https://finance.yahoo.com/news/experts-warn-gas-price-spikes-073500904.htmlPredicting 10-20c increase. This is just for the exploded refinery.
Shutdown #1: Phillips 66 shutting down Dec 2025.
Shutdown #2: Valero Benicia shutting down mid 2026.
https://tankterminals.com/news/california-refinery-closures-eliminate-290000-barrels-daily-capacity/Facility Specifications:
Phillips 66 Wilmington: 145,000 barrels/day capacity
Valero Benicia: 145,000 barrels/day capacity
Combined impact: 17-18% reduction in state refining capacity
Timeline: Complete closure within 12 months
Consolidation Timeline:
1980s: ~40 active refineries
2000s: ~20 active refineries
2025: ~12 active refineries
Post-closures: ~10 active refineries
Supply Coordination Challenges:
Capacity Limitations: Remaining facilities have limited spare capacity
Transportation Constraints: Pipeline and shipping limitations for inter-state transfers
Blend Requirements: Difficulty matching California's specialised fuel specifications
Economic Pressures: Similar cost challenges affecting other regional refineries
Security Risk Factors:
Import Dependency: Increased reliance on international fuel supplies
Transportation Vulnerabilities: Shipping and pipeline constraints
Geopolitical Exposure: International supply disruption risks
Quality Control Challenges: Ensuring imported fuels meet California specifications
Really good article laying it all out. Prices have remained steady but will pickup at the end of this year and increase into 2026. The biggest issues are loss of capacity that's not being replaced and with the Cheveron plant down its going to amplify the 2 others closing. Gonna get real expensive out there.
aTm '99