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.
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.
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.
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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