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SACRAMENTO, California — Phillips 66 announced Wednesday that it will close its Los Angeles oil refinery next year, citing “long-term uncertainty” two days after Gov. Gavin Newsom signed a law clearing the way for new regulations on the state’s refiners.
The closure would knock out about 8 percent of refining capacity in a state that barely produces enough of its special-blend gasoline to meet demand from its 31 million gas-powered vehicles.
SACRAMENTO, California — Phillips 66 announced Wednesday that it will close its Los Angeles oil refinery next year, citing “long-term uncertainty” two days after Gov. Gavin Newsom signed a law clearing the way for new regulations on the state’s refiners.
The closure would knock out about 8 percent of refining capacity in a state that barely produces enough of its special-blend gasoline to meet demand from its 31 million gas-powered vehicles.
“With the long-term sustainability of our Los Angeles refinery uncertain and affected by market dynamics, we are working with leading land development firms to evaluate the future use of our unique and strategically located properties near the Port of Los Angeles,” Mark Lashier, the company’s chairman and CEO, said in a statement.
Newsom on Monday signed legislation aimed at preventing gasoline price spikes by giving the state authority to require refiners to store more gas and share resupply and maintenance plans with the state.
Phillips 66 spokesperson Al Ortiz said in an email that the announcement was not in response to Newsom’s signing the law. He said the company would work with California to maintain and maybe even increase gas supplies, but didn’t say where the new fuel would come from. Ortiz added that the company is not exiting California, noting its remaining San Francisco refinery and other facilities.
But the oil industry has been warning that the long-term effects of Newsom’s aggressive regulatory push could drive refiners out of the state. Industry lobbyists repeated those warnings in legislative hearings over Monday’s law, which they vehemently opposed. The governors of Arizona and Nevada raised their own concerns in letters to Newsom last month.
Newsom held a press conference after signing the new law in which he accused Big Oil of “gouging” and “screwing” Californians by charging high prices and lobbying lawmakers. The law, which he called the first of its kind in the nation, comes as his administration weighs another major restriction — a potential profit cap for refiners in the state.
SACRAMENTO, California — Phillips 66 announced Wednesday that it will close its Los Angeles oil refinery next year, citing “long-term uncertainty” two days after Gov. Gavin Newsom signed a law clearing the way for new regulations on the state’s refiners.
The closure would knock out about 8 percent of refining capacity in a state that barely produces enough of its special-blend gasoline to meet demand from its 31 million gas-powered vehicles.
SACRAMENTO, California — Phillips 66 announced Wednesday that it will close its Los Angeles oil refinery next year, citing “long-term uncertainty” two days after Gov. Gavin Newsom signed a law clearing the way for new regulations on the state’s refiners.
The closure would knock out about 8 percent of refining capacity in a state that barely produces enough of its special-blend gasoline to meet demand from its 31 million gas-powered vehicles.
“With the long-term sustainability of our Los Angeles refinery uncertain and affected by market dynamics, we are working with leading land development firms to evaluate the future use of our unique and strategically located properties near the Port of Los Angeles,” Mark Lashier, the company’s chairman and CEO, said in a statement.
Newsom on Monday signed legislation aimed at preventing gasoline price spikes by giving the state authority to require refiners to store more gas and share resupply and maintenance plans with the state.
Phillips 66 spokesperson Al Ortiz said in an email that the announcement was not in response to Newsom’s signing the law. He said the company would work with California to maintain and maybe even increase gas supplies, but didn’t say where the new fuel would come from. Ortiz added that the company is not exiting California, noting its remaining San Francisco refinery and other facilities.
But the oil industry has been warning that the long-term effects of Newsom’s aggressive regulatory push could drive refiners out of the state. Industry lobbyists repeated those warnings in legislative hearings over Monday’s law, which they vehemently opposed. The governors of Arizona and Nevada raised their own concerns in letters to Newsom last month.
Newsom held a press conference after signing the new law in which he accused Big Oil of “gouging” and “screwing” Californians by charging high prices and lobbying lawmakers. The law, which he called the first of its kind in the nation, comes as his administration weighs another major restriction — a potential profit cap for refiners in the state.
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