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There is a remarkable increase in prices on oil in California. Read on to know more why California tells a different story than the entire nation. While the whole world is experiencing falling prices of oil, may it be a gasoline or crude oil, California, though one of the oil generating states of the United States, experiences significant rise in the prices on oil. Why oil prices in California have gone up? What might be the reason behind increased oil prices in California? To know the reason behind comparatively sudden increase in prices on oil, several surveys and studies were carried out in all over the nation and in California. The reports reveal the facts and figures why the prices on oil in California have increased. According to the state's Energy Commission, there were fourteen refineries which produced gasoline in line with the state's demand until a few years ago. But at present, there are just twelve as two small refineries are closed down for ever. Though those shut down were small, the impact was heavy on the production of oil in its entirety resulting in an increase on oil prices. As if this was not enough, out of remaining twelve, four temporarily closed mostly for maintenance, revealed the statistics. The event has triggered the prices on oil and made them go even higher in the state of California. The refineries that are closed for maintenance are Tesoro Corp.'s Golden Eagle refinery in Martinez which produced 166,000 barrel-a-day, Conoco Phillips' refinery in Wilmington which produced 139,000 barrel-a-day, and Shell Oil Co.'s refinery in Martinez which produced 156,000 barrel-a-day. The whole scenario reveals that the pattern of declining oil prices in California for about seven consecutive weeks is broken. Prices on oil are increased due to shut down of refineries resulting in lesser amount of available oil. Now, when it comes to the available oil, California State had about 6.61 million gallons of oil until last year. But, available oil in current situation counts only about 4.46 million gallons of gasoline, says Weekly Fuels Watch Report of California Energy Commission. Studies and survey carried out in main regions of the United States reveal another important reason why there is decline in average price of a gallon of regular gasoline all over the United States but California. The reports say that falling prices on oil are a partial result of the boom in oil supplies coming from North Dakota. In short, closing down of refineries in California has resulted in lesser amount of oil produced eventually resulting in increased prices on oil in California while booming oil supplies from North Dakota have made prices on oil to come down. Kyles Humphrey is an accomplished writer in oil related fields, who regularly writes articles related to oil prices & indexes and crude oil including tips on investment in oil. Please visit oil.com for more details.
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