California is set to lose one of its nine remaining gasoline refineries by October, calling the security of its gasoline supplies into question.
With much of Arizona and Nevada relying on California for gasoline, the closure could have a broad regional impact on prices for gasoline and other products created by the refinery such as diesel and jet fuel.
Phillips 66 announced the closure of its Los Angeles facility, which accounts for 8.57% of the state’s remaining refining capacity, last year after the passage of new refinery regulations.
The governors of Arizona and Nevada, a Democrat and Republican respectively, pleaded with the California Gov. Gavin Newsom to not sign the new legislation, which lets the state require refiners carry more inventory on hand — and spend billions of dollars on storage to do so — and have final say over when refineries are allowed to shut down for safety or maintenance reasons.
“It is evident that increased regulatory burdens on refiners and forced supply shortages will result in higher costs for consumers in all of our states,” wrote Arizona Gov. Katie Hobbs and Nevada Gov. Joe Lombardo in their letter to Newsom. “With both of our states reliant on California pipelines for significant amounts of our fuel, these looming cost increases and supply shortages are of tremendous concern to Arizona and Nevada.”
With Newsom having called the special session of the legislature to pass these regulations, there was little surprise that he signed them into law.
But Hobbs and Lombardo’s fears are already materializing.
After investigators blocked refinery repairs in February following a fire amid maintenance-related activity, gas prices in California, Arizona and Nevada rose markedly, demonstrating the states’ reliance on California refineries.
With the loss of the Phillips 66 refinery, prices could rise to an even higher baseline for gasoline. That could impact the price of most consumer goods that involve the use of diesel-powered rail or truck transportation.
California legislators said this closure is just the first of more to come. They warned that working Californians will pay the brunt of the costs.
“Expect CA gas prices to skyrocket and more refineries to shut down as Sacramento Democrats double down on their agenda to exterminate affordability and make a middle-class life impossible to achieve for millions,” said Assemblywoman Kate Sanchez, R-Trabuco Canyon, on X.
California’s tightening of its Low Carbon Fuel standard, approved last year but put on temporary hold for required non-substantial amendments, is expected to result in a $162 billion fuel cost hike to fund credits for cleaner “fuels” such as EV charging and hydrogen.
When refineries make gasoline or other carbon intensive fuels for California, they must purchase credits, the cost of which is passed on to consumers. With the tightening of LCFS to further reduce greenhouse gas emissions, those costs for each unit of produced fuel will rise even further, likely impacting demand for refined products and driving more refinery shutdowns.
Arizona….RIGHT NEXT TO AMERICA’S SAUDI ARABIA = PERMIAN BASIN, and we’re getting hosed on energy. GEE, HOW’S DAT HAPPENIN’?? [Ca-Ching $$$! Ca-Ching $$$!]
Or read my piece on it: https://arizonadailyindependent.com/2024/10/26/southeast-arizona-americas-hidden-landbridge-to-the-pacific-rim/
Some Iowa gas stations were getting oil from Texas early 2000s. Maybe Az should! It doesn’t help that the largest refinery in the US is owned by Arabic co! Saudi Aramco! What a disgrace these last 50 years have been! Our govt sells us out to foreign entities and when people wake up to the sham and want it stopped then we are ostracized. It’s disgusting!
TUCSON – is the hub more or less – of pipeline from Calif. / Shell and Texas / Texaco – the squeeze on us and them has been the Tucson price of gas for decades! Lots of our gas goes to Mexico now – theirs has to much sulfur – dirty gas. nothing new here but the politicians name
Trump needs to allow emergency permits to build new one in Arizona
Trump needs to defund the EPA. There’s no authorization for it in the Constitution, ergo the State shouldn’t have to ask D.C., at all.
Losing another gasoline refinery is a true shame, not only a big loss for California and the neighboring states, but for the entire nation as a whole. Since the late 1960’s, America has been slowly losing more and more refineries and eventually there will be little choice but to pay extremely exorbitant fees for petroleum products, as a lack of competition in any industry ( ..as we are seeing more and more of today .. ) only allows for take-it-or-leave-it pricing and the consumer will have no option. Not only will pricing become unaffordable, but, we won’t have the necessary fuel needed for national defense if need-be. Much of our younger generations don’t understand, nor do they care about, the importance of fueling national defense and our nation as a whole, some day it may be too late..
Is it possible that the greater Phoenix area could get their gasoline from Texas like other parts of a
Arizona already does? A new pipeline maybe?
When will the AZ legislators realize that we need our own refinery? Relying on CA for gasoline is like bending over for Newscum and asking for it! How much pain do we need to endure before somebody gets off their butt and does something? When I started coming here from the East, gas was 30 cents cheaper than Patheticut, now their gas is less expensive than AZ! It will take years to permit and build a refinery to take NM crude and distribute refined products to our state. Why not start now while we have Trump in office to at least reduce the red tape? It’s worth a call to our legislators!
Back in 90’s napolinar tje gov said she would
Build a Plant here ln az. Well typical of democraps
Nothing ever came of it. So if prices go up you
can thank the dems for another fairytale
For the people
Conoco tried 20 years ago to build a refinery in Arizona but were blocked every time by environmentalist.
“Green” is nothing more than strangling the economy to send Americans back to the cave. Want to join the Marxists and be “Green”? It’s going to cost.
Before becoming a member or a supporter of the Democrat Party, do you need to take an entry exam demonstrating disdain and hatred for your fellow citizens?
Arizona needs its own refinery, plus a cheap crude source – a pipeline from the east, most likely. Not holding my breath for Hobbs to do anything useful on this. Complaining to Cali about expensive-energy policies she’d do here too if she could? Worse than useless.
is expected to result in a $162 billion fuel cost hike to fund credits for cleaner “fuels” such as EV charging and hydrogen…. hmmm so lets burn the EV / EV Charging CARS AND DEALERSHIPS – try and collapse the best mfg in the USA – and.. where’s the hydrogen car? Talk about a vehicle that comes with a ‘BANG!’ when it explodes – what’s the first model going to be called ‘The Hindenburg’ HYDRO-BOMB – comes with a sticker on the bumper – aborted child on board in an “X” triangle window sticker- to be known as the X Californication .. * Build the Wall but between Arizona and California – they can be prisoners in their own Hotel California.