Western Railroad Discussion > Shell Oil sells Martinez Refinery

Interesting change in the energy market, buyer also has a Torrance Refinery. The Shell Refinery (  Royal Dutch Shell Oil PLC )  is located on the old SP mainline and appears to be a major shipper. Although the main products are distributed by truck and pipeline there's always a major line of LP style tanks cars.

Curious how this plays into the Gasoline business, did Shell just decide to bail out or do they see a change in the local market, or both? Being an International operator they may see the market differently.

https://www.reuters.com/article/us-pbfenergy-shell-martinez/pbf-energy-to-buy-shells-martinez-california-oil-refinery-for-up-to-1-billion-idUSKCN1TC2M7

(Reuters) - U.S. refiner PBF Energy Inc on Tuesday agreed to pay up to $1 billion for a California oil refinery that Royal Dutch Shell PLC has been trying to sell for at least four years.
...
PBF has been interested in balancing its production in California, where it operates a 160,000 barrels per day (bpd) plant in Torrance, Blair said.
“They wanted the two refinery systems, especially considering that when Torrance goes down they just have that one refinery and they don’t make anything back,” Blair said.



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+ Apparently Shell still has 'assets' in southern Ca:

https://www.shell.us/about-us/projects-and-locations.html

http://abarrelfull.wikidot.com/shell-refineries



Edited 3 time(s). Last edit at 06/12/19 12:35 by TCnR.

Shell is in Carson.  The Torrance refinery was at one time Mobil Oil, then Exxon Mobil which sold to the current owner Torrance Refinery. 



Edited 1 time(s). Last edit at 06/12/19 12:41 by czuleget.

Apparently I was looking at old info, they closed their refinery and have a distribution center in Carson, which would say Shell has just left the California Refinery Market.

https://www.shell.us/about-us/projects-and-locations/shell-in-carson-southern-california/about-carson.html

PBF Energy also runs the Delaware City DE refinery.  That's been a large user of NS unit oil trains from the Bakken.

That’s a big deal. It’s kinda funny though because when Exxon and Mobil merged, the powers that be insisted they sell the Exxon refinery in Benicia where my dad worked because they didn’t want them to have two big refineries in California. And now somebody else comes along 20 years later and does just that. My dad will just shake his head!

On the train side, the refinery in Martinez keeps the UP busy with lots of tank car moves.

Nathan

Posted from iPhone



Edited 1 time(s). Last edit at 06/12/19 19:13 by atsf121.

Anti-trust is always changing. One current flavor is patent control of technology and who sets standards.

There's a huge fight now among the auto makers, gasoline refiners, ethanol people, and the feds over new fuel standards.

And maybe getting rid of CA standards.

Posted from Android

Remember when Santa Fe could't aquire Western Pacific?

millerdc Wrote:
-------------------------------------------------------
> Remember when Santa Fe could't aquire Western
> Pacific?

And SP couldn't either. But the only reason Santa Fe wanted to buy the WP was to keep the SP from getting it.

PHall Wrote:
-------------------------------------------------------
> millerdc Wrote:
> --------------------------------------------------
> -----
> > Remember when Santa Fe could't aquire Western
> > Pacific?
>
> And SP couldn't either. But the only reason Santa
> Fe wanted to buy the WP was to keep the SP from
> getting it.

And Santa Fe (BNSF) ended up with the  inside Gatway anyway and trackage rights from Denver to Keddie, CA

SantaFeRuss

SantaFeRuss Wrote:
-------------------------------------------------------
> PHall Wrote:
> --------------------------------------------------
> -----
> > millerdc Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > Remember when Santa Fe could't aquire Western
> > > Pacific?
> >
> > And SP couldn't either. But the only reason
> Santa
> > Fe wanted to buy the WP was to keep the SP from
> > getting it.
>
> And Santa Fe (BNSF) ended up with the  inside
> Gatway anyway and trackage rights from Denver to
> Keddie, CA
>
> SantaFeRuss

Yeah, much, much later after UP absorbed the WP. UP has zero interest in the Inside Gateway.

Regarding CA standards - the best way to go would be to adopt them nationwide. As someone who lgrew up in thios state before air pollution control
I fullu support these standards. You had to be here in those "good old days" of filthy air to understand the situation.
It's all academic because we will be plugging in cars rather than using nozzles.
My electricty comes from my roof.

Bill Deaver
Tehachapi, CA

MojaveBill Wrote:
-------------------------------------------------------
> Regarding CA standards - the best way to go would
> be to adopt them nationwide. As someone who lgrew
> up in thios state before air pollution control
> I fullu support these standards. You had to be
> here in those "good old days" of filthy air to
> understand the situation.
> It's all academic because we will be plugging in
> cars rather than using nozzles.
> My electricty comes from my roof.

There is an enormous amount of money flowing into DC from very powerful, opposed interests.

Posted from Android

To Bill's post, the best you're going to see is about 50/50 on battery vehicles, maybe way less. I agree
that the air is way better than it was in the mid-fifties but then near zero of the industries extant in those
years is still in the LA basin (refineries aside). We would be better off find a 100% applicable fuel rather
than the scatter gun method currently in vogue.

Out

Don't forget about the tax revenue generated on gas and diesel. You start replacing gasoline vehicles with electric the state of California will suddenly realize there is a major income problem. They'll find a way to increase taxes on electric vehicles or tax electric power. Bank on it...

Allen

Posted from Android

bradleymckay Wrote:
-------------------------------------------------------
> Don't forget about the tax revenue generated on
> gas and diesel. You start replacing gasoline
> vehicles with electric the state of California
> will suddenly realize there is a major income
> problem. They'll find a way to increase taxes on
> electric vehicles or tax electric power. Bank on
> it...
>
> Allen
>
> Posted from Android

That's why the gas tax was raised a couple of years ago and the big issue now is should we continue fuel taxes or should we go to a use tax.
With a use tax no matter what powers your vehicle you pay your fair share to help maintain the roads.

PHall Wrote:
-------------------------------------------------------
> SantaFeRuss Wrote:
> --------------------------------------------------
> -----
> > PHall Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > millerdc Wrote:
> > >
> >
> --------------------------------------------------
>
> >
> > > -----
> > > > Remember when Santa Fe could't aquire
> Western
> > > > Pacific?
> > >
> > > And SP couldn't either. But the only reason
> > Santa
> > > Fe wanted to buy the WP was to keep the SP
> from
> > > getting it.
> >
> > And Santa Fe (BNSF) ended up with the  inside
> > Gateway anyway and trackage rights from Denver
> to
> > Keddie, CA
> >
> > SantaFeRuss
>
> Yeah, much, much later after UP absorbed the WP.
> UP has zero interest in the Inside Gateway.

Yes, PHall, I know Union Pacific has zero use for the Inside Gateway. They have the Shasta Route. Benefits the Burlington Northern Santa Fe nicely. Far as a user tax goes, California will empose that on drivers regardless of what they drive, as someone mentioned, and probably increase property taxes as well.

SantaFeRuss

Latest LA is 16 cents per square foot tax to assist schools, not passed yet, but close.

Out

atsf121 Wrote:
-------------------------------------------------------
> That’s a big deal. It’s kinda funny though
> because when Exxon and Mobil merged, the powers
> that be insisted they sell the Exxon refinery in
> Benicia where my dad worked because they didn’t
> want them to have two big refineries in
> California. And now somebody else comes along 20
> years later and does just that. My dad will just
> shake his head!
>
> On the train side, the refinery in Martinez keeps
> the UP busy with lots of tank car moves.
>
> Nathan
>
> Posted from iPhone

When Texaco and Shell formed Equilon Texaco had refineries in Bakersfield and Los Angeles and Shell had one in Martinez yet they were not required to get rid of any.