Fire at Chevron's El Segundo Refinery Raises Concerns Over Fuel Supply and Prices

On the evening of October 2, 2025, a significant fire erupted at Chevron's El Segundo Refinery in California, sending towering flames into the night sky and prompting local authorities to advise residents to stay indoors. The blaze originated in the Isomax 7 unit, a processing unit responsible for converting mid-distillate fuel oil into jet fuel. This facility is crucial to the region, supplying about 20% of motor vehicle fuels and 40% of jet fuel consumed in Southern California.

The fire produced towering flames and a dark plume of smoke visible for miles, prompting local authorities to advise residents to stay indoors. Despite the dramatic visuals, no injuries were reported, and all personnel were accounted for. The fire was fully extinguished by late Friday morning, October 3, 2025.

In response to the incident, Chevron initiated an internal investigation to determine the cause. The company also began operational adjustments at the refinery, including the temporary shutdown of multiple processing units, while efforts to restart operations were underway.

The El Segundo Refinery, operational since 1911, processes up to 290,000 barrels of crude oil daily. Given its significant role in regional fuel supply, the fire raised concerns about potential impacts on fuel availability and prices in Southern California.

The fire at the El Segundo Refinery has significant social and economic implications:

• Fuel Supply and Pricing: The refinery supplies a substantial portion of Southern California's fuel. Disruptions could lead to fuel shortages and increased prices. Experts predict prices could soar to between $6.50 and $8.50 per gallon by April 2026.

• Environmental Concerns: The fire resulted in significant air pollution, with elevated volatile organic compound (VOC) levels detected overnight. While no immediate threat was identified by morning, ongoing monitoring is essential.

• Policy Shifts: In response to the looming gasoline shortage, California Governor Gavin Newsom has softened his stance on oil companies, approving up to 2,000 new drilling permits annually through 2036 and delaying a planned windfall profits tax on oil companies until 2030.

This is not the first incident at the El Segundo Refinery. The facility has experienced multiple fires over the past decade, including a significant one in 2017. Such incidents highlight ongoing safety and operational challenges within the refinery.

Chevron has launched an internal investigation to determine the cause of the fire. The company is also making operational adjustments to meet Southern California's fuel demands, including the temporary shutdown of multiple processing units. An unplanned flare event occurred at the refinery following the extinguishing of the fire, and future intermittent flaring is a possibility as these operational adjustments occur.

The fire at Chevron's El Segundo Refinery underscores the vulnerabilities in California's energy infrastructure. As the state grapples with potential fuel shortages and environmental concerns, the incident serves as a stark reminder of the need for robust safety measures and diversified energy sources to ensure stability and sustainability in the region's fuel supply.