California refineries are closing down.
The dumb left wingers do not understand supply and demand.
Los Angeles, CA – September 23, 2025* – California's oil refining industry is in sharp decline, with two major refineries slated to close by mid-2026, slashing the state's crude oil processing capacity by nearly 20%. The closures of Phillips 66's Wilmington refinery and Valero's Benicia facility...
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Los Angeles, CA – September 23, 2025* – California's oil refining industry is in sharp decline, with two major refineries slated to close by mid-2026, slashing the state's crude oil processing capacity by nearly 20%. The closures of Phillips 66's Wilmington refinery and Valero's Benicia facility signal a broader trend driven by declining gasoline demand, stringent environmental regulations, and economic pressures, raising alarms about skyrocketing fuel prices and supply chain disruptions.
The Phillips 66 refinery in Wilmington, which processes 139,000 barrels per day (bpd), began idling operations in early September and is set to fully shut down by the end of 2025, ending the company's crude oil refining in California. Meanwhile, Valero's 145,000-bpd Benicia refinery in the San Francisco Bay Area is scheduled to cease operations by April 2026, citing the state's "regulatory enforcement environment" as a key factor. These closures follow the 2020 shutdown of Marathon's Martinez refinery and the 2025 conversion of Phillips 66's Rodeo facility to renewable diesel, leaving California with just seven crude oil refineries compared to 40 in the 1980s.
The state's refining capacity, currently at 1.62 million bpd, faces a precarious future. Analysts warn that losing these facilities could drive California's already nation-high gasoline prices-averaging $4.61 per gallon in September 2025-to $6.43 by year's end and as high as $8.43 by 2026, a 75% surge. A February 2025 fire at PBF Energy's Martinez refinery underscored the fragility of the state's fuel supply, causing temporary price spikes.