After 105 years of Shell ownership, the Martinez Refining Co., LLC is, as of Saturday, the new owner of the refinery on the Carquinez Strait just west of Interstate Highway 680.
PBF Energy Inc., headquartered in New Jersey, will now operate the facility under the name Martinez Refining Co. LLC, and the $1 billion acquisition became official Saturday. The deal was struck in mid-2019.
The Martinez refinery employs approximately 700 people. It produces gasoline, jet fuel, diesel fuel, petroleum coke, industrial fuel oils, liquefied petroleum gas, asphalt and sulfur. It also has a “coker” unit for processing heavy crude.
Shell Oil Products, was discussing a sale of its Martinez property – its only California refinery – since at least 2016. Published reports that year said an expected long-term rise in crude oil prices and the relatively high costs of doing business in California, including adherence to state environmental regulations, were factors in Shell’s decision to sell.
PBF Energy also operates a refinery in Torrance, in southern California, as well as in New Jersey, Delaware, Ohio and Louisiana.
Despite a handful of environmental incidents over the years – a spill of more than 400,000 gallons of crude oil into Carquinez Strait in 1988 the most notable – Shell has enjoyed a reputation of being a good corporate
citizen in Martinez. Not all Bay Area refineries have had such a positive community connection.
“Our new owner has pledged to continue our strong commitment to you, our refinery, and our community,” refinery spokeswoman Ann Notarangelo said in a statement.
Keep on boiling that oil.
Anyone remember the Shell Explosion in the early 1980s?
Not sure which year but shook windows miles away. It was at nighttime.
I sure do! I lived in Clyde (Port Chicago Hwy) You ain’t kidding about rattling the Windows!
Selling gasoline for <$1.00 a gallon HIGHER than the average price in the other 49 states, and STILL not able to be an attractive business opportunity?
The article stated:
Published reports that year said an expected long-term rise in crude oil prices and the relatively high costs of doing business in California, including adherence to state environmental regulations, were factors in Shell’s decision to sell.
Wow…
Yeah, that is ALL taxes from the state. It doesn’t mean that the seller gets that price….
So what part of their explanation of why they sold the refinery does not make sense to you?
According to Forbes Business Magazine, California is ranked 31st out of 50 for business friendliness with 1 being best and 50 being worst.
FYI –
Gas Tax:
Federal 18.4 cents per gallon of gas and 24.4 cents per gallon of diesel – (including tax storage maintenance fee).
California
Gasoline excise tax of 41.7 cents a gallon
Gasoline sales tax: 2.25%
Local sales taxes, which in the Bay Area range up to 2.5%
Underground storage tank maintenance fee: 2 cents a gallon
Roughly an additional ≈ 74 cents per gallon of gas in taxes – 18 cents for Fed and 55 cents for California.
Need I bring up the added cost of the special summer blend of fuel few if any states use but California?
How about supply side economics (supply and demand). The most populous state buying the most fuel (plus special blends in the summer) thus the cost is more per gallon than if you live in say, Wyoming the least populous state (coupled with lower state taxes)?
Just FYI the greater than symbol is written as >.
<got the symbol backwards, sorry – my bad…
My point was the added environmental costs. Every valve, flange, connector, pump seal, etc has to be checked for HC, in PPM. When in violation (specs are extremely low), a clock starts that dictates repairs or fines be paid within days.
Many of California refineries spend HUNDREDS of millions annually for compliance. Compare that to other states…
Summer/winter spec changes? Obviously you know little about downstream, as those changes can be made on the fly, in less than (1) 12 hour shift…
Keep arguing everyone, no one is completely wrong and no one is 100% correct…
Interesting their property tax base should be based on the purchase price. Bet they got around that somehow.
I hear Hunter Biden and associates are now available – maybe the refinery could get some political favors if … ?
Oh, they can already get political favors from the current dude at the White House – maybe drop some more EPA safeguards for a kickback or two….
…the relativity high cost of doing business in California…
This should say it all!,
Somehow this will result in higher gas prices in California. I still don’t understand how gas goes up so quickly yet never comes down as fast. Nor do I understand how gas cost more in some areas (such as Pittsburg), yet is cheaper in certain areas (Walnut Creek). It could be cheaper to buy gas in Hawaii than California. It’s definitely cheaper everywhere else. It should come down when the oxygenated gas is no longer sold, but it hasn’t. I’m still not sure why we need 3 different types of gas. This is the one area that hasn’t been disrupted, and I’m surprised no one has done it yet. What about a national gas price? Here’s another question, why is Costco able to sell their gas .20 under everyone else? Why can’t gas stay the same price for an entire month or months?
MOGAS, gasoline in CA is 99%+ oxygenated still, with 10% ethanol…
So, are they going to rename Shell Avenue the Martinez Refining Co. LLC Avenue?
Hello
What about the shell gas station are they going to be sold .