California Gov. Gavin Newsom this week sent a letter to the California Energy Commission asking for help to keep in-state refiners operational.
He also asked the CEC to recommend by July 1 necessary changes to the state's approach to ensure adequate fuel supply.
"I write to direct you to redouble the state's efforts to work closely with refiners on short- and long-term planning, including through high-level, immediate engagement, to help ensure that Californians continue to have access to a safe, affordable and reliable supply of transportation fuels, and that refiners continue to see the value in serving the California market, even as demand for fossil fuels continues its gradual decline over the coming decades," Newsom wrote to CEC Vice Chair Siva Gunda.
Newsom reached out to Gunda following Valero's announcement last week that it was considering ceasing operations at its 149,000 b/d Benicia refinery in Northern California. On Thursday, Valero said in an earnings statement it "intends to cease" Benicia refining operations by the end of April 2026.
Phillips 66 will close refining operations at its 147,000 b/d Los Angeles refinery by October this year, OPIS previously reported.
In October 2024 state lawmakers passed Assembly Bill X2-1, which enabled more state oversight of refinery operations. The bill gave the CEC the ability to implement minimum fuel inventories and permission to enact penalties on refiners that don't maintain those minimums.
Following the passage of AB X2-1, Newsom had much harsher words towards the industry.
"They're screwing you," Newsom said in a news conference about companies.
"They've been screwing you for years and years and years. There's no other way to put it."
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
--Reporting by Bayan Raji, braji@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com
(END) Dow Jones Newswires
April 24, 2025 09:56 ET (13:56 GMT)
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