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Shell Bakersfield Refinery

FTC Clears Shell In Refinery Closure

THE WALL STREET JOURNAL: FTC Clears Shell In Refinery Closure

Posted 27 May 2005

By RUSSELL GOLD
Staff Reporter of THE WALL STREET JOURNAL

The Federal Trade Commission has concluded the Royal Dutch/Shell Group wasn’t trying to drive up California gasoline prices by closing a refinery in Bakersfield, Calif. The agency closed a year-long investigation on Wednesday, stating that it could find “no evidence to substantiate” allegations the company was scheming to boost profit margins by squeezing refinery capacity. read more

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FTC: Shell Not Trying to Boost Gas

MSN News: FTC: Shell Not Trying to Boost Gas read more

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FTC Drops Probe of Shell Refinery Plans

Los Angeles Times: FTC Drops Probe of Shell Refinery Plans

27 May 2005

By Erica Williams, Times Staff Writer

Shell Oil Co. wasn’t attempting to squeeze fuel supplies and boost pump prices in California when it announced plans in 2003 to close its Bakersfield refinery, federal antitrust authorities said Wednesday.

The Federal Trade Commission said it found “strong evidentiary corroboration” of the oil giant’s stated reasons for closing the 70,000-barrel-a-day refinery and would drop its yearlong investigation.

The Houston-based unit of Royal Dutch/Shell Group cited oil supply problems and economic factors for the planned closure. But after public officials intervened, the refinery was sold in March to Flying J Inc., a Utah truck stop operator. read more

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US FTC clears Shell decision to shut California refinery

AFX Europe (Focus): US FTC clears Shell decision to shut California refinery

26 May 2005

SAN FRANCISCO (AFX) – A Federal Trade Commission investigation of Shell Oil Company’s decision to shut a California refinery found the company did nothing wrong, the government agency said.

Shell’s announcement that it would shut its Bakersfield refinery by Oct 1, 2004, triggered a storm of accusations by consumer groups and lawmakers that the company was trying to drive up gasoline prices by cutting refining capacity.

“The commission found no evidence to substantiate this,” the FTC said in a statement late Wednesday. read more

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Hopes pump up for Shell refinery (Bakersfield)

MSNBC: Hopes pump up for Shell refinery (Bakersfield)

“Shell is not including its pipelines in the sale, which could limit buyer interest and may violate the company’s agreement with the attorney general to make a good-faith effort to find a buyer.”

By Katy Lieber

East Bay Business Times

Updated: 8:00 p.m. ET Sept. 25, 2004

More than 20 companies are interested in buying the Shell Oil Products US refinery in Bakersfield and some have even gone so far as to bid on the property, Shell announced this week.

Interest in the 70,000 barrel-per-day refinery appears to be running high, despite limitations Shell has placed on the potential sale. Shell is not including its pipelines in the sale, which could limit buyer interest and may violate the company’s agreement with the attorney general to make a good-faith effort to find a buyer. read more

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Companies show interest in Shell’s Bakersfield refinery

KESQNewsChannel3: Companies show interest in Shell’s Bakersfield refinery

23 Sept 04

LOS ANGELES Shell Oil says it has received interest from more than 70 companies to buy its Bakersfield refinery that produces two percent of California’s gasoline.

Shell had agreed to delay the planned closure of the refinery to allow for more time to find a buyer. Shell says more than 20 companies have signed confidentiality agreements, allowing them to enter the sales process.

The company says no new companies will be allowed to enter the sales process.

If no agreement can be reached with a company, Shell said the refinery closure plan will continue. Shell President Lynn Laverty Elsenhans has agreed to keep the refinery running through March 31st _ six months later than the October first planned shutdown date. read more

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Problems mount for sale of Bakersfield refinery, sources say

San Jose Mercury News: Problems mount for sale of Bakersfield refinery, sources say

“We’ll explore our options if we believe Shell is not acting in good faith.”: “Lockyer and the Federal Trade Commission have already launched investigations into whether a shutdown would violate antitrust laws.”

ANDREA ALMOND

Associated Press

Posted 16 Sept 04

LOS ANGELES – Shell Oil Co. wants to sell its Bakersfield refinery without the vital pipelines, onsite oil storage tanks and other equipment needed to run it, sources familiar with the situation say.

The company’s refusal to include key parts in a deal could dissuade buyers from purchasing the operation, which produces 2 percent of California’s gasoline and 6 percent of its diesel. That could result in permanent closure of one of only 13 California refineries that make the clean-air fuel the state requires. read more

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Shell keeps the gas flowing in Bakersfield

LACityBeat.com: REFINERY REPRIEVE: “Under pressure from political leaders and activists, Shell keeps the gas flowing in Bakersfield”: “Their brand has been severely damaged from day one.”

By Dennis Romero

19 August 04

Under pressure from political leaders and activists, Shell keeps the gas flowing in Bakersfield

What do you do when the Federal Trade Commission, Sen. Barbara Boxer, and California Attorney General Bill Lockyer are dogging you like Michael Moore dogs the president? You buy time.

After feeling the heat from Washington and Sacramento, Shell Oil Co. announced last week that it’s keeping its Bakersfield refinery alive at least until December so that a suitable buyer can be found. The move spells relief for Golden State motorists, who surely would have paid even higher prices for gas if Shell closed the crucial plant October 1, as planned, in the name of profits. read more

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Shell to Delay Closing Refinery, Granting Californians Reprieve

THE WALL STREET JOURNAL: Shell to Delay Closing Refinery, Granting Californians Reprieve

“Shell’s intent to close the plant had triggered an antitrust investigation by California officials as well as one by the U.S. Federal Trade Commission.”

By THADDEUS HERRICK

Staff Reporter of THE WALL STREET JOURNAL

August 16, 2004; Page B2

Shell Oil, a unit of Royal Dutch/Shell Group, agreed to postpone the Oct. 1 shutdown of a California refinery for six months to allow more time to find a potential buyer, providing at least a temporary reprieve to consumers in one of the nation’s tightest gasoline markets.

The agreement between Shell and California State Attorney General Bill Lockyer comes as growing world demand for products made from crude oil, coupled with the nation’s limited refining capacity, has resulted in unusually high fuel prices. As of last week the average retail price for a gallon of regular grade gasoline was $1.87, up nearly 31 cents from a year ago, according to the Department of Energy. read more

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San Diego Union Tribune: Oil company in talks with potential buyers

San Diego Union Tribune: Oil company in talks with potential buyers

“the attorney general will continue an antitrust probe of Shell. The Federal Trade Commission also has been investigating the proposed shutdown.”

By Craig D. Rose
UNION-TRIBUNE STAFF WRITER
August 14, 2004

Shell Oil Co. says its Bakersfield refinery is uneconomical because crude oil supplies in the area are declining.

Shell Oil Co. said yesterday it will delay closing its Bakersfield oil refinery to allow more time for a possible sale of the facility, which produces 2 percent of the state’s gasoline and 6 percent of its diesel oil.

Shell said it is in discussions with several potential buyers and will keep it open at least through Dec. 31 and probably through March 31, 2005, six months beyond the earlier shutdown date of Oct. 1. read more

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Shell Delays Closure of Calif. Refinery

The New York Times: Shell Delays Closure of Calif. Refinery

“an antitrust investigation into Shell’s decision to close the refinery will continue.”

By THE ASSOCIATED PRESS
Published: August 13, 2004
Posted 14 August 04

LOS ANGELES (AP) — Shell Oil Co. has agreed to delay the planned closure of a Southern California oil refinery that produces 2 percent of the state’s gasoline to allow more time to find a buyer and negotiate a sale, state officials said Friday.

The decision is “a welcome show of cooperation with our effort to keep open this refinery, which is crucial to helping protect California drivers from even higher gas prices than they already pay,” state Attorney General Bill Lockyer said in a statement. read more

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Los Angeles Times: Shell May Postpone Closing of Refinery

Los Angeles Times: Shell May Postpone Closing of Refinery

“The Federal Trade Commission is investigating Shell’s closure plan.”

By Elizabeth Douglass, Times Staff Writer

13 August 04

In what would be a victory for California motorists, Shell Oil Co. is considering postponing the Oct. 1 shutdown of its Bakersfield refinery to allow more time for talks with potential buyers, according to a person familiar with the matter.

The move would come as part of an accord between Shell and state Atty. Gen. Bill Lockyer, who has been pressuring Shell to keep the plant open or find a buyer for it, this person said. It wasn’t clear how long of a postponement Shell was considering. read more

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Los Angeles Times: CALIFORNIA Refinery Expert Is at Odds With Shell

Los Angeles Times: CALIFORNIA Refinery Expert Is at Odds With Shell

“The proposed closure of the refinery has generated outrage among politicians and consumers”

By Elizabeth Douglass, Times Staff Writer

July 24, 2004

Shell Oil Co.’s Bakersfield refinery is financially sound and an attractive asset for potential buyers, and the company’s decision to close it “flies in the face of common sense,” a consultant hired by the state said Friday.

Industry expert Malcolm Turner, retained by Atty. Gen. Bill Lockyer to provide an objective opinion on the refinery’s outlook, said his consulting firm disagreed with Shell’s reasons for planning to shut down the facility Oct. 1. read more

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Calif Senator Challenges Shell’s Efforts To Sell Refinery

The Wall Street Journal: Calif Senator Challenges Shell’s Efforts To Sell Refinery

“Federal Trade Commission confirmed that it has opened a formal antitrust investigation into Shell’s decision to close the refinery”

By BETH HEINSOHN

July 8, 2004 6:03 p.m.

Of DOW JONES NEWSWIRES

NEW YORK — U.S. Senator Dianne Feinstein, D-Calif., has taken a new tack in challenging Royal Dutch/Shell Group (RD,SC) unit Shell Oil’s plan to shut its refinery in Bakersfield, Calif., by questioning whether the company is making sufficient efforts to sell the facility.

Shell ‘s plan to close the 70,000 barrel a day refinery by Oct. 1 is raising fears along the West Coast of a further squeeze on an already tight motor fuels market, where consumers for years have paid the highest prices in the continental U.S. read more

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FTC Probing Shell’s Plan to Shut Refinery

Los Angeles Times: FTC Probing Shell’s Plan to Shut Refinery

“We’re looking at any possible antitrust violations associated with the closure,”

The antitrust inquiry heightens scrutiny surrounding proposed closure of the oil firm’s Bakersfield plant.

By Elizabeth Douglass, Times Staff Writer

The Federal Trade Commission has launched a formal antitrust investigation into Shell Oil Co.’s plan to close its Bakersfield refinery, an agency official said Wednesday, stepping up scrutiny of a move that California officials believe will worsen the state’s gasoline supply woes.

Meanwhile, the oil company on July 1 reduced crude oil processing at the refinery to levels 19% below capacity, according to an internal Shell document obtained by The Times and a plant employee who asked not to be identified. A Shell spokesman would not say whether the facility was running at full capacity. read more

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Shell faces antitrust inquiry

The Times: Stop Press: Shell faces antitrust inquiry: THE US Federal Trade Commission has launched an investigation into plans by Royal Dutch/Shell to close down a Californian oil refinery

Posted 8 July 04

THE US Federal Trade Commission has launched an investigation into plans by Royal Dutch/Shell to close down a Californian oil refinery producing 70,000 barrels a day. The Anglo-Dutch oil group faces an antitrust inquiry amid fears that the move will cut competition and raise oil prices on the US West Coast. read more

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Regulators to Examine Shell’s Closing of California Refinery

New York Times: Regulators to Examine Shell’s Closing of California Refinery

‘William E. Kovacic, the F.T.C.’s general counsel, said the agency’s investigation would “examine possible antitrust violations” by Shell’

Published: July 8, 2004

WASHINGTON, July 7 (Reuters) – The Federal Trade Commission said Wednesday that it had begun a formal investigation into the Royal Dutch/Shell Group’s plan to shut a California oil refinery, after some lawmakers said that closing it would hurt competition and increase gasoline prices on the West Coast.

William E. Kovacic, the F.T.C.’s general counsel, said the agency’s investigation would “examine possible antitrust violations” by Shell in closing the 70,000-barrel-a-day refinery in Bakersfield. read more

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FTC Acts Against Two Oil Companies

The Wall Street Journal: FTC Acts Against Two Oil Companies

“The launch of a formal investigation means the FTC has the authority to issue subpoenas to Shell”

By JEFFREY BALL and EMILY CHASAN

Staff Reporters of THE WALL STREET JOURNAL

July 8, 2004; Page A3

In two moves to crack down on alleged efforts to keep gasoline prices high, the Federal Trade Commission said it launched a formal investigation into the planned closing of a Royal Dutch/Shell Group refinery in California and it reinstated an antitrust complaint against Unocal Corp.

The commission’s actions come in the wake of record U.S. gasoline prices, which climbed to an average of more than $2 a gallon nationwide this year before pulling back a bit recently. The moves also come as the commission is under fire for failing to police the petroleum industry, most recently in a General Accounting Office report that concluded oil-company mergers approved by the commission in recent years contributed to higher gasoline prices. read more

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FTC examines Shell’s shutdown of California plant

Houston Chronicle: Refinery closing questioned: FTC examines Shell’s shutdown of California plant

“formal antitrust investigation by the Federal Trade Commission”

By NELSON ANTOSH

July 7, 2004, 11:02PM

Posted 8 July 04

Controversy over Shell Oil’s decision to close a refinery in California has escalated into a formal antitrust investigation by the Federal Trade Commission.

A senior official of the agency made the disclosure at a House subcommittee hearing on gasoline prices in Washington on Wednesday, although he provided few details.

Shutting the refinery in Bakersfield could be blocked if the agency finds antitrust violations, William Kovacic, the agency’s general counsel, told reporters after the hearing. read more

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FTC Opens Probe Of Shell Oil Co Refinery

The Wall Street Journal: FTC Opens Probe Of Shell Oil Co Refinery

“William Kovacic, the FTC’s general counsel, said subpoenas already have been served”

DOW JONES NEWSWIRES

July 7, 2004 12:35 p.m.

Posted 8 July 04

WASHINGTON (AP)–The Federal Trade Commission has begun a formal investigation of the proposed shutdown of a Shell Oil Co. (RD) refinery in California to determine possible antitrust violations, a senior FTC official said Wednesday.

The refinery near Bakersfield, Calf., has been the subject of intense controversy as Shell (SC) officials plan to close the facility in November. The oil company said the refinery was being shut down because of a decline in oil production in the region. read more

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North County Times: Shell accused of shorting gas supply

North County Times: Shell accused of shorting gas supply

By: EDMOND JACOBY – Staff Writer

Posted 28 June 04

As North County’s —- indeed, California’s —- motoring public adapts to unrelenting high retail gasoline prices that some pundits say will move past the $2.50-per-gallon mark before summer’s end, one refiner has come under fire for allegedly setting refinery maintenance schedules that limit gasoline output during periods of peak demand.

The Foundation for Taxpayer & Consumer Rights of Santa Monica on Monday charged that Shell Oil Co. set maintenance schedules for California refineries during the last few weeks before the Labor Day weekend, when gasoline consumption surges. read more

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SantaMariaTimes.com: Keeping gas prices up there

SantaMariaTimes.com: Keeping gas prices up there

Wednesday, June 23, 2004

It was reported Monday that Shell Oil Co. has plans to reduce production at its Bakersfield refinery – just in time for California’s busiest summer vacation driving period.

Shell officials deny that any cutbacks are planned, which did not prevent several elected officials and consumer groups from suggesting Shell is slowing production in an effort to boost prices, and therefore profits.

There is another possible explanation for Shell considering a slowdown in production months before its announced date to close the Bakersfield refinery, and it also has to do with profits. Shell may need the extra cash to pay for a ghastly mistake made in southern states about a month ago. read more

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Reports of cutbacks in summertime gas false, Shell Oil says

Sacramento Bee: Reports of cutbacks in summertime gas false, Shell Oil says

By Melanie Payne — Bee Staff Writer

Published 2:15 am PDT Tuesday, June 22, 2004

Shell Oil Co. denied Monday that it will cut summertime gasoline production at its refineries in Bakersfield and Martinez.

A story in the Los Angeles Times, citing internal documents, reported that the company would cut crude oil processing by 10 percent during July at the Martinez refinery and by 6 percent in July and August at the Bakersfield refinery Shell intends to close.

The article set off a flurry of letters from Jamie Court, president of the Foundation for Taxpayer and Consumer Rights, to state Attorney General Bill Lockyer and to the Federal Trade Commission. read more

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Regulators Given Internal Shell Documents

USNewsWires.com: Regulators Given Internal Shell Documents

Posted 22 June 04

Regulators Given Internal Shell Documents Showing Refinery Slow Down Leading Up to Labor Day; Huge Profits Reported At Bakersfield Refinery Slated For Closure

SANTA MONICA, Calif., June 21 /U.S. Newswire/ – The Foundation for Taxpayer and Consumer Rights (FTCR) is handing over internal Shell Oil documents today to the Federal Trade Commission and the California Attorney General that show Shell Oil is slowing down production at its Bakersfield and Martinez refineries for “routine maintenance” leading up to the busiest driving holiday of the year – a tactic to reduce supply also used by electricity producers during California’s energy crisis. read more

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Shell to Cut Summer Output at Bakersfield Refinery, Leaked Papers Say

Los Angeles Times: Shell to Cut Summer Output at Bakersfield Refinery, Leaked Papers Say

By Elizabeth Douglass, Times Staff Writer

June 21, 2004

Shell Oil Co. plans to put the brakes on production at its Bakersfield refinery in July and August, potentially shorting California’s fuel supplies during the summertime driving season, according to internal Shell documents.

The planned cutback is the latest development in the controversy over the refinery, which can process up to 70,000 barrels a day of crude oil and makes about 2% of California’s gasoline supply and 6% of its diesel. Shell has said it will close the facility Oct. 1 in a move that experts predict will boost pump prices by worsening the chronic imbalance between supply and demand in the state. read more

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Senator Wyden Maintains Hold On FTC Nominee Over Gas Prices

The Wall Street Journal: Senator Wyden Maintains Hold On FTC Nominee Over Gas Prices

By MARK WIGFIELD

Of DOW JONES NEWSWIRES

June 3, 2004

WASHINGTON — Sen. Ron Wyden, D-Oregon, said Wednesday he would continue to block the Bush administration’s nominee for chairwoman of the Federal Trade Commission after she failed to convince him that she would aggressively police gasoline prices.

Wyden’s questioning of Republican nominee Deborah Majoras dominated the confirmation hearing as he pushed her to change direction of an agency he said has failed to protect consumers from what he called anticompetitive practices in the gasoline industry. read more

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Los Angeles Times: Shell’s Refinery Shutdown: Standard Business Practice

Los Angeles Times: Shell’s Refinery Shutdown: Standard Business Practice

By Michael Hiltzik

May 20, 2004   

Every so often a major corporation, following its natural instinct to root out another few pennies of profit per share, drives blindly into a political quagmire. It leaves a community without employment by closing a factory, bulldozes a landmark to put up another drive-through restaurant, dumps wastewater in a bucolic swimming hole — you know the sort of thing.

These are salutary events in their way, because they remind people that as much as big businesses love to drape themselves in patriotism and good works, they’re not charities.
read more

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Oakland Tribune: Boxer pointing finger at Shell

Oakland Tribune: Boxer pointing finger at Shell

By Associated Press

Posted 20 May 04

WASHINGTON — California Sen. Barbara Boxer accused Shell Oil on Tuesday of planning to begin shutting down its refinery in Bakersfield sooner than publicly disclosed. A company spokesman denied the allegation.

“My information is that Shell is planning to begin the shutdown process as early as August by taking production units off line,” Boxer wrote in a letter to the president of Shell, Lynn Laverty Elsenhans.

“To take refinery units off-line in August, when summer gas prices are at a peak, will only worsen the problem of insufficient supply. … If true, then your earlier statements of an October shutdown are not accurate.”
read more

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Sacramento Bee: Shell denies greed spurs the closure

Sacramento Bee: Shell denies greed spurs the closure

By Dale Kasler — Bee Staff Writer

Wednesday, May 19, 2004

BAKERSFIELD – In the furious debate over California’s gasoline prices, the Shell Oil refinery in Bakersfield – a forlorn mess of pipes and boilers on a state road choking on truck fumes – usually got overlooked. Until Shell decided to close it.

Set for an Oct. 1 shutdown, the refinery produces just a sliver of the state’s motor fuel but has been embraced as a cherished resource by economists, elected officials and consumer advocates. They say losing the refinery could be devastating in a market where the balance between supply and demand is extraordinarily delicate.
read more

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New Californian Senate Panel To Examine Gasoline, Diesel Pricing

The Wall Street Journal: New Californian Senate Panel To Examine Gasoline, Diesel Pricing

DOW JONES NEWSWIRES

May 19, 2004 7:31 a.m.

NEW YORK — A newly-formed California Senate committee will investigate oil companies’ market behavior in the face of record-high gasoline prices in the state, an aide to committee chairman Sen. Joseph Dunn, D-Santa Ana, said Tuesday.

Dunn’s Senate Select Committee on Gasoline and Diesel Pricing will be similar in design to a panel he chaired in 2001-2003 to examine electricity price manipulation during California’s energy crisis, the aide said.
read more

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State Lawmakers To Probe Reason For High Californian Gas Prices

The Wall Street Journal: State Lawmakers To Probe Reason For High Californian Gas Prices

DOW JONES NEWSWIRES

May 18, 2004 7:48 a.m.

LOS ANGELES (AP)–State lawmakers will probe what’s behind California’s high gas prices following an increase in the average price of self-serve regular to a new high of $2.269 per gallon.

The new Senate Select Committee on Gasoline and Diesel Pricing announced Monday it will launch an investigation patterned after the inquiry into manipulation of California’s energy market in 2000 and 2001, said Senate President Pro Tem John Burton, D-San Francisco.
read more

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TheBakersfieldChannel.com: Shell Has No Plans To Cover Refinery’s Loss

TheBakersfieldChannel.com: Shell Has No Plans To Cover Refinery’s Loss

KERO Interviews Refinery Manager

Posted 12 May 2004

BAKERSFIELD, Calif. — As the closing date approaches, the controversy surrounding the closure of the Shell Refinery on Rosedale Highway continues to heat up, KERO reported.

Consumer Reporter Heidi Carter sat down with the refinery manager, who said the Bakersfield refinery isn’t efficient enough to keep open, even though it’s making a profit.

Amir Farid said the Rosedale refinery isn’t as efficient as Shell’s two other California refineries, which is why Shell will close it down at the end of September.
read more

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