I love the smell of panicked liberal officials in the morning.
Posted on 12/15/2025 9:30:01 AM PST by know.your.why
Valero's $1.1 billion Benicia refinery exit by April 2026, driven by Newsom's regulations, threatens 8.6% of California's gasoline supply, job losses, and $1.21-per-gallon hikes. Economists warn of shortages and $8 spikes amid Phillips 66's parallel closure.
California’s energy sector is reeling from Valero Energy Corp.’s decision to shutter its Benicia refinery by April 2026, a move that underscores the mounting toll of stringent state regulations on the industry’s viability. The Texas-based refiner announced it would absorb a staggering $1.1 billion write-down rather than navigate Governor Gavin Newsom’s escalating mandates, citing prohibitive costs and regulatory pressures. This closure eliminates 8.6% of the state’s gasoline production capacity overnight, threatening severe supply disruptions and price surges for drivers already burdened by the nation’s highest fuel costs.
The Benicia facility, processing 145,000 barrels of crude oil daily into gasoline, diesel, jet fuel, and asphalt, has been a cornerstone of Solano County’s economy since Valero acquired it in 2000. Its impending idling will axe 400 direct jobs and 200 contractor positions, while slashing 17% of Benicia’s municipal budget.
I predict over $10.00 a gallon gas price spike around Apr of next year unless something is done to mitigate this.
Since CA seems to just let things slide, I see no mitigating the issue and insanity and chaos reigning.
And Reno. Washoe county has highest gas prices in NV. Still over $3.50. Taxes don’t help. So 30 miles south it’s $2.68 in Carson City county.
Even well-intentioned liberals do not look ahead. They do not consider the consequences of their careless policies.
It’s all about doing what feels good at the moment.
In the past, a Republican leader would come along to fix a Democrat’s mistakes. What Republican will come along to fix California? None, I fear.
Wait for it! One of Newsom’s friends will swoop in and pick up the pieces for pennies on the dollar. Just the way they like it.
FAFO. Suck it Cali. Keep electing idiots and perverts.
Too many illegals and foreign born in Californication for a repug to ever be elected Gov again. The legislature will never lose super majority status for the dims. I simply think it’s too far gone now.
In this case they did look ahead. This and the other refinery that is closing. They briefly mused out loud about things like the state running the refinery. That would be a disaster for two reasons. First, it would be the incompetent state bureaucracy running a business. Second, the state is run by anti-oil zealots. They would produce just enough to keep prices from exploding, but not enough to prevent a significant rise to avoid political disaster, but still in pursuit of their dream of forcing renewables
But they ended up deciding doing anything at all is way too hard. I’m hearing $7-12 by summer. Let’s see if that’s enough pain for my idiot fellow voters here to do something about it. My fear is that the self-induced recession here in CA can drag down the national economy with it
The rats have welded the door shut. It is actually illegal to even ask for ID to vote. Ca is screwed but good.
Post on DU much ?
Nope, repugs are the slightly less left version of the uniparty.
Arizona
How will Valero’s Benicio refinery closure affect Arizona gas prices?
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The closure of Valero’s Benicia refinery in California, scheduled for the end of April 2026, is expected to exert upward pressure on Arizona gasoline prices due to the state’s heavy reliance on California for fuel supply. The facility processes about 145,000 barrels per day (bpd) of crude oil, accounting for roughly 9% of California’s gasoline production capacity, and its shutdown—combined with the impending closure of Phillips 66’s Los Angeles refinery (139,000 bpd) by late 2025—will reduce the state’s overall refining capacity by approximately 17%, from 1.62 million bpd to 1.34 million bpd. This shortfall exceeds California’s daily gasoline consumption needs by around 380,000 bpd, necessitating a sharp increase in fuel imports via marine tankers, which are constrained by U.S. shipping regulations like the Jones Act.Arizona, which has no in-state refineries, sources about 33% of its gasoline from California refineries, primarily transported via pipelines, trucks, and rail. The state’s unique “boutique” fuel blend (CARBOB) further limits substitution options from other regions, making it vulnerable to West Coast supply disruptions. As a result, the closures could lead to tighter regional supply, especially during peak summer demand, exacerbating price volatility similar to past events—like unplanned refinery outages in 2022 and 2023 that spiked Phoenix prices by 20–50 cents per gallon in a matter of days. A recent fire at the Benicia refinery in early 2025 already contributed to a 20-cent rise in metro Phoenix gas prices within a week.Forecasts for the long-term price impact in Arizona vary based on import logistics and mitigation efforts:The U.S. Energy Information Administration (EIA) anticipates a “small increase” in West Coast retail gasoline prices in 2026, driven by the 11% regional capacity reduction, with heightened volatility during transition periods.
An economic analysis suggests the effect could be negligible to as much as 15 cents per gallon, assuming California efficiently ramps up imports and updates port infrastructure (e.g., converting Benicia to a fuel terminal).
Industry projections highlight risks of more significant spikes—potentially 20–40 cents or higher during shortages—due to limited pipeline capacity (e.g., the El Paso-Arizona line is already at full utilization) and rising demand from Arizona’s growing population (up 1.3% year-over-year).
Arizona Governor Katie Hobbs has pledged proactive measures, including coordination with California officials to secure alternative supplies and prevent price surges. However, experts warn that without streamlined federal approvals for imports or infrastructure upgrades, Arizona consumers could face sustained higher costs at the pump, with effects most acute starting in mid-2026.
“Even well-intentioned liberals...”
Mutually exclusive terms.
This is the laughing 😃 point.
Coming to a country near you. Why would anyone need to drive anywhere?
So, California with its $5.50 gas (due to state- imposed restrictions, regulations, and the multiple taxes) is now gonna see $7 or $8 gas by driving out about 8 or 9 percent more of its already- reduced, insufficient supply. Newsom wins another round
And he can blame it on the evil, selfish energy corporation.
I’m not a big fan
Of federal mandates either. But one thing that the mass media doesn’t really report a lot is how this Benicia, California refinery also supplies the very large and important Travis Air Force Base (almost adjacent), the key mainland base of our Asia and Pacific defense operations.
Perhaps the Federales might see a national defense requirement for the continuation of the Benicia refinery’s operations?
Newsom gets what he wants: A California with no one able to drive a car except his rich friends. Never mind that people won’t be able to live or work there. Such people are a nuisance to him, anyway.
Elections have consequences.
The cost to build a refinery is probably close to 30B if you can get it approved.
CA is in deep trouble!
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