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Old 10-08-2012, 01:52 PM
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Originally Posted by Modemouth View Post
Is there any reason WHY this is happening in CA?
Makes me not want to drive anywhere unless I really have to.

Here's a blurb why CA gas is so high.

"James Hamilton of Econbrowser asserts that the turbulent rise in gas prices is prompted largely by two culprits, a lack of pipeline capacity and the state’s overly burdensome standards on air quality:

The Chevron refinery in Richmond (across the bay from San Francisco) has a normal capacity of 243,000 barrels per day, or 8.5% of the total petroleum products supplied to Petroleum Administration for Defense District 5, of which California is a part. But a fire at the Richmond refinery in August has significantly reduced its production.

The Kettleman-Los Medanos pipeline, which carries 85,000 barrels per day of crude oil to the San Francisco Bay Area, has been closed since mid-September due to organic chloride contamination. And on Monday, a power outage shut down ExxonMobil’s 149,000-barrel-per-day Torrance refinery in L.A.

Two factors allow the price in California to spike much higher than the rest of the country. First, a different blend is required to meet California air quality standards. Second, there is little pipeline capacity to bring in refined product from elsewhere."
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