California oil producers face a loss of production this year because of constraints on pipeline and tanker transportation to Los Angeles area refineries.
The potential bottleneck is occurring at a time when Outer Continental Shelf production is near capacity from Chevron Corp.'s Point Arguello project at the same time production is increasing from Exxon Corp's nearby Santa Ynez Unit (SYU) expansion. Both megaprojects must compete for pipeline space with onshore crude producers, notable, in California's San Joaquin Valley (SJV).
Recent developments limiting transportation options include:
An indefinite shutdow...