⏱️ Watch time (above) 3.5 minutes, Read time (below) 2.5 minutes
Thursday Afternoon Two-Fer — Common Theme - Newsom’s Presidential Ambitions Are Really Informing Everything He Does…
MY SHORT VIDEO ABOVE (ON A MID-DECADE REDISTRICTING THREAT).
Last week, I wrote an analysis on Governor Newsom’s Risky Redistricting Gambit. It was read by thousands of people interested in whether Newsom can actually accomplish what he has threatened to do: have the State Legislature conduct a mid-decade partisan gerrymander of California’s Congressional Districts. Here’s my ten cents — maybe twenty cents — in a few minutes.
APPARENTLY THIS MORNING NEWSOM IS HOLDING A PRESS CONFERENCE ON THIS VERY TOPIC. SO LOOK FOR MORE NEWS ON THIS.
(For those wondering, as you watch the video, I had something in my right eye, which I got out, but it made me squint in a lot of the video.)
Newsom’s Refinery Reversal: A Cynical Ploy for Votes
California’s regulatory war on oil takes a surprising turn as Valero’s Benicia refinery faces closure, threatening fuel supplies and prices.
A Sudden Change of Heart
Governor Gavin Newsom has spent his tenure declaring war on California’s oil industry. Year after year, his administration has rolled out increasingly harsh regulations, slapped companies with crushing fines, and made no secret of its goal to eliminate fossil fuels from the Golden State. The environmental rules coming out of Sacramento have been among the strictest anywhere in America, turning refinery operations into financial quicksand for energy companies. So when Valero Energy dropped the bombshell that it plans to shut down its Benicia refinery by early next year (separately, Phillips 66 announced their own refinery closing) you might expect Newsom to celebrate another victory in his green crusade. Instead, his administration desperately hunts for someone to buy the facility and keep those gasoline pumps running. What changed? With his eyes fixed on the White House, perhaps the governor has realized that his anti-energy zealotry plays better in Berkeley than in battleground states where voters care about what they pay at the pump.
Valero did not mince words when explaining its decision to “idle, restructure, or cease operations” at the 145,000-barrel-per-day Benicia plant. The company pointed directly to California’s “challenging regulatory and enforcement environment” as the culprit behind its exit strategy. This mirrors the frustrations voiced by other industry players who have watched their margins evaporate under Sacramento’s regulatory assault. Phillips 66 threw in the towel last year, announcing it would also close its Los Angeles-area refinery. When the dust settles, these two closures alone will wipe out nearly 17% of California’s gasoline production capacity. Energy analysts warn that this supply crunch could drive gas prices into the stratosphere, potentially hitting $6 to $8 per gallon.
The Cost of Overreach
The Benicia refinery represents far more than just another industrial facility. This operation serves as an economic lifeline for Solano County, providing steady paychecks for over hundreds of workers and handling roughly 9% of all crude oil refining in California. Valero’s decision to pull the plug stems directly from policies that have made turning a profit virtually impossible in the state. The company absorbed an $82 million penalty last year from the Bay Area Air Quality Management District and the California Air Resources Board over unreported toxic emissions. That massive fine illustrates how aggressively state regulators have pursued energy companies. Factor in the $1.1 billion impairment charge that Valero was forced to take on its California operations, and the writing on the wall becomes crystal clear.
California drivers already face the steepest gasoline prices in the nation, paying $4.48 per gallon while the rest of America enjoys an average of $3.16. These numbers are about to get much worse. The state mandates a special fuel blend that meets its environmental standards, and refineries in other states cannot easily produce this custom gasoline. That leaves California dependent on expensive imports from Asia and other distant markets. Remember what happened when the Martinez Refining Company caught fire earlier this year? Prices shot up immediately because the state has so little cushion in its fuel supply. Lose another refinery unexpectedly, and California could face genuine shortages alongside crippling price spikes.
So, Does It Matter?
Newsom’s sudden enthusiasm for rescuing the Benicia refinery appears to be nothing more than calculated political positioning. After spending years leading a one-state jihad against fossil fuels, his administration’s frantic efforts to arrange a sale look like pure opportunism. The governor has his sights set on national office, and he seems to have figured out that his environmental extremism might not play as well in Pennsylvania or Michigan as it does in San Francisco. But convincing anyone to step into this regulatory nightmare, where compliance costs can exceed profits and fines arrive with shocking regularity, will prove nearly impossible. Sacramento created this problem by systematically driving away the very companies it now desperately needs. California families, who are already struggling with the highest gas prices in America, deserve something better than this hypocritical scramble to undo years of destructive policy. The real test will be whether Newsom’s apparent conversion to energy realism survives beyond his next campaign stop. It seems like the answer may be: depends who he is talking to…
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