Gavin Newsom Chases Another Oil Company Out of California

Phillips 66 announced Wednesday that it plans to close operations at its Los Angeles-area refinery late in 2025.

The company said in a press statement that it “will work with the state of California to supply fuel markets and meet ongoing consumer demand.”

This makes two oil companies that Governor Gavin Newsom has now chased out of California with his legislative attacks on the state’s oil and gas industry, as well as his recent legislation to decrease the state’s gas supply.

“Thanks to Gavin Newsom’s showboating and incompetence, hundreds of workers will lose their jobs while California drivers will face a massive price hike,” said Assembly Republican Leader James Gallagher. “As Democrats double and triple down in their war on our energy industry, the closure of this refinery is the predictable result.

“Great work, Gavin.”

Gallagher also said Newsom’s reckless policies continue to drive up gas prices and kill jobs.

The Phillips 66 Los Angeles refinery accounts for more than 8% of California’s refining capacity and employs more than 600 workers.

“We understand this decision has an impact on our employees, contractors and the broader community,” said Mark Lashier, chairman and CEO of Phillips 66. “We will work to help and support them through this transition.” Approximately 600 employees and 300 contractors currently operate the Los Angeles-area refinery.

For those who don’t believe Phillips 66 is moving, the company “has engaged Catellus Development Corporation and Deca Companies, two leading real estate development firms, to evaluate the future use of the 650-acre sites in Wilmington, California, and Carson, California.”

Gov. Newsom claims that the state’s highest-in-the-nation gas taxes and prices are not what led to dramatically spiking gas/oil prices but because of price gouging by the oil industry. In May, Newsom even signed a gas price gouging law into place.

Even as California’s own Chevron Oil Company announced in August their corporate relocation to Houston Texas from the Bay Area, where the company has been based since 1879, Newsom continued to push his legislation which will clearly result in even higher gas prices at the pump.

Chevron was just the latest big business to flee the Golden State – we can add Phillips 66 to the long list.

Notably, Chevron’s President Andy Walz said in a letter to the Legislature that of the 36 states in which they work, only California has the highest gas prices.

The only conclusion was can draw from this announcement is that with Chevron leaving California and Phillips 66 joining them, no other refineries will invest in storage capacity for Newsom’s absurd gas storage mandate.

In May the Globe reported that the California Air Resources Board is mandating an additional 50 cents per gallon be added to the price of gas in California in January under the 2023 CARB Low Carbon Fuel Standard. This is all part of the goal to force California’s drivers out of their cars, and/or into electric vehicles.

Don’t expect Gavin Newsom to be circumspect about this announcement. He’s probably already added Phillips 66 and Chevron to the notches in his dashboard. These are wins for Newsom in his contorted world.

As the Globe reported earlier this week, Gavin Newsom is working to become the next Al Gore – the name and face of the worldwide climate change grift.

Every climate change bill passed by Newsom and the Legislature is to “Achieve net zero GHG emissions” in the state, and to Newsom and his acolytes, that means outlawing oil and gas. So pretty much everything we use in modern society needs to be upended, overhauled, and restricted, according to Gov. Newsom and the burgeoning industry of climate change hustlers.

The higher the stakes – including attacking the oil and gas industry – the more notoriety Gavin Newsom receives. The harm to the people, businesses and industries of the state is inconsequential as long as Newsom gets press.

“Great work, Gavin,” indeed.

UPDATE:

California Fuels and Convenience Alliance (CFCA), representing the downstream fuel supply chain including fuel marketers, common carriers, and gas station and convenience store owners, responded to Phillips 66’s announcement that it plans to cease operations at its Los Angeles-area refinery in late 2025.

“Unfortunately, the announcement today is not much of a surprise, as we continually warned the Legislature and Administration about how ABX2-1 would negatively impact supply,” said Alessandra Magnasco, CFCA’s Governmental Affairs and Regulatory Director. “This is exactly what happens when our leaders are more concerned with political theater than solving real problems. There is no mystery to our high gas prices—exploding overhead costs to run our stations, costly environmental regulations, and now, with even less supply in the market, every Californian will end up paying higher prices in this government-created energy crisis.”

The Los Angeles refinery closure is a significant blow to California’s fuel supply, affecting not only the refinery’s nearly 900 employees and contractors but also the millions of consumers who rely on this fuel source. CFCA warned that without a balanced approach to energy policies, California’s fuel market would see reduced supply, which drives up prices and puts additional pressure on local businesses already struggling under the weight of stringent regulations.

“We recognize the challenges faced by companies like Phillips 66, which are trying to operate in one of the most highly regulated energy environments in the world. These refinery closures are a direct result of policies that make it increasingly difficult to maintain and expand critical infrastructure,” added Alessandra Magnasco. “While we understand the need for sustainable progress, we urge policymakers to consider the immediate impacts on consumers, workers, and the stability of California’s fuel supply.”

The California Fuels and Convenience Alliance remains committed to working with state leaders to find practical solutions that support a stable and affordable fuel supply for all Californians. We call upon the Legislature to consider the consequences of additional restrictions on our state’s fuel infrastructure and to work collaboratively with industry stakeholders to prevent further market disruptions.