Consumers can expect a spike as high as nearly $1 in gasoline pump prices following a massive fire at the Chevron refinery in El Segundo, observers said Saturday.
The refinery is among the largest gas producers on the West Coast, processing 276,000 to 300,000 barrels of crude oil daily, according to Chevron Corp. and oil market experts.
Matt McClain, an oil analyst at GasBuddy which tracks nationwide gasoline prices, said the refinery processes about one-fifth of the fuel for motor vehicles and 40% of jet fuel in Southern California.
“This is going to probably have a pretty significant impact at the pump.” McClain told reporters. “It’s all going to depend upon a lot of motorists. If everybody kind of goes toward the pumps all at once, well then you’ve got a little bit of an increase in price coming sooner rather than later. But if nobody panics, you’re still only talking a matter of several days before you will start to see the price increase across portions of California, and really beyond.”
He estimated per-gallon prices could rise between 35 and 95 cents with impacts along the U.S. West Coast and even into Vancouver, British Columbia, other parts of Canada, McClain said.
The facility is now closed for cleanup and repair work as refinery neighbors were mostly moving on after being rattled in the hours after an explosion sparked the non-injury fire around 9:30 p.m. Thursday.
Chevron spokesman Ross Allen said facility personnel continue to work in response to the blaze.
“With the fire completely extinguished, we will be making operational adjustments to support the continued safe and reliable operation of our facility to help meet Southern California’s fuel demands,” Allen said in a statement. “Future intermittent flaring is a possibility as these operational adjustments occur. Chevron takes safety and environmental protections seriously and will make all efforts to avoid flaring.”
He added that “flares are highly regulated safety devices and are an important part of keeping the refinery running safely.”
The South Coast Air Quality Management District reported that pollution levels increased near the Chevron facility overnight but had settled by Friday morning when firefighters extinguished the remaining flames.
Real-time air quality data for the fire-impacted area is available online from Chevron.
Information is also available from the AQMD on how to monitor air quality via aqmd.gov/home/rules-compliance/compliance/r1118/community-notifications.
Witnesses reported hearing a blast, then seeing a wall of flames that could be seen from several miles away, according to published reports.
No evacuation orders were issued, but a shelter-in-place order was in effect for Manhattan Beach’s Tree Section neighborhood that was lifted after 2 a.m. Friday.
A statement from Chevron said the fire started “at a processing unit located near the southeast corner of the facility,” and the company has launched an internal investigation to determine the fire’s cause.
Los Angeles County Supervisor Holly Mitchell, whose district includes El Segundo and who also serves on the South Coast Air Quality Management District Board of Directors, issued a statement Friday.
“Throughout this incident, I have been in contact with El Segundo Mayor Chris Pimentel, who has briefed me and has also been in communication with Chevron to ensure that the fire was contained,” she said. “I have also connected with the South Coast Air Quality Management District (AQMD) on the status of air quality, and it has reported that there were some elevated levels of volatile organic compounds at both refinery fence line and community monitors. As of 9:30 (Friday) morning, the levels at these monitors are currently at safe threshold levels. AQMD will continue to monitor the air quality and as the situation is evolving.”
The AQMD, however, advised residents to stay indoors if they saw or smelled smoke and keep doors and windows closed. Running a HEPA air purifier if available was also suggested.
