Reuters reports Texas-based Tesoro Corp's intention to purchase BP's California Carlson refinery for $2.5 billion.
The acquisition will result in the largest U.S. oil-refining operation west of Texas. But hold up: the champagne's not popped yet. Regulators, concerned that the Pacific Basin mega-merger may negatively impact the industry are ready to give Tesoro a run for its money.
The state of California is routinely the largest gasoline market in the United States and on average California consumers shell out the most money at the pumps. The potential of a Tesoro monopoly over the West Coast gas market has earned the attention of regulators. According to Reuters, the California Attorney General and the U.S. Federal Trade Commission have already begun serious inquires.
So how will this affect Alaskans?
Reuters suggests, "Tesoro's grip in a U.S.-defined petroleum supply zone that includes five western states, Alaska and Hawaii would rise to 25.35 percent from 17.66 percent", meaning the West Coast, including Alaska, can expect to see a significant value increase throughout the region. There is also talk that this merger will allow Tesoro to expand and "improve on hydrotreating capacity used to make greener fuels."
For more visit Reuters here.