George Rebane
With most of the state’s refineries already gone, and two more packing up to leave, and with more planned refinery exits in the works, the state is heading for a transportation disaster. The oil companies are uncertain about the reality of CA’s 2035 ban on internal combustion engines now being litigated. Other states like Texas have much more friendly business environments than the draconian landscape created here by Sacramento’s idiots led by chief imbecile Newsom.
Columnist Terry McLaughlin spells out more details (here) in the 29may25 Union. The definitive analysis of the next California tragedy is documented in ‘Ensuring California’s Gasoline Security for the 21st Century’ by Professor Michael Mische of USC’s Marshall School of Business. From the report’s introduction we read –
California can ill afford the loss of one refinery, let alone two. The pending shutdown of the Phillips 66 refining complex in Los Angeles will reduce daily refining capacity by 8.9%. The loss, although painful in terms of its impact on consumer prices, is absorbable and the deficit in production and gasoline levels will be compensated by imports of finished fuels from Washington State and perhaps Gulf Coast refineries.
The collective consequence of the pending refinery exits to the Golden State is potentially devastating to California’s economic growth and status as the fourth largest economy, in nominal terms, in the world. With the announced shutdown of Valero’s Benicia refinery complex accompanied by its $1.1 billion charge-off, California is confronting a potential 21% reduction in collective refining capacity from 2023 to April 2026.
In 1982 California had about 45 refineries, with the exit of the next two the refinery count will be eleven. There is no foreseeable end to the ongoing destruction caused by our voters ensconcing the state's socialist one-party monopoly.
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