California Refineries Shutting Down, CA Gas Prices Could Rise by 75% by the End of 2026

California after all wants to ban all gas powered cars as well as refineries.  “The state of California is currently suing major oil companies over alleged deception regarding the risks of climate change and fossil fuel combustion.”  Be careful what you wish for.

So the answer of course is to close up shop. Now Newsom has had second thoughts. No doubt he figures it won’t help his presidential race. Here is a classic example of foreseen consequences.

Zero Hedge:

California gas prices could skyrocket by as much as 75 percent by the end of 2026 with the expected shutdown of oil refineries in the state, according to an analysis released May 5 by a researcher at the University of Southern California (USC).

Two Phillips 66 refineries in Los Angeles—about 8 percent of the state’s oil refining capacity—are slated to close by the end of this year. Valero Energy Corp. also announced last month it will shut down or restructure its Benicia refinery in the San Francisco Bay area—which accounts for about 9 percent of refining capacity—by April 2026, increasing concerns over gas prices and supply.

The USC analysis states that based on current demand, consumption, state regulations, and other factors, the refinery closures could result in a potential 21 percent drop in refining capacity from 2023 to April 2026.

The state of California is currently suing major oil companies over alleged deception regarding the risks of climate change and fossil fuel combustion.

…..

(Newsom has had second thoughts about this. One of the answers? State takeover.)

Governor Urges Energy Commission to Take Action

In an April 21 letter, Gov. Gavin Newsom directed California Energy Commission (CEC) vice chair Siva Gunda to “redouble” the state’s efforts to work closely with oil companies to ensure a “safe, affordable, and reliable supply of transportation fuels, and that that refiners continue to see the value in serving the California market, even as demand for fossil fuels continues its gradual decline over the coming decades.”

The governor also referred to the CEC’s Transportation Fuels Assessment report, which lists a state takeover of oil refineries in California as one of several options, and directed Gunda to recommend “any changes in the state’s approach that are needed” by July 1.

Republican state Sen. Brian Jones from San Diego, the Senate minority leader, issued a May 6 statement citing the USC study and calling the refinery closures “a looming energy and economic crisis.”

“If the Governor doesn’t act now, Californians will be blindsided by sticker shock at the pump and skyrocketing prices on everyday goods,” Jones said.

In a May 6 letter to Newsom, Jones called for urgent measures to prevent further refinery closures and support long-term energy stability, such as investment tax credits or other relief from taxes and regulations.

So says the video:

California may lose two of the state’s major gasoline producers in the next 12 months. The departures could hasten the state’s push away from fossil fuels but make another problem worse: California’s high gasoline prices.

Meanwhile, Republican state Sen. Shannon Grove from Bakersfield urged the governor to increase new drilling permits to support in-state oil production instead of relying on “expensive foreign imports, often from hostile nations,” she told The Epoch Times.

New permits have plummeted 97 percent over the last five years, according to data from the California Department of Conservation. New drilling permits in the state dropped from 2,676 in 2019 to 86 in 2024.

“This is catastrophic for every Californian at the gas pump,” Grove said in an April 16 social media post.

“Refineries are shutting down or barely hanging on because they can’t get the oil they need to produce the gas used every day by California families.”

Keep reading

While we keep hearing “Drill Baby Drill” the loss of the ability to refine all this liquid gold puts a big dent in lowering the price.

Back in 2014 Bunk gave a warning. I doubt this has gotten any better, and I have not read of any new refineries.

Why the United States is giving away ownership of our Energy and Refineries

August 7, 2014 — bunkerville

While we have been puffed up feeling good about our new energy finds, the continued eroding of its control and ownership has been slipping away. I first started reporting on the story when the major refineries closed in Philadelphia, once known as a major hub. What I found several years ago was chilling. We may have lots of oil, but  between the EPA bearing down, and the sale to foreign entities, mainly China, we have much to be concerned about, particularly our refineries….

I ended the post with “So who has the interests of the United States? Do not count on our government.”

The best of the swamp.

Source: https://bunkerville.wordpress.com/2025/05/08/california-refineries-shutting-down-ca-gas-prices-could-rise-by-75-by-the-end-of-2026/