Latest news with #PBFEnergy
Politico
6 hours ago
- Business
- Politico
Your guide to Newsom's gas-price gambits
Presented by With help from Noah Baustin and Camille von Kaenel BLOWING A GASKET: California gas prices are not particularly high right now — but you'd be forgiven for thinking they are. Gov. Gavin Newsom and lawmakers are bandying about a dizzying array of proposals to control gas costs, fueled by the impending closure of two of the state's nine refineries. Those include plans to boost in-state oil drilling, ditch the state's unique fuel blend and pull the plug on previous attempts to regulate refiners' profit margins and maintenance schedules. In other words: Get ready for CARBOB, E15, profit caps and Kern County to become household terms. As the legislative session comes to a head, we got some of the energy world's leading experts to break down if, how and when the proposals on the table would actually work. In-state drilling Newsom's draft bill to boost California crude oil extraction will likely be among the trickiest negotiations during the end-of-session rush, but market watchers say the idea could help stabilize prices long enough for the state to develop plans for transitioning off gasoline. Colin Murphy, deputy director of the University of California, Davis' Policy Institute for Energy, Environment and the Economy, said increasing oil output from regions like Kern County won't bring current prices down, but it could forestall closures of refineries optimized for California crude — like the PBF Energy facilities in Torrance and Martinez. More closures could wreak havoc on gas prices, which some experts already estimate could go up by as much as $1.21 per gallon by next August if Phillips 66 and Valero follow through on their plans to close refineries in the Bay Area and Los Angeles. 'It's one of the strongest, most important things that we can do to hedge against the possibility of a really significant increase in prices over the next decade or so,' Murphy said. Democratic lawmakers are largely lining up behind the proposal, though Assemblymember Gregg Hart — who represents oil-rich Santa Barbara — hinted that efforts to increase drilling outside of Kern County will face pushback within the caucus. And it's ruffling feathers among environmentalists, who've framed it as a giveaway to Big Oil that will harm public health. Fuel blends Lawmakers are pushing a handful of bills that would move California away from its unique fuel blend and allow for a higher-ethanol option that could shave a few cents off each gallon of gas. SB 237, a proposal backed by Senate President Pro Tem Mike McGuire, would direct state officials to consider dropping California's unique, low-pollution fuel, known as CARBOB, in favor of a West-wide standard. UC Berkeley economist Severin Borenstein said the idea could reduce prices in theory, because conventional U.S. gasoline is cheaper to make, but California lacks the infrastructure to pipe fuel in from neighboring states. 'It may lower it a few cents, but I don't think it solves the import issue,' he said. Another proposal would allow the sale of gasoline blended with 15 percent ethanol, up from 10 percent now. Ethanol is cheaper than gasoline, and California is the only state to still limit blending to 10 percent. Jeremy Martin, director of fuels policy for the Union of Concerned Scientists, said E15 isn't suitable for all cars and very little is actually used in the U.S. 'I think it's important not to overestimate how dramatic an impact that would have,' he said. Profit margin caps There's widespread agreement among lawmakers, industry and even some environmentalists that state officials should ditch a 2023 special session law that gave the California Energy Commission the authority to consider a cap on refiners' profit margins. But it might not have a big impact, either. Borenstein said California would still lack the data to determine what refiners' margins are in order to develop a tax or penalty on them, and that companies would easily be able to manipulate outcomes by shifting around costs in their supply chains. 'I have not been supportive from the very beginning,' he said. 'I think it's just logistically not doable.' The law also represents the biggest political punching bag for oil companies that argue California is a hostile place to do business and is running refineries out of town. The commission delayed an expected vote today to postpone the profit cap rule. (Read more on that development below.) Minimum gas reserves Experts say the state's other special session law, a proposal to require companies to hold more fuel reserves to stop shortages when they go offline for emergencies or scheduled maintenance, makes sense in concept, but comes with its own political dilemmas. Increased gas storage could prevent a crisis like in 2023, when prices soared above $5 per gallon amid a fuel shortage from in-state refineries. But Phillips 66's closure announcement in October and Valero's in April came on the heels of this policy being passed, highlighting the power the industry has to push back against laws they don't like. 'The world without a lot of reserve requirements has led us to these spikes in gasoline prices,' Murphy said. 'But you have to build more storage for it, and that's a cost that refiners who are already thinking about just not being in business in the state anymore, probably aren't terribly willing to bear.' The Jeremy Martin idea Lawmakers are taking notice of a regulatory scheme devised by Martin and his team at UCS that would allow gas stations to use a limited amount of conventional U.S. gasoline — instead of the state's blend — during shortages, keeping the pumps flowing and prices down. In exchange, suppliers who take advantage of the voluntary system would put 25 cents per gallon into a mitigation fund to help low-income drivers afford electric vehicles. That proposal is garnering kudos from other experts. 'It seems like a really reasonable middle ground,' Murphy said. And Hart said that's an idea he's ready to push for in a gas policy deal. 'That's another piece I'm going to advocate for,' Hart said. 'I want us to be innovative.' — AN Did someone forward you this newsletter? Sign up here! DELAY DELAYED: California energy regulators were scheduled on Wednesday to put the final touches on Newsom's turnaround on Big Oil by officially postponing an industry profit cap and refinery maintenance regulations. Instead, they kicked the can down the road. In a surprise announcement at the beginning of the California Energy Commission's meeting, officials said they needed more time to consider their resolutions to postpone the implementation of the maximum gross gasoline refining margin and penalty implementation as well as the refinery turnaround timing. After the meeting, CEC Vice Chair Siva Gunda told POLITICO that the key issue still at play is how long exactly the agency should delay its implementation of the oil industry regulations. For the delay to have its intended effect, it must last long enough to give refiners and their financiers the confidence they need to continue investing in their California infrastructure, according to Gunda. 'Qualitatively I can definitely say that typically about five years is a cycle, and we want to provide at least one investment cycle of confidence,' Gunda said, adding that the discussions on the exact timeline remain ongoing. Whether a five-year delay would be enough to sate the industry is unclear. In a statement, the Western States Petroleum Association celebrated the CEC's plans to delay the margin cap policy, but didn't weigh in on questions of timing. 'A margin cap and penalty would be a misguided policy that fails to address the root causes of California's elevated gas prices — high costs, expensive regulations, supply constraints, and the reality that gasoline is, and will remain, a critical driver of our state's economy,' WSPA spokesperson Jim Stanley said. The closely watched refinery rules were the cornerstone of two special legislative sessions that Newsom called each of the previous two years. SB X1-2 gave the CEC the ability to limit refiners' gross profit margins, and AB X2-1 gave it the authority to regulate backup supply when refineries go offline for maintenance. Newsom reversed course earlier this year after Phillips 66 and Valero announced plans to shutter two of the state's nine refineries, asking Gunda in April to make sure refiners 'continue to see the value in serving the California market, even as demand for fossil fuels continues its gradual decline over the coming decades.' CEC officials signaled that they intend to bring the proposal before the commission at its next meeting, which is scheduled for Sept. 10. — NB HUDDLE UP: Refinery regulations aside, Newsom sent a clear message to Sacramento on Wednesday: He wants lawmakers to prioritize passing legislation creating a multistate west-wide energy grid. Newsom invited members of the coalition pushing for the passage of a 'workable' SB 540 to his offices in the so-called Capitol swing space, then sent out photos of the meeting on social media. The guest list included: NRDC Director of California Government Affairs Victoria Rome, Environmental Defense Fund California State Director Katelyn Roedner Sutter, Coalition of California Utility Employees representative Marc Joseph, California Chamber of Commerce Policy Advocate Jon Kendrick, Western Freedom Executive Director Kathleen Staks, California Municipal Utilities Association Director of Energy Derek Dolfie, Independent Energy Producers Association CEO Jan Smutny-Jones and American Clean Power Association California Executive Director Alex Jackson. 'I'm calling on the Legislature to enable the expansion of regional energy markets to lower energy costs, reduce air pollution, and avoid power outages,' Newsom wrote in his post. 'This is our best shot at making electric bills more affordable and securing a clean, reliable energy future.' — NB TAKING FLIGHT: A rare Southern California butterfly just got a little more political. The California Fish and Game Commission voted Wednesday to give the Quino checkerspot, a black, white and orange butterfly in San Diego County, temporary endangered species protections under state law — over the objections of housing developers. The commission will now study the butterfly more in depth and come back in at least a year to vote on whether to make the protections permanent. Developers have already been wrangling with the butterfly since it landed on the federal endangered list in 1997, including by having to set aside land for its survival. But environmental groups who petitioned the state to protect the species argued the additional state protections are essential to avoid backsliding under the Trump administration, which has gone after endangered species and critical habitat protections broadly. Building industry groups, meanwhile, warned state officials the state protections would bring more red tape, slow housing projects and unintentionally undermine existing hard-won conservation deals. The state wildlife officials determined that the butterfly faced significant threats from climate change and habitat loss and fragmentation due to development, which has already reduced its range by over 75 percent to just a few spots in San Diego County. — CvK ON THE DOCKS: The Port of Los Angeles recorded its busiest month for imports ever in July, but its executive director warned that the good times might not last. Port of Los Angeles Executive Director Gene Seroka announced Wednesday that the country's largest port brought in over 1 million container units last month, surpassing the complex's previous record in May 2021, as shipping rebounded from pandemic shutdowns. That comes after the port also saw its busiest June on record last month. The flurry of activity comes after a slow May, which coincided with Trump's decision to increase tariffs on China to 145 percent. Trump temporarily lowered that rate on May 12 and has issued a series of extensions — including a 90-day reprieve yesterday. Seroka said that he expects July imports to be the peak, as importers rushed to stock up on inventory for the rest of the year, though he anticipates a strong August. But he cautioned that tariff uncertainty makes predicting the future difficult. 'The bottom line is we just don't know what's gonna stick, or what's gonna change,' he said. 'For right now, the safe bet is less cargo, but nothing overly dramatic that would put any of us in peril.' — AN SETTING THE AGENDA: On Wednesday, Aug. 27, POLITICO is hosting its inaugural California policy summit: The California Agenda. Come see the Golden State's most prominent political figures — including Sen. Alex Padilla and gubernatorial candidates Katie Porter and Xavier Becerra — share the stage with influential voices in tech, energy, housing and other areas at the forefront of the state's most critical policy debates. The live event is currently at capacity, but will be streamed. Advance registration is required. Stay tuned for more on speakers and discussion topics, and request an online invite here. — A sustainable aviation fuel refinery in Los Angeles that was once touted as a success story quietly closed down in April. — Agricultural tycoons Stewart and Lynda Resnick plan to shut down a grape nursery near Bakersfield at the center of a labor fight and donate it to UC Davis. — Home sale prices in the Central Valley are 2.4 to 5.4 percent lower because groundwater pumping is causing the land to sink, according to new research from UC Riverside.
Yahoo
3 days ago
- Business
- Yahoo
PBF Energy Inc. (PBF) Reports Q2 2025 Performance
PBF Energy Inc. (NYSE:PBF) is included in our list of the 13 Best Oil Refinery Stocks to Buy Right Now. A large oil tanker container ship sailing against a sunset background. On July 31, 2025, PBF Energy Inc. (NYSE:PBF) released its earnings report for Q2 2025. The company reported a net loss of $5.2 million, an improvement from a $0.56 net loss per share in the previous year. Meanwhile, its adjusted net loss stood at $1.03 per share. The weak earnings were attributed to soft refining margins and ongoing challenges at the company's Martinez refinery, which experienced a fire earlier this year. Although the refinery has partially resumed operations, a full restart is expected by year-end 2025. However, the company's insurance recoveries of $250 million helped offset the loss. Looking ahead, the company expects over $200 million in annualized savings by the end of the year, thanks to its Refinery Business Improvement initiative. Furthermore, PBF Energy Inc. (NYSE:PBF) expects to complete the $175 million sale of its terminal assets in Q3, which falls under its portfolio optimization plans. Four days after the earnings release, Piper Sandler increased its price target on PBF Energy Inc. (NYSE:PBF) from $21 to $22, maintaining an 'Underweight' rating. Operating through its Refining and Logistics segments, PBF Energy Inc. (NYSE:PBF) is focused on refining and the supply of petroleum products. While we acknowledge the potential of PBF as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Cheap Value Stocks to Buy Now According to Warren Buffett and 7 Best Potash Stocks to Buy According to Analysts. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
PBF Energy to Participate in Citi Natural Resources Conference
PARSIPPANY, N.J., Aug. 8, 2025 /PRNewswire/ -- PBF Energy Inc. (NYSE:PBF) today announced that members of its management team will participate in the 2025 Citi Natural Resources Conference on June August 11-13, 2025. Any company presentation materials will be made available on the Investor Relations section of the PBF Energy website at About PBF Energy Energy Inc. (NYSE:PBF) is one of the largest independent refiners in North America, operating, through its subsidiaries, oil refineries and related facilities in California, Delaware, Louisiana, New Jersey and Ohio. Our mission is to operate our facilities in a safe, reliable and environmentally responsible manner, provide employees with a safe and rewarding workplace, become a positive influence in the communities where we do business, and provide superior returns to our investors. PBF Energy is also a 50% partner in the St. Bernard Renewables joint venture focused on the production of next generation sustainable fuels. Contacts: Colin Murray (investors) ir@ Tel: 973.455.7578 Michael C. Karlovich (media) mediarelations@ Tel: 973.455.8981 View original content to download multimedia: SOURCE PBF Energy Inc. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Refiners Smell Profits as Heavy Crude Comes Roaring Back--But One Risk Lurks
Refiners may finally be catching a break. After months of margin pressure from tight heavy-light crude spreads, companies like Marathon Petroleum (NYSE:MPC), Valero (NYSE:VLO), and PBF Energy (NYSE:PBF) are positioning for a potential rebound in the second half of the year. On its latest earnings call, Marathon's Chief Commercial Officer Rick Hessling said wider differentials could be on the way, driven by OPEC production increases and Canadian supply coming back online post-maintenance. Gulf Coast refiners, many of which are configured to process heavy crude, stand to benefit if discounted barrels start flowing again. We expect differentials to widen out in the second half this year, Hessling said, pointing to September as a key turning point. Warning! GuruFocus has detected 6 Warning Sign with CASY. Valero's management echoed that optimismwith caution. Chief Operating Officer Gary Simmons flagged that while recent events like Venezuelan sanctions and Canadian wildfires have tightened supply, the worst may be behind. Going forward, we do think things will get better, Simmons noted, although he expects the margin boost to be more visible by Q4. PBF Energy's CEO Matthew Lucey added that the second quarter was tough, calling narrow crude spreads a significant challenge, but projected 2 million to 2.5 million barrels per day of heavy output could return by fall, just in time for seasonal refinery maintenance. Meanwhile, Californiaof all placesmight quietly become a swing factor. Recent regulatory shifts under Governor Gavin Newsom could revive in-state drilling, just as Phillips 66 and Valero prepare to shut down major refineries on the West Coast. With less refining capacity and more California crude staying local, Marathon sees those barrels as "advantaged." But one variable could complicate this recovery: potential sanctions on Russian crude under a future Trump administration. The only unknown here is really what happens with the Russian sanctions, Valero's Simmons warned. If sanctions tighten, that could cut off Russian barrels and push heavy crude prices back up, limiting gains for U.S. refiners. This article first appeared on GuruFocus.
Yahoo
6 days ago
- Business
- Yahoo
Refiners Smell Profits as Heavy Crude Comes Roaring Back--But One Risk Lurks
Refiners may finally be catching a break. After months of margin pressure from tight heavy-light crude spreads, companies like Marathon Petroleum (NYSE:MPC), Valero (NYSE:VLO), and PBF Energy (NYSE:PBF) are positioning for a potential rebound in the second half of the year. On its latest earnings call, Marathon's Chief Commercial Officer Rick Hessling said wider differentials could be on the way, driven by OPEC production increases and Canadian supply coming back online post-maintenance. Gulf Coast refiners, many of which are configured to process heavy crude, stand to benefit if discounted barrels start flowing again. We expect differentials to widen out in the second half this year, Hessling said, pointing to September as a key turning point. Warning! GuruFocus has detected 6 Warning Sign with CASY. Valero's management echoed that optimismwith caution. Chief Operating Officer Gary Simmons flagged that while recent events like Venezuelan sanctions and Canadian wildfires have tightened supply, the worst may be behind. Going forward, we do think things will get better, Simmons noted, although he expects the margin boost to be more visible by Q4. PBF Energy's CEO Matthew Lucey added that the second quarter was tough, calling narrow crude spreads a significant challenge, but projected 2 million to 2.5 million barrels per day of heavy output could return by fall, just in time for seasonal refinery maintenance. Meanwhile, Californiaof all placesmight quietly become a swing factor. Recent regulatory shifts under Governor Gavin Newsom could revive in-state drilling, just as Phillips 66 and Valero prepare to shut down major refineries on the West Coast. With less refining capacity and more California crude staying local, Marathon sees those barrels as "advantaged." But one variable could complicate this recovery: potential sanctions on Russian crude under a future Trump administration. The only unknown here is really what happens with the Russian sanctions, Valero's Simmons warned. If sanctions tighten, that could cut off Russian barrels and push heavy crude prices back up, limiting gains for U.S. refiners. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
