04/25/2024

Report Details Industries at Risk Due to Refinery Challenges

California refineries support 2.4 million jobs that depend on the petroleum-based products they produce but increasing regulatory demands are jeopardizing their ability to continue operations in the state, according to a report released this week.

The study, “Reducing Supply From California Refineries: Industries at Risk,” was commissioned by theWestern States Petroleum Association and compiled by the Los Angeles County Economic Development Corp.’s Institute for Applied Economics.

The number of refineries in California has been decreasing over the years due to the need to reduce emissions, the report said, which requires large expenditures on equipment, modifications and upgrades.

Refineries that were unable to merge or consolidate to fund those investments have ceased operations, resulting in the closure of older and smaller refining operations. California had 18 operable refineries in 2013, less than half of the number that were operable in 1983.

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