Shell to close Bakersfield, Calif., refinery in late 2004

Nov. 14, 2003
Shell Oil Products US, a unit of Shell Oil Co., reported that it will shut down operations at its 65,000 b/d Bakersfield, Calif., refinery by Oct. 1, 2004.

By OGJ editors
HOUSTON, Nov. 14 -- Shell Oil Products US, a unit of Shell Oil Co., reported that it will shut down operations at its 65,000 b/d Bakersfield, Calif., refinery by Oct. 1, 2004.

Shell Oil said the "continual decline" of San Joaquin Valley Heavy Crude (SJV Heavy) over the last few years—as noted in reports from the California Department of Conservation and the California Energy Commission—is one of the key reasons behind the decision to close the plant. SJV Heavy serves as the "primary supply" for the Bakersfield plant, which "makes the continued operation of the refinery beyond the third quarter of 2004 no longer economically viable," the company said.

Shell reported it plans to "optimize" its remaining refining network on the US West Coast by converting the Bakersfield products terminal as soon as possible for continued operation. Shell owns and operates two other refineries in California: the 98,500 b/d Wilmington plant and the 154,800 b/d Martinez plant.

Shell Oil said it will be taking a $200 million aftertax charge to earnings in the fourth quarter due to the sale.