The surge in oil production has not benefited California, but that's about to change. Shale oil from North Dakota and other states costs $15 less than imported oil. After transportation costs, California refineries would save $3 per barrel.
John Upton notes some startling changes among Gulf oil refineries - the ones that had been clamoring for the Keystone XL pipeline to be built in order to access Canada's oil sands. It's been two years - and the oil is flowing - with or without it.
Canadian oil is headed to two California oil refineries thanks to the collaboration of Union Pacific and Canadian Pacific railroads. Valero Energy's Benicia and Wilmington refineries are improving rail facilities in preparation for the deliveries.