The Valero oil refinery in Benicia, California, has been shut down, sending shockwaves through the state's energy landscape. This development comes as no surprise to experts, who have long predicted the impending closure. Mike Ariza, a former Valero manager and oil and gas specialist, confirmed the shutdown, citing thermal imaging reports indicating a cold refinery. The Crimson pipeline, which transported crude oil from Southern California to Northern California, has also ceased operations, further exacerbating the situation.
"We are in an unprecedented oil crisis," Ariza emphasized. The closure of Valero's Benicia Refinery, originally scheduled for April 2026, has been accelerated to January 2026, following the closure of the Phillips 66 refinery in Wilmington in October 2025. This sudden shift has already caused a surge in gas prices, with California's average price for a gallon of gas reaching $4.25 and climbing.
The timing of this shutdown is particularly concerning, as it coincides with Governor Gavin Newsom's ambitious "clean energy all-electric future" plan, which includes a ban on internal combustion engine autos. This policy has been widely criticized for its detrimental impact on the oil and gas industry. The report by Assemblyman Stan Ellis, USC Professor Michael Mische, and petroleum expert Michael Ariza highlights the potential consequences of this shutdown, including a $8.43 per gallon gas price increase and a threat to U.S. military force readiness on the West Coast.
Newsom's response to the shutdown has been met with skepticism. His statement, which reads like a 10-year-old's attempt at grandstanding, fails to acknowledge the harm caused by his own energy policies. The report also exposes how Newsom's policies are sabotaging domestic refining capacity, leaving U.S. military bases vulnerable to foreign adversaries.
The impact of this shutdown extends beyond California, as Arizona and Nevada heavily rely on California's gas supply. Nevada, in particular, imports 88% of its gas from California, making it highly susceptible to the state's energy policies. The situation has prompted Nevada Governor Joe Lombardo to establish a Fuel Resiliency Committee, underscoring the far-reaching consequences of California's radical energy policies.
As the situation unfolds, the question remains: will federal intervention be necessary to mitigate the crisis and protect the interests of consumers and national security?
