According to Legal Insurrection, Governor Gavin Newsom had signed into law a measure ordering energy producers to stockpile gasoline, despite pushback from industry.
Soon after, Phillips 66 announced plans to stop operations at its Los Angeles-area refinery in the fourth quarter of 2025. Meanwhile, energy giant Chevron moved its headquarters to Texas, citing high taxes and burdensome regulations.
Governor Newsom was warned that the policies were making it impossible for refineries to continue, but he did it anyway. Now, he is facing high gasoline prices.
His policies are causing another refinery to go down.
Valero refinery is planning to shut down next April. It threatens to throw the inhabitants of the small city of Benicia into unemployment and poverty. Valero can’t sell it. No one wants to buy it.
The Benicia Mayor said the plant brings in millions of dollars.
Who would want to open a refinery in California where they enact policies to destroy them?
The plant would require a significant amount of money to keep it going. The state of California doesn’t want refiners in its state. They’ve pushed them out, and this is the result.
Gov. Gavin Newsom’s staff recently drafted language for a potential bill to bring before the Legislature in Sacramento, aimed at boosting oil production in the state.
The State Is Trying to Sell the Private Company
And in a separate move, the California Energy Commission hopes to keep a refinery in Northern California open by reportedly searching for a private company to buy it. That is desperation. Their policies ruined the company, and made it unworkable.
“The pressure’s already been building, but now refineries are leaving,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “California seems to be saying, ‘OK, wait a minute, let’s take a step back here,’ and now California wants to move a little bit closer to collaboration” between the petroleum industry and state policies.
For years, Newsom antagonized the oil and gas industry, but now he wants to be president of the United States.
According to The San Diego Tribune, environmental groups recently leaked provisions of a proposed bill that would fast-track drilling permits in California.
Specific to Kern County, where about 75% of oil production in the state is done, drillers would be exempt from lawsuits from CEQA, the state’s California Environmental Quality Act, through the start of 2036. Kern County already has its own oil permitting system.
“The proposal is basically drill, baby, drill for California,” said Hollin Kretzman, senior attorney for the Center for Biological Diversity. “It’s going to eviscerate our most important environmental and public health protections under state law.”
That Center for Biological Diversity is extremely radical.
California has some of the stupidest politicians in the country. They have no vision or foresight and only worry about the here-and-now to get elected.
Is it a do-over or is it a temporary effort until Newsom gets elected and then it all goes back to crazy extremism?
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
If I had the money to buy that refinery or any other business I would sure be willing to spend it investing in California. NOT!
There is so much here I cannot comment on it all. California thinks refiners have tank farms waiting to stockpile gasoline for them? Think of the cost, regulations and penalties associated with having those farms. Newsom has triggered a crisis. He has crippled gas production there. The only way to boost gas production is to leave the refiners alone. The… Read more »