Study Predicts California Fuel Supply Shortages

Categories: U.S. Legislatitive Issues | Author: Mike Williams | Posted: 6/20/2012 | Views: 1070

SAN FRANCISCO (Dow Jones) -- California could see gasoline shortages as early as 2015 as new state rules aimed at cutting greenhouse-gas emissions could shutter more than half the state's refining capacity in less than eight years, according to a new study commissioned by an industry group.

The state's Low Carbon Fuel Standard regulation could cause up to seven refineries to shut down, which could eliminate up to 65% of California's refining capacity by 2020, according to the study. Drivers would see fuel prices spike, as the remaining refineries would face high costs of complying with the rules, the study predicted. It was compiled by Boston Consulting Group and commissioned by the Western States Petroleum Association, an industry group for oil refiners.