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

JusttheNews.com

   "Should California adopt more strict Low Carbon Fuel Standard requirements in November, which could include having more strict requirements on refineries and raising their costs, even more refineries may shut down rather than continue operating in California."

 "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.”  . . .

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.