AFPM Chief Industry Analyst Susan Grissom issued the following statement today regarding reports from California about the use of imported crude oil at state refineries:
“While California is taking steps to further diversify its energy portfolio, the state continues to rely heavily on products made from energy-dense crude oil to meet the needs of its nearly 40 million residents and travelers passing through the state. This dynamic is not likely to change any time soon. Much of the gasoline, diesel, marine fuel, and aviation fuel consumed in California on freeways, at hubs like LAX and SFO, and throughout the state’s shipping ports is made from crude oil supplied to California refineries from the global market.
“About 30% of the crude oil California requires is produced in state and another 20% is sourced from Alaska. The balance is supplied from the global market. Despite the increase in production of crude oil in other regions of the United States, California refineries aren’t able to access much of that supply due to a lack of pipeline and rail transportation options and cost-prohibitive Jones Act shipping requirements.
“Limiting California’s access to the exact types of crude oil its facilities need will only increase prices for the state’s consumers and travelers. California drivers are already dealing with gasoline prices in excess of $5 per gallon and the highest fuel taxes of the 50 states. Confining California energy producers and consumers to a smaller pool of crude oil will make a very sensitive price environment that much worse. Such an empty gesture would only limit California’s options and do nothing to stop energy production in other regions or the purchase of that energy by countries that do not refine as efficiently or cleanly as our U.S. facilities. Consumers and the environment are not served by this.”
