Phillips 66 to close oil refinery after Newsom law

Kalifornica

bahhahhaaaa


Phillips 66 to close oil refinery after Newsom law

https://www.yahoo.com/news/phillips-...140915867.html


Phillips 66 announced Wednesday it will close its 650-acre oil refinery complex near the Port of Los Angeles by the fourth quarter of 2025, days after Gov. Gavin Newsom (D) signed a new law regulating gas storage and refineries.


The refinery in Wilmington, together with a complex in Carson 5 miles away, produces up to 85 million barrels per day (MBD) of gasoline and 65 MBD of distillates, such as diesel.


“Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands,” said Mark Lashier, chair and chief executive of Phillips 66, according to the Los Angeles Times.


“We understand this decision has an impact on our employees, contractors and the broader community. We will work to help and support them through this transition.”


The Wilmington facility is 105 years old and employs 600 workers and 300 contractors. Its closure would cause an 8 percent decline in the state’s already stretched refining capacity, Politico reported.


Newsom has said the new bill is crucial to ensuring Californians aren’t taken advantage of by gas companies’ price spikes. California often sees some of the highest gas prices in the country.


The law empowers the state to require oil refiners to maintain a minimum inventory of fuel, aiming to avoid supply shortages that raise the price at the pump.


“Californians are one step closer to getting the protections they need against Big Oil’s price spikes. I’m grateful to our partners in the Senate for helping to save Californians money at the pump,” Newsom said after its passage.


“Price spikes cost consumers more than $2 billion last year, and we’re taking the action necessary to help put this to an end.”


The Hill reached out to Phillips 66 for comment.


Copyright 2024 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

well now maybe Phillips will take all their money and put it into something that won't cause the heat death of our planet.

i would call that a win win..

Phillips is based in Oklahoma.

And as we all know, the reason Texas and California haven’t both drifted off into the ocean is that OKLAHOMA REALLY SUCKS.

105 year old refinery has likely been noncompliant with safety and environmental refs for so long it made more sense to shutter it than to fix it.

Of course. OP knows that.

Phillips is based in Oklahoma.

And as we all know, the reason Texas and California haven’t both drifted off into the ocean is that OKLAHOMA REALLY SUCKS.

105 year old refinery has likely been noncompliant with safety and environmental refs for so long it made more sense to shutter it than to fix it.

Of course. OP knows that. Originally Posted by Yssup Rider

noncompliance has nothing to do with it. in fact Newsom's bill could interfere with maintenance


some more light reading. it's about over-regulation as usual.


https://thehill.com/homenews/ap/ap-b...-from-spiking/


California Gov. Gavin Newsom signs a law aimed at preventing gas prices from spiking

SACRAMENTO, Calif. (AP) — California Gov. Gavin Newsom signed a law Monday aimed at preventing gas prices from spiking, marking the Democrat’s latest move in a battle with the oil industry over energy prices and the impacts of climate change.


Californians pay the highest rates at the pump in the U.S. due to taxes and environmental regulations. The average price for regular unleaded gas in the state was about $4.68 per gallon as of Monday, compared to the national average of $3.20, according to AAA.


The new legislation was inspired by findings from the state’s Division of Petroleum Market Oversight that showed that gas price spikes are largely caused by increases in global crude oil prices and unplanned refinery outages. The law gives energy regulators the authority to require that refineries keep a certain amount of fuel on hand. The goal is to try to keep prices from increasing suddenly when refineries go offline for maintenance. Proponents say it would save Californians billions of dollars at the pump.


Newsom joined lawmakers at the state Capitol to sign the law and criticized the oil industry for its efforts to keep the legislation from passing.


“They continue to lie, and they continue to manipulate,” he said. “They have been raking in unprecedented profits because they can.”


Newsom signed the measure just weeks ahead of the November election, but he said the legislation was not about politics. He has two years remaining in his second term.
Opponents of the law have said it could unintentionally raise overall gas prices and threaten the safety of workers by giving the state more oversight over refinery maintenance schedules. Some argued delaying necessary maintenance could lead to accidents.


“Legislators still fail to understand our industry or what drives high gas prices,” said Catherine Reheis-Boyd, president of the Western States Petroleum Association, in a statement. “Regulators remain fixated on controlling businesses with more taxes, fees, and costly demands.”


Assembly Republican Leader James Gallagher made a motion for lawmakers to adjourn before the Assembly voted to send the bill to Newsom’s desk Monday. Republicans introduced proposals of their own aimed at lowering gas prices, but they were blocked in the Democrat-dominated Legislature. One of the bills that failed to advance would have exempted transportation fuels from the state’s cap and trade program.


Newsom unveiled the legislation in August, during the last week of the regular legislative session. But lawmakers in the state Assembly said they needed more time to consider it. The governor called the Legislature into a special session to pass it.


Newsom also called lawmakers into a special session in 2022 to pass legislation aimed at penalizing oil companies for making too much money.


State Senate President Pro Tempore Mike McGuire said the new law is just one part of the state’s efforts to help lower the cost of living for Californians.


“This bill sets the stage to ease gas price spikes and provide additional certainty through enhanced storage and oversight,” he said. “I firmly believe Californians are tired of the price spikes.”

I'm not surprised at all. Of course a marginal facility would close.
But, are there are other marginal refineries?
Which other(s) will also close?
No refinery outfit will invest in upgrades in Calif plants with Calif outlawing gas vehicles, as those type of investments take decades to payback.
I assume everyone realizes that these existing plants were located in locations where oil can be easily delivered (seaport), or there is significant customer base, as transportation costs are a huge component of delivering a gallon of gas to the local retailer.
Btw, in early August 2024 Marathon Oil announced they would close the Martinez, CA crude oil processing.
So, keeping more refined gas on hand? How are they going to do that? Build more tanks? Where?

Just in case no one has been paying attention….people and industries have leaving California in droves. The only people coming in are Uhaul returns.

Just in case no one has been paying attention….people and industries have leaving California in droves. The only people coming in are Uhaul returns. Originally Posted by TheDaliLama

DL has a somewhat correct statement.
Uhaul actually has a decent statistics presentation of net percentages of people moving into and out of various states.
https://www.uhaul.com/About/Migration/