'Cannot do business in the state of California': Gas prices could hit $8/gallon as two refineries shut down

[In It to Win It]

Two large California oil refineries are shutting down, triggering mounting concerns from state legislators, industry groups and many others.

Assemblymember Mike A. Gipson of the Gardena district bluntly described his concern during a recent Sacramento hearing.

“This is a tremendous loss,” Gipson told NBC Los Angeles, referring to the looming closure of the Phillips 66 plant near L.A. "The jobs that it holds, the individuals… working each and every day, those individuals live in my district, they shop in my district, they add to the economy in my district."

The Phillips 66 and Valero’s Benicia sites are set to close in 2026. Together, the shutdowns will eliminate nearly 300,000 barrels-per‑day of refining capacity — roughly 20% of the total used in the state.

Valero attributed its decision to “years of regulatory pressure (and) significant fines for air quality violations,” including an $82 million penalty levied in 2024. Phillips 66 similarly cited business challenges stemming from California’s strict environmental regulations.

https://www.yahoo.com/finance/news/cannot-business-state-california-gas-113100572.html

[Walleye]

1. This is exactly why we need to continue producing alternate sources of energy

It seems like the oil producing countries like being bullies. And that includes the US.

[2naSalit]

2. Fuck them...

Hurry up and get out of the petroleum powered transport business.

[Sneederbunk]

8. Unfortunately them includes all the people of California.

Last edited Mon Jun 23, 2025, 11:50 AM - Edit history (1)

[2naSalit]

11. Talking about the oil companies...

And I used to do business with them. They are shutting down for two reasons:

1) they're oil producers and are fucking with the state because they know -47 won't do a damned thing to relieve the issue

2) a lot of the above is smokescreen because those refineries are ancient and in need of replacement if anything.

But since they see an option to be fuckers and simply close down to avoid upgrade costs, that's what they are going to do.

I used to dispatch product from those two refineries and if i were any of the drivers, I'd have refused to go to those facilities, I saw enough of that shit down in LA and that was in the 1980s. Should have done upgrades back then but they didn't so every so often they catch on fire.

Oil companies, just can't trust them for anything.

[edhopper]

3. Bullshit

the cost of these regulations are built into California's higher gas prices. They are trying to deregulate their dirty industry.

What this is really about:

https://www.gov.ca.gov/2024/08/15/governor-newsom-announces-plan-to-prevent-big-oil-profit-spikes-save-californians-money-at-the-pump/

[Johonny]

6. The Chevron El Segundo Plant simply is better run

The state should step in and find a buyer for this plant. Other companies simple are able to run plants without the incidents that plant has had under current management.

[haele]

4. BS. They just don't want modernize and clean up their acts.

Their plant's refining infrastructure were probably last had a major upgrade in the 1980s when the then very business-friendly California last cracked down on them to retain tourist dollars.
They've been selling carbon offsets to keep from modernizing pretty much when that program started.
Yes, it would cost them close to a billion to bring their plants up to regulations, but these plants bring in billions of dollars of profit annually, and the cost to upgrade can easily be spread over a decade.
But instead, the Oil Cartel is just going to have a pissy pout and close down the plants to embarrass California for making them clean up their own damn messes to stay in business.

[FirstLight]

7. Ding! We have a winner...

That place in Benicia has been a long time polluter. I recall there being stories about "cancer clusters" in the near by townships/neighborhoods back in the 1980-90s... As environmental laws have gotten better, im sure they have had fines etc more often too ..

Oil is filthy and we will be better off without it. California could be like some European countries and go fully non fossil fuels and show the rest of the states how its done 👍

[Emile]

5. Time to nationalize our oil businesses and invest in

alternate sources of energy

[Bev54]

9. Could the state of California buy them, upgrade and keep them running with profits to go into the coffers?

I don't know how it works there. Trudeau bought the Trans Mountain Pipeline to ensure its survival in Canada, although that was Federal in Canada. Sometimes it is worth the money to keep the state working and access to oil.

[Yo_Mama_Been_Loggin]

10. K&R