Valero Could be Next to Shutter California Oil Refineries
10.25.2024 By Tank Terminals - NEWS

October 25, 2024 [Oil Price]- Last week, Phillips 66 said it would shut down its Los Angeles oil refinery by the end of next year. Now, refining peer Valero Energy Corp is suggesting it could be next.

 

Valero, the United States’ second-largest refiner by capacity, is keeping all options “on the table” for its two California refineries. According to the company’s Chief Executive Lane Riggs, this is due to the increasing regulatory pressure that has pervaded California.

Oil refiners in California saw lower-than-average margins in late spring/early summer this year as lower operating capacity failed to deliver higher margins. According to the EIA, this is because refiners increased their existing capacity utilization rates.

Despite the lower margins, California boasts the most expensive gasoline in the United States—a condition that the California Governor’s Office blames on refiners. In an attempt to hold refiners accountable, the Office has threatened to penalize them for price gouging.

California, however, has the highest excise duty on gasoline of all the states.

California legislators then adopted a law that allowed authorities to cap refiners’ profits whenever they see fit. Even more recently, California Governor Gavin Newsom signed a bill that would give state energy regulators the power to mandate fuel inventory levels for refiners and the ability to approve—or not—scheduled refinery maintenance.

“Price spikes at the pump are profit spikes for Big Oil,” Newsom said at the time. “Refiners should be required to plan ahead and backfill supplies to keep prices stable, instead of playing games to earn even more profits. By making refiners act responsibly and maintain a gas reserve, Californians would save money at the pump every year.”

Chevron previously cautioned that such action would spell trouble for California refiners and ultimately blowback on end consumers.

Valero operates refineries in Benicia and Wilmington, California.

 

TankTerminals.com is a market research platform with operational, infrastructural and contact details of more than +9,100 tank terminals and +5,000 production facilities worldwide.


Access data. Decide better. See how.

A total of +9,100 tank terminals that operate 154,000 tanks, all listed in TankTerminals.com.

India's First Methanol Plant to be Set up in Telangana
11.21.2024 - NEWS
November 21, 2024 [Chem Analyst]- In a groundbreaking initiative, India is set to get its first m... Read More
Egypt in Talks with Foreign Companies Over Long-Term LNG Purchases, Sources Say
11.21.2024 - NEWS
November 21, 2024 [Reuters]- Egypt is in talks with U.S. and other foreign companies to purchase ... Read More
INEOS and GNFC Sign a Memorandum of Understanding to Build a New World Scale Acetic Acid Unit in India
11.21.2024 - NEWS
November 21, 2024 [INEOS]- INEOS Acetyls and Gujarat Narmada Valley Fertilizers & Chemicals L... Read More
Peru's State Oil Firm Could Open to Private Investors in 2025, Chairman says
11.21.2024 - NEWS
November 21, 2024 [Reuters]- Peru’s indebted state-run oil firm could consider offering a ... Read More