Study: California refineries operated during periods blamed for gas price spikes

West Coast gasoline price spikes in May and October were widely blamed on refinery outages, but new research to be released at a California hearing Thursday shows that refiners continued to produce gasoline in periods when the public was told the contrary.

The information, shared exclusively with McClatchy, comes from Oregon-based McCullough Research, which combed through thousands of pages of environmental documents to conclude that refineries were in fact operating during supposed outages and maintenance shutdowns.

Specifically, the report alleges that in May, at a time when Royal Dutch Shell’s Martinez, Calif., plant was reported to be down for maintenance for two weeks, it appears to have been making gasoline for at least half that time. That conclusion is reached from state environmental documents showing nitrogen oxide emissions had returned to normal at the refinery a full week before it was reported to have come back on line.

Similarly, Chevron’s Richmond, Calif., refinery was reported down for maintenance for two weeks in May, but emissions data suggests the refinery never ceased operation.

The research also concludes that gasoline inventories actually were building in May during a time in which West Coast motorists paid at least 50 cents more per gallon than the national average. This inventory building, evident in data from the California Energy Commission, happened even as four refiners were supposedly down for some portion of May.

At the time, media reports, citing analysts and industry officials, blamed the price hikes on outages and maintenance shutdowns.

....

The price spikes in May affected the states of California, Oregon and Washington, while October’s price spike was felt mainly in California. May’s West Coast spike was partly blamed on a Feb. 18 fire at BP’s Cherry Point refinery in Washington. October’s California spike was explained as partly a market reaction to an Aug. 6 fire at Chevron’s Richmond, Calif., refinery.

What’s odd about those spikes is that normally prices shoot up during events that lead to supply shortages. But the spikes came many weeks after the events at the refinery, and McCullough’s research suggests that contrary to a shortage, supply was growing.

Click to expand...

zethren said:

$3.16 per gallon of Regular here. Filled up half my tank today after work for $20.00.

Some of the lowest prices in the country feels good man.

Click to expand...

Maddness said:

Oil and Gas is wonderful. Keep driving your cars.

Click to expand...

zethren said:

$3.16 per gallon of Regular here. Filled up half my tank today after work for $20.00.

Some of the lowest prices in the country feels good man.

Click to expand...

jamesinclair said:

UPDATE UPDATE UPDATE

Hey guys, remember how all those price spikes were caused because the refineries were closed for maintenance?

Read more here: http://www.fresnobee.com/2012/11/14/3066380_p2/california-refineries-operated.html#storylink=cpy

Click to expand...

Gas prices are above or near an average of $4 a gallon statewide, and are already well over that dreaded mark in Southern California. GasBuddy.com showed gas selling for $4.01 on Thursday, while the AAA listed the state average at $3.99 -- a jump of three cents from Wednesday, 22 cents from a week ago and 37 cents from last month.

While drivers may not yet be freaking out like last year, when the record of $4.67 was reached on Oct. 9, they are none too pleased, especially with the peak summer driving time still months away.

"The fact that nationally we are using less gas but the cost goes up is really frustrating," said Jim Matthews, 56, a librarian from Alameda. "And that makes us feel helpless."

GAS PRICES AROUND STATE
Los Angeles: $4.09
San Francisco: $3.98
San Jose: $3.93
Oakland: $3.91

Click to expand...