Refinery explodes, gas prices soar By David R. Baker Updated 3:23 pm, Friday, February 20, 2015 Photo: Nick Ut / Associated Press The ExxonMobil refinery is seen after an explosion in a gasoline processing unit at the facility, in Torrance, Calif., on Wednesday, Feb. 18, 2015. Two workers suffered minor injuries and a small fire at the unit was quickly put out. The incident triggered a safety flare to burn off flammable substances. The facility about 20 miles south of downtown Los Angeles covers 750 acres, employs over a thousand people, and processes an average of 155,000 barrels of crude oil per day, according to the company. (AP Photo/Nick Ut) The ExxonMobil refinery is seen after an explosion in a gasoline processing unit at the facility, in Torrance, Calif., on Wednesday, Feb. 18, 2015. Two workers suffered minor injuries and a small fire at the unit was quickly put out. The incident triggered a safety flare to burn off flammable substances. The facility about 20 miles south of downtown Los Angeles covers 750 acres, employs over a thousand people, and processes an average of 155,000 barrels of crude oil per day, according to the company. (AP Photo/Nick Ut) For California drivers, February has been a tough month. First, the price of oil started climbing, pushing up gasoline prices nationwide. Then a labor strike shut down a refinery in Martinez. Then an explosion with the force of a small earthquake hobbled a refinery near Los Angeles. California’s gasoline prices are soaring as a result. They jumped nearly 4 cents overnight to reach $2.87 for a gallon of regular on Friday, according to GasBuddy.com. Since the start of the month, California’s average price has climbed 44 cents. Gas is still far cheaper than a year ago — 85 cents cheaper — but it’s climbing fast. The same isn’t true elsewhere. The oil market rally that started prices rising across the country seems to have sputtered out, or at least taken a pause. As a result, the national average price for gasoline rose less than half a cent overnight Friday to reach $2.27. But California’s circumstances are different. The state’s refineries are already starting their seasonal switch to making more expensive gasoline blends designed for use in warm weather, a process other U.S. refineries begin later in the year. Refinery operators usually perform maintenance on their equipment right before making the switch, temporarily cutting the amount of gasoline they produce and pushing up the price. The closure of the Martinez refinery took an additional 8 percent of the state’s refining capacity offline. And then there’s that explosion, at the Exxon Mobil refinery in Torrance. The blast, which sent four workers to the hospital with minor injuries and rained ash on nearby neighborhoods, forced a portion of the refinery to shut down, further crimping California’s already strained gasoline supply. It’s still unknown how long the damage will take to repair. As for the strike, negotiators with the United Steelworkers union on Thursday rejected the latest offer from the oil companies, represented in the negotiations by Royal Dutch Shell. Although union members are picketing nine refineries across the country, only the Tesoro plant in Martinez has shut down. At least for the short term, prices will probably keep rising as a result. David R. Baker is a San Francisco Chronicle staff writer. E-mail: dbaker@sfchronicle.com Twitter: @DavidBakerSF 44 cents Average gas price increase since the beginning of the month.
Some multinationals are suffering from the low prices for their impact in theit profits. If they could create a shortage it would be good for them. If a (older) refinery would explode it would help them, and at the same time insurance companies can pay for a brandnew refinery. And prices are soaring? At this soaring level they are still 50% lower than in Europe.