BP Motors Away From The L.A. Gasoline Business
BP is set to take its curtain call in Los Angeles as part of a widespread overhaul in the toxic wake of last year's Gulf of Mexico spill. The oil giant announced on Tuesday its intention to sell a huge, 630-acre Carson refinery south of downtown and its local Arco gasoline operations. It will also be selling its Texas City, Texas operation.
BP said it expected to get "at least $4.4 billion for the refineries, which represent about 28% of its global refining capacity, and the Los Angeles marketing operations. Sales are anticipated to be wrapped up by the end of 2012," reports the L.A. Times.
As a result BP will have a large role in reshaping California's "energy landscape," says the L.A. Times, where for decades Arco and Chevron Corp. have been jockeying for domination in "fuel retailing and refining."
There is speculation about what the planned sale will mean for motorists. Said Charles Langley, senior gasoline analyst at the Utility Consumers Action Network in San Diego, "Only if we get a new player buying this refinery could it be good for consumers...We used to have 21 refineries. Now we have 10 refineries owned by seven companies, and we've already seen consolidation that is anticompetitive," reports the L.A. Times.