Shell considers retiring California coker amid shale boom

Royal Dutch Shell (RDS.A, RDS.B) is considering retiring one of two coking units at its 156K bbl/day Martinez refinery in California as the company seeks to run lighter crude at the plant.

Shell has applied to county regulators for a permit to shut the flexicoker, a move that would shrink the plant’s reliance on heavy oils and cut its greenhouse gas emissions by 15%.

Shell is considering the shutdown amid record volumes of light oil from shale formations across the middle of the U.S.; California’s refiners, lacking pipeline access to the growing crude supplies, are bringing in the most ever by rail as they work to counter shrinking production within the state.

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Comments (4)
  • arthur_bishop1972
    , contributor
    Comments (4010) | Send Message
    My dad lives near this coker and the air is bad over there. Doesnt sound like they need it the houses near it will rise in value if they close it.
    19 May 2014, 04:15 PM Reply Like
  • Hendershott
    , contributor
    Comments (1733) | Send Message
    So in California at the moment it's crude by rail to Bakersfield and pipes to the refineries from there. Didn't know that. Maybe KMI should float the pipe from Texas idea again.
    19 May 2014, 04:36 PM Reply Like
  • smurf
    , contributor
    Comments (5781) | Send Message
    Any business would be smart to shut down in CA, whether or not the operation is obsolete.
    20 May 2014, 08:48 PM Reply Like
  • arthur_bishop1972
    , contributor
    Comments (4010) | Send Message
    Lol Smurf....except the MJ business...which is huge here already : )
    21 May 2014, 12:07 AM Reply Like
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