Two refineries in California are shutting down, due to the CA Gavin Newsom regulations making it impossible to function profitably.

California already has the highest gasoline prices in the USA. And it is about to get worse.

Due to the Jones Act, the gasoline is exported from Texas to the Bahamas, then imported from the Bahamas to California. The Jones Act requires American flagged vessels if it were to go from Texas to California directly. But by exporting it first to the Bahamas (another country) that sidesteps the Jones Act. This adds weeks of shipping time, but ultimately saves a few $$$ per barrel. There are not many vessels compliant with the Jones Act.

The real problem is lack of refineries in California and lack of pipelines between Texas and California.

@WallStreetMav

https://x.com/i/status/2023481319611617498