CA's Oily Governor Slips on His Own Greased Banana Peel UPDATE

This is a giggle.

No, it's not.

It's a gut frickin' BUSTER, unless of course, you happen to be one of the millions of people who live in unctuous, oleaginous Gavin aka 'Randall Flagg-Lite' Newsom's little fiefdom, because there's a good chance it's really gonna suck.

In April of this year, this headline stunned California's fervid anti-fossil fuel foes - including their Prince of Darkness, Newsom.

For all the campaigning against the myriad ee-villes of oil and gas, it never once occurred to the geniuses in power that the industry would walk away at some point.

So, after one push, one shove, one regulation, one lawsuit, one excess profit grab, one last demonization too far, Valero Oil announced that's exactly what they planned on doing.

WE DON'T HAVE TO TAKE THIS SCHLITZ ANY MORE

Valero to shut Benicia refinery due to tough regulatory environment, high costs

Valero Energy (VLO.N), opens new tab on Thursday said it would cease operations at its 170,000-barrel-per-day San Francisco-area oil refinery next year amid worries about California's declining fuel supplies and high gasoline prices.

The decision clarifies plans for the Benicia refinery after the San Antonio, Texas-based refiner last week announced its intent to "idle, restructure, or cease operations" there by the end of April 2026. Valero also said it had recorded a $1.1 billion pre-tax impairment related to its California refineries.

This set off a mad scramble after the initial, insouciant 'Yeah, and?' reaction from CA authorities, as it slowly began to dawn on them what this particular refinery meant to the state, for one thing.

Over 20% of CA’s refining capacity is disappearing as Valero and others shut down—because of Newsom’s crushing regulations and political ambition. Californians will pay for it at the pump. Higher gas, lost jobs and revenue, and supply chain disruptions. https://t.co/YZqRtsKGOe

— Vince Fong (@vfong) April 16, 2025

HATESES NASTY OILS

For years the people of Benecia wanted to closed down the oil refinery in town. They did not care about the jobs, the revenues, the vitality, the effect on the community. Now that Valero is closing down, refusing to take the harassment from citizens and government, the town is… pic.twitter.com/G8i4rhpC0Y

— Mike Netter (@nettermike) May 14, 2025

...Now that Valero is closing down, refusing to take the harassment from citizens and government, the town is whining and in deep economic trouble. “In a recent earnings call, Valero CEO Lane Riggs cited California’s tough “regulatory and enforcement environment” as the main driver behind the company’s intent to close California’s sixth-largest refinery, accounting for about 9% of the state’s total production. 

The refinery makes up nearly 20% of Benicia’s tax base, and shutting down the facility, which dominates much of the eastern side of this small, relatively affluent Solano County city, could have a catastrophic impact on the city’s financial well-being. “We’re in a situation where we’re going to have $10 (million) to $12 million less than last year,” said Young, a tall, gray-haired man with a gravelly voice. “The hit on the community is going to be severe. My main job is to ease that transition as much as we can.” Government is in trouble.

Note the Mayor, Young, does not mention the hundreds of people getting well paying jobs that are now lost.  He does not mention the vendors, suppliers and small businesses in town that will be hurt.  The Mayor is only concerned about government, not the people.  Will Benecia become another California ghost town?  Another suicide by government. They got what they wished for—and now are in trouble

The next light to flash was when the cultists started doing #mathz and realized just how many oil companies' refineries they'd already driven out of business in the state. And when their pudgy little fingers started toting up available fuel supplies, multiplied by the number of drivers still using internal combustion vehicles in the state, subtracted the looming Valero supply, multiplied that by a predicted per-gallon gasoline price increase that was exacerbated by a mandated state tax increase, it equaled CA voters coming for them with torches and pitchforks.

CODE RED CODE RED

In July, a panicked Newsom was off to find a buyer for the Valero refinery he had just been bragging about forcing into shutting down.

I phrased it this way at the time:

This is kind of funny in a sick, 'California bites itself in the ass again' kind of way.

In fact, as long as you are not trapped in that hellhole, it's downright hilarious.

Newsom was busy blaming Trump, even as he feverishly worked connections, trying to find a Rip Van Winkle-like sap he could schmoozle into buying an oil refinery in California who had never heard about what California does to anything related to the oil industry.

California is learning that actions have consequences.

"In rare move, California steps in to find buyer for Valero refinery to avoid closure, sources say"

While the state works day in and day out to destroy oil and gas companies, CA will now have to deal with the consequences… pic.twitter.com/neyu6T07l3

— Steve Guest (@SteveGuest) July 24, 2025

It was an All Climate Cultists' Crooked Claws on Deck effort to stave off a snowballing public catastrophe of economic and political proportions, the like of which, to borrow a phrase from Dune, God himself has never seen.

...In a position of desperation, the California Energy Commission is leading the effort to broker a deal, with support from the governor’s office. The move is an attempt to avoid severe market disruptions and cushion consumers from steep price spikes.

The stakes are particularly high. State modeling suggests that removing Benicia from the refining system could push pump prices toward $8 per gallon, particularly during summer demand peaks. Analysts warn that the closures could also reduce fuel inventories and strain supply chains across the western U.S.

Eight bucks a gallon. And it wasn't war, pestilence, or natural disaster - they did it to themselves.

Yeah.

How's that rescue effort and triage going?

So badly, so fruitlessly, that a week ago, the California legislature was floating a plan for the state - lemme repeat that, THE STATE - to take over and pay for maintenance and running the refinery until the continuing search coughed up someone to buy it.

The Valero Refinery in Benicia is slated to close next April. But state lawmakers may be stepping in to help. California could pay hundreds of millions of dollars to cover maintenance costs at Valero's plant, according to Bloomberg.

Benicia is home to 26,000 people. Its biggest employer is Valero Energy Corporation with about 400 workers.

Valero also produces about 9% of California's gas.

The oil company has plans to close by next April, partly because of a massive fine for unlawful toxic emissions.

But now, California could help prevent that closure.

It's going to take anywhere from $80-$200M to do this, in a state that already has a $20B budget deficit.

Industry analysts were pretty understated in discussing the proposal, as in, they brought this on themselves - let them fix it.

..."It's creating an environment in California that refineries want to do business. California has to start easing back on its hostile environment for refineries. (Then) it doesn't have to make any handouts at all," said De Haan.

"Because of the legislation that has been passed to make it even more strenuous for the oil industry's operations in the State of California, I think it makes sense that they provide part or all of the solutions," said Shawky.

That was a week ago, and all anyone heard was crickets after that.

Well, except for the explosive noises coming from Newson's presidential aspirations as the clock ticked down.

...Embattled Californians have a right to wonder why their governor didn’t take steps to increase refinery capacity long before the departure of Valero. The answer lies in the governor’s commitment to climate change superstition. In 2020, the governor blamed wildfires not on the state forest mismanagement but climate change. 

...As Ring notes, in 2022, Newsom delayed the closure of Diablo Canyon, California’s last nuclear plant generating 2.2 gigawatts. In 2023, Newsom delayed the planned closures of three natural gas generating plants, also cranking out 2.2 gigawatts to the grid. If not for this intervention, these plants “would have already been taken offline by the environmentalist fanatics who run the state.” Here, Ring is being too kind.

There is little evidence that those fanatics have improved environmental conditions. They are better described as exclusionists, who seek to deprive Californians of the benefits of their own natural resources. As the people should know, California ranks fifth among the 50 states in proven oil reserves, with 1,716 million barrels.

Newsom’s crusade against oil and gas prevents Californians from deriving the full benefit from their own energy abundance. With the nation’s highest gasoline and electricity prices, many Californians are choosing to leave the state. Energy companies now plan to join them.

Now?

Stick a fork in it - looks like it's done.

‘Benicia can proceed with refinery closure’

The saga of Benicia’s Valero Refinery may finally have an official end date.

Despite legislators working around the clock to reverse the decision, Benicia City Manager Mario Giuliani told the Times-Herald on Monday that, “Benicia can now proceed with the closure of the refinery in April or possibly sooner.”

Last April, Valero Energy Corporation’s subsidiary, Valero Refining Company-California, submitted notice to the California Energy Commission of its intent to idle, restructure, or cease refining operations at the Benicia Refinery by the end of next April.

“State officials have been working feverishly to explore other options since April, but it seems with no new news in the last few days, that the clear option that would make Valero stay didn’t work in their best interests,” Giuliani said. “Certainly as a city manager and longtime resident I’m disappointed that a solution wasn’t made. This is not only going to impact Benicia, but California as well. It’s frustrating, because the city was finally in a position to turn the corner.

“Now we’re going to have significant and seismic changes,” the city manager said.

I don't think seismic begins to cover it.

This also has serious national security implications, as California cultists have basically stripped a major chunk of the West Coast, with all those critical military installations (not to mention Arizona and NM depend on CA's fuel matrix), of their energy security, as they are now reliant on imported gasoline supplies from, of all places, Asia.

Where is China? How vulnerable are ocean-going shipping tankers?

I can't believe I am even writing something like this.

But here we are.

Beege UPDATE:  Oh, hello. This was out yesterday.

California’s Petroleum Watchdog Issues Market Update and Consumer Advisory Amid Rising Gas Prices and Tight Market Conditions

Today, the Division of Petroleum Market Oversight (DPMO) released a letter to Governor Gavin Newsom and state legislative leadership providing an update on the gasoline market and a look-ahead through the rest of 2025.

Based on multiple sources, including key transparency and reporting tools provided by the Legislature in the past two years to shed light on refinery maintenance activities, DPMO expects in-state production to be reduced between September and November 2025.

“Price stability will depend on market participants’ continued advance preparation through maintaining adequate inventories, ordering sufficient cargoes, and avoiding reactive spot market behavior,” said DPMO Director Tai Milder. DPMO’s enforcement team will closely monitor the market and participants’ action at this key time.

...Since August 15, retail gasoline prices have risen by approximately 16 cents per gallon, with the most marked increases in Southern California. The spot market has experienced some volatility during this period, and prices on the forward market – where market participants trade gasoline for future delivery – are elevated for the next several months.

As prices increase, DPMO encourages Californians to shop around and compare prices between name-brand and unbranded (or generic) gasoline. While retailers typically charge more for branded gasoline, all gasoline sold in California must meet the state’s high standards for emissions control and engine performance.

Gee, thanks Gavster!

And people seem to be misinterpreting my China reference. It's not about getting fuel imports FROM China. 

It's the the real danger of the Chinese being able to cut the West Coast off from them in case of a conflict or just because THEY CAN.

Think STRATEGICALLY.

..."California's refining capacity is shrinking faster than its fuel demand is declining, forcing the state into a long-term import-dependent position," Kpler analyst Sumit Ritolia said.

California's total petroleum product imports rose to 279,000 barrels per day (bpd) in May, the highest since June 2021, when a similar volume was imported, according to data from vessel tracker Kpler.

About 187,000 bpd, or nearly 70% of the imports came from South Korea and other Asian exporters, who have historically been the top trading partners for California and other West Coast states, which are geographically isolated from major U.S. refining centers along the Gulf Coast.

This is a real-life pickle they've gotten themselves into, and now it's only going to get worse. 

God help us if it gets into a Pacific theater shooting war.

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