OAN Staff Blake Wolf
5:57 PM – Thursday, October 17, 2024
American multinational energy company Phillips 66 said Wednesday it plans to close one of its Los Angeles-area refineries by 2025, citing concerns about certain regulations recently signed by California Governor Gavin Newsom. announced.
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“As the long-term sustainability of our Los Angeles refinery is uncertain and subject to market trends, we are working with a leading land developer to develop our unique, strategically located near the Port of Los Angeles. “We are evaluating the future use of these assets,” said Mark Lasher. , Chairman and CEO of Phillips 66.
“Philips 66 remains committed to serving California and will continue to take the necessary steps to meet commercial and customer demand,” he added.
The announcement comes after Newsom (D-Calif.) signed a new law that the governor said aims to “prevent soaring gas prices and save consumers money at the pump.” I was disappointed.
Newsom's law requires the state to maintain minimum fuel inventories at oil refineries and requires oil refiners to have contingency plans for maintenance outages on refinery equipment.
Newsom's representatives said the legislation would “prevent price gouging that cost Californians more than $2 billion last year, and do more to require the state to require oil refiners to plan ahead for backfilling and maintenance of supplies.” “We will be given the means to do so.”
“Price gouging has cost Californians billions of dollars over the years. We are not waiting for industry to do the right thing. We are taking action to save people money,” Newsom continued. . “The state now has the tools to backfill supply and proactively plan maintenance to avoid shortages that drive up prices. We can move quickly to advance this and deliver relief to Californians.” We thank our partners in the Senate and House for doing so,” Newsom’s representatives added.
The soon-to-be-closed Los Angeles-based refinery accounts for nearly 8% of California's refining capacity, and Newsom has announced new regulations for oil and gas companies amid his lofty “sustainability and climate goals.” Continued pressure on lawmakers to pass the bill.
The state is also phasing out fossil fuel-powered vehicles and equipment, including cars, trains and lawn mowers.
Although the Los Angeles refinery is closing, Phillips 66 is not leaving California completely, with another facility in the San Francisco area that will “supply the fuel market and provide continued consumer support.” The company is committed to complying with California law to “meet the demands of the world.”
“In addition to supplying gasoline from sources within and outside of our refining network, we will supply renewable diesel and sustainable aviation fuel from our Rodeo Renewable Energy Complex in the San Francisco Bay Area,” the company added.
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