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P66 LAR to cease operations 2025

DarkHorseRacing

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I didn't think the refineries in our state actually contributed to CA’s gas supply. Or maybe they can't supply all of it so a lot is trucked in?

I know shutting them down at inconvenient times or for BS reasons is how they help spike gas prices though to keep them from dropping.
 

DWC

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I didn't think the refineries in our state actually contributed to CA’s gas supply. Or maybe they can't supply all of it so a lot is trucked in?

I know shutting them down at inconvenient times or for BS reasons is how they help spike gas prices though to keep them from dropping.
The “well planned” shutdowns are why CA gas prices are higher than other states? Where does our gas come from?
 

FROGMAN524

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Diesel in Mission Viejo is already $2.00/gallon more than Phoenix. The hits just keep coming for old California…
 

dirtslinger2

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I didn't think the refineries in our state actually contributed to CA’s gas supply. Or maybe they can't supply all of it so a lot is trucked in?

I know shutting them down at inconvenient times or for BS reasons is how they help spike gas prices though to keep them from dropping.
Gasoline in California, is supplied by California Refineries, in fact it has it's own blend due to shitty California policies. Part of the reason that Cali gas is more expensive is due to the added cost to manufacture this gasoline. California Refineries, also supply fuel to AZ and NV.

One fun fact as to why fuel in California is more expensive is due to Covid. While nobody was driving during the pandemic, demand was drastically reduced, which caused slow downs at all of the Majors, and complete shut downs at some of our smaller independent refineries. These independants, did not the infrastructure or means to stay in business, and ended up shutting down for good, similar to the P66 units.
This cause a reduction in the supply to fuel in California, which in turn helps to raise the prices here.

As for shutting down, we NEVER shutdown as a means to raise prices, and it is never planned a "inconvenient" times. When a Refinery is shutdown, the supply of fuels is reduces, which means we DON'T have fuel to sell. Think about it, if you aren't making a product, you aren't making money. The sole purpose of the Refinery is to make money, like any other business.

Planned Turnarounds/Shutdowns, are planned years in advance, and are timed to have the least amount of impact on fuel production, and financial impacts. The Shutdowns, are typically in the 10's or 100's of millions of dollars to execute.

This conspiracy about Refineries shutting down to drive up fuel costs' is complete BS.

BTW, have you seen a huge increase on fuel prices over the last month in So Cal? Because we are over 1 month in on a massive turnaround event in our Refinery, it won't be back up and running until the beginning of November, and this is a unit that produces massive amounts of Gasoline. This T/A, was planned 6 years ago.
 

DarkHorseRacing

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The “well planned” shutdowns are why CA gas prices are higher than other states? Where does our gas come from?
That's why I'm asking. No way a handful of refineries in this state alone can supply enough gas for all the vehicles in CA. There has to be fuel trucked in. Gas is only a little less than half of a barrel of crude.

Which is why I thought that CA refineries might be shipping out partially refined crude to other out of state refineries to finish into gas.

Refineries do a lot more than make gas, they have to make all the industrial products as well for plastics, cosmetics, etc.
 
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ChevelleSB406

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That's why I'm asking. No way a handful of refineries in this state alone can supply enough gas for all the vehicles in CA. There has to be fuel trucked in. Gas is only a little less than half of a barrel of crude.

Which is why I thought that CA refineries might be shipping out partially refined crude to other out of state refineries to finish into gas.

Refineries do a lot more than make gas, they have to make all the industrial products as well for plastics, cosmetics, etc.
California does still have a bit of refinining horsepower, but during peak demand, it needs outside fuel brought in. Peak demand occurs during Summer, and Summer for EPA reasons requires a different "blend" in California in than other states. Hence the perfect storm for crazy pricing. Imagine a refinery in New Orleans being asked to do a separate recipe purely for california and then ship it.

Current refining capacities (more on this later)
1729180593012.png


Some of these refineries are not operating at their former through put capacities either.

California also has some refineries just sitting idle right now, I know of Martinez as one example. Figure about 300k capacity unused in total. (Refineries are hard to remember the owner because it changes every few years :) ) Refining becomes sexy or unsexy depending on politics and economics, and all the majors go from either buying or selling.

The last major refinery built in the US was 1977, people and the government would rather it be someone elses problem, and then complain about pricing.
 

dirtslinger2

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That's why I'm asking. No way a handful of refineries in this state alone can supply enough gas for all the vehicles in CA. There has to be fuel trucked in. Gas is only a little less than half of a barrel of crude.

Which is why I thought that CA refineries might be shipping out partially refined crude to other out of state refineries to finish into gas.

Refineries do a lot more than make gas, they have to make all the industrial products as well for plastics, cosmetics, etc.
We do not ship out partially refined crude at all, we have, but seldom do, ship out gas oil via ships to our Nor Cal refinery.

We do not make plastics, or industrial products for cosmetics or anything else like, our sole business if FUEL's.
We make Jet, Diesel, Gasoline, and then we have Coke, which is shipped of as a fuel, similar to coal.

Like Chevelle said, we as a hole (refineries) can supply all of California's gasoline consumption, and have the ability to export to AZ and NV.

Based on trends of gasoline consumption in California, we are changing our future strategies to stay competitive as a business as we see demand dwindling with the expansion of Hybrids and Electric vehicles.
 

ChevelleSB406

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We do not ship out partially refined crude at all, we have, but seldom do, ship out gas oil via ships to our Nor Cal refinery.

We do not make plastics, or industrial products for cosmetics or anything else like, our sole business if FUEL's.
We make Jet, Diesel, Gasoline, and then we have Coke, which is shipped of as a fuel, similar to coal.

Like Chevelle said, we as a hole (refineries) can supply all of California's gasoline consumption, and have the ability to export to AZ and NV.

Based on trends of gasoline consumption in California, we are changing our future strategies to stay competitive as a business as we see demand dwindling with the expansion of Hybrids and Electric vehicles.

Some refineries converted over to produce "bio diesel" and other products. Reduced capacities at some others as well.

@dirtslinger2 , what is your role in this game? I work for a large industrial software company, our largest industry is oil & gas & energy. The historical brand I am from within this company, that is pretty much all we did. The design software to design the refinery, simulation software to make sure people don't blow it up, and the optimization piece to recommend settings in real time to maximize yield, etc. Just curious if you are a user of any of our stuff. SimSci, Wonderware, OSIsoft, Avantis, Intellitrac, any of these brand names ring any bells? Foxboro, Schneider electric?
 

Taboma

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We do not ship out partially refined crude at all, we have, but seldom do, ship out gas oil via ships to our Nor Cal refinery.

We do not make plastics, or industrial products for cosmetics or anything else like, our sole business if FUEL's.
We make Jet, Diesel, Gasoline, and then we have Coke, which is shipped of as a fuel, similar to coal.

Like Chevelle said, we as a hole (refineries) can supply all of California's gasoline consumption, and have the ability to export to AZ and NV.

Based on trends of gasoline consumption in California, we are changing our future strategies to stay competitive as a business as we see demand dwindling with the expansion of Hybrids and Electric vehicles.

" Based on trends of gasoline consumption in California, we are changing our future strategies to stay competitive as a business as we see demand dwindling with the expansion of Hybrids and Electric vehicles."

I see this statement as a warning shot over the bow for all power boaters in general, but in particular, performance boats that run on gasoline.

Boaters promoting EV's on a performance boating enthusiasts website and by their own voluntary EV purchases, are participating in their own "Death by 1,000 Cuts" eventual demise. 😞

I'm an old boater from a boating family. I've enjoyed all told, over 70 years of all types of boating, for me it matters little.
For many of you, however, it should.
 

DarkHorseRacing

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I'm looking forward to a tesla dual motor in a jet boat. Take it home and charge it up for the next day.

Sarcasm alert!
 

dirtslinger2

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Some refineries converted over to produce "bio diesel" and other products. Reduced capacities at some others as well.

@dirtslinger2 , what is your role in this game? I work for a large industrial software company, our largest industry is oil & gas & energy. The historical brand I am from within this company, that is pretty much all we did. The design software to design the refinery, simulation software to make sure people don't blow it up, and the optimization piece to recommend settings in real time to maximize yield, etc. Just curious if you are a user of any of our stuff. SimSci, Wonderware, OSIsoft, Avantis, Intellitrac, any of these brand names ring any bells? Foxboro, Schneider electric?
We converted one of our units to produce diesel from Soy Bean, it cost us millions of dollars, we ran if for a year, then converted it back over, the profit margins weren't there and we were losing money. But.................the CO2, and other credits offset all of the costs.

My guess is that any and all Refineries advertising that they produce biodiesel from Soybeans, are losing money, and using the process as for tax's or CO2 credit or public support.

I work for a Major in the LA basin, been here 35 years, going on 36, and retire next year.
I started out in Operations, and am currently the Team Lead for the Inspection group, inspection of tanks, columns, piping, vessels etc.....
I really don't deal with too much software stuff, besides our system of record, or Power Bi.
 

dirtslinger2

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" Based on trends of gasoline consumption in California, we are changing our future strategies to stay competitive as a business as we see demand dwindling with the expansion of Hybrids and Electric vehicles."

I see this statement as a warning shot over the bow for all power boaters in general, but in particular, performance boats that run on gasoline.

Boaters promoting EV's on a performance boating enthusiasts website and by their own voluntary EV purchases, are participating in their own "Death by 1,000 Cuts" eventual demise. 😞

I'm an old boater from a boating family. I've enjoyed all told, over 70 years of all types of boating, for me it matters little.
For many of you, however, it should.
Gasoline consumption is going to dwindle whether you like it or not.
 

ChevelleSB406

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We converted one of our units to produce diesel from Soy Bean, it cost us millions of dollars, we ran if for a year, then converted it back over, the profit margins weren't there and we were losing money. But.................the CO2, and other credits offset all of the costs.

My guess is that any and all Refineries advertising that they produce biodiesel from Soybeans, are losing money, and using the process as for tax's or CO2 credit or public support.

I work for a Major in the LA basin, been here 35 years, going on 36, and retire next year.
I started out in Operations, and am currently the Team Lead for the Inspection group, inspection of tanks, columns, piping, vessels etc.....
I really don't deal with too much software stuff, besides our system of record, or Power Bi.
Word, gotcha, Operators have training in our OTS systems, the operator simulators, if you have any handheld devices for your inspections with maintenance specs, or inputs, that might be us as well. 👍
 

dirtslinger2

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Word, gotcha, Operators have training in our OTS systems, the operator simulators, if you have any handheld devices for your inspections with maintenance specs, or inputs, that might be us as well. 👍
We use iPads, but they run our in house built inspection applications, other than that, it's over my head.
 

Taboma

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Gasoline consumption is going to dwindle whether you like it or not.
I'd say that's certainly an eventuality.
Some will embrace it, some will selfishly or unwittingly hasten it's eventual demise, some will be content to enjoy what we have while it lasts and do neither, while still others will actively resist the changes hoping to prolong the activities they so enjoy.
Then there's some of us that have enjoyed it for a lifetime and feel good for having passed that torch to our children and grandchildren. 😁
 

DWC

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We do not ship out partially refined crude at all, we have, but seldom do, ship out gas oil via ships to our Nor Cal refinery.

We do not make plastics, or industrial products for cosmetics or anything else like, our sole business if FUEL's.
We make Jet, Diesel, Gasoline, and then we have Coke, which is shipped of as a fuel, similar to coal.

Like Chevelle said, we as a hole (refineries) can supply all of California's gasoline consumption, and have the ability to export to AZ and NV.

Based on trends of gasoline consumption in California, we are changing our future strategies to stay competitive as a business as we see demand dwindling with the expansion of Hybrids and Electric vehicles.
Does the industry have the capacity to store the “additional reserves” that CA is requiring?
PS. Thanks for the insight. Pretty cool to get your perspective
 

caribbean20

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Used to work for Total (French oil Co., 5th largest in the world). We used to call the CA market “fortress CA” for their CARB rules mandating a specific blend. Generally, no refiner outside of CA could sell into the state profitably because of these CA specific rules. Thus, the high CA gasoline prices. May have changed a bit from 20 years ago, but I doubt much.

CA refiners generally processed “heavy sour” Alaska north slope crude, which requires more complex refining processes, from fractionating to cracking to hydrodesulphurizers.

Turnarounds are just as dirtslinger states. Planned WAY in advance. Sounds like you may work for the Chevron El Segundo plant. That’s a beautiful refinery.
 

Flying_Lavey

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Gasoline in California, is supplied by California Refineries, in fact it has it's own blend due to shitty California policies. Part of the reason that Cali gas is more expensive is due to the added cost to manufacture this gasoline. California Refineries, also supply fuel to AZ and NV.

One fun fact as to why fuel in California is more expensive is due to Covid. While nobody was driving during the pandemic, demand was drastically reduced, which caused slow downs at all of the Majors, and complete shut downs at some of our smaller independent refineries. These independants, did not the infrastructure or means to stay in business, and ended up shutting down for good, similar to the P66 units.
This cause a reduction in the supply to fuel in California, which in turn helps to raise the prices here.

As for shutting down, we NEVER shutdown as a means to raise prices, and it is never planned a "inconvenient" times. When a Refinery is shutdown, the supply of fuels is reduces, which means we DON'T have fuel to sell. Think about it, if you aren't making a product, you aren't making money. The sole purpose of the Refinery is to make money, like any other business.

Planned Turnarounds/Shutdowns, are planned years in advance, and are timed to have the least amount of impact on fuel production, and financial impacts. The Shutdowns, are typically in the 10's or 100's of millions of dollars to execute.

This conspiracy about Refineries shutting down to drive up fuel costs' is complete BS.

BTW, have you seen a huge increase on fuel prices over the last month in So Cal? Because we are over 1 month in on a massive turnaround event in our Refinery, it won't be back up and running until the beginning of November, and this is a unit that produces massive amounts of Gasoline. This T/A, was planned 6 years ago.
What parts of AZ? Cause I know there is a large pipeline in Tucson that brings in fuels from Texas and is trucked out from there.
 

dirtslinger2

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What parts of AZ? Cause I know there is a large pipeline in Tucson that brings in fuels from Texas and is trucked out from there.
I'm not really sure, but I would guess close to our borders.

I'm not insinuating that ALL of the gasoline in NV and AZ is supplied by CA.
 

Flying_Lavey

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I'm not really sure, but I would guess close to our borders.

I'm not insinuating that ALL of the gasoline in NV and AZ is supplied by CA.
Didn't think you were. I was told the pipeline in Tucson supplies most of AZ so I was really just curious.
 

dirtslinger2

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Didn't think you were. I was told the pipeline in Tucson supplies most of AZ so I was really just curious.
My guess is it does in fact supply most of, if not all, unless there is a surplus in CA, or a shortage somewhere else.

Gasoline is bought and sold like a commodity, and it's very complicated, I pretty much no nothing about how all of that part of the business works.
 

wallnutz

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Phoenix gets a large portion of our gas from CA. There is a big pipeline. Tucson’s pipeline is Kinder Morgan, not sure who runs the one from CA to Phoenix.
 

boatnam2

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I didn't think the refineries in our state actually contributed to CA’s gas supply. Or maybe they can't supply all of it so a lot is trucked in?

I know shutting them down at inconvenient times or for BS reasons is how they help spike gas prices though to keep them from dropping.
It can be in your car within 3-4 hours actually, back in the day before lots of layers of protection were added, seen off test gas & diesel be in the station and going in vehicles before the problem was caught.
 

NicPaus

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Phoenix gets a large portion of our gas from CA. There is a big pipeline. Tucson’s pipeline is Kinder Morgan, not sure who runs the one from CA to Phoenix.
Pretty sure Kinder Morgan. Got a few buddies that work there. One of them told me how a simple mistake can mix jet fuel with others and be a expensive mistake. Like millions.

I just bought 100 gallons of non ethanol 91 from Marathon in Parker. Not sure if it came from CA. If so I know a few of those guys making it.
 

DirtyWhiteDog

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Ft. Mo/ Bullhead is typically $.50-.70 cheaper than the Vegas Valley. They are 100 miles apart, that's all I have to add to this thread, sorry.
But I can fill my truck in AZ drive to Henderson, go to work all week turn around and drive 100 miles back to my gas station and save $10.-$15 bucks a week
 

trophybug19

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My Sister mentioned this last night. Is that your location @trophybug19 ?
No I use to work for Marathon. Last year I quit to become a project manager for a company that plans the decon for the units for their shutdowns. And whoever it was that said these are planned years in advanced was correct. I was planning a decon for a unit at P66. Recently they said they were going to delay it a year and a half. Now I know why they did. I feel bad for all those guys there. Has to be a scary thing.
 

DWC

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HELL NO WE DON'T, and it's going to cost a large fortune to build it, not including the realestate to support those tanks.
That’s what i figured. Typical CA.gov decision. Pass a new law to save money that will actually add a ton of cost. It’s insane. The new legislation on PFAS will add significant cost and hurt product durability in a ton of products. The new “low carbon” gas regs CARB is going to pass post election will be brutal.
 

Blackmagic94

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Gasoline in California, is supplied by California Refineries, in fact it has it's own blend due to shitty California policies. Part of the reason that Cali gas is more expensive is due to the added cost to manufacture this gasoline. California Refineries, also supply fuel to AZ and NV.

One fun fact as to why fuel in California is more expensive is due to Covid. While nobody was driving during the pandemic, demand was drastically reduced, which caused slow downs at all of the Majors, and complete shut downs at some of our smaller independent refineries. These independants, did not the infrastructure or means to stay in business, and ended up shutting down for good, similar to the P66 units.
This cause a reduction in the supply to fuel in California, which in turn helps to raise the prices here.

As for shutting down, we NEVER shutdown as a means to raise prices, and it is never planned a "inconvenient" times. When a Refinery is shutdown, the supply of fuels is reduces, which means we DON'T have fuel to sell. Think about it, if you aren't making a product, you aren't making money. The sole purpose of the Refinery is to make money, like any other business.

Planned Turnarounds/Shutdowns, are planned years in advance, and are timed to have the least amount of impact on fuel production, and financial impacts. The Shutdowns, are typically in the 10's or 100's of millions of dollars to execute.

This conspiracy about Refineries shutting down to drive up fuel costs' is complete BS.

BTW, have you seen a huge increase on fuel prices over the last month in So Cal? Because we are over 1 month in on a massive turnaround event in our Refinery, it won't be back up and running until the beginning of November, and this is a unit that produces massive amounts of Gasoline. This T/A, was planned 6 years ago.
What company do you work for.
 

Blackmagic94

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Phoenix has like 3 fuel racks. KM, Caljet and I think one more
 

NicPaus

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What company do you work for.
He can answer. But my Brother also works there. He is on the way here now. I will ask how he got the days off. Even with 20 years seniority. If it's a shutdown He is working everyday. I think 1 day off mandatory like every 2 weeks or so.
 

ChevelleSB406

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That’s what i figured. Typical CA.gov decision. Pass a new law to save money that will actually add a ton of cost. It’s insane. The new legislation on PFAS will add significant cost and hurt product durability in a ton of products. The new “low carbon” gas regs CARB is going to pass post election will be brutal.
Storage is a shit ton of money. The trading game around moving crude and products around the world is all small margins, but huge profits because of volume. When things get funny, such as finished product not flowing out the other side at same rate as its coming in, and keep in mind this is a continuous distillation process, things get very expensive, very fast. Sometimes you will even see tankers moored out off the coast known as offsite storage, which costs the refiners a shit ton, per day, until they can get that load offloaded and running through.

If you look at the list above, just to stay running at its current speed, Marathon needs 363,00 bbls a day of crude going in, and roughly that coming out the other end in finished products. The idea of making a refiner create a strategic reserve is such a ridiculous political thing. All it will do is make gas more expensive every day of the year, and provide no relief at temporary moments of shortage.

Watch the next move, where they will want to sue the refiners for environmental reasons to have that much fuel stored on hand. Next step, they store the fuel, but then its not summer blend, so not allowed to be used when the demand peaks anyway :)
 

petie6464

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Seems a waste. That facility could be converted to an ass lube refinery, offering free lude to all Californians transgender fruitcakes. 👍
 

boatnam2

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He can answer. But my Brother also works there. He is on the way here now. I will ask how he got the days off. Even with 20 years seniority. If it's a shutdown He is working everyday. I think 1 day off mandatory like every 2 weeks or so.
Yea now adays is 14 on 1 off on a TA with the fatigue policies , back in the day the most I worked on a TA was 47 days straight, with plenty of those 16's.
 

dirtslinger2

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It can be in your car within 3-4 hours actually, back in the day before lots of layers of protection were added, seen off test gas & diesel be in the station and going in vehicles before the problem was caught.
NO WAY, there are no direct pipelines from the Refinery to the gas stations, they go to a terminal first, then get trucked to the gas station tanks. This was purely a coincidence.
 

dirtslinger2

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He can answer. But my Brother also works there. He is on the way here now. I will ask how he got the days off. Even with 20 years seniority. If it's a shutdown He is working everyday. I think 1 day off mandatory like every 2 weeks or so.
I'm a supervisor, so my hours aren't as extreme as they used to be, but I just finished 1 month of 13 on, 1 off, but I only worked 10 hr shifts, not 12's.
 

boatnam2

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NO WAY, there are no direct pipelines from the Refinery to the gas stations, they go to a terminal first, then get trucked to the gas station tanks. This was purely a coincidence.
Yes, there are no pipelines that go to a station, my response was to the refineries don't supply California remark. I been in the biz 36 years in basically the shipping, receiving and blending of gas, dsl and jet. Hell i have seen colored jet to go LAX(direct pipeline) back when they use to dye Gasoline red, blue and purple.
 

trophybug19

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He can answer. But my Brother also works there. He is on the way here now. I will ask how he got the days off. Even with 20 years seniority. If it's a shutdown He is working everyday. I think 1 day off mandatory like every 2 weeks or so.
Nic your brother work at the Isomax? I was there for the decon of it.
 

dirtslinger2

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No he is in the crude unit. He said Isomax is on the current shutdown so it doesn't affect him.
Whats your brothers name? PM? The LSFO is part of my responsibility, and also were I came up as an Operator.
 
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