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Investigators are searching for the cause of a major fire at a Southern California refinery following an explosion. The impacts of this fire are expected to present yet another strain on the state’s fuel supply. Analysts say it’s possible that people who buy gas in California could see the impacts in fuel prices.
On Thursday, towering flames could be seen above the El Segundo Chevron refinery after an explosion and then a fire, which Chevron said began at a processing unit near the southeast corner of the refinery. Neighbors recounted feeling a shaking at the time, like an earthquake, and seeing the sky light up orange.
By Friday morning, the fire had been extinguished, but investigators are still working to determine the cause. Chevron also said that all refinery personnel and contractors were accounted for and that no injuries were reported.
The El Segundo refinery produces around 17% of the state’s crude oil capacity, according to the California Energy Commission. The impacts of this fire could be felt across California in terms of gas prices.
Matt McClain, a petroleum analyst with GasBuddy.com said that the extent of the fire and what exactly was damaged will determine just how much this fire impacts gas prices.
McClain estimates the immediate impact on prices could be, “anywhere from 15 to 30 cents a gallon, 25 cents a gallon, somewhere in that neighborhood.”
“And, we’re gonna leave a little asterisk besides that because it’s still an unfolding situation on the extent of the damage,” he continued.
Doug Johnson, a AAA Northern California Spokesperson, said in a statement, “Events that slow or stop gasoline production can prompt increased bidding for available gasoline supplies.”
“Pipeline disruptions, planned or unplanned refinery maintenance or refinery shutdown may cause prices to increase, especially the longer they remain offline,” Johnson continued.
News of potentially higher prices at the pump is hard to swallow for California drivers, who already face high gas prices.
“Everything’s getting more expensive; it just kind of blows, but what can you do?” said Kevin Ma of Walnut Creek.
Gas prices in California could go even higher next year, when Benicia’s Valero refinery is slated to close.
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Alyssa Goard
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