Explaining Southern California's economy

Why is BP selling its refinery in Carson, California?

ARCO-397-MDB

Matt DeBord/KPCC

These stations belong to Texas-based Tesoro now. BP is selling the Arco brand, along with a big refinery in California

As the L.A. Times rightly points out, the fire at Chevron's Richmond refinery in Northern California — and the ensuing spike in gas prices — has overshadowed a deal between BP and Tesoro of take over a big BP refinery in Carson:

During any other week this year, the biggest energy news in California would have probably been the long-awaited announcement of a buyer for BP's 266,000-barrel-a-day refinery in Carson, which is the state's largest such facility.

First, the deal will make San Antonio-based Tesoro Corp. California's biggest and most important refiner of motor fuels. Tesoro already owns the state's fourth-largest refinery, the 166,000-barrel-a-day Golden Eagle (Avon/Rodeo) facility and a 97,000-barrel-a-day refinery in Wilmington.

The BP deal will push it ahead of Chevron, which has two refineries that produce about 503,000 barrels a day. Tesoro will have 528,000 barrels a day of capacity.

Read More...