent agency within the California Energy Commission (CEC) last year.

It is not clear what refinery maintenance DPMO is referring to. PBF Energy reported a hydrocracker malfunction at its 160,000 b/d Torrance refinery this week while Marathon Petroleum's 365,000 b/d Los Angeles plant, the largest in California, was shutting units in August and flaring earlier this month. Valero reported a power outage at its 85,000 b/d Wilmington refinery in late August.

Spot market gasoline prices have "surged" while crude and national average gasoline prices have declined, the DPMO said. Retail prices have not reached the record highs of price spikes in 2022 and 2023, but there is a growing gap compared to the US national average, the agency said.

The average retail price of gasoline in northern California averaged $5.02/USG on 12 September, $1.92/USG higher than the rest of the country and a $1.48/USG premium in late August, according to DPMO data.

"In current market conditions, California refiners may seek to sell gasoline at prices far exceeding any increase in their own input costs," the DPMO said.

The refining industry has been in Newsom's cross hairs since last year's passage of SB X1-2, his bill aimed at combating what he views as price gouging by refiners. This garnered significant push back from companies and industry groups for what they see as a politically motivated misdiagnosis of what makes California retail prices higher than other states' prices.

On 15 August, Newsom unveiled a proposal to require refiners to hold minimum inventories of gasoline. An initial information hearing on that proposal is scheduled for 18 September.

By Nathan Risser

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20/12/24

Shell and Prax call off deal on German refinery stake

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Trump backs new deal to avoid shutdown: Update

19/12/24

Trump backs new deal to avoid shutdown: Update

Adds updates throughout Washington, 19 December (Argus) — US president-elect Donald Trump is offering his support for a rewritten spending bill that would avoid a government shutdown but leave out a provision authorizing year-round 15pc ethanol gasoline (E15) sales. The bill — which Republicans rewrote today after Trump attacked an earlier bipartisan agreement — would avoid a government shutdown starting Saturday, deliver agricultural aid and provide disaster relief. Trump said the bill was a "very good deal" that would also include a two-year suspension of the "very unnecessary" ceiling on federal debt, until 30 January 2027. "All Republicans, and even the Democrats, should do what is best for our Country, and vote 'YES' for this Bill, TONIGHT!" Trump wrote in a social media post. Passing the bill would require support from Democrats, who are still reeling after Trump and his allies — including Tesla chief executive Elon Musk — upended a spending deal they had spent weeks negotiating with US House speaker Mike Johnson (R-Louisiana). Democrats have not yet said if they would vote against the new agreement. "We are prepared to move forward with the bipartisan agreement that we thought was negotiated in good faith with House Republicans," House minority leader Hakeem Jeffries (D-New York) said earlier today. That earlier deal would have kept the government funded through 14 March, in addition to providing a one-year extension to the farm bill, $100bn in disaster relief and $10bn in aid for farmers. The bill would also provide a waiver that would avoid a looming ban on summertime sales of E15 across much of the US. Ethanol industry officials said they would urge lawmakers to vote against any package without the E15 provision. "Pulling E15 out of the bill makes absolutely no sense and is an insult to America's farmers and renewable fuel producers," Renewable Fuels Association chief executive Geoff Cooper said. If no agreement is reached by Friday at 11:59pm ET, federal agencies would have to furlough millions of workers and curtail services, although some agencies are able to continue operations in the event of a short-term funding lapse. Air travel is unlikely to face immediate interruptions because key federal workers are considered "essential," but some work on permits, agricultural and import data, and regulations could be curtailed. The US Federal Energy Regulatory Commission has funding to get through a "short-term" shutdown but could be affected by a longer shutdown, chairman Willie Phillips said. The US Department of Energy expects "no disruptions" if funding lapses for 1-5 days, according to its shutdown plan. The US Environmental Protection Agency would furlough about 90pc of its nearly 17,000 staff in the event of a shutdown, according to a plan it updated earlier this year. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US Congress passes waterways bill

19/12/24

US Congress passes waterways bill

Houston, 19 December (Argus) — The US Senate has passed a bipartisan waterways infrastructure bill, providing a framework for further investment in the country's waterways system. The waterways bill, also known as the Water Resources and Development Act (WRDA), was approved by the Senate in a 97-1 vote on 18 December after clearing the US House of Representatives on 10 December. The WRDA's next stop is the desk of President Joe Biden, who is expected to sign the bill. The WRDA has been passed every two years, authorizing the US Army Corps of Engineers (Corps) to undertake waterways infrastructure and navigation projects. Funding for individual projects must still be approved by Congress. Several agriculture-based groups voiced their support for the bill, saying it will improve transit for agricultural products on US waterways. The bill also shifts the funding of waterways projects to 75pc from the federal government and 25pc from the Inland Waterways Trust Fund instead of the previous 65-35pc split. "Increasing the general fund portion of the cost-share structure will promote much needed investment for inland navigation projects, as well as provide confidence to the industry that much needed maintenance and modernization of our inland waterway system will happen," Fertilizer Institute president Corey Rosenbusch said. The bill includes a provision to assist with the damaged Wilson Lock along the Tennessee River in Alabama. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Viewpoint: Politics, economy key to bitumen recovery

19/12/24

Viewpoint: Politics, economy key to bitumen recovery

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Reliability drives New Zealand power mix: Minister

19/12/24

Reliability drives New Zealand power mix: Minister

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