This morning I had Mike Ariza on the podcast for the first time. Mike has spent time in the Navy and he worked at the Chevron CVX 0.00%↑ refinery in Richmond, California before spending time at Valero’s VLO 0.00%↑ Benicia refinery as the Senior Control Board Supervisor. We talked about the recent shutdowns of multiple refineries, and why California is three to four weeks away from experiencing shortages on top of their already high prices. The federal government is apparently starting to get involved with the Defense Production Act, but we dove into the catastrophic chain reactions that could come from logistics and supply chains issues in California. You can find Mike on Twitter, but he has also been contributing to Gas Crisis, and recently wrote an Op-Ed piece for the California Globe. I would strongly recommend reading the PBF Energy PBF 0.00%↑ letter to the state on the Gas Crisis website to see what the companies are saying about the current situation.
Podcast Summary
The shutdowns of the Valero refinery in Benicia and the Phillips 66 PSX 0.00%↑ refinery in Wilmington.
The shortages that are baked into the cake due to tanker travel times.
How the shutdown of the Strait of Hormuz has impacted Asian refineries, which supply 40% of California’s fuel.
The federal government getting involved with Section 303 of the Defense Production Act.
The impact on the military bases in the state, as well as the bases in Nevada.
How California’s energy policy over the last several decades has led to this point.
The number of refinery fires that have happened in the last couple months, and whether it is a coincidence or not.
Why this will impact other states ability to get fuel, including Nevada and parts of Arizona.
The chain reaction that could be set off at the ports and with supply chains if California starts experiencing fuel shortages.
