California may lose two more refineries, would have to rely on gas from abroad

Just the News ^ | 10/25/24 | By Kenneth Schrupp

[CFW]

Short on the heels of another major refinery closure, Valero signaled it is considering closing its two California refineries that produce over 14% of the state’s gasoline. Refinery closures already have the state importing 8% of its gasoline supply, which means the state could soon have to significantly increase its imports of refined products such as gasoline, on top of its existing reliance on the Middle East and South America for the majority of its crude oil.

Valero announced its profit is down significantly due to very low margins from its refinery business, prompting a question during its earning call about its costly California refineries.

Valero CEO Lane Riggs responded the company has already “minimized strategic [capital expenditures]” in the state and “California is increasing its regulatory pressure on the industry, so we’re really considering everything — all options are on the table.”

While Riggs did not explicitly state that the refineries, which represent over 14% of the state’s remaining refinery capacity, could be shut down, California legislators were quick to ring the alarm bell and tie the potential closures to new refinery regulation powers being granted to the state in a special legislative session called by the governor.

“When California Governor Gavin Newsom said in 2021 he didn’t see a future for oil in CA, I didn’t know 2024 would be the year he ended it at lightning speed,” said State Assemblymember Joe Patterson, R-Rocklin, on X. “Today, another refiner said “all options are on table” with refineries here. We can thank Newsom’s legislation.”

[CFW]

I'm not sure what can be done about California. The large cities control the state and the rural conservative sane people have no say-so. I believe California (Pelosi, et al) is where Democrat politicians perfected the "steal". They have been trying to take that "election method" show nationwide ever since. This is what happens to your state when you do not "nip it in the bud".

[HYPOCRACY]

B1 Bob was the test case and the feckless Republicans let them steal his seat. It was game on since then. Cowards.

[null and void]

Good luck California getting your seasonal boutique gasoline formulations from abroad!

[Frank Drebin]

Swim in it you socialist, elitist pricks...until your fingers are all pruny.

Pain is a powerful teacher. When the residents of this totalitarian state have had enough they will revolt.

[HonkyTonkMan]

Can factories run on fruits and nuts?

[wildcard_redneck]

Perhaps, but California is betting on moonbeams and unicorn farts.

[CedarDave]

Can factories run on fruits and nuts?

No they require a third ingredient: Flakes. Together they make up the state's population.

[DIRTYSECRET]

I’m not too worried. A world wide product will get refined somewhere. I remember Alaskan crude was not meant for the Ca. refineries. The OPEC embargo pushed the pipeline in Alaska forward. Then there’s the Jones Act saying American oil had to be refined in the US-something like that. Alaskan oil should have gone to Asia all along.

Asian airlines that fly to Hawaii have to go back-can’t continue on to a 2nd US stop. Same for Guam. Think of how much tourism we miss out on. Is it fair what Unites Airlines can get away with price wise? Bad news-Trump would disagree with me.

[TheDon]

They’re cheering in Sacramento no doubt.

[DIRTYSECRET]

American crude had to be shipped on American ships.

[T.B. Yoits]

They’re cheering in Sacramento no doubt.

This is by design. They can cut deals in foreign countries that would land them in prison if done in the United States.

[\/\/ayne]

The opening monologue of Dragnet 1967 Season 3 Episode 16 speaking of the oil history of California contains the phrase, “Today, new refineries dot the landscape. They’re the most up-to-date in the country.”

https://www.youtube.com/watch?v=9yj_tLhKy8U&lc=UgypYC1c3tszQuUmVmB4AaABAg

[kiryandil]

California

• Bakersfield Refinery (GCEH - Global Clean Energy Holdings), Bakersfield, formerly 66,000 bbl/d (10,500 m³/d), conversion to 17,000 bbl/d (2,700 m³/d) of renewable diesel projected to be completed by 2nd half of 2022
• Bakersfield Refinery (Kern Oil & Refining Co.), Bakersfield, 26,000 bbl/d (4,100 m³/d)
• Bakersfield Refinery (San Joaquin Refining Co.), Bakersfield, 15,000 bbl/d (2,400 m³/d)
• Benicia Refinery (Valero Energy Corporation), Benicia, 145,000 bbl/d (23,100 m³/d),
• El Segundo Refinery (Chevron Corporation), El Segundo, 269,000 bbl/d (42,800 m³/d)
• Los Angeles Refinery (Marathon Petroleum Company), Carson and Wilmington, 365,000 bbl/d (58,000 m³/d) (the formerly separate Carson and Wilmington refineries began reporting as one entity in 2019)
• Los Angeles Refinery (Phillips 66), Wilmington and Carson, 139,000 bbl/d (22,100 m³/d),
• Martinez/Avon Refinery [Golden Eagle Refinery] (Marathon), Martinez, formerly 166,000 bbl/d (26,400 m³/d), conversion to 48,000 bbl/d (7,600 m³/d) of renewable diesel projected to be completed by late 2023
• Martinez Refinery (PBF Energy), Martinez, 156,400 bbl/d (24,870 m³/d),
• Paramount Refinery (World Energy), Paramount, 50,000 bbl/d (7,900 m³/d), idle as of 12 March 2021
• Richmond Refinery (Chevron Corporation), Richmond, 245,271 bbl/d (38,995.0 m³/d)
• San Francisco Refinery [Rodeo] (Phillips 66), Rodeo and Arroyo Grande, 120,200 bbl/d (19,110 m³/d), (the 200-mile-apart but connected Rodeo and Santa Maria/Arroyo Grande refineries began reporting as one entity in 2017) Intended to be closed and Converted to renewable fuels plant by 2024
• Santa Maria Refinery [asphalt] (Greka Energy), Santa Maria, 9,500 bbl/d (1,510 m³/d)
• Torrance Refinery (PBF Energy), Torrance, 160,000 bbl/d (25,000 m³/d)
• Wilmington Asphalt Refinery (Valero Energy Corporation), Wilmington, Los Angeles, 6,300 bbl/d (1,000 m³/d)<
• Wilmington Refinery (Valero Energy Corporation), Wilmington, Los Angeles, 85,000 bbl/d (13,500 m³/d),

[Libloather]

Shipping nasty oil could cause an environmental disaster. Shut it down. They voted for it.

[markman46]

CARB needs to be suited, and all members need to stand for election, instead of appointment, same for the coastal commission, Oh how i wish newscum had been recalled, there is no reason to be importing oil from overseas. I will not be driving an EV, nor taking the bus..

[DAC21]

My BIL retired from one of the Valero So Cal refineries last year. He was the Safety Manager, very stressful demanding job. A lot of young no nothings were being hired to replace the Baby Boomers. He didn’t need the money or the 2.5 hour round trip drive back to the OC so he said bye bye. Good luck Greaseball Nuesome and Demonrats. Between scheduled and unscheduled maintenance (refinery breakdowns /fires) this will drive prices up north of $6 a gallon. MAYBE a majority of voters will finally have enough.

[Kudsman]

Recall the Joker.

[meyer]

I’d say let them suffer, but believe it or not, there are a LOT of good people in California. Too bad the state’s elections are so crooked that those good people cannot ever get back their state.

I wish California would secede. The very next day, the military would (or should) drive all the commies into the ocean.

[Jeff Chandler]

What’s her name?

[beethovenfan]

Thanks, Newsom you damned fool.