Posted on 06/23/2025 8:08:44 PM PDT by kiryandil
Two large California oil refineries are shutting down, triggering mounting concerns from state legislators, industry groups and many others.
**snip**
The Phillips 66 and Valero’s Benicia sites are set to close in 2026. Together, the shutdowns will eliminate nearly 300,000 barrels-per‑day of refining capacity — roughly 20% of the total used in the state.
Valero attributed its decision to “years of regulatory pressure (and) significant fines for air quality violations,” including an $82 million penalty levied in 2024. Phillips 66 similarly cited business challenges stemming from California’s strict environmental regulations.
"They have said that they cannot do business in the state of California," Gipson reiterated. “The regulatory agencies have imposed on the refiners of California very stringent regulation that makes it very difficult for them to remain in the state of California.”
(Excerpt) Read more at finance.yahoo.com ...
Kalifornia refineries are forced to change the fuel “blend” every 3 or 4 months. Yes, the Kalifornia leviathan “justifies” these “blends” by invoking the usual suspects: pollution, and the Globull Climate Hoax.
Normally, I check.
I confess that I was totally gobsmacked by the stupidity, and hadn’t seen your earlier article post.
Also, Donald Trump is authoritarian.
I love all of that. I’ve got a 36 gal in the F150, very convenient.
I’m passing through CA, S to N (in San Mateo, tonight) in my motorhome. Thus far, since leaving Jacksonville on May 22, my average price of gas has been $2.77/gal, INCLUDING 58 gallons so far in CA @ $4.25/gal and $4.20/gal!
Lowest so far, has been Abilene, TX: $2.239!
EVERY state we have passed through has been selling gas for LESS THAN $3.00 PER GALLON!
Kailfor-nians are NUTS for putting up with this INSANITY!
I am told OR and WA gas prices are also NUTS!
Will report when I get there!
The illegals don't pay income taxes in this country. If they did, it could put a sizable dent in the budget deficit.
Godspeed and low prices to you!
It has national implications as no new oil refineries have been built since the 70s and these refineries supply national too. there are actually 3 closing
This will not impact just CA as they produce jet fuel for the nation and no new oil refineries have been built anywhere in the US since the 70s. We cannot be energy independent without refineries. There are actually 3 large refineries closing in CA , they have been there for over 75 years and are environmentally clean, and they supply about 9-10% of CA fuel and 1% of the nations gas and oil oil and a significant amount of jet fuel. If you think prices are just going up in CA, well that is not how the oil market works. The current prices are largely a reflection of the additional taxes Newsome has on gas.
I wrote Sec Wright, Burgham etc as Trump’s administration y could easily stop the closures but got a form letter reply. The properties are going to be sold for housing supposedly. And developers have been making donations to both parties.
. Here is what I wrote Sec Wright: I read with interest Secretary Chris Wright’s memo last month directing the agency to take immediate action to unleash “the golden era of energy dominance and his comments at CERAWeek 2025.
I believe there is a low hanging fruit opportunity If Secretary Wright would help stop the closure of two of CA largest oil refineries that produce over 8% of the states gasoline. As you know, no new refineries have been built in the US since the mid 70’s. How can you have energy dominance without refineries? Even Gov Newsom’s California Energy Commission’s analysis has indicated, “Expanding supply capabilities will be critical.”
It will mean a price increase to consumers and dirtier oil. Phillips 66 is contractually obligated to the state of CA,to replace the oil and it will be done with imported heavy crude or dirtier oil. Phillips 66 said, will replace with oil from “inside and ...outside its refining network. So more than likely the supply will be coming from outside aka Venezuela.
Phillips 66 announced (see release below) that they are closing two large refineries in S CA that have been in operation for over 75 years and produced billions of gallons of gasoline, diesel and jet fuel.
While Governor Newsom privately thanked Phillips 66 for not “throwing him under the bus” , they delayed announcing until a few days after Gov. Gavin Newsom signed new regulations into law.
If you talk to privately to engineers and executives they will tell you that it can be reversed with a little cooperation from the federal government.
“The California Energy Commission’s analysis has indicated, expanding supply capabilities will be critical. Phillips 66 supports these efforts and will work with California to maintain current levels and potentially increase supplies to meet consumer needs. The company will supply gasoline from sources inside and outside its refining network.” The refineries are still in full operation, and there is time to reverse this decision or negotiate a deal to sell the refinery to another refinery like next door Marathon petroleum which is next door to Phillips 66 or other oil and energy companies.
We have a new Wesco station a few miles from us in west Michigan, $3.24 a gallon here.
“Move the refineries to Nevada and Arizona”
No refinery of equal capacity as these two closing down in CA. has been built since 1977 (140k a day)I understand that a small 45k barrel a day facility in Texas opened in 2022.
You realize these ‘fuel blends’ are just something they squirt in the trucks after they have filled up and before they leave the refinery. The gas all comes out of the same tank. I’ve seen it. Yes, I know it’s ridiculous.
In California, gasoline is subject to state excise tax, sales tax, and an underground storage tank fee, totaling a significant amount per gallon. Additionally, there’s a federal excise tax, bringing the total tax burden to about $0.90 per gallon
State Excise Tax:
The state excise tax is currently $0.612 per gallon and is adjusted annually for inflation.
State Sales Tax:
A sales tax of 2.25% is applied on top of the excise tax and other costs, according to the CDTFA (.gov).
Underground Storage Tank Fee:
.
There’s also a 2.0 cents per gallon fee to fund the state’s underground storage tank program.
Federal Excise Tax:
The federal government also imposes an excise tax of $0.184 per gallon, according to the Wikipedia.
It’s obviously Trumps fault after adding 19 cents per gallon.
“Oddly I do see a place for electric vehicles for short range commutes to work of less than 100 mile range. These could be recharged nightly for commuting or for us retired to the local grocery store. It must have enough battery power to run air conditioning and a heater for the 100 mile total commute. It gets hot in Texas and cold, we need both.”
Funny, I know a doctor here in Texas who limits his Tesla driving to 50 miles (one way) - just as you state. After that, it’s a real car, only. The specific drive puts him at risk of a traffic jam as its through the city, so he could be sitting for a while with his air conditioner on, so his limit makes sense.
Bottom line is like you say, EVs can have a place for some people (those with extra money like the doctor who can charge at home), and can be very useful if gasoline is not available, but they are nowhere close to being as useful.
But don’t be so sure about nightly charging - it works for now, but Australia is already discussing (nothing official yet) the DRAINING of EV batteries at night to support their grid, since their existing, huge, grid-level batteries have a habit of self-immolation. Obviously if people try to get ‘cute’ at night by unplugging, they’ll be stopped.
I don’t know if it’s still true, but at one time, county authorities in CA could determine the distillate fuel mix for their county. At one time, there were 32 distinct fuel “blends” in CA, which kills any chance for scale economies in the production of distillate fuels. Now, losing 20% of your refining capacity, CA will finally be able to meet its air quality standards since most people will be walking from now on.
most people will be walking from now on.
*************
I doubt that but I do remember people walking to stores once
or twice a month to get certain necessaries. Some would ride
horses, have an animal pull a 2 or 4 wheel buggy/wagon.
Memphis, TN $2.64
I have stock in both.
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