A slow motion but inexorable affordability disaster akin to what Germany did to their electricity market, mandate change without building what you want people to change to.
From the New York Post's new West Coast edition, the California Post, February 4:
California’s already sky-high gas prices are expected to surge after Valero abruptly shuttered its Benicia refinery amid a spiraling “oil crisis,” a new report claims.
The Benicia refinery began shutting down on Saturday, four months earlier than planned, a former Valero manager told the California Globe Tuesday.
Thermal imaging showed the facility went cold as the Crimson Pipeline – which transports crude oil from Southern to Northern California – was also taken offline.
“We are in an unprecedented oil crisis,” oil expert Mike Ariza told the publication.
Valero Energy Corp. announced its plans last spring to pull the plug on its 145,000-barrel-per-day refinery by April, a move that is expected to send fuel prices skyrocketing and hobble the state’s refining capacity.
Californians already pay the second-highest gas price in the nation behind only Hawaii. In January, the average price was $4.23 per gallon, according to the American Automobile Association.
Refineries are fleeing the Golden State as regulations drive operating costs 26 to 37% higher than the national average. Chevron moved its operations from the Bay Area to Texas, while Phillips 66 powered down its 140,000-barrel-per-day Los Angeles refinery in October.
Ariza warned that as refineries go dark, more Californians will also skip town, noting that the oil and gas industry supports 536,770 jobs and pumps $338 billion into the state’s economy, the outlet reported.
He said Valero’s accelerated shutdown comes after the company scrapped its crude oil contracts back in October.
“Now, Valero is not even seeking to try and sell the refinery,” Ariza told the outlet in December.
“Even after the state tried to convince Valero to remain open, they elected to shut down. And instead of shutting down in April, they shutdown in January. All due to the state’s egregious regulations and unprecedented unjustified fines.”
The sudden closure comes as the state Assembly handily passed a controversial “road charge” bill that would launch a study on a new tax last week despite pushback from critics suspicious of another pinch on their wallets....
....MUCH MORE
Previously:
October 19, 2024 - "Oil company Phillips 66 says it will shut down Los Angeles-area refinery" (PSX)
October 29, 2024 - Valero Could Be Next To Shutter California Oil Refineries
In other words: "Drop off the key, Lee", "Hop on the bus, Gus," "Make a new plan, Stan...." (apologies to transit planner Paul Simon)
*But maybe it's just me."The problem is all inside your head"
She said to me
"The answer is easy if you
Take it logically"
April 2025 - "Valero books $1.1 billion impairment, may idle California refinery" (VLO)
May 2025 -"California gas prices soar after one of Bay Area's few refineries catches fire"
Moving closer and closer to the dream of mass transit Cali. and/or 'You will own nothing' and enjoy walking.*
May 2026 -"Why California Drivers Could Soon Pay $8 A Gallon For Gas"
This one includes the USC Marshall School of Business paper that paints a rather grim picture.
August 2025 - Facing Possible Economic Collapse, California's Governor Newsom Backtracks On Oil Industry Attacks
He says he's not backtracking, just advancing in a new direction:
“That's not rolling back anything. That's actually marching forward in a way that is thoughtful and considered..."
—Governor Gavin Newsom via KCRA-3 Television, Sacramento, July 4, 2025
December 2025 - Higher Gasoline Prices In California As Senate Bill 445 Takes Hold
