Written by Dorene Billings
Sunday, December 14, 2025
[WebProNews] California’s energy sector is reeling from Valero Energy Corp.’s decision to shutter its Benicia refinery by April 2026, a move that underscores the mounting toll of stringent state regulations on the industry viability. The Texas-based refiner announced it would absorb a staggering $1.1 billion write-down rather than navigate Governor Gavin Newsom's escalating mandates, citing prohibitive costs and regulatory pressures. This closure eliminates 8.6% of the state gasoline production capacity overnight, threatening severe supply disruptions and price surges for drivers already burdened by the nation's highest fuel costs.
-------------------
Valero planned to close earlier but held off as California made an effort to get some other company to buy the refinery. Because California requires a different formula gasoline, wholesale buyers will have to scramble. Probably 50 cent to a dollar increase in prices by late next summer.
BTW, I sometimes think the Sierra Club or the Environmental Defense Fund ought to be in the Terrorist organization list. |
# id) ?>
|
