The suspension of work is a direct result of the plummeting demand for gasoline and oil statewide. According to the California Energy Commission, demand for gasoline has declined 44% since mid-February, while demand for jet fuel has declined 63%. Diesel has taken less of a hit because trucks are still on the road.
Marathon Petroleum announced plans last week to indefinitely idle its Martinez refinery on April 27.
A Marathon spokesperson confirmed that the company is limiting the number of contractors at its facilities “to only those needed for critical support functions” to allow workers to maintain appropriate distancing.
The company has retained all of its direct employees for regular maintenance and operations, despite effectively stopping processing of transportation fuels and refined products. The facility normally processes 160,000 barrels of oil a day.
To manage the sharp decrease in demand, Marathon is holding its processing units in “standby mode” for the foreseeable future, the spokesperson said. Certain parts of the plant will remain in operation, like wastewater treatment, steam systems, and vapor recovery and flare systems.
The coronavirus crisis has affected operations at the four other Bay Area oil refineries.
Chevron has said it’s making adjustments to operational plans at refineries due to lower demand. But it has not specified what changes they are making at the Richmond refinery, or if any contracted workers have been let go.
Phillips 66 announced last month it was reducing all of its refineries, including its facility in Rodeo, to minimum production levels. Valero, which operates a refinery in Benicia, has cut its production by at least 15%.
And PBF Energy, which recently purchased Shell’s refinery in Martinez, has responded to the downturn by cutting production to 30% of capacity and selling off hydrogen plants at the complex.