News of another California oil refinery closing has economists wondering how gas prices will be affected.
The state's 1.2 million electric vehicle owners — who never need to pull up to a pump — avoid such anxiety. They are part of the state's push toward 100% cleaner energy.
What's happening?
Valero officials are closing the Benicia refinery in April, citing costs and "uncertainty" over state regulations, according to KTVN 2 News in Nevada. Officials there are also concerned about how the shuttering will impact the fuel supply.
California has aggressive sustainable energy goals that include reaching 100% "zero carbon" by 2045 to curb harmful air pollution from burning oil, gas, and coal for energy.
Maria Cecilia Pinto de Moura, an expert with the Union of Concerned Scientists, wrote that the refinery sector is among the most "toxic" in the world, threatening the health of billions of people. Large facilities take up huge swaths of land and are often located near towns, increasing health risks and degrading local ecosystems.
"Many pollutants cause cancer, pulmonary and heart diseases … and more," she wrote.
For its part, Valero has a webpage dedicated to environmental stewardship, with refinery employees in charge of risk mitigation.
This news isn't unique. Phillips 66 ended production at a Los Angeles refinery in October, as well. And the closures don't come without near-term angst, University of Nevada economics professor Elliott Parker noted. He told 2 News that fuel prices are impacted when market competition becomes limited, especially as more people buy EVs and gas demand drops. California leads the nation in EV registrations, Car and Driver reported.
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"Californians are driving less or at least buying less gasoline," Parker said. "The worry is that this pie could become smaller and that would raise prices."
California and Nevada have two of the five highest gas prices in the country, at $4.25 and $3.39, according to AAA. Switching to an EV is a way to avoid the expense.
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$200 or more 💰 Why is the refinery news important?
While motorists can't control oil executive decision-making and fuel pricing, they can become immune to some of the repercussions by driving an EV and charging it at home. The fastest way to power up from your house is with a Level 2 charger, which can fully energize a pack in one to eight hours. But the tech and installation can cost thousands of dollars, according to Qmerit.
Its experts can help you navigate the process of leveling up to a Level 2 charger with curated, competitive quotes and recommendations for trusted installers, starting with basic information about your electric panel and garage. Many states offer incentives for home charging, as well.
What's being done to help?
California Gov. Gavin Newsom said in a statement that Valero has committed to ensuring the oil supply will be maintained "through a combination of existing inventories and imports, as discussions about the refinery's future continue."
But shipping fuel from around the world can take weeks, GasBuddy petroleum analyst Matt McClain told KTVN.
"The refineries that are left, if they have scheduled maintenance or an unexpected situation where it takes them offline, you don't really have a lot of wiggle room left," he added.
That's why it's a perfect time to buy an EV. Homeowners that add rooftop solar enjoy greater independence from uncontrollable rates with cheap, abundant energy via the sun that can power houses and EVs. The Cool Down's Solar Explorer provides curated quotes, installer recommendations, and crucial information to ensure you get the right setup for your home. The insight can save you up to $10,000.
On the road, EV drivers save about $1,500 a year in gas and service costs. What's more, charging at home saves hundreds to thousands of dollars when compared to public charging stations and fuel, according to Qmerit's experts.
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