OAN Staff Blake Wolf
5:57 PM – Thursday, October 17, 2024
Phillips 66, an American multinational energy company, announced on Wednesday that it plans to shut down one of their oil refineries in the Los Angeles area by 2025, citing concerns with specific regulations California Governor Gavin Newsom recently signed into law.
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“With the long-term sustainability of our Los Angeles Refinery uncertain and affected by market dynamics, we are working with leading land development firms to evaluate the future use of our unique and strategically located properties near the Port of Los Angeles,” stated Mark Lashier, the chairman and CEO of Phillips 66.
“Phillips 66 remains committed to serving California and will continue to take the necessary steps to meet our commercial and customer demands,” he added.
The announcement follows after Newsom (D-Calif.) signed a new law that the governor said aims to “help prevent gas price spikes and save consumers money at the pump.”
Newsom’s law empowers the state to require oil refinement companies to maintain a minimum inventory of fuel, as well as requires oil refiners to have contingency plans in place for refiner maintenance outages.
Newsom’s representatives stated that the law will “prevent price spikes that cost Californians upwards of $2 billion last year, giving the state more tools to require that petroleum refiners backfill supplies and plan ahead of maintenance.”
“Price spikes have cost Californians billions of dollars over the years, and we’re not waiting around for the industry to do the right thing – we’re taking action to prevent these price spikes and save consumers money at the pump,” Newsom continued. “Now, the state has the tools to make sure they backfill supplies and plan ahead for maintenance so there aren’t shortages that drive up prices. I’m grateful to our partners in the Senate and Assembly for acting quickly to push this forward and help deliver relief for Californians,” Newsom’s representatives added.
The soon-to-be-closed Los Angeles-based refinery accounts for nearly 8% of California’s refining capacity, as Newsom continues to push lawmakers to pass regulations on oil and gas companies amidst its lofty “sustainability and climate goals.”
Additionally, the state has attempted to phase out fossil fuel-powered vehicles and tools, such as cars, trains and lawn mowers.
Although the Los Angeles refinery will close, Phillips 66 isn’t pulling out of California completely, as it has another facility in the San Francisco area which promises to comply with California’s laws to “supply fuel markets and meet ongoing consumer demand.”
The company added that it “will supply gasoline from sources inside and outside its refining network as well as renewable diesel and sustainable aviation fuels from its Rodeo Renewable Energy Complex in the San Francisco Bay area.”
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