RBN Energy: the "other island state."
Arnold Schwarzenegger said “Hasta la vista, baby” to the governor’s office in Sacramento four years ago, but his 2007 executive order establishing a low-carbon standard for transportation fuels is only now starting to have a real effect on California refineries. Some refiners say the rule aimed at reducing “life-cycle” greenhouse gas emissions from the transportation fuel sector 10% by 2020 is unrealistic and could result in refinery closings and gasoline and diesel shortages. Others say California’s goal is achievable. Today, we consider the Golden State’s low-carbon fuel standard (LCFS) and what it may mean for refiners.
California refineries are in the news because of last week’s fire at the 155 Mb/d ExxonMobil Torrance refinery that has shut that plant down, as well as the ongoing refinery strike that has kept the 160 Mb/d Tesoro Martinez refinery shut following maintenance. Together these plants represent 17% of California’s refinery capacity and fuel prices in the State are spiking higher.
California is something of an “island” state when it comes to refining with unique regulations mandated by the California Air Resource Board (CARB) that make gasoline and diesel more expensive to produce than in other states. As a result with no strategic reserves of fuel or pipeline access from other regions, California faces a continual risk of refined product shortage. All the more reason for the State’s refiners to be concerned by the impact of LCFS regulations.
Libya Shutting Down
Reuters is reporting:
Brent crude oil rose more than $1 to around $60 a barrel on Tuesday after Libya's largest oilfield stopped production.
The Sarir oilfield in Libya shut because of a power cut, in a further blow to exports from the OPEC member.
It is being reported that President Obama will veto the Keystone XL bill.
The JV team abducts 90 more future beheadees.
S&P, Dow, and the FTSE all set new records. Reuters is reporting:
Britain's top equity index climbed to a record high on Tuesday as a rally in mining companies helped the three-decade-old blue-chip index to surpass its previous high, set in late 1999.Homeownership hits 20-year low; and for all the talk otherwise, it now looks like the Fed will "never" raise rates. A rate rise would wreak havoc on global markets and US debt payments.
Olbermann suspended. Again.
- George Zimmerman was acquitted of second-degree murder in 2013 for the fatal shooting of Trayvon Martin. Zimmerman shot Martin in Sanford, Fla., on Feb. 26, 2012 and said he was acting in self-defense. Today, the Justice Department said there was not enough evidence to pursue federal criminal civil rights charges in the case, but Attorney General Eric Holder added that "We, as a nation, must take concrete steps to ensure that such incidents do not occur in the future." - Stephanie
- Office of Chicago Mayor Emanuel sends out note saying he will have no public events on Wednesday; with 75.6% reporting in election, Emanuel is at 45.6% and Garcia is at 33.9% - @chicagotribune: the mayor needs 51% of the vote to avoid a run-off
- The US State Department issues statement condemning the JV team attacks on Christian villages in Syria - @StateDept