Cilfornia Gas Stations Shut as Oil Refiners Ration Supplies..

[Tyr-Ziu Saxnot]

http://www.bloomberg.com/news/2012-1...ot-prices.html

Gasoline station owners in the Los Angeles area including Costco Wholesale Corp. (COST) are beginning to shut pumps as the state’s oil refiners started rationing supplies and spot prices surged to a record.
Valero Energy Corp. (VLO) stopped selling gasoline on the spot, or wholesale, market in Southern California and is allocating deliveries to customers. Exxon Mobil Corp. (XOM) is also rationing fuel to U.S. West Coast terminal customers. Costco’s outlet in Simi Valley, 40 miles (64 kilometers) northwest of Los Angeles, ran out of regular gasoline yesterday and was selling premium fuel at the price of regular.

Enlarge image California Gas Stations Begin to Shut on Record-High Spot Prices

Justin Sullivan/Getty Images

A gas delivery in San Anselmo, California.



A gas delivery in San Anselmo, California. Photographer: Justin Sullivan/Getty Images

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[logroller]

Yeah this sucks. I guess it's complicated by the fact their usual supplies, which could buffer shortfalls in production, are depleted because of shifting blends from summer to winter.

If I was a conspiracy nut I'd mention that many I know in the oil industry have told me they knowingly overlook such possibilities and fail to make repairs to existing production line backups... But hey, I'm sure the case at hand is completely unforeseen.

[Tyr-Ziu Saxnot]

Yeah this sucks. I guess it's complicated by the fact their usual supplies, which could buffer shortfalls in production, are depleted because of shifting blends from summer to winter.

If I was a conspiracy nut I'd mention that many I know in the oil industry have told me they knowingly overlook such possibilities and fail to make repairs to existing production line backups... But hey, I'm sure the case at hand is completely unforeseen.

Cali has some really messed up laws , especially those concerning gasoline. They are their own worse enemy. My aunt Faye LIVED THERE FROM 1949 UNTIL SHE PASSED IN 1998, SHE LOVED IT BUT ADMITTED LOTS OF REALLY FFED UP PEOPLE THERE.-Tyr

[logroller]

Cali has some really messed up laws , especially those concerning gasoline. They are their own worse enemy. My aunt Faye LIVED THERE FROM 1949 UNTIL SHE PASSED IN 1998, SHE LOVED IT BUT ADMITTED LOTS OF REALLY FFED UP PEOPLE THERE.-Tyr

I think gas blends are an EPA standard, ie not state mandated. There's something like 20 different blends across the US.

Ill tell you something stupid about Cali though; we have mandatory AB32 standards on ethanol blends which contribute more smog than their petroleum-based counterparts. But somehow that's 'green'...warm fuzzies...hack hack cough. Better buy a Prius.

[Robert A Whit]

Cali has some really messed up laws , especially those concerning gasoline. They are their own worse enemy. My aunt Faye LIVED THERE FROM 1949 UNTIL SHE PASSED IN 1998, SHE LOVED IT BUT ADMITTED LOTS OF REALLY FFED UP PEOPLE THERE.-Tyr

I live in the SF Bay area and to this point have not heard of any gas stations running out of fuel. I may have more to report in days.

[logroller]

I live in the SF Bay area and to this point have not heard of any gas stations running out of fuel. I may have more to report in days.

But have the prices risen? I'd bet they have. Any guess as to how soon the prices will fall once stocks are replenished...My guess is they'll milk this "supply shortage" for 3 weeks, then lower prices to mid-sept levels, then raise the prices again for the thanksgiving holiday.

fun fact: winter blend is actually cheaper to produce.