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California wildfires threaten oil and gas supplies

In addition to the devastation California’s ongoing deadly wildfires have already caused to homes, businesses and other infrastructure, uncontrolled fires can damage power supplies in the region and beyond.

Lipow Oil Associates President Andy Lipow warned in a letter this week that crude oil, gasoline, diesel and natural gas could all be affected.

Storage tanks at Marathon Petroleum’s Los Angeles Refinery, which processes domestic or imported crude oil, gasoline, diesel fuel and other petroleum products in Carson, Calif., March 11, 2022. (Photos by Reuters/Bing Guan/Reuters)

While the five refineries in Los Angeles and Long Beach are not under direct fire threat so far, several pipelines are, and that means supply cuts not only in California, but in other states.

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It could also lead to the creation of refineries, which may be forced to reduce their operating rates to contain inventories. Lipow said the five refineries in the Los Angeles area handle 60% of the refining capacity in California and 40% of the refining capacity on the West Coast, which includes Alaska and Hawaii.

California gas

Traffic passes the Phillips 66 Los Angeles Refinery Wilmington Plant Nov. 28, 2022, in Wilmington, Calif. (Photos by Mario Tama/Getty/Getty Images)

He pointed to crude oil and natural gas pipelines near the Hurst Fire and Easton Fire and noted that the Kinder Morgan West Line has already been shut down. It provides about 60% of the refined products used in Nevada and two-thirds of the refined products used in Arizona.

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“I have never heard of a shutdown of crude oil or natural gas pipelines, but they are not only at risk because of the obvious fire hazard, but they should be incapacitated because of the preventive measures taken by local utilities,” Lipow wrote.

PACIFIC PALISADES, CALIF JANUARY 7, 2024 A firefighting plane descends from the Palisades fire in Pacific Palisades on Tuesday, Jan. 7. The Palisades fire is being fueled by strong Santa Ana winds that are expected to continue for two more days. (Brian van der Brug / Los Angeles Times via Getty Images)

A firefighting plane makes a descent on the Palisades Fire in Pacific Palisades on Tuesday, Jan. 7. (Brian van der Brug/Los Angeles Times via Getty Images/Getty Images)

There are four major wildfires around Los Angeles. The White House said Friday that local, state and federal firefighters were able to contain some of the larger fires overnight.

Officials said the Pasadena fire is 3 percent contained, and the Pacific Palisades fire is 8 percent contained. The Ventura Fire is 35% contained, and the Sylmar Fire is 37% contained.

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So far, the fires have destroyed more than 10,000 homes and businesses and left ten people dead.


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