California to Add One Million Barrels of Crude Oil Storage

California Attorney General Bill Lockyer says the state’s “fragile gasoline market” will be strengthened by the addition of almost one million barrels of crude oil storage capacity under an enforcement settlement that resolves antitrust objections to Valero’s $2.8 billion acquisition of Kaneb.

Today, Valero and Kaneb directly compete in the Northern California terminal services market.

“Lack of storage has been a significant contributing factor to the dysfunction that afflicts California’s gasoline market and the exorbitant prices suffered by this state’s drivers,” said Lockyer. “By increasing storage capacity, this settlement will help stabilize the market in Northern California and benefit motorists by providing a buffer against supply shortages and price hikes.”
Environment News Service