Remote Surveillance Trailer in Benicia, CA

The Valero oil refinery in Benicia, CA is shut down. Mike Ariza, former Valero manager and oil and gas expert, told the Globe Tuesday that they started shutting down January 31st, and thermal imaging reports that the refinery is cold. And he said the Crimson pipeline, which moved crude oil from Southern California to Northern California is also down.

“We are in an unprecedented oil crisis,” Ariza said.

In April 2025, Valero Energy Corporation announced it would shut down its Benicia Refinery in April 2026.

This hit came after Chevron Oil Company relocated to Houston, Texas from the Bay Area, and Phillips 66 began shutting down its Los Angeles refinery in October 2025.

But our oil experts predicted months ago that Valero appeared to be aiming to shut down sooner, and gas prices were already starting to shoot up.

As oil and gas expert USC Professor Michael Mische reported at the Globe in April:

Citing low operating margins, increased operating costs and a growingly harsh regulatory environment, including a state mandated moratorium on the sale of internal combustion engine vehicles by 2035, and in the wake of an $85 million fine related to “egregious emissions violations levied on it by the California Air Resources Board (CARB) and Bay Area Air Quality Management District, Valero Energy Corporation today, April 16, 2025, served notice to the California Energy Commission (CEC) to “idle, restructure, or cease refining operations at Valero’s Benicia Refinery by the end of April 2026.” Correspondingly, and in recognition of its plans for the California operational environment, Valero has incurred a write-off charge of $1.1 billion related to asset impairments for its Benicia and Wilmington California refinery operations.

In January, California Governor Gavin Newsom issued a statement following Valero oil company’s update that it would power down its Benicia refinery but continue to supply California’s market with imported gas.

Newsom’s statement read as if a 10-year old screaming “Look at ME” wrote it:

“While others point fingers to spread fear and divide us, California is doing the actual work—collaborating with industry, using data and transparency to protect consumers, and building the all-of-the-above energy future America needs. We’re in ongoing discussions with Valero to evaluate options for continued operations at the Benicia refinery and I appreciate the company planning responsibly, including planning for imports of refined products to supply the market in the meantime.”

Governor Gavin Newsom

Newsom even took a tactless victory lap, as if he is responsible for saving Valero. Important to note: it’s Gavin Newsom’s “clean energy all electric future” with a ban on internal combustion engine autos, which has inflicted the most harm on the oil and gas industry.

The national average price for a gallon of gas today is $2.89; California’s average price for a gallon of gas is $4.25 – and climbing.

As the Globe reported in December, Gov. Newsom is presiding over perhaps the largest energy policy collapse of the oil industry, refinery operations and gasoline production in U.S. history. A momentous report recently prepared by California Assemblyman Stan Ellis, USC Professor Michael Mische, and petroleum expert Michael Ariza, warned that California’s self-inflicted gas crisis is also a direct threat to U.S. military force readiness on the West Coast, the Globe reported in October.

Their report exposed how Governor Newsom’s energy policies are sabotaging domestic refining capacity and leaving U.S. military bases in the West vulnerable to foreign adversaries like Russia and China.

Their conclusion is that there must be federal intervention.

Ariza told the Globe in December that Valero, which announced in April 2025 that it would be shutting down its Benicia refinery in April 2026, bumped the closure date up to January. Ariza explained why:

“The Phillips 66 refinery in Wilmington shut down on October 17th is taking 140,000 barrels per day of crude oil refining offline. Originally Valero in Benicia was slated to shut down in April of 2026. However, given the fact that they cancelled their crude oil contracts over six weeks ago it looks like they will be shutting down no later than January of 2026, four months ahead of schedule.

Now, Valero is not even seeking to try and sell the refinery. Even after the state tried to convince Valero to remain open, they elected to shut down. And instead of shutting down in April, they shutdown in January. All due to the state’s egregious regulations and unprecedented unjustified fines.”

Ariza said when refineries shut down, more Californians will leave the state. California’s oil and gas industry provides 536,770 total jobs in California and 148,140 Californians are directly employed by its individual companies—along with the $338 billion total economic contribution to California’s economy.

Notably, in January, the Globe reported, “In an offensive move underscoring the ripple effects of California’s radical and punitive energy policies, Nevada Governor Joe Lombardo (R) announced today the appointments to the newly established Fuel Resiliency Committee.”

Arizona gets nearly half of its gas from California. And the vast majority of Nevada’s gas – 88% – comes from California.

California today produces less than 23% of its own in-state petroleum needs and imports over 65% of its crude oil from foreign sources, yet the oil and gas industry in California account for nearly 8% of the state’s GDP, even in its diminished capacity.

In 1988, the state of California only imported about 4.5% of all the oil that we consumed in our state. By 2020 we were importing over 70%.

Remember, USC Professor Michael Mische has warned that California is facing $8.43 per gallon of gas as refineries close.

That won’t look good in a presidential campaign.

The Benicia Plein Air Gallery proudly presents “Near and Far: A Collection of Works Inspired by Place,” by award-winning artist Jessica de Jesus, on display from February 1 – 28, 2026.

“Near and Far” showcases Jessica’s artistic journey through the Sierra Nevada and local landscapes, capturing the essence of both untamed wilderness and urban motifs. As an avid outdoor enthusiast, Jessica integrates her love for travel with her painting practice, often starting with plein air studies before developing larger works in her studio.

“What I love about plein air painting is being forced to work quickly and confidently as the light changes so fast,” says Jessica. “In winter, when I’m in the mountains, I also have to work against the biting cold—sometimes even painting through ice crystals forming on my paper.”

While Jessica’s passion lies in high-altitude mountains and lakes, her fascination with industrial landscapes adds a dynamic contrast to this collection that includes acrylic, gouache and watercolor.

Meet the Artist and Opening Reception

Jessica will be present at the gallery on February 1, 14, 15 and 28, offering collectors a chance to engage with her and explore her creative process. An opening reception will be held on Sunday, February 1, from 12–2 PM.

About the Artist

Jessica de Jesus is an award-winning artist whose work has been recognized in local and international exhibitions. She also serves on the board of the California Watercolor Association and will be teaching an introduction to watercolor with the Yosemite Conservancy this summer. Recent honors include the Cascade PBS Award in the Northwest Watercolor Society’s International OPEN Exhibition in 2025 and 3^rd Place in the 2025 Mono County Paint Out.

Based in Walnut Creek, CA, Jessica finds endless inspiration in the golden hills of Mt. Diablo and the Sierra Nevada, fueling both her creativity and deep connection to nature.

For more information, visit or contact Jessica de Jesus at 415-279-1457 or sfjess.art@gmail.comhttps://sfjessart.com | Instagram: @sfjess.adventure.art

Exhibit Dates: February 1 – 28, 2026 (Friday – Sundays only, 11-5 PM, or by appointment)

Artist Meet & Greets: February 1, 14, 15 and 28, 11–5PM

Opening Reception: Sunday, February 1, 12–2 PM

Location: Benicia Plein Air Gallery, 307 First Street, Benicia, CA 94510

Attached painting is "Under Pressure", acrylic on illustration board (10" x 8")

Close state coordination helps maintain stable supply and protect consumers at the pump

SACRAMENTO — Governor Gavin Newsom today issued a statement following Valero’s update that it will idle its Benicia refinery and continue to supply California’s market through a combination of existing inventories and imports, as discussions about the refinery’s future continue. This marked a constructive development from an earlier announcement that included the possibility of full closure and exit from the Northern California market in early 2026.

Under Valero’s updated plan, the Benicia refinery will continue producing gasoline through April 2026, and then continue importing gasoline into Northern California beyond April once the refinery fully idles—a strategy that will help maintain steady supply and stable prices as discussions continue on a path forward for the refinery.

While others point fingers to spread fear and divide us, California is doing the actual work—collaborating with industry, using data and transparency to protect consumers, and building the all-of-the-above energy future America needs. We’re in ongoing discussions with Valero to evaluate options for continued operations at the Benicia refinery and I appreciate the company planning responsibly, including planning for imports of refined products to supply the market in the meantime.

Governor Gavin Newsom

The Newsom administration and Valero will continue working closely together to explore opportunities for continued refinery operations and to ensure fuel supply reliability during California’s ongoing energy transition, reinforcing the state’s commitment to maintaining a stable, affordable fuel supply for Californians.

“We want to express our appreciation to Valero for continuing to work with us collaboratively to evaluate options for the Valero Benicia refinery and for maintaining fuel supply to Northern California,” said Siva Gunda, CEC Vice Chair. “The CEC and state partners are working with a variety of market players and stakeholders on necessary steps to protect consumers and support a stable and affordable fuel supply while holistically advancing this critical phase of the energy transition in our path to achieving the state’s climate goals.”

Operations at Valero’s Wilmington Refinery in Los Angeles County remain unchanged.

Maintaining stability today while accelerating the clean energy future

Thanks to Governor Newsom and the Legislature’s commitment to proactive planning and consumer protection, California is responsibly strengthening its in-state supply and accelerating the shift to cleaner energy. Last year, the Governor signed a historic package of bipartisan legislation to stabilize the petroleum fuels market, cut pollution, and save Californians billions. This package included SB 237 — legislation that increases crude oil production in Kern County, boosting domestic crude availability as California manages its long-term energy transition while maintaining strong health and environmental safeguards.

In 2023 and 2024, following severe gasoline price spikes, Governor Newsom took decisive action by calling special legislative sessions to confront price volatility head-on and protect Californians from supply shocks and disruptions. The resulting laws — SB X1-2 (2023) and AB X2-1 (2024) — strengthened California’s ability to plan ahead by requiring unprecedented transparency from refineries, including advance notice of planned refinery closures at least a year in advance. These reforms gave California early visibility into potential supply disruptions at Valero Benicia, allowing California to prepare and coordinate to maintain fuel supply stability. Together, these laws have created the most robust petroleum market transparency in the nation, protecting California consumers and supporting the state’s transition to a cleaner, more affordable energy future.

California is proving that it can protect consumers, maintain reliable fuel markets, and lead the global clean-energy transition at the same time.

Setting the record straight

MYTH: Refinery idling or closures are unique to California

FACT: This trend is not unique to California. Refineries are closing globally, and refining capacity is consolidating in megarefineries. To manage this transition, Governor Newsom called two special legislative sessions in 2023 and 2024, resulting in SB X1-2 and AB X2-1. These laws granted the California Energy Commission (CEC) regulatory and data transparency tools to ensure a stable, affordable fuel supply during the state’s transition away from petroleum-based transportation.

And these tools are working: California has avoided severe gasoline price spikes like the historic 2022 and 2023 spikes, and retail gasoline prices have been lower and more stable in 2025 than in previous years, even despite one southern California refinery closing in 2025 and multiple others experiencing overlapping outages for maintenance.

MYTH: California’s energy policies threaten military fuel supply and readiness

FACT: Claims that California’s energy policies threaten military fuel supply or readiness are not grounded in fact. The CEC has engaged directly with defense-related fuel customers throughout refinery transitions, and no credible concerns have been raised about future military fuel procurement. Reliable alternatives — including imports — remain available, ensuring continued access to necessary fuels.

MYTH: California’s clean energy transition weakens energy security and makes the state less reliable

FACT: California’s transition is strengthening energy security by expanding in-state energy production. We are building record levels of clean, in-state power. In the third quarter of 2025, Californians purchased 124,755 zero-emission vehicles, the highest quarterly sales share ever reported in California. California’s fuel supply is also becoming more secure and less oil-dependent — nearly 65% of all diesel used for transportation in the state is now renewable diesel, according to the U.S. Energy Information Administration. By expanding EV manufacturing, charging infrastructure, and homegrown renewable energy, California is reducing dependence on foreign crude and strengthening energy security by generating electricity here in America.

California’s climate leadership

Pollution is down and the economy is up. Greenhouse gas emissions in California are down 21% since 2000 — even as the state’s GDP increased 81% in that same time period, all while becoming the world’s fourth largest economy.

California also continues to set clean energy records. In 2023, the state was powered by two-thirds clean energy, the largest economy in the world to achieve this level. California has also run on 100% clean electricity for part of the day almost every day last year.

Since the beginning of the Newsom Administration, battery storage has surged to nearly 17,000 megawatts — a 2,100%+ increase, and over 30,000 megawatts of new resources have been added to the electric grid. California now has 33% of the storage capacity estimated to be needed by 2045 to reach 100% clean electricity.

Valero Refining Co. will begin laying off hundreds of workers at its Benicia refinery this spring.

In a regulatory letter filed Tuesday with state and local officials, Valero said it expects to permanently idle refinery processing units at the Benicia facility and lay off 237 of its 348 employees from March 15 to July 1.

Lauren Bird, Valero’s vice president and general manager, wrote in the letter to city officials: “The employees at the plant are not represented by a union and do not have bumping rights,” which allow workers with seniority to claim lower-level positions. “We do not plan to coordinate services with the local workforce development board or any other entity.”

The layoffs follow Valero’s earlier decision to idle the refinery by the end of April rather than permanently closing it outright.

Under an updated plan announced this month, the company will continue producing gasoline through April and then supply Northern California through a combination of existing inventories and imported fuel, according to Gov. Gavin Newsom’s office.

State officials have described the plan as a way to manage the transition without disrupting fuel supplies or driving up gas prices. Newsom said the state has been working closely with Valero to ensure reliability in the near term.

“While others point fingers to spread fear and divide us, California is doing the actual work — collaborating with industry, using data and transparency to protect consumers, and building the all-of-the-above energy future America needs,” the governor said in a statement.

The California Energy Commission said advance notice of the idling allowed state agencies to coordinate supply planning and avoid price volatility, a recurring concern after refinery shutdowns in recent years.

Locally, however, the consequences are expected to be profound.

Benicia officials have warned that the refinery’s downsizing will significantly reduce city revenue and reshape the local economy.

City Manager Mario Giuliani said last year that Benicia would need to cut roughly $7.7 million from its budget after the refinery’s closure, calling the changes “significant and seismic.”

Valero employs about 9,900 people worldwide and operates 15 refineries across the United States, Canada and the United Kingdom.

The Benicia refinery has a throughput capacity of roughly 170,000 barrels per day, accounting for nearly 9% of California’s crude oil capacity.

“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,” Valero Chairman and Chief Executive Lane Riggs said in a statement earlier this year.

Valero on Tuesday said it will continue to provide the Bay Area with gasoline even after it completely idles its Benicia refinery later this year.

It will begin to idle its processing units in February as part of a phased approach and expects to have most of its refining processing units idled by April 2026.

Valero is Benicia's largest employer as well as the city's single largest source of tax revenue, and in its announcement, the company said it is preparing to submit a Worker Readjustment and Retraining Notification, as required by law. WARNS are required when a company with 75 or more employees lays off 50 or more employees in a 30-day period.

As for the impact on Bay Area drivers, Valero announced the company will import fuel into the region and use existing inventory to keep drivers supplied.

"Valero remains committed to fulfilling its contractual supply obligations in the California market and anticipates importing additional gasoline volumes to the Bay Area in the near term," the company said.

Gov. Gavin Newsom's office touted the plan as one that will "help maintain steady supply and stable prices as discussions continue on a path forward for the refinery."

"We're in ongoing discussions with Valero to evaluate options for continued operations at the Benicia refinery and I appreciate the company planning responsibly, including planning for imports of refined products to supply the market in the meantime," Newsom said.

How long Valero will import fuel into the region was not stated, and California and the California Energy Commission are still working on the refinery's future.

"We want to express our appreciation to Valero for continuing to work with us collaboratively to evaluate options for the Valero Benicia refinery and for maintaining fuel supply to Northern California," said Siva Gunda, CEC Vice Chair.

Ashwini Rao has lived in Benicia for about a year. During that time, the future of the refinery has been a big question. Now that they know the answers, they say a lot of people will feel the impact, good and bad.

"It does affect people, the local jobs, so definitely it's a loss for people here," said Rao. "But I do see a lot of pollution here happening, so that's kind of better."

Severin Borenstein, a professor at UC Berkeley and the faculty director of their energy institute, said he saw the move coming.

"The demand for Californian gasoline is declining, and refineries have been talking for a long time about their financial viability as California uses less and less gasoline," Borenstein said.

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