Stein & Umbro: Another refinery closure in California increases the State's dependency on China

Credit: Fox Business

Co-authored by Ronald Stein, P.E. and Mike Umbro

Over the last several decades, California’s passion to transition away from fossil fuels has overregulated and overly burdened just the SUPPLY of oil production and refining but has not reduced the increasing materialistic DEMANDS of the world for the more than 6,000 products and transportation fuels made from those fossil fuels. Thus, China is savoring the future with their many refineries coming online to meet the DEMANDS of society.

The recent announcement that the Valero Benica Refinery in Northern California will be closing by the end of 2026 was disappointing, but shockingly, a prelude to more closures in the future. The Valero refinery at Benicia represents almost 9% of the state’s crude oil processing capacity to meet the materialistic demands of the States’ residents.

Just last year, in October 2024, Phillips 66 announced that it would close its Wilmington-area refining complex this year, which will further reduce the state’s gasoline, diesel, and aviation fuels production capacity, wiping out more than 8% of the state’s crude oil processing capacity. Losing another 1.3 billion gallons in annual gasoline output will only worsen the state’s supply challenges to meet the demands.