Face it, California sucks for business. I say this as someone that lost my career of 21 years when my company moved to TN, and I couldn't go with due to family obligations. I don't blame the company, I blame California.
Cheveron abandoning California, moving to Texas
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Face it, California sucks for business. I say this as someone that lost my career of 21 years when my company moved to TN, and I couldn't go with due to family obligations. I don't blame the company, I blame California.
If I owned an oil company in a state that tried to sue me for producing oil, I would likely move also?
https://www.reuters.com/legal/calif...lifornia's,in contributing to climate change.
https://www.reuters.com/legal/calif...lifornia's,in contributing to climate change.
They're the largest producer of California Reformulated Gasoline. So they're going to dismantle their refineries in Richmond and El Segundo and rebuild somewhere else? That wouldn't make any sense.
And their biggest research center is next to the Richmond refinery. I've known a few people who worked there. That's where they do more of their lubricants and fuel research than anywhere else. It's where they developed Techron.
https://richmond.chevron.com/our-businesses/richmond-technology-center
They're moving pencil pushers. But they're still a vertically integrated company that has more refining assets in California than any other state.
4WD
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You keep talking downstream - you think they are in a massive legal battle with @XOM over downstream?
Not saying this is what will happen, but Chevron is smart and will hedge there bets. Its not about like or dislike, its about making money. US supermajor oil companies are likely some of the best run companies on earth.
The lawsuit I posted above is about the state trying to take all their profits. If there is no profit in refining in California, then they will stop.
Also, I believe the refineries in California are set up to take a lot of heavy crude from the middle East. In there most recent quarter they missed estimates on refining margins. There also very old refineries and getting crude from the middle east is getting harder. Converting a refinery to a different type of crude takes a year, and where would that crude come from anyway? Might be cheaper to build a new refinery in Houston than ship crude over the rockies.
The list of closed and abandoned production facilities in all industries is long and growing. There is a war on fossil fuels, but at the same time countless states that would give Chevron free land and plenty of tax incentives to build a refinery in their state.
My point is never say never.
Oil imports from Canada have ramped up in the last two months. Middle East imports are headed down but we can check at year end. Currently they are at about 40% of the imports.
Notice Guyana has about 10% of the import market.
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California is a litigious cesspool. The Mobile refinery in my area, which, among other things, has a direct pipeline to LAX, was sold. Like all refineries, there have been events over the years, and Mobile thought it best, to divest the larger corporation, from the local operation. I doubt this would have happened in most other states.
Canada ships their crude to Houston, not the west coast. In California Only 4% comes from Canada. https://www.energy.ca.gov/data-repo...leum-market/foreign-sources-crude-oil-imports
The oil on the east side of the rockies seldom travels to the West side. California in fact still produces some oil as well.
4WD
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Guyana
Old news SC, there is a constant flow of oil tankers from Canada that started two months ago with the start up of the Transmountain Pipeline expansion to the port of Vancouver. They also still ship by pipeline to Houston and to the Michigan area. I since edited my posting to clarify we don’t know where the California number import numbers are going to end up with all the extra Canadian oil, but it will be headed much higher.
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I don't quite understand that; how does it become the world's 5th largest economy and contribute to 14.2% of the US GDP if it sucks for business? Wouldn't it be the opposite if that was the case?
I understand regulations are stricter here, and as a business owner, I find some of them fair while some are overreaching—oil companies probably not so pleasant to exist, though. I also understand the idea of pushing the lower-wage staff to less expensive states once a business becomes F500 after starting here. The human capital and literal capital needed to make things happen in this state are incredible, though.
Possibly, but we all know the repercussions of big Tech company headquarters moving out of California.
I can’t give you a state breakdown, but there’s 48,000 Oracle USA workers and 6500 are in California so it’s not even close to a majority.
They also have approximately 110,000 additional workers overseas.
This is the source I used, and I just quickly looked. It’s also possible they employ others outside of that area but I’m using your number of 6,500 in California yet they employ 48,000 in the USA Either way quite a bit of overseas operations going on and moving their headquarters from CA does make a strong statement as well as other known name brands who do as well.
No one will brag the corporations are flocking to CA it’s quite the other way around
https://www.crn.com/news/cloud/oracle-lays-off-201-employees-in-california
https://www.oracle.com/corporate/corporate-facts/
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OK, so what are the details. How many barrels. To what refinery? What type of crude?
It would be nice if they stopped getting it from the middle east, but the latest data from the California Energy commission is March, and says nothing has changed.
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SammyChevelleTypeS3
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Well why not. It been made clear that California's leaders for the past 25 years talk (even if they dont' 100% mean it) like they want to KILL all petroleum buisnesses even though millions of folks still depend on all of the products that are derived for the petrochemicals industry.
That’s easy, 9% of the US population lives in CA
CA with 39 million people … This is how it compares with some countries.
Source https://european-union.europa.eu/principles-countries-history/key-facts-and-figures/life-eu_en
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I believe it's more like 11.5%, but I am not so sure a lot of people = powerful economy automatically; otherwise, India, China, Indonesia, etc. would have even way higher GDPs.
Double their property taxes too..
https://taxsharkinc.com/texas-property-tax-compared/
TX knows their "land rich".
Inertia. The good parts of California's economy today are based on good planning decisions made in the 50s, 60s, and 70s. Good schools, good roads, good remaining infrastructure. Rule of law was enforced.
You don't have that now. High cost of living. Dated and rapidly becoming inadequate infrastructure. Schools aren't the world leaders they were. Regulatory environment is very hostile to business in general and absolute death to oil and gas companies. Rule of law is no longer in effect, except to collect the most taxes in the nation and to enforce arcane soul destroying regulations.
California may have become the leading state and the 5th largest economy in the world, but it is headed down the tubes. If not there already, it's headed to third world status.
So here is a pretty recent article. Seems there shipping it to California to reload on bigger ships then ship to Asia - not refine in California. Seems backwards. Maybe they can wave to the Saudi ships on the way. My guess is the California refineries aren't set up for that kind of crude? https://financialpost.com/commodities/canadian-oil-exports-asia-california-save-money
"Close to 3 million barrels have been shipped off Vancouver for China or India since the expanded Trans Mountain pipeline began operating in May, almost tripling the capacity of the sole system linking Alberta to a Canadian port. More than 55 per cent of those volumes have first journeyed south to Southern California where the crude was transfered onto very large crude carriers, or VLCCs, according to Vortexa ship tracking data."
The article is still confusing - so it says 3.9M barrels goes to LA. So does that include the 3.0 million they reship to INdia or not?
3.9M would be about 1/3 of their imports.
0.9M would be not a lot actually - more like 1/12th
" The US West Coast, particularly Los Angeles, has been the biggest recipient so far in June with 3.9 million barrels,"
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