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CA Gas Prices Are Set to Surge Due to Newsom's Latest Failure

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'CA Gas Prices Are Set to Surge Due to Newsom's Latest Failure; Chevron
Exec Says State Is 'Uninvestable''

<https://redstate.com/jenvanlaar/2025/04/18/while-newsom-whines-about-effect-of-trumps-tariffs-refinery-execs-bring-brutal-reality-crashing-down-n2187948>

'The enormity of the State of California's financial problems is well
known at this point, as is the extremely high (and continually
increasing) cost of living for the state's residents. While Gavin Newsom
is obsessively fixated on Donald Trump and tariffs, Newsom's own
policies are causing even further pain to the state government's bottom
line and people living paycheck to paycheck he supposedly cares so much
about:


Newsom's latest failure is, unsurprisingly, related to Big Oil. As a
result of his relentless attacks on the industry, yet another refinery
is shutting down operations in the state. Earlier this week Valero gave
notice to the California Public Utilities Commission of its intent to
shut down its refinery in Benicia, in the Bay Area, by April 2026, and
in a press release announcing the move said it "continues to evaluate
strategic alternatives for its remaining operations in California."

The move is significant because the state currently has only 14
operating refineries, and one of those (Phillips 66's Los Angeles
refinery) is already scheduled to go idle starting in October 2025.
Combined, Valero's Benicia refinery and Phillips 66's Los Angeles
refinery represent 17.5 percent of the state's oil production capacity.
Losing both will hit middle and working-class families hard, and if
Valero follows through on its implied threat of idling its other
refinery in the state (in Wilmington), the state will lose another 5.24
percent of its current capacity - a total of 369,000 barrels a day.

For perspective, in 1985, when the state had a population of 25 million,
there were 40 operating refineries. Even after losing millions of
residents for greener (and redder) pastures, the state has a population
of 39.4 million and soon will have only 12 operating refineries.
Obviously, there's a major supply problem.

It could easily get much worse. Mike Vomund, a top executive with
Chevron, which produces more than 30 percent of the state's oil, wasn't
positive about the company's future in California in an interview with
KCRA on Thursday, saying:

"What happens down the road, I have no idea, I won't speculate on that .
. . We want to stay here; the problem is the policies of California are
making it uninvestable."

In addition to the onerous environmental regulations and refinery
surplus bill, Vomund cited another Sacramento policy as a major problem
for the oil business:

"There's a bill that was passed last year, SB 12, that has a margin cap
possibility on the refining business. You can't make investments when
there's this looming threat that we're gonna come in and tell you what
we believe was an acceptable amount of money for you to make. So it
makes it difficult to impossible to invest in that environment. So the
margin cap needs to go away."

In addition to its own refineries, Chevron operates Valero and Phillips
66's refineries in the state. If all of these refineries close, there
will also be a major loss of well-paying jobs.

And what's Gavin Newsom's response? Pathetic, as usual.


In the middle of that news clip, Newsom responds to Valero's news by
saying:

I can assure you, beginning last night we had all hands and we're in the
process of addressing any anxiety that may be created or any market
disruption that may be created by that announcement.

How fruitful is that "addressing any anxiety" likely to be? Newsom's
never proven able to negotiate in any way with the oil industry; he
prefers the stick approach over the carrot. (For more about Newsom's
inability to understand reality, read: CA Refinery Exec Explains How
State Regulations Affect Gas Supply and Prices So Even Newsom Can
Understand.) Much like voters who finally threw up their hands and left
the state when Newsom pushed too far, these companies are at the point
of just leaving the state, out of his jurisdiction.

And, what's with his timing? "Beginning last night?" I'm guessing that
the oil executives weren't recipients of Newsom's "Bat Phones.'

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Thread

CA Gas Prices Are Set to Surge Due to Newsom's  Latest Failure John Smyth <smythlejon2@hotmail.com> - 2025-04-18 19:08 -0400
  Re: CA Gas Prices Are Set to Surge Due to Newsom's Latest Failure % <pursent100@gmail.com> - 2025-04-18 16:29 -0700
  Re: CA Gas Prices Are Set to Surge Due to Newsom's  Latest Failure Vote Blue Live Poor <you@morons.com> - 2025-04-19 01:10 +0000
    Re: CA Gas Prices Are Set to Surge Due to Newsom's  Latest Failure pothead <pothead@snakebite.com> - 2025-04-20 20:08 +0000
    Re: CA Gas Prices Are Set to Surge Due to Newsom's  Latest Failure lonnie white <lonnie.white@guest.com> - 2025-04-21 03:24 +0000

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