fbpx
Gordie Webster

published on May 29, 2025 - 12:14 PM
Written by

California is facing a pretty dire energy situation with not one, not two, but three oil refineries planning to close by the end of 2026.

Phillips 66 and Valero are shutting down facilities in Wilmington in the Los Angeles area, and Valero’s Benicia refinery will end operations by this time next year.

The Benicia closure alone means a reduction in production capacity of 145,000 barrels per day, or 9% of the state’s capacity.

Gov. Newsom’s favorite excuse for California’s higher gas prices is price gouging by oil producers, but it’s clear that Newsom’s push to eliminate combustion engines makes the Golden State look like a Golden Loser for the oil industry. But the people who really lose are the ones already pushed to the brink on their living expenses.

One report says prices at the pump could hit $8 a gallon by 2026.

California’s GOP has long pushed against Newsom and the Legislature’s policy on fossil fuels, arguing that the state’s regulators go too far in their decisions without thought to the costs borne by industry and consumers.

Now it looks like Democratic lawmakers are starting to wake up and realize the mess they enabled by empowering bureaucracies such as the California Air Resources Board, California Energy Commission and Division of Petroleum Market Oversight.

During an Assembly oversight hearing Thursday, some lawmakers seemed to realize that real people will be and have been hurt by Newsom’s approach to the oil and gas industry.

There has been pushback on the federal side, with the U.S. Senate voting last week to block California’s mandate to phase out gas-powered cars.

But California is on its own when it comes to meeting our energy needs. And that shouldn’t involve the carbon-intensive process of importing fuel.

California needs common sense leadership now when it comes to oil and gas, or the Central Valley will be among the regions that suffer the most.


e-Newsletter Signup

Our Weekly Poll

Does your workplace allow dogs?
30 votes

Central Valley Biz Blogs

. . .