Oil and gas production. (Photo: conservation.ca.gov/calgem)
Gavin Newsom Chases Another Oil Company Out of California
Phillips 66 will close its refinery in Los Angeles in 2025
By Katy Grimes, October 16, 2024 3:55 pm
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.
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While the state falls into an abyss, the low information voters continue to vote (D).
Everything Harebrained Newsom and the Democrats touch turns to sh*t. California is a ship of fools, and it is running aground and sinking. Every election is just rearranging the deck chairs. It would take Republicans decades to fix this state now.
Lower local production equals higher price spikes. Under the new minimum refinery inventory regulations and price gouging regulations, refineries can now withhold gasoline from the marketplace, so they won’t be fined by the state. Get ready for spot 1970’s style outages at the retail level.
With both potential gasoline outages and electrical outages, my next car will be a plugin hybrid which gives me the option of buying which ever fuel is available.
To avoid the massive price hike, buy an EV.
New EV’s cost upwards of $50k plus. Many Californians are financially struggling and can barely afford to buy food because of the lamebrain economic policies of your Democrat masters in the failed Biden/Harris economy.
Sorry Earl… the economics of an EV don’t pencil out, as the cost of electricity is only going UP thanks to the a-hole Democrats who currently run this state…
First there’s the cost of a new car, is sales tax and then most people buy an expensive rooftop solar electrical panel system. but now those subsidies are drying up…
Democrat policies are aligned with the WEF’s 6uild 6ack 6etter “Agenda 2030” economic destruction plan, and California residents better wise up and STOP VOTING DEMOCRAT starting this November.
A vote for any Democrat is a vote for personal,economic PAIN, and a more expensive cost to live in this state.
it’s also important to note that these refineries were originally Union Oil of California branded, then Union 76, then Unocal, then Philips 66, and they have a longstanding place in the history of Southern California….
Great job, Gavin, you asswipe….
EVs can be recharged from solar panels.
That’s the spirit, conform and comply with the utopian allusion of mandates. It’s EV glory days right now, but I can assure you the costs for personal transportation in CA will transfer from petroleum fuels to a massive increase in kWh paid under the premise that we need to upgrade the infrastructure that PG&E hasn’t done even though we have some of the highest energy costs on the country.
California also has some of the highest electricity prices in the US. Plus EVs sales are way down (half of EV owners say they won’t buy another), so dealers are slashing prices hurting the resale value for current owners.
Gavin “Hair-gel Hitler” Newsom and his criminal Democrat mafia cronies in the legislature are going to end up driving the remaining refiners out of the state? Hopefully this will backfire on them and California consumers will rise up against them once fuel supplies dwindle and prices soar?
Well, it looks like Newsom’s policies are responsible for the pipefitter union employees at Phillips 66 for losing their jobs next year. It will be interesting to see if the plant maintains operations much longer as the employees leave for other jobs in oil producing states. This may very well ruin Newsom’s plans for maintaining a smooth supply of energy to all Californians. Does anyone remember the rolling blackouts under Gray Davis? At least the recent bill that he signed is producing quick results. Even though they are negative. The CA GOP should use this campaign gift in the last 20 days of this election. Things are crumbling/backfiring fast.
We would have more Republican representatives if it weren’t for the completely incompetent CA GOP led by Jessica Patterson. CA GOP can’t market squat.
get property on the cali eastern borders and set up trade posts because eventually no one is going to enter california for fear of getting stranded in the wasteland that newsome is making.
AT THIS POINT, I’ve ceased criticizing or blaming Gavin for anything anymore. It’s not on him. It’s on the people of CA. If we’re so abjectly vacant as to keep voting these treasonous mutants to positions of power, we must want it at some sub-conscious level, or need it for our self-immolation. CA will always be great for the scenery and photos, but that’s it ‘cuz I guess we hate it and ourselves too much to have nice things. We — collectively — are very sick puppies in our politics.
You’re totally right, John. I think the democrats are simply much better at politics and appealing to the low hanging fruit that low information voters love to eat. “Tax the rich, debt forgiveness, guaranteed minimum income, ‘free’ everything” appealed to me when I was a young person, but then I applied some critical thinking and experienced the dignity and self-worth of work and building wealth and perspectives changed. So yeah, it’s poor parenting and failing education system that allows people to grow up without the skills to reason this out. It just so happens that Gavin is really good at exploiting these folks.
Shame on the citizens of this once great state, we continue to allow our schools to turn out activists who can’t read or write at grade level. As long as they work toward destroying this once great state its considered a success. We are not smart enough to know we’re hurting ourselves. The Media and politicians lie straight to our face about a number of subjects, they treat us like we’re stupid because we’re lazy and stupid. we eat up everything they feed us because that’s what we’re taught. I feel for the 900 people who got screwed that now have to find a job, maybe they can learn to write code, LOL. Keep vetoing for these clowns and we will be living in a third world country very soon. Congratulations California you have destroyed yourself.
Now we are experiencing the wreckage of Newsom. I will never buy an EV. I will get a horse first or a bicycle.
Newscum and his cronies are followers of the WEF cult. This was all intentional, and they intend to do worse. The goal isn’t to make you buy a Tesla and charge it from economically and environmentally harmful solar panels (honestly, silicon solar cell manufacture is one of the most toxic manufacturing processes ever invented). The purpose is to force you to accept living in a “15 minute city” gulag. Push the price of transportation out of reach, and we’ll be forced to comply, turning our communities into concentration camps. Push the price of real food out of reach, which this will also do, and we’ll be forced to eat Bill’s bugs and lab grown swill. Hey, Earl, wanna see what your next car will really look like under the Hair Gel regime? Here you go: https://parbikes.com/
Exactly; you’re spot on however your message will not resonate.
Does it register with anybody the Phillips 66 refinery is a critical piece of infrastructure? Electing Trump and a republican governor will not reverse any of this: Do you understand this is finality folks this is a life changer bringing deleterious changes that are forever!
The subject refineries are massive and thus never coming back. This is a game and life changer for all.
Every aspect of the lifestyle Americans enjoy is facilitated by hydrocarbon fuels.
The sinister and demonic proclivities of Newsom and the majority of the legislators are neither coincidental nor random.
Right on the Mark. Always beware of Politicians with Plans. Their Plan is almost never good for the Pleebs.
The only price gouging going is by the CA Gov.
Its amazing how the level of stupidity has increased so high in the citizens and politicians in CA in the last 40 years. When I went there for school in the late 70s it was a wonderful place, I wanted to stay, now I’m glad I didn’t. When do-gooder idiot libtards started being elected and destroying the place shortly after I graduated, I bailed out and moved my business. Now I see nothing but a dump, run by idiots with room temp IQ’s! Sad!