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October 4, 2012

O, Sweet Saint Of San Andreas

Hear my prayer.

Posted by Kate at October 4, 2012 6:53 PM
Comments

Why I don't get it ? Is it because the refinery broke down? Or was it a rolling black out that shut the plant down? Read a bit of the article but all it said was rationing, gas prices ,and that Costco would sell premium gas at regular gas prices until things were up and running again.

Posted by: Paul in Calgary at October 4, 2012 7:21 PM

It's good to see the references to the blending requirements. Basically, the refineries want to schedule their maintenance for the end of the run of a blend, so they can make the necessary adjustments and not worry about mixing product. It looks like it bit the consumers in the foot. If the producers were allowed to make and sell whatever kind of fuel they want (like, oh, say, toothpaste companies can) then there wouldn't have been a shortage. Shoot, in the story it already says that there isn't a gas shortage, there's a summer-blend gas shortage. Thank you, government, for once again meddling.

Posted by: C_Miner at October 4, 2012 7:50 PM

Thank you c miner

Posted by: Paul in Calgary at October 4, 2012 7:57 PM

At last, a good reason to locate a business in California ! If anything goes wrong just blame the state government - no one will question it.

Posted by: rimcMT at October 4, 2012 8:12 PM

Bingo.
Link

"... And because sales taxes are calculated as a percentage of the overall price, they rise whenever the price does. That's good for the cash-strapped state government, bad for drivers.
In addition, California's gasoline is unique.
The state in 1996 switched to using a set of gasoline blends designed to fight air pollution in California's smog-choked cities..."

So it's not just the seasonal swap causing a shortage, California can't import gasoline from neighbouring states because the imported gas wouldn't meet the state standards. Normally the higher price would bring in supplies from the surroundings as businessmen, smelling an easy profit, brought in tanker-loads to sell for several cents more than their normal profit (after the sellers covered their own increased costs for the longer hauls, of course).

Posted by: C_Miner at October 4, 2012 8:42 PM

uh oh, I see a blinking "12:00" in my future.

http://www.sfgate.com/business/article/Why-California-drivers-pay-more-for-gasoline-2527826.php

Posted by: C_Miner at October 4, 2012 8:43 PM

Well, that gas shortage is having an effect here in BC. Regular in Victoria was 120.9 two days ago, 127.9 yesterday, and now 135.9 today.

Only the refinery business can be run, where the more inefficient you are, the more money you make. They can do no wrong and the profits are huge when you screw up.

Posted by: DanBC at October 4, 2012 8:48 PM

The problem is with CARB, the California Air Resources Board. Think of them as the California version of the EPA, only more zealous. CARB strictly regulates the blend of gasolines and diesel that can be sold in the state. This means that fuel can't be brought in from out of state to make up for the refinery shortfalls, unless a refinery in Texas brews a special batch of CARB summer blend. All it takes is one California refinery to have an unscheduled stoppage, as has just happened, and there is not enough fuel to keep everyone driving. There is no reserve refinery capacity because refineries are multi-billion dollar projects that require environmental impact studies and the environmentalists and NIMBYs have opposed the construction of new ones for decades.

Among CARB's other bright ideas are the regulation of restaurant kitchen exhausts and even home barbecues to cut down on air pollution, and extra emission controls, beyond what the federal EPA deems necessary, for all internal combustion engines from transport trucks down to leaf blowers. If you read a hot rod magazine you will see the notation 'CARB approved' beside exhausts and other go-faster products to indicate it is California legal.
CARB even wanted to regulate perfume a few years ago and the amount of artificial scent in laundry detergent.

Posted by: Al_in_Ottawa at October 4, 2012 8:55 PM

Kate, I am sure that St. Andrew has heard your prayer, and he is doing his very best. But the Californians just aren't paying attention!

The poor things are distracted by a former Governor's infidelities. Much more interesting.
And when they do get around to noticing the higher gasoline prices they will blame it all on capitalism and Big Oil.

What's a poor Saint to do? I bet he's knocking back the single malt even as I write this!

Posted by: John Lewis at October 4, 2012 9:00 PM

Poor babies paying $4.50 a gallon for gas. Price here is $1.29.9 for regular. Oh but its per quart, not per gallon.

My bad.

Posted by: The Phantom at October 4, 2012 10:32 PM

It'll be cool to visit California in the future. You don't even have to leave the continent to experience the third world.

Posted by: LAS at October 4, 2012 10:42 PM

California is beautiful. And is very enjoyable if you are rich enough to enjoy it, or if you do not work and are poor enough to receive government aid. If you are working class or middle class, you will struggle.

Posted by: rd at October 4, 2012 11:51 PM

How heartbreaking. California requires their own special tree hugger blend and REGULATIONS prohibit bringing gasoline in from other states. Perhaps more REGULATIONS will solve the problem. Four cities also bankrupt now. Perhaps more REGULATIONS will solve that problem too. Poster children for being regulated to death.

Posted by: peterj at October 5, 2012 12:18 AM
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