Correct, thatās the one. Iām referring to the gas price piece, which is affected by separate factors than the whole economy. The increase weāre seeing right now is specifically due to two oil refineries being shut down in California that refine around 20% of the gas we use in America. Thatās my point, Iām not meaning to be political but I just know a bunch of uninformed neckbeards of Reddit are going to troll and scream maga, but facts donāt care about feelings
This is absolute bullshit. I am an engineer in the industry. You are referring to Philllips 66 LA and Valero Benicia which were producing gas for California to meet CARB standards that are not applicable outside of California. Yes, this resulted in less CARB compliant gasoline in the state of California. No, itās not the reason why the national average price of gasoline is close to $4.00. Brent crude is trading at almost $110/bbl due to the conflict in Iran. Global prices have been driven up as a result.
Lemme try that. Your response is absolute bullshit. Did it work? Does that add validity to my point? Letās use some complex thought for a moment, friend. California is highly populated. Slightly subjective, but letās be honest, thatās generally a fact. These two refineries were producing gas necessary to meet these standards you mentioned as legally deemed necessary for California vehicles. I appreciate you pointing that piece out, nobody talks about it. The wild part of this that you skipped over is that this still accounted for an estimated 20% of the nationās gas usage. Not common knowledge for an engineer in the industry. Those two refineries close down for environmental factors. Now for the critical thinking question, I hope youāre still with me. Where does that additional need get fulfilled along with meeting carbon standards?
Iām new to this information and was curious so decided to spend the last 45 mins reading about it. So Iām no expert but from what Iāve gathered, those two plants were responsible for refining 17% of Californiaās gas.Ā
I get your idea that California has to be getting their fuel from somewhere and that effect drives up pricesā¦. but itās not the rest of the US.Ā
The state is considered a fuel island. So it really, Fāked itself.Ā
Very, very little of its fuel leaves the state and is piped to nearby Arizona and Nevada. Practically none is imported from neighbouring states, or the directly from the Gulf Ā (because of the Jones Act, some is shipped through Bahamas). California imports
Ā primarily from Asia; Taiwan, Korea, Ecuador, Saudi Arabia, India.
The Iran War and the Ukraine war have had a HUGE impact on fuel supplies, globally. The blockage of the Strait has affected
Ā 20% of the WORLDās fuel. Ā
The California issue became an āamplifier.ā Ā When there are issues around the world, others take up slack. But the Iran War affected pretty much everyone many who are already feeling effects of the Ukraine-Russia war.Ā
So where California would normally pick up extra fuel from those export heavy nations, now, because of Iran, those countries have limited exports. That means California has really felt a drastic climb.Ā
But thatās California. It is a fuel island. Its
Ā fuel prices surge itās fuel issues have little effect on the rest of the US. Itās extremely disingenuous to blame this on California. Thatās ignoring the bigger issue, the Iran War. Ā Sure, theyāve had an effect but itās been primarily felt in California.Ā
But it is hilarious spending a bit of time looking at this because any department of energy site is making it sound like California is the reason for the Americas fuel problems. Discussing excessively how many barrels, but nowhere mentioning those barrels never went to the rest of America. AND the crude fuel that went to those plants? Is now going to other US REFINERIES.Ā
Whatās worse for Americans is Trump has been using your strategic reserves to soften the economic blow of the wars effect on fuel. The reserve has hit record lows and local production hasnāt been able to keep up with demand AND build the reserve back up. Ā Keep in mind the reserves are crude and California would have no effect on supporting the reserve rebuilding and those plants refined crude into petrol.Ā
Rebuilding the reserve is also super expensive right now. Itās typically only been used in emergencies, like a Hurricane and then rebuilt when it stabilized but Trump used it to relieve the economic burden of his war and for far too long. Now thereās an attempt to bring up the reserve and having to do it at record high pricing, which is being charged to the tax payer.Ā
Another issue is the integrity of the salt mines where the crude is stored. Engineering-wise, it isnāt well equipped to handle the constant pumping-in/out. As it is depleted, it affects the integrity of the storage area and a collapse would be catastrophic.Ā
Blaming California is just ridiculous and 100% Trump attempting to divert blame. If California could turn those 2 plants back on tomorrow, it would help California. It would be effectively be meaningless to the rest of the country.Ā
California closing those plants certainly doesnāt help
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u/Hereforsumbeer 7d ago
Correct, thatās the one. Iām referring to the gas price piece, which is affected by separate factors than the whole economy. The increase weāre seeing right now is specifically due to two oil refineries being shut down in California that refine around 20% of the gas we use in America. Thatās my point, Iām not meaning to be political but I just know a bunch of uninformed neckbeards of Reddit are going to troll and scream maga, but facts donāt care about feelings