Why is California importing so much gasoline from the Bahamas?

California is importing significant gasoline from the Bahamas due to refinery closures within the state and a lack of interstate pipelines, necessitating longer and more complex shipping routes.

What impact do refinery closures have on California's gasoline supply?

Refinery closures, like the one in Los Angeles and another planned in Northern California, contribute to a shortfall in domestic gasoline production, driving up the need for imports.

How does the Jones Act affect gasoline shipments to California?

The Jones Act requires US ports to use US-flagged vessels, which are limited and expensive, prompting some companies to use foreign vessels and indirect routes, such as through the Bahamas, to bypass these costs.

Home / Business and Economy / California Gas Imports Skyrocket Via Bahamas

California Gas Imports Skyrocket Via Bahamas

16 Feb

•

Summary

California gasoline imports surged to record highs in November.
More than 40% of California's gasoline arrived from the Bahamas.
Refinery closures and pipeline lacks drive longer shipping routes.

California Gas Imports Skyrocket Via Bahamas

California experienced unprecedented gasoline imports in November, with over 40% of the supply coming from the Bahamas. This phenomenon highlights a growing reliance on lengthy shipping routes to meet the state's fuel demands. The situation is exacerbated by a shrinking number of oil refineries within California and the absence of adequate interstate pipelines.

The state's stringent environmental regulations have historically made refinery operations costly. However, impending closures are prompting a reconsideration of these policies. The closure of Phillips 66's Los Angeles refinery in October contributed to the surge in imports, a trend expected to continue with Valero Energy Corp. set to close a Northern California refinery this spring.