Two Refineries That Produce 14% Of California's Gasoline Set To Close Due To "Regulatory Pressure"

California is at risk of losing two major refineries that produce 14% of the state's gasoline due to strict regulations. Valero CEO Lane Riggs stated that the company is considering all options, including shutting down its refineries, due to low profit margins and increasing regulatory pressure. This comes after Phillips 66 announced the closure of its Los Angeles refinery, which accounted for 8% of the state's refining capacity. California's oil production has halved since 2008, and the state now relies on imports for 61% of its oil needs, mostly from Middle Eastern and South American countries. The state's dependence on refined imports is expected to increase if Valero's refineries shut down. California lawmakers have raised alarms about the potential closures, linking them to new regulatory powers granted during a special legislative session. State Assemblymember Joe Patterson blamed Governor Gavin Newsom's legislation for the potential demise of the oil industry in California. Newsom had previously stated that he didn't see a future for oil in California. The potential closures would further increase California's reliance on foreign oil and drive up gas prices. The situation highlights the impact of strict regulations on the oil industry in California.