Oil Drillers Resort to Trucks as Key California Pipe Idled

A refinery shutdown and the idling of a key pipeline in central California have forced oil drillers to truck crude barrels 50 miles as an alternative. This will raise transport and lifting costs, widen local price differentials and pressure margins for regional producers, with a risk of temporary production curtailments and tighter local supply.

Analysis

A refinery shutdown and the idling of a key pipeline in central California have forced oil drillers to truck crude barrels 50 miles as an alternative. This will raise transport and lifting costs, widen local price differentials and pressure margins for regional producers, with a risk of temporary production curtailments and tighter local supply.