Latest news with #LaneRiggs
Reuters
24-04-2025
- Business
- Reuters
Valero to shut Benicia refinery due to tough regulatory environment, high costs
NEW YORK, April 24 (Reuters) - Valero Energy (VLO.N), opens new tab on Thursday said it would cease operations at its 170,000-barrel-per-day San Francisco-area oil refinery next year amid worries about California's declining fuel supplies and high gasoline prices. The decision clarifies plans for the Benicia refinery after the San Antonio, Texas-based refiner last week announced its intent to "idle, restructure, or cease operations" there by the end of April 2026. Valero also said it had recorded a $1.1 billion pre-tax impairment related to its California refineries. Valero CEO Lane Riggs cited challenging regulatory and enforcement environment for the decision to cease operations. Benicia's closure is the latest in a series of planned refinery shutdowns in the state. In October, Phillips 66 (PSX.N), opens new tab said it would shutter its Los Angeles-area refinery by the end of this year. Phillips 66 last year converted its Rodeo refinery into a renewables production facility. Gasoline prices in California are among the highest in the country due to the state's reliance on imports to offset declining supplies. California Governor Gavin Newsom this week told state officials to step up efforts to guarantee reliable fuel supplies for the state. "California has been pursuing policies to move away from fossil fuels for the past 20 years, and the consequence of that is the regulatory and enforcement environment is the most stringent and difficult of anywhere else in North America," Riggs said on Thursday during a call with analysts. The Benicia refinery costs considerably more to maintain compared to Valero's 135,000-bpd Wilmington refinery near Los Angeles, Riggs added. The Benicia refinery accounts for about 9% of the state's crude oil refining capacity. The facility processes feedstocks into products including gasoline, diesel, jet fuel and asphalt. "Our current intent is to close the refinery," Rich Walsh, executive vice president at Valero, said during a call with analysts. "We've already had meetings with the CEC (California Energy Commission) and are working with them to minimize the impacts that would result from the loss of the refinery."
Yahoo
17-04-2025
- Business
- Yahoo
Valero books $1.1 billion impairment, may idle California refinery
(Reuters) - Valero Energy Corp said on Wednesday it was taking a $1.1 billion pre-tax impairment related to its California refineries and told state regulators it would permanently shut or restructure its San Francisco-area refinery in Benicia, California by the end of April 2026. The move comes as refiners face growing regulatory and cost pressures in California, the largest U.S. gasoline market, where the state's emissions targets and proposed refinery transparency rules have weighed on long-term investment decisions. The Benicia converts an average of 145,000 barrels per day (bpd) of crude oil into motor fuels, according to the U.S. Energy Information Administration. "We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period," Lane Riggs, chief executive of San Antonio-based Valero, said on Wednesday. Valero also said on Wednesday it was weighing strategic options for its 91,300 bpd Los Angeles-area refinery. Riggs said in October that the company was keeping all options on the table for its two California refineries. The number of refineries in California processing crude oil has been shrinking with companies citing increased regulation like the state's plans to ban the sale of gasoline-powered automobiles by 2035. Six plants have shut since 2008. Two of those have converted to producing renewable diesel. Competing U.S. refiner Phillips 66, also in October said it would shutter its 139,000 bpd Los Angeles refinery within a year. That announcement came days after a state law was signed by Governor Gavin Newsom requiring refineries to keep stockpiles of fuel on hand to limit price spikes. Gasoline prices in California are among the highest in the United States due to the state's reliance on West Coast refineries or imports from Asia or the Middle East. Unlike other U.S. regions, there are no pipelines connecting California with refining centers along the Gulf Coast or in the Midwest. The Benicia refinery in the northeast of San Francisco Bay has a throughput capacity of 145,000 barrels per day. Sign in to access your portfolio
Reuters
17-04-2025
- Business
- Reuters
Valero books $1.1 bln impairment, may idle California refinery
April 16 (Reuters) - Valero Energy Corp (VLO.N), opens new tab said on Wednesday it was taking a $1.1 billion pre-tax impairment related to its California refineries and told state regulators it would permanently shut or restructure its San Francisco-area refinery in Benicia, California by the end of April 2026. The move comes as refiners face growing regulatory and cost pressures in California, the largest U.S. gasoline market, where the state's emissions targets and proposed refinery transparency rules have weighed on long-term investment decisions. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. The Benicia converts an average of 145,000 barrels per day (bpd) of crude oil into motor fuels, according to the U.S. Energy Information Administration. "We understand the impact that this may have on our employees, business partners, and community, and will continue to work with them through this period," Lane Riggs, chief executive of San Antonio-based Valero, said on Wednesday. Valero also said on Wednesday it was weighing strategic options for its 91,300 bpd Los Angeles-area refinery. Riggs said in October that the company was keeping all options on the table for its two California refineries. The number of refineries in California processing crude oil has been shrinking with companies citing increased regulation like the state's plans to ban the sale of gasoline-powered automobiles by 2035. Six plants have shut since 2008. Two of those have converted to producing renewable diesel. Competing U.S. refiner Phillips 66 (PSX.N), opens new tab, also in October said it would shutter its 139,000 bpd Los Angeles refinery within a year. That announcement came days after a state law was signed by Governor Gavin Newsom requiring refineries to keep stockpiles of fuel on hand to limit price spikes. Gasoline prices in California are among the highest in the United States due to the state's reliance on West Coast refineries or imports from Asia or the Middle East. Unlike other U.S. regions, there are no pipelines connecting California with refining centers along the Gulf Coast or in the Midwest. The Benicia refinery in the northeast of San Francisco Bay has a throughput capacity of 145,000 barrels per day.
