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Shell announces closure of refinery in Bakersfield

Thursday, November 13, 2003

URL: http://www.sfgate.com/cgibin/article.cgi?file=/news/
archive/2003/11/13/state1622EST0100.DTL&type=printable

(11-13) 13:22 PST FRESNO, Calif. (AP) --

Shell Oil Products announced Thursday it will close down a refinery in Bakersfield next year because of the decreasing supply of crude oil in the area, company officials said.

The refinery, which has been in Bakersfield for 70 years and employs 215 people, depends on availability of San Joaquin Heavy Crude to make gasoline, gas oil, butane and other products.

Now reports from the California Department of Conservation and the California Energy commission have shown that the local supply of petroleum is going down, and the refinery will no longer be economically viable, company representatives said.

"The decision to close the facility was by no means an easy one," Aamir Farid, the General Manager of Shell's Bay-Valley Complex, said. "Shell recognizes that this refinery has served as an integral component of the community for nearly 70 years. However, the fact remains that there is simply no longer an adequate supply of crude oil to justify the continued operation of this facility."

The refinery's products were used in the southern San Joaquin Valley and the Central Coast, but the company is working to avoid any disruption in supply to the area. Officials said they could not predict what effects, if any, the October 2004 closure would have on gas prices in the valley.

©2003 Associated Press  


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