HomeNewsLocalHigher Gas Prices Expected After Nine-Plus Hour Refinery Fire in El Segundo

Higher Gas Prices Expected After Nine-Plus Hour Refinery Fire in El Segundo

EL SEGUNDO (CNS) – A nine-plus-hour fire at the Chevron El Segundo Refinery has left motorists anticipating higher prices with the facility closed for cleanup and repairs, while nearby were largely moving on after being rattled in the hours after an explosion sparked the flames, observers said Saturday.

No injuries were reported.

The refinery processes about 300,000 barrels of crude oil a day, including one-fifth of all motor vehicle fuel and 40% of jet fuel in Southern California, Matt McClain, a petroleum analyst at GasBuddy, an app that tracks gas prices nationwide, told reporters.

“This is going to probably have a pretty significant impact at the pump.” McClain said. “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 prices could increase 35 to 95 cents per gallon.

“This particular refinery, anytime it shuts down, it impacts prices all along the western coast of the United States, and even into places like Vancouver, British Columbia, other aspects in Canada,” McClain told ABC7.

Meanwhile, El Segundo area residents had mostly returned to their daily routines after the massive explosion and fire rocked the neighborhood Thursday and lit up the nighttime sky, but many remained concerned about toxins and air quality, according to media reports.

The South Coast Air Quality Management District said pollution levels were elevated near the refinery overnight, but had settled by Friday morning.

The fire was reported just after 9:30 p.m. Thursday.

Witnesses reported hearing a blast, then seeing a wall of flames that could be seen from several miles away.

The last of the visible flames were extinguished about 7:15 a.m. Friday, according to Fox 11 helicopter coverage.

No evacuation orders were issued. A shelter-in-place order was issued for the nearby Manhattan Beach’s Tree Section Neighborhood due to the fire and was lifted after 2 a.m. Friday.

“The fire broke out in the refinery’s Isomax 7 unit, which converts mid-distillate fuel oil into jet fuel, two sources told the Reuters news agency. “The reformer and the fluid catalytic cracker were shut, losing more than 100,000-barrels per day gasoline output, a trader said, citing Wood Mackenzie.”

The refinery is the “largest producing oil refinery on the West Coast, processing more than 276,000 barrels of crude per day,” according to the plant’s website.

According to Reuters, the refinery is California’s second-largest, and Chevron’s second-largest in the U.S., supplying a fifth of all motor vehicle fuels and 40% of the jet fuel used in the isolated southern California market.

California’s largest refinery is Marathon Oil Corp.’s Los Angeles Refinery in nearby Carson.

“The incident took place at a processing unit located near the southeast corner of the facility,” Ross Allen, adviser at Chevron, USA Corporate Affairs, said in an emailed statement. “Following Chevron’s active response along with support from the cities of El Segundo and Manhattan Beach emergency services, the fire is now out. As a result, Chevron has launched an internal investigation to determine the cause.

“Throughout the night, Chevron’s emergency response team has been actively managing the situation with a primary focus on ensuring the safety of employees, responders and the community. All personnel and contractors have been accounted for, and no injuries have been reported. As a precautionary measure, Chevron’s Health Safety and Environmental team has been conducting mobile air monitoring in the community.”

Allen said the company “is actively working with local, state and federal agencies, including CalOSHA, CALOSPR and the South Coast Air Quality Management District, who were notified and are monitoring the incident.”

Chevron is also providing information updates to The California Energy Commission is also being updated, he said.

Los Angeles County Supervisor Holly J. 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 afternoon saying the fire was “fully extinguished.

“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.”

Nonetheless, AQMD was advising residents to remain indoors if they see or smell smoke and keep their doors and windows closed. It was also suggested that residents run a HEPA air purifier if available.

Gov. Gavin Newsom “has been briefed on the incident,” according to a statement from his office, which “is coordinating in real time with local and state agencies to protect the surrounding community and ensure public safety.”

Los Angeles Mayor Karen Bass wrote on social media that she was briefed on the fire and spoke with Mitchell.

The Los Angeles Fire Department “stands at the ready to assist with any mutual aid request,” Bass wrote, adding “there is no known impact to” nearby Los Angeles International Airport.

Information on how residents can monitor local air quality is available at aqmd.gov/home/rules-compliance/compliance/r1118/community- notifications.

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