Western Railroad Discussion > Exxon/Mobil Torrance Refinery for sale

Major Harbor Sub customer for BNSF.

http://finance.yahoo.com/news/exclusive-exxon-mobil-puts-torrance-calif-refinery-sale-171703945--finance.html

Rats leaving the ship?

I don't think Torrance wants a new owner/operator, and in fact is probably delighted by the news.

To think that the Santa Fe once bought all their diesel fuel in Southern California from that refinery.

If Chevron El Segundo goes away, that would just about do in the Harbor Sub.

Bob

ATSF100WEST......Out

Oh, I'm sure they will find a buyer. After all, there's a very good market for every drop of gasoline and diesel fuel they produce.

Very interesting news. My dad worked for Exxon at their refinery in Benicia, CA for 30+ years when the refinery was sold to Valero in 2000 as part of the Exxon/Mobile merger. Exxon was told they could only keep one refinery and so they picked Torrance. All of the employees at Benicia had to stay with the refinery, so my dad finished his career with Valero. I'm curious who will snap up the Torrance refinery, but I'm also curious what Exxon's reasons are for bailing. I know California is a unique market with lots of rules and regs, but with so many fuel needs in So Cal I'm sure someone will figure out a way to make it profitable.

Nathan

More money in producing oil and less money in refining and selling.
RB

I have absolutely no personal knowledge of the Exxon-Mobil refinery situation, so take my opinion for what it's worth. We have all heard of how difficult California makes it for business. Over regulation to the max, excessive environmental regulation, litigation, over taxtion, and on and on. At some point it probably gets to the point that a company throws up it's hands and says "no more", were outta here.

Dick

2ebright Wrote:
-------------------------------------------------------
> I have absolutely no personal knowledge of the
> Exxon-Mobil refinery situation, so take my opinion
> for what it's worth. We have all heard of how
> difficult California makes it for business. Over
> regulation to the max, excessive environmental
> regulation, litigation, over taxtion, and on and
> on. At some point it probably gets to the point
> that a company throws up it's hands and says "no
> more", were outta here.
>
> Dick

Well said! I'm sure that when General Mills looked at which plant to close to deal with their overcapacity, that very same reasoning process occurred.

Tom Y

California may be a tough environment for some industries, but was reported in today's LA Times it added 45000+ jobs last month, twice what Texas did, so it can't be all bad.

Be ready for a certain Country to buy the property, dismantle it and ship the parts back home. Probably make a nice cozy 'Transit Village' out of the Real Estate. Maximum number of units with no parking.

The company is probably getting their money out of the facility before the bottom falls out on refined products 5 years down the road. The writing is already on the wall as more fuel efficient vehicles equal less demand. There is not going to be growth in gasoline and diesel as electric and natural gas take hold. In my family we drive about 2500 miles a month, with almost all of them on electric power. We maybe drive 50 miles a month now on gasoline if that. In my community all of our garbage trucks, and buses all run on natural gas. I am also beginning to see long haul trucks running on natural gas as well. Sure there will always be demand for gasoline and diesel, but not in a quantity that is used now.

Todd Clark
Canyon Country, CA
Trainorders.com

ATSF100WEST Wrote:
-------------------------------------------------------
> I don't think Torrance wants a new owner/operator,
> and in fact is probably delighted by the news.
>
> To think that the Santa Fe once bought all their
> diesel fuel in Southern California from that
> refinery.
>
> If Chevron El Segundo goes away, that would just
> about do in the Harbor Sub.
>
> Bob
>
> ATSF100WEST......Out

There has been no noise by the City of Torrance to get rid of the refinery. It may be a nuisance, but it brings in a lot of money for the city. With the departure of Toyota, they want all the business they can get. The residents want more business and less housing development as well. That was why they kicked out one mayor mid-term who was a real estate developer.

Scott Schifer
Torrance, CA
TinyTrains Website

Good, let them pollute some other state.

I think Todd made some very good points that many failed to consider. More and more younger people are buying electric cars or living along mass transit lines (less fuel usage), more fleets of vehicles (cars, vans, buses, trucks) are switching to bio-diesel or natural gas, and exports of gasoline and diesel to other markets isn't so easy.

So, this is interesting for many reasons. And yes, regulations are probably part of it, but not the sole reason.

I spoke with one of the Torrance Council members this afternoon. Councilman Rizzo told me its a rumor, that has been going around for years.

Posted from Android

coach Wrote:
-------------------------------------------------------
> I think Todd made some very good points that many
> failed to consider. More and more younger people
> are buying electric cars or living along mass
> transit lines (less fuel usage), more fleets of
> vehicles (cars, vans, buses, trucks) are switching
> to bio-diesel or natural gas, and exports of
> gasoline and diesel to other markets isn't so
> easy.
>
> So, this is interesting for many reasons. And
> yes, regulations are probably part of it, but not
> the sole reason.


I'm not convinced all this "new technology" is what its cracked up to be....!!!

I'm leaning more towards new regulations as the cause, but not the whole cause.

masterphots Wrote:
-------------------------------------------------------
> California may be a tough environment for some
> industries, but was reported in today's LA Times
> it added 45000+ jobs last month, twice what Texas
> did, so it can't be all bad.


Is that permanent jobs......????

ns1000 Wrote:
-------------------------------------------------------
> coach Wrote:
> --------------------------------------------------
> -----
> > I think Todd made some very good points that
> many
> > failed to consider. More and more younger
> people
> > are buying electric cars or living along mass
> > transit lines (less fuel usage), more fleets of
> > vehicles (cars, vans, buses, trucks) are
> switching
> > to bio-diesel or natural gas, and exports of
> > gasoline and diesel to other markets isn't so
> > easy.
> >
> > So, this is interesting for many reasons. And
> > yes, regulations are probably part of it, but
> not
> > the sole reason.
>
>
> I'm not convinced all this "new technology" is
> what its cracked up to be....!!!
>
> I'm leaning more towards new regulations as the
> cause, but not the whole cause.
Zero emissions is BS Electricity still has to be generated and there is no way wind and solar will ever cover whats needed at least not for now

Typhoon Wrote:
> http://www.reuters.com/article/2014/09/19/us-exxon
> -mobil-refinery-sale-idUSKBN0HE1ZZ20140919
>
> "Exxon Mobil Corp. (XOM.N) has put its Torrance,
> California, refinery on the block, according to
> two people familiar with the matter, making it the
> latest big oil company to consider exiting the
> state amid tougher environmental standards."
>
> "California's environmental regulations make it a
> difficult state for refiners to operate in. "

Regulation could be part of it, or makes for a good excuse for Exxon to use as an exit from a less profitable industry (as noted earlier, refining oil is less profitable than producing it).

I did a search on the news and found everything about it on the net comes from a Reuters report based on what some reporter got from two people that were quoted off the record. I'm sorry, but for something of this magnitude, that doesn't sound much like a reliable source.

Kit Courter
Menefee, CA
LunarLight Photography