Unless it is a BP, or an Exxon or a Chevron, whomever buys it will be out of the game in 3 years.  It is old.  It is inefficient.  It is not big enough.  It does not have a secure supply of oil.  And it is in California.  The environmental regulations in the next 5 years will bring that place to its knees. 

All these teasers for the Sunday edition... trying to raise revenue a bit? Funny thing though, if it was a contest or a coupon in the Sunday paper, such a blog post would probably increase sales.

It's actually more efficient than you think it is. With new units coming in using new technology and boosting output, it may become more valuable to oil companies. At 6% of the states diesel, it's plenty big enough for Kern County, and that is good for us. If the right company (with surrounding oilfields) were to buy it, it would have a secure supply of oil. Had Shell not try to jack prices up for the consumers (they knew this place was profitable and productive) none of this would be an issue.I think the EPA looks at it differently too.... the longer it runs, the more money they get.

I don't get why everyone on here has it out for the place? For the most part, its just a handful of good 'ol local guys and gals trying to make a decent living. They care about their family, friends, community and jobs. Why people dump on it so bad, I'll never understand. Does it offend people that much? Try to remember, just because a company does something awful with it doesn't mean the workers were in agreement. We saw an example of that when the union took it's stance against the use of HF acid. Can't thet get a little break?

Mexico is actually in the petro industry. You never know which angle he will be coming from concerning the refinery.

One week he is in total support of it.  The next he wants in put in a bullet and shot straight to Haiti’s

Ever since the sale to Flying J..that place has had problem after problem....why?

I am just speaking the truth, Koz.  THe place has pressure vessels that were built in the 1930's.  High pressure reactors are getting close to 50 years old.  The expansion won't allow them to idle the old equipment. That has to keep on running.  Will the new company or investment partners budget money to replace the shidt that is duct taped together?  Shell deferred all kinds of replacement needs because they saw the magnitude of them (and they wanted out). 

Just recently the air district passed more regulations that will add tens if not hundreds of millions of dollars needed to comply.  Then add global warming regulations and additional fuel regulations.  And not one dime of those investments adds to the bottom line. That is just "pay to play money".

The big boys with local oil had absolutely no desire for it 4 years ago.  With a recession expected to last several years (if not forever if Obama gets his way), why would someone want to invest in this?  Investment companies aren't in the game to keep the good people there employed. They are there to get their money back, plus a profit.  With the forecasts in the economy, and the desire to move away from carbon fuels, I think that plant has seen the last of its days.

Disneyland has rides built in 1955. Magic Mountian has rides built in 1971. What are the factors that keep them running safe on a day to day basis at 50 years old? Regular inspections, trained workers that monitor the units for problems, indicator equipment and sensors, emergency kill switches, procedures and emergency procedures.... the list stretches on and on. There is OSHA that dictates requirements and codes that must be adhered to or equipment cannot run until it is fixed. Wtih safety personal as well as concerned workers, equipment needs to be in safe conditions to be started.

The air distrcit works with companies that run the refinery, giving credits and reviewing each case individually. They know that when you are running a business such as this, some things are beyond your control. For most of the pumps, double seal technology has been installed even where not needed to prepare for future resrictions and companies like SUMIT spend all day, everyday sniffing for violations in which the company has 2 days to repair. These have been the standard for years now, so I don't know where you think they need hundreds for millions of dollars to comply. The clean fuel expansion is what will match fuel regulation standards, and that is half paid for and ready to be built.

And the big boys with local oil? Who are you considering? 4 years ago both Tesoro and Valero were looking to this refinery for a purchase. Tesoro now aiming to be the leading West Coast refiner after purchasing refineries in Martinez and Los Angeles. Valero iswell known in the industry also. Chevron made mention also, but because of laws still restraining them after the merger with Texaco, at that time they were not allowed to.The problem was Shell looking to close the refinery for profits so they chose to sell to the least likely to succeed.... hence Flying J, a truck stop chain with no oil. To seal the deal they made sure they had control of the pipelines and loading rack, thus ensuring that if Flying J managed to pull it off, they could still provided a fatal blow.

With alternative fuels still years away and the refinery selling for a ultra low price (with the expansion looming) I think the refinery still has years ahead. Any company, investment or not, has a chance to buy the place for such a low amount, they stand to make their money back in the first 2 -3 months.... just like Flying J did.

If it is in your intention to really hurt the refinery or kill the workers jobs though, Ronmexico, I have a suggestion: Stop driving your car(s). Then we can blog about Nike not being up to your specs and run them out of business! :) haha

Not sure why you consider my intent to be to hurt the refinery. I was just pointing out facts.  There is nothing in the air district rules that allow them to exempt big west from millions in heater retrofits just because they are bankrupt.  Summit doesn't retrofit heaters..  Some of those heaters are so old they will need to be replaced rather than just retrofitted with new burners.  There are nothing in the regs that will allow the feds to exempt the refinery from green house gas curbs just cause they are bankrupt.  Thats more dollars that has to be sunk into the place that gets no return.

My prediction is that if an investment company buys the place, they won't last any longer than Big West. 

Chevron apparently can't buy it because of federal trade rules.  So who does that leave that has local oil production and refinery experience??  Berry? Paleeze.  Oxy??  They have no refining experience either, although they do run chemical plants.  So who do you want to buy the place??  Tesoro??  What makes you think the feds would allow them 3 California refineries when they didn't allow Chevron three?  Valero?? Zero barrels of oil production.  They are trying to sell refineries, not buy them.

Mexico,

I understand your point. But I think something has to be done to keep that plant open, Those are big paying jobs.  That plant puts a lot of money into Kern.  Local producers are going to lose a lot of money to pipeline costs if that plant goes under.  I doubt 20 bucks a barrel minus pipeline fees would make it pay to maintain a well.

Making the plant a Municipality/County plant  in conjunction with local producers would be a along shot I am sure. But would be worth looking into .

Just level the site and speed up Shell's cleanup of the soil and groundwater contamination.  Then attract investors with tax incentives and free property to build the biggest solar concentrator plant possible on the 600 acres and form a county or municipal power company.  It would provide most of Bakersfield's electrical needs, keep the money and jobs from energy production local, help clean the air, and give other developers in Bakersfield huge carbon credits.  Besides, we need renewable electricity for our transportation in the future, not oil.

Can you IMAGINE the skeletons that would be dug up IF they did that...( figure of speech )...that could very well be the tip of the iceberg as to what could and would be found...I don't think that would be in the best intrest of SHELL

"Ever since the sale to Flying J..that place has had problem after problem....why?"

As an operator who works at this facility I will tell you, because Flying J hasn't a CLUE as to how to run a refinery!!  I do however like the comments left by other bloggers about how run down the refinery is seeing as how YOU do not have any first hand knowledge of what has been upgraded and what has not...or do you??

Shell oil had a motive for pulling out of Bakersfield, least of all was not having any oil to refine. Big West has the potential to be very profitable not only to itself but to Kern county. On the other hand if it closes for good... we will ALL feel the dominoe effect in some way.

Last time I was at that facility..there was an old well that had to be abandoned..right smack dab in the middle of the facility..down hole cavity shot and cement...our equipment could not produce any sparks or static electricity---common sense...

Good to hear from your point of view..just like you trying to tell me how to do my job in that facility..and believe me-you've never seen so many 'white hats' watching and taking pictures....

I don't see how you thought that I was trying to tell you how to do your job but I can certainly see how an abandoned well would make you an expert on the goings on inside the refinery---common sense...

Yep the coming domino effect. is...husband loses job at refinery....we lose our house, the only place our kids have known.  

I'm SO hoping someone  will step in and buy it --- SOON!