BAKERSFIELD, Calif., Nov. 13 (UPI) -- Shell Oil said Thursday it would close down its Bakersfield, Calif., refinery next year due to declining supplies of local crude.
Shell said in a statement the shutdown of the 70,000 barrel-per-day plant would be completed by Oct. 1, and would result in a $200 million after-tax charge on third-quarter 2003 earnings.
Roughly 400 people work at the refinery, which was built 70 years ago to process crude from California's Central Valley. Those supplies have been dwindling and Shell figured the refinery would no longer be economical past the third quarter of 2004.
"While the decline in crude availability has been the major factor in the timing of this decision, this closure is just one part of an overall effort to optimize our portfolio," said Lynn Elsenhans, CEO of Shell Oil Products U.S.
Shell has three other West Coast refineries.
