The United States is the world’s largest oil producer but domestic oil doesn’t make its way to Coronado. Only 16% of California’s oil is produced domestically, originating in Alaska. Oil produced in Texas and the Gulf Coast stays to the east because pipelines don’t run through the Sierra Nevada mountains. Federal regulations make shipping U.S. oil through the Panama Canal to the West coast cost prohibitive.
As a result, California imports more than 60% of its crude oil. Of that, about 25% comes from Iraq and Saudi Arabia. Iran’s blockade of the Strait of Hormuz has stalled or diverted oil tankers destined for California.
Crude oil prices are driven by global supply and demand. For Coronado, this means local gas prices continue to increase even as domestic oil production hits record highs.
How does oil get here?
Crude oil tankers from the Middle East arrive at ports in Los Angeles and Long Beach. The Port of San Diego does not handle commercial oil tankers. Oil is then pumped from the tanker ships to large refineries in the Los Angeles area.
The oil is refined to meet California’s efficiency and clean air standards for gasoline before being pumped through a 150-mile pipeline system to San Diego’s fuel storage terminal in Mission Valley. Tanker trucks fill up at the terminal for delivery to local gas stations around San Diego.
Flammable gasoline trucks are prohibited from taking the San Diego-Coronado Bridge so deliveries to Coronado are via the Silver Strand Highway.
Prices
As of March 23, gas prices in San Diego County averaged $5.871 per gallon, according to AAA. Coronado’s Shell station, the only currently operating gas station in the Village, reached $6.59 per gallon for regular. If the war in Iran continues, regional gas prices are expected to increase as refineries struggle to source enough oil to meet consumer demand.
The International Energy Agency has advised immediate reduction in gas consumption around the world to address the current crisis.
Electric Alternative
Switching to an electric vehicle reduces dependence on imported oil. Coronado’s electricity is increasingly generated from solar energy, a cleaner, cheaper, domestically produced alternative to power cars.
Charging a car is less expensive than a tank of gas. The cost of charging an electric vehicle at home with the lowest SDGE rates is equivalent to around $1.15 per gallon although electricity rates vary by time of day and location. Gas prices are forecasted to stay high making electric vehicles increasingly cost effective.
Air Quality
Air quality monitors installed around town show Coronado frequently has unhealthy levels of air pollution. On March 23, Coronado recorded an Air Quality Index of 178 by the Bay — far exceeding the healthy standard of 50 or below.
A major contributor to local air pollutants are the thousands of gas-powered vehicles driving through Coronado daily creating stop-and-go traffic and releasing harmful nitrogen dioxide and particulate matter. Driving an electric vehicle ensures cleaner air for our community.
EVs powered by renewable energy provide a cleaner, cheaper, domestically powered alternative to oil to help keep Coronado Emerald Green, Ocean Blue.
