Valero’s Benicia Refinery Closure

Valero’s 170,000 barrel-per-day Benicia refinery, representing ~10% of California’s gasoline, will phase out production by April 2026, creating severe local job insecurity for 400+ workers and threatening $11 million annual tax revenue for the City of Benicia. The closure stems from high regulatory costs, impacting California’s fuel supply and raising potential price volatility.

The closure adds further risk to California’s beleaguered fuel supply chain. The shutdown is expected to reduce in-state production, potentially increasing prices at the pump. The closure will increase California’s reliance on imported gasoline and diesel, and it may heighten vulnerability to supply disruptions or refinery outages elsewhere on the West Coast.

Local workers are facing a harsh reality of immediate job losses and financial insecurity. Refinery jobs are generally high‑wage, unionized, blue‑collar positions, with workers receiving approximately $100,000 per year with overtime and benefits. The promised “just transition” for these families and communities has not materialized.

For Benicia’s residents, and all Californians, there are significant questions regarding affordability and energy security that need answers from state policy makers.

SoCalGas Issues, Then Lifts “Advisory”

Southern California Gas Co. on Dec. 18 issued a “SoCalGas Advisory,” asking customers to reduce use of natural gas to lower the risk of gas and electricity shortages during a cold snap. It lifted the advisory two days later.

“Working with our customers and suppliers, we were able to manage our system to deliver reliable heating and electricity to our region during this recent cold snap,” said a SoCalGas spokesperson.

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California Sides With BLM on Flaring Rule

California and New Mexico have asked a federal court to allow them to join a lawsuit over a final rule issued by the Interior Department that reduces venting and flaring from oil and gas operations on public and tribal lands.

The states support the position of the Department’s Bureau of Land Management, putting them in opposition to the stance taken by Montana, North Dakota and Wyoming, which in November filed the lawsuit opposing the rule in the U.S. District Court in Wyoming and seeking an injunction against its implementation by the BLM.

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Chevron:  $19.8 Billion for Exploration and Projects

Chevron Corporation (NYSE:CVX) announced a $19.8 billion capital and exploratory investment program for 2017, including $4.7 billion in expenditures by affiliated companies.

“Our spending for 2017 targets shorter-cycle time, high-return investments and completing major projects under construction. In fact, over 70% of our planned upstream investment program is expected to generate production within two years,” said Chairman and CEO John Watson.

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Offshore Development Plan for 2017-2011 Released

The Department of the Interior’s Bureau of Ocean Energy Management (BOEM) has released its final plan to guide future energy development for the Nation’s Outer Continental Shelf for 2017-2022.

The Proposed Final Program offers 11 potential lease sales in four planning areas, including 10 sales in the portions of three Gulf of Mexico Program Areas that are not under moratorium and one sale off the coast of Alaska in the Cook Inlet Program Area. The Beaufort and Chukchi Seas planning areas in the Arctic are not included in the Proposed Final Program.

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