Another oil company is shutting down a refinery in California.
This time it’s Valero, who announced that its Bay Area refinery in Benicia will close in April 2026.
The big picture: Valero sent a notice to the California Energy Commission that it will cease operations at the Benicia plant and will evaluate strategic alternatives for its remaining operations in California.
- The move comes half a year after the state fined Valero $82 million for exceeding toxic emissions standards for over a decade.
- And just last month the Benicia City Council voted to give city officials the power to impose fines for safety and air quality violations at the plant.
Zoom in: The Valero plant in Benicia is the sixth-largest oil refinery in California with a processing capacity of 170,000 barrels per day.
- Over 400 people currently work at the refinery and will be out of a job in Benicia once it closes.
- The refinery currently accounts for 9% of California’s oil production.
Flashback: Valero’s announcement comes after similar moves from Chevron and Phillips 66.
- Chevron recently announced its plans to move its corporate headquarters from the Bay Area to Houston.
- Phillips 66 previously announced that it is shutting down its Los Angeles refiner by October.
What they’re saying: “We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period,” said Lane Riggs, Chairman, CEO and President of Valero.
- Rep. Vince Fong (R–Bakersfield) said the run of oil companies shutting down their California refineries will result in a loss of over 20% of the state’s refining capacity.
- “This is a red-alert warning that Gavin Newsom’s energy policies are pushing the state toward a fuel crisis with Californians seeing higher prices and even potential gasoline shortages. Newsom’s energy policies of costly mandates and onerous regulations are driving refineries out of the state, making it impossible for needed energy producers to remain economically viable,” Fong said.
- He argued that California’s energy policy is at a breaking point because of overregulation for the sake of Newsom’s political ambition.
- “The people who suffer most are everyday Californians,” Fong said. “This isn’t just an energy issue – it’s an affordability issue, a jobs issue, and a reliability issue. Our transportation system, supply chains, and cost of living are all tied to a stable, affordable fuel supply. Newsom’s policies must be undone, or Californians will continue to bear the financial burden.”
- Assembly Minority Leader James Gallagher (R–East Nicolaus) echoed Fong, putting the blame on Newsom.
- “Our millionaire governor might not worry about gas prices while he’s chauffeured from his mansion in Marin to his podcast studio, but working people are getting crushed by the cost of his out-of-touch agenda,” Gallagher said. “Once again, Californians are paying the price for Newsom’s incompetence and self-serving attacks on energy producers. Unless the state changes course, the job losses and gas price increases are only going to get worse.”
