EIA: California Law and Refinery Closure Reflect Ongoing Challenges for the State's Fuel Market
The U.S. Energy Information Administration examines California's new fuel inventory law and the planned closure of the Phillips 66 Wilmington refinery, and what both mean for fuel supply in the Los Angeles basin.
The U.S. Energy Information Administration looks at two developments reshaping the fuel market that Seaview's terminals serve: California's new minimum inventory law for refiners and the closure of the Phillips 66 Wilmington refinery in Los Angeles. From the article:
On October 14, California Governor Gavin Newsom signed bill ABx2-1 into law, empowering California regulators to set and adjust minimum petroleum product inventory levels for refiners in the state, in part to address the state's fuel price volatility. Shortly after, refiner Phillips 66 announced plans to close its Wilmington refinery in Los Angeles by the end of 2025, citing uncertainty surrounding the long-term sustainability of the refinery.
The analysis notes that the closure removes roughly eight percent of California's refining capacity, and that meeting demand will likely require increased fuel imports and higher utilization of the state's remaining refineries. Both trends put a premium on flexible storage and marine-connected logistics in the Los Angeles basin.
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