Chevron Battles Back: Restart Efforts Underway at El Segundo Refinery

Chevron Corporation CVX is reportedly working to restart several processing units at its massive El Segundo refinery following a fire that forced partial shutdowns last week. The refinery, located near Los Angeles International Airport, is the company’s second-largest in the United States and a vital supplier of transportation fuels for Southern California.

Despite the disruption, Chevron confirmed that the refinery continues to operate — though at reduced capacity — producing gasoline, diesel and jet fuel to support the state’s energy demand.

A Blaze That Lit Up the Night Sky

The fire erupted late Thursday in the refinery’s Isomax 7 unit, which converts mid-distillate fuel oil into jet fuel. Videos shared by residents showed a massive fireball and orange skies across western Los Angeles. Chevron’s emergency response teams, alongside local fire departments, quickly contained the blaze.

No injuries were reported, and all refinery workers and contractors were accounted for, according to the company. Local officials issued shelter-in-place advisories for nearby Manhattan Beach residents, but no evacuations were required.

Jet Fuel Supply Takes a Hit

The incident’s biggest impact has been on the aviation fuel supply. The El Segundo facility provides about 40% of Southern California’s jet fuel, and its partial shutdown caused a sharp 33-cent-per-gallon jump in jet fuel prices. Analysts expect California may need to increase imports from Asia — particularly from South Korea, Taiwan and Japan — to make up for the shortfall.

Gasoline prices, meanwhile, have seen a modest uptick of 5-15 cents per gallon. California drivers, already paying some of the nation’s highest fuel prices, are feeling the ripple effects as refinery output remains constrained.

Investigations & Recovery Ahead

Chevron and California’s Division of Occupational Safety and Health have launched investigations to determine the fire’s cause. The company noted that Petroleum Administration for Defense District V inventories — covering the U.S. West Coast — remain higher than usual, potentially cushioning broader supply impacts.

While Chevron works to bring the offline units back up safely, the El Segundo refinery’s crucial role in California’s fuel ecosystem underscores just how vulnerable the state’s energy market can be to sudden disruptions.

CVX’s Zacks Rank & Key Picks

Houston, TX-based Chevron is one of the largest publicly traded oil and gas companiesthat participates in every aspect related to energy — from oil production to refining and marketing. Currently, CVX has a Zacks Rank #3 (Hold).

Investors interested in the energy sector may consider some better-ranked stocks like Cheniere Energy, Inc. LNG, TechnipFMC plc FTI and Oceaneering International, Inc. OII. While Cheniere Energy sports a Zacks Rank #1 (Strong Buy) at present, TechnipFMC and Oceaneering International carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Houston, TX-based Cheniere Energy is primarily engaged in the business of liquefied natural gas (“LNG”). It constructs and operates LNG terminal, and is also involved in LNG and natural gas marketing. The Zacks Consensus Estimate for LNG’s 2026 earnings indicates 8.2% year-over-year growth.

Newcastle & Houston-based TechnipFMC plc is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The Zacks Consensus Estimate for FTI’s 2025 earnings indicates 19.8% year-over-year growth.

Oceaneering International is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. The Zacks Consensus Estimate for OII’s 2025 earnings indicates 57.9% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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