On top of the devastation California's deadly ongoing wildfires have already caused to homes, businesses and other infrastructure, the uncontained fires could hurt the flow of energy in the region and beyond.
Lipow Oil Associates President Andy Lipow warned in a note this week that crude oil, gasoline, diesel and natural gas supplies could all be affected.
While the five refineries located in the Los Angeles and Long Beach areas are not under direct threat from the fires so far, several pipelines are, and that means cutting off supplies to not only California, but other states.
It could also lead to a buildup at refineries, which might be forced to reduce their operating rates to contain inventory. Lipow said the five Los Angeles area refineries handle 60% of the refining capacity in California and 40% of the refining capacity on the West Coast, including Alaska and Hawaii.
He pointed to crude oil and natural gas pipelines in the vicinity of the Hurst Fire and Easton Fire and noted the Kinder Morgan West Line has already been shut down. It supplies some 60% of the refined products consumed in Nevada and two-thirds of the refined products consumed in Arizona.
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Lipow Oil Associates President Andy Lipow warned in a note this week that crude oil, gasoline, diesel and natural gas supplies could all be affected.
While the five refineries located in the Los Angeles and Long Beach areas are not under direct threat from the fires so far, several pipelines are, and that means cutting off supplies to not only California, but other states.
It could also lead to a buildup at refineries, which might be forced to reduce their operating rates to contain inventory. Lipow said the five Los Angeles area refineries handle 60% of the refining capacity in California and 40% of the refining capacity on the West Coast, including Alaska and Hawaii.
He pointed to crude oil and natural gas pipelines in the vicinity of the Hurst Fire and Easton Fire and noted the Kinder Morgan West Line has already been shut down. It supplies some 60% of the refined products consumed in Nevada and two-thirds of the refined products consumed in Arizona.
More
