Fox News contributor Mary Kathryn Hamm and Zuma Global president Heather Zumarraga discuss California's lack of resources to fight wildfires on “monetization.”
On top of the destruction California's deadly wildfires continue Uncontrolled fires can damage energy flows in the region and beyond.
Andy Lipow, president of Lipow Oil Associates, warned in a note this week crude oilgasoline, diesel, and natural gas sources may all be affected.
Storage tanks at Marathon Petroleum's Los Angeles refinery, which processes domestic and imported crude oil, gasoline, diesel fuel and other petroleum products, in Carson, California, March 11, 2022. (Reuters/Bing Guan/Reuters Photo)
While five refineries located in Los Angeles And while the Long Beach area is not in direct danger of the fire, several pipelines are at risk, and that means cutting off supplies not only to California, but to other states.
California wildfires: Essential phone numbers for Los Angeles area residents and how you can help
It could also lead to congestion at refineries, which may be forced to reduce operating rates to maintain inventory. The five Los Angeles-area refineries handle 60 percent of the refining capacity in California and 40 percent of the refining capacity on the West Coast, including Alaska and Hawaii, Lippo said.
Cars pass through the Wilmington Phillips 66 Los Angeles Refinery on November 28, 2022 in Wilmington, California. (Mario Tama/Getty Images/Getty Images)
He pointed to the crude oil and natural gas pipelines in the vicinity of the Hearst Fire and Easton Fire and noted that Kinder Morgan's western line has already been shut down. The company supplies about 60 percent of the refined products consumed in Nevada and two-thirds of the refined products consumed in Arizona.
California wildfires could cost insurers $20 billion, the highest in the state's history.
“I have not heard of any crude oil or natural gas pipeline shutdowns, but not only are they at an obvious fire risk, but they have to lose power from preventative measures taken by local utilities,” Lipo wrote.
A firefighting plane crashes on the Palisades Fire in Pacific Palisades on Tuesday, January 7. (Brian van der Brugh/Los Angeles Times via Getty Images/Getty Images)
There are four Big fires Around Los Angeles, the White House announced Friday that local, state and federal firefighters were able to partially contain some of the largest fires overnight.
The Pasadena fire is 3 percent contained, while the Pacific Palisades fire is 8 percent contained, officials said. The Ventura fire is 35 percent contained and the Sylmar fire is 37 percent contained.
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These fires have so far destroyed more than 10 thousand houses and businesses and left 10 dead.