DOAN and DAN MURTAUGH
A day after Valero Energy Corp. described its California
operations as our weakest group, PBF Energy
Inc.s chairman said hes interested in buying a
plant in the Golden State.
executives have the experience necessary to run refineries
there, Chairman Tom OMalley said on a conference call
with analysts today. OMalley was chief executive officer
of Tosco Corp., which operated what is now Tesoro Corp.s
Golden Eagle plant near San Francisco.
are opportunities out there, and I think everybody knows that a
certain number of people want to reduce their exposure in
California, OMalley said. We know the
marketplace out there, we know how to operate refineries out
there, weve done it before, and certainly its an
area where we have an interest.
is considering a purchase in California, the worlds
ninth-largest economy, as refinery margins on the US West
Coast hover at the highest seasonal level in seven years,
boosted by plant repairs and fuel exports to Latin America. The
states refiners are also pulling in a record volume of
oil by rail from North American shale plays, allowing them to
displace costly imports from abroad.
bought the 246,000-bpd Carson refinery in Southern California from
BP in June with plans to integrate the complex with its
adjacent Wilmington plant. The company said the combination
will improve its distillate yields, shrink distribution costs
and cut emissions regulated by the state as
part of its carbon cap-and-trade
Valeros chief executive officer, Bill Klesse, told
analysts on a conference call yesterday that the financial
performance of the San Antonio-based companys California
refineries is not that great.
our weakest group of assets now, financially, Klesse
said. Operationally, though, its excellent,
Demand has yet to recover from the 2008 global recession, he
were starting to see some improving economy and some
uptick in demand, the focus that we have is to work on our
crude costs and to continue to work on the operating costs and,
of course, adjusting our yields to fit the market, Klesse
runs the 132,000-bpd Benicia refinery near San Francisco as well
as the 78,000-bpd Wilmington complex near Los
Californias refineries, which have traditionally run on
oil from the states San Joaquin Valley, Alaskas
North Slope and the Middle East, brought in a record 1.18
million barrels by rail in December from places including
Canada, Wyoming and North Dakota, according to the most recent
data available from the state Energy Commission.
3-2-1 crack spread on the West Coast, a rough indicator of refining profitability, widened
$1.69/bbl to $24.12/bbl today at 2 p.m. New York time, the
biggest margin for the time of year since 2007, data compiled
by Bloomberg show.
region exported the most refined product last year since 1992,
according to the Energy Information Administration, the Energy
Departments statistical arm.
least eight tankers have been chartered to load fuel off the
West Coast for export in the past month, with six of them
scheduled to deliver to ports in Latin and South America, ship-
fixture data compiled by Bloomberg.