The Phillips 66 Carson refinery
California refiners dreaming of heyday
US downstream sector in key state feels the pain of high costs, an environmental squeeze and the effects of broader market trends
US energy company Phillips 66 announced in October last year that it would shut its 139,000b/d Los Angeles refinery in the fourth quarter of 2025. A few months later, Texan refiner Valero announced it would close or repurpose its 145,000b/d Benicia refinery near San Francisco by April 2026. With California’s total refining capacity of 1.62m b/d, these two facilities account for 17.5% of the Golden State’s capacity. As in Europe, these closures reflect a broader industry trend as energy companies face increasing regulatory and financial pressure amid shifting market dynamics. California has one of the highest gasoline prices in the country California has one of the highest gasoline pr
Also in this section
28 April 2026
Oil traders warning of $200/bl oil are wrong, and the market should be wary of proclamations that the impact of the oil shortage has only begun to be felt and a that a ‘harsh adjustment’ is coming—even for industrialised nations
28 April 2026
Restoring supply from Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain and Iraq involves complexities far beyond simply adjusting operational controls
28 April 2026
Datacentres will guzzle power at a ferocious rate, but the impact on wider energy markets will be far more complex than previously thought
28 April 2026
The key energy player faces balancing regional routes, political complexities, and creating a clear strategic vision for energy security
