Chevron El Segundo Refinery Fire

Economy

Oct 4

Chevron El Segundo Refinery Fire: Details and Impact on California's Fuel Supply

Details and Impact on California's Fuel Supply

The October 2025 Fire Incident

On Thursday, October 2, 2025, a massive explosion and fire erupted at the Chevron El Segundo refinery in Los Angeles County at approximately 9:30 PM PDT^[1]^[2]. The blast produced 300-foot flames visible for miles across the South Bay, with witnesses reporting what felt like a small earthquake^[1]^[6]. The fire burned for over nine hours, with the last visible flames extinguished around 7:15 AM Friday morning^[6].

Immediate Response and Safety

No injuries or fatalities were reported, with all refinery personnel and contractors accounted for^[1]^[4]. The El Segundo Fire Department and Chevron's on-site fire department responded immediately, given their proximity just 0.25 miles from the refinery gates^[3]. A shelter-in-place order was briefly issued for Manhattan Beach's Tree Section neighborhood but was lifted after 2 AM Friday^[6].

Location of the Fire

The fire occurred in the refinery's Isomax 7 unit, a critical jet fuel production facility that converts mid-distillate fuel oil into jet fuel^[6]^[7]. This unit, along with the refinery's two crude distillation units, produces jet fuel for Los Angeles International Airport (LAX)^[20]. The incident also resulted in the shutdown of the reformer and fluid catalytic cracker units, losing more than 100,000 barrels per day of gasoline output^[6].

Refinery Production Profile

Processing Capacity and Output

The Chevron El Segundo refinery is a major West Coast facility with the following characteristics:

Processing capacity: 276,000-290,000 barrels per day^[4]^[5]
California's second-largest refinery^[2]^[11]
Chevron's second-largest U.S. refinery^[7]

Product Mix

The refinery produces^[4]^[5]^[6]:

20% of Southern California's motor vehicle fuels
40% of the region's jet fuel supply
Gasoline and diesel fuel
Petroleum coke
Base oils for lubricants
Petrochemical feedstocks

Crude Oil Processing Capabilities

The El Segundo refinery processes both heavy and light crude oils^[26]^[29]. The facility has undergone modifications to handle:

Heavy crude oils with high sulfur content (sour crude)^[26]^[44]
Light sweet crude with lower sulfur content^[41]
A wider range of crude oils including higher sulfur-containing varieties^[44]

The refinery's Heavy Crude Project has enhanced its ability to process more dense, viscous heavy crude oils while maintaining production levels of motor fuels^[26]. This involves sophisticated processing units including atmospheric and vacuum distillation columns, delayed coking units, and various upgrading facilities^[26].

Impact on California's Refined Petroleum Product Availability

Immediate Market Concerns

USC professor Shon Hiatt warned that gas prices could increase 13 cents per week for every week the Chevron refinery remains offline^[5]. Experts predict this incident could push California gas prices up by as much as $1 per gallon^[42], given the refinery's significant contribution to the state's fuel supply.

California's Refinery Crisis Context

The Chevron fire compounds an already critical situation in California's refining sector:

Recent and Planned Closures^[24]^[25]^[28]^[31]

Refinery	Status	Capacity (bpd)	Impact
Phillips 66 Los Angeles (Carson/Wilmington)	Closing by end of 2025	139,000	~9% of state capacity
Valero Benicia	Closing by April 2026	145,000	~9% of state capacity
PBF Martinez	Currently offline due to February 2025 fire	157,000	Expected partial restart Q2 2025, full operations Q4 2025^[54]

Cumulative Impact

California has already lost 20% of refining capacity since 2020^[25]. With the upcoming closures, the state will lose approximately 17-18% additional capacity^[24]^[33], bringing total losses to nearly 40% within six years.

Current Operating Capacity

Before the Chevron incident, California's refinery buffer was already thin^[40]^[43]:

2024: 16.3% surplus capacity over demand
2026 (projected): Only 6.3% surplus after Phillips 66 closure
With Chevron offline: Potential immediate shortage scenario

Aviation Fuel Crisis Risk

The disruption to the Isomax 7 unit is particularly concerning for aviation^[5]^[38]^[42]:

Supplies 40% of LAX jet fuel
Potential for commercial flight disruptions if shortage becomes severe
May require imports from Asia (South Korea/China) to maintain supply^[5]

Supply Chain Vulnerabilities

California faces unique challenges^[24]^[30]^[40]:

No pipeline connections to other U.S. refining centers
Unique fuel formulation requirements prevent easy substitution
Limited import infrastructure for refined products
61% of crude oil imported from foreign sources (vs. 23% produced in-state)^[40]

Price Impact Scenarios

Industry experts warn of severe price implications^[5]^[28]^[33]:

Near-term: 13-50 cents per gallon increase possible
If multiple refineries offline simultaneously: Prices could exceed $8 per gallon by late 2026^[33]
Current average: California already pays $4.65/gallon vs. $3.18 national average^[28]

Conclusion

The Chevron El Segundo refinery fire represents a critical inflection point for California's energy security. The incident has temporarily removed the state's largest refinery from production at a time when refining capacity is already stretched dangerously thin. With 40% of jet fuel supply and 20% of gasoline production at risk, combined with the imminent closure of two other major refineries, California faces an unprecedented fuel supply crisis that could dramatically impact both ground and air transportation costs throughout the state.