Tag Archives: Benicia CA
In Q3 2023, Valero raked in 70% more per gallon in California than in any other region
[Note from BenIndy: Today, we came across an article claiming that Valero commanded higher profits in California compared to other regions – in the third-quarter of 2023, at the very least. After looking for other articles from Q3 referencing Valero’s higher refining margins in California, we learned that Valero reported gross refining margins of 78 cents per gallon on the West Coast, vs. “41 cents for the Gulf Coast, 49 cents for the U.S. Mid-Continent, and 48 cents for the North Atlantic.” Consumer Watchdog, by the way, suggests that 50 cents is the ‘red line marker’ for price-gouging. Wow. While it’s a little old, the best analysis of the price-gouging allegations levied against Valero and other refining giants comes from this October 2023 Daily Kos post. The images in this post were added by BenIndy are are not original to the Daily Kos post.]
Valero Posts $2.6 Billion 3rd Quarter Profit On CA Gasoline Margins 70% Greater Than Other Regions
Los Angeles, CA—The third quarter report to shareholders by Valero Energy Corporation shows it made 70% more per gallon in California than in any other region of the U.S. or the globe that it operates in, according to a report from Consumer Watchdog today.
Headquartered in San Antonio, Texas, the corporation operates 15 refineries in the U.S., Canada and U.K.
Consumer Watchdog called for the California Energy Commission to expedite the process for setting a price gouging penalty under a new law passed this year, SBx1 2.
“It is time for the California Energy Commission to put its foot on the gas and set a price-gouging penalty on big refiners ripping us off at the pump,” said Consumer Advocate Liza Tucker. “It is time for the state to prevent refiners from using us as one big ATM.”
Valero, one of the five big California refiners that control nearly the entire gasoline market, reported net profits of $2.6 billion this quarter, down a tick from $2.8 billion the year before, according to Tucker. Its refining sector reported third quarter operating income of $3.4 billion, down from $3.8 billion the year before: investorvalero.com/…
“Our refineries operated well and achieved 95 percent through put capacity utilization, which is a testament to our team’s relentless focus on operational excellence,” gushed Lane Riggs, Valero’s Chief Executive Officer and President in a press release. “Product demand remained strong in our U.S. wholesale system, which matched the second quarter record of over 1 million barrels per day of sales volume.”
Tucker had a quite different assessment of the corporation’s “relentless focus on operational excellence” than Valero CEO Riggs, describing the company’s profit margins on the West Coast, obtained through apparent price gouging, as “eye popping.”
“3rd quarter gross refining margins of 78 cents per gallon were eye-popping on the West Coast, far higher than in any other of Valero’s operating regions,” she stated. “Valero reported margins on Gulf Coast at 41 cents; at 49 cents for the U.S. Mid-Continent; and 48 cents for the North Atlantic.”
“The West Coast gross refining margin also blew past Valero’s 60 cents per gallon reported in the third quarter of 2022. Valero only has West Coast refineries in California,” Tucker pointed out.
She also said the gross refining margins reported to investors understate the gasoline profits as jet fuel and diesel are included,
Data reported by refiners to the California Energy Commission shows the average gross refining margin from all refiners in California just for gasoline was $1.29 per gallon in August, double the January margin of 66 cents, and has been over $1.00 per gallon since February, according to Tucker. See: https://www.energy.ca.gov/data-reports/energy-almanac/californias-petroleum-market/california-oil-refinery-cost-disclosure
Senate Bill (SB) 1322 requires all refiners of gasoline products in the state to provide monthly data about various price and volume information. The California Energy Commission (CEC) must publish aggregated, volume weighted reports of this data, within 45 days of the end of each calendar month
Over the past two decades through 2021, shareholder reports reveal refiners did not exceed a gross refining margin of 50 cents per gallon—except three times by Chevron. See: https://seuc.senate.ca.gov/sites/seuc.senate.ca.gov/files/02-22-23_court_presentation.pdf
In 2022, all five refiners breached that 50-cent per gallon windfall profit barrier, noted Tucker. This data is corroborated by a recent report by the California Energy Commission looking back ten years based on OPIS data. See: https://consumerwatchdog.org/wp-content/uploads/2023/10/Item_09_OIIP_Refiner_Margin_Penalty_ada.pdf
“Last year, legislation empowered the California Energy Commission to form a special division to investigate gas prices in California and to set a price-gouging penalty, which Governor Newsom has called for. Last week, the Commission voted to begin such a proceeding that first involves the gathering of accurate data from refiners. SB 1322 requires refiners to report their margins to the regulator that then posts them on its website,” concluded Tucker.
WSPA and Big Oil pump Big Money into influencing California regulators
As Valero made 70% more per gallon in California than in any other region of the U.S. or the globe that it operates in, the oil and gas regulators in“green” California, the seventh largest oil producing state in the nation, continue to issue new and reworked oil drilling permits. The Newsom administration has approved a total of 15,722 new and reworked oil wells since January 2019.
This year CalGEM, the state’s oil and gas regulator, “has gone rogue, approving hundreds of oil permits in vulnerable communities breathing poisonous emissions from both active and idle wells,” reported Consumer Watch and FracTracker Alliance. For a complete permit update, see: https://newsomwellwatch.com
Why do California regulators continue to approve hundreds of new and reworked oil drilling permits each quarter as oil companies like Valero gouge Californians at the pumps?
It’s all due to deep regulatory capture by Big Oil and Big Gas in the “green” and “progressive” state of California. The Western States Petroleum Association (WSPA), Chevron and the oil companies exercise their influence and power through a very sophisticated public relations machine in California and the U.S.
WSPA describes itself as “non-profit trade association” that represents companies that account for the bulk of petroleum exploration, production, refining, transportation and marketing in Arizona, California, Nevada, Oregon, and Washington. WSPA’s headquarters is located right here on L Street in Sacramento.
Catherine Reheis-Boyd, the President and CEO of WSPA, is the former chair of the Marine Life Protection Act (MLPA) Initiative Blue Ribbon Task Force for the South Coast to create “marine protected areas” in the same region that she was lobbying for new offshore drilling.
Since 2009 I have documented how WSPA and the oil companies wield their power in 8 major ways: through (1) lobbying; (2) campaign spending; (3) serving on and putting shills on regulatory panels; (4) creating Astroturf groups; (5) working in collaboration with media; (6) sponsoring awards ceremonies and dinners, including those for legislators and journalists; (7) contributing to non profit organizations; and (8) creating alliances with labor unions, mainly construction trades.
The oil and gas industry spent over $34.2 million in the 2021-22 Legislative Session lobbying against SB 1137, legislation to mandate 3200 foot buffer zones around oil and gas wells, and other bills they were opposed to: cal-access.sos.ca.gov/…
For the oil companies, this was just pocket change when you consider that combined profits of California oil refiners, including PBF Energy, Chevron, Marathon Petroleum, Valero, and Phillips 66, were $75.4 billion in 2022.
The two biggest spenders were WSPA and Chevron. WSPA spent $11.7 million in the 2021-22 session, while Chevron spent a total of $8.6 million lobbying California officials.
Lobbying disclosures from Quarter 2 of 2023 reveal that oil companies and trade associations spent more than $3 million lobbying and a grand total of $4,085,639.57 in just three months to shape policymaking efforts in its favor in California. That brings the total spent by Big Oil and WSPA to over $13.4 million total in the first six months of 2023, putting them on track to exceed the 2022 expenditure of $18 million.
Chevron topped the lobbying expenses with $1,139,130, while WSPA placed second with $716,824.
The latest disclosures follow the $9.4 million that Big Oil spent to influence the California Legislature, Governor’s Office and agencies in the first quarter of 2023. Chevron came in first with over $4.9 million spent in the first quarter, while the WSPA finished second with over $2.3 million and Aera Energy finished third with nearly $628,000.
WSPA sponsors media dinners and awards for journalists
This year Big Oil has sponsored a chilling and highly successful campaign to sponsor dinners, awards ceremonies and conferences for journalists and the media. WPSA sponsored a “media dinner” on Tuesday, February 28 in Sacramento as part of #BizFedSactoDays.
The flyer for the event stated, “Journalists who play an outsize role in shaping narratives about state politics and holding lawmakers accountable will join business leaders to pull back the curtain on how they select and tell stories about California policies, policy and power.”
Speakers at the program included Coleen Nelson of the Sacramento Bee, Laurel Rosenhall of the Los Angeles Times, Kaitlyn Schallhorn of the Orange County Register and Dan Walters of Cal Matters.
Then on March 16, the Sacramento Press Club announced in a tweet that WSPA was the new “Lede Sponsor” of the Sacramento Press Club’s Journalism Awards Reception that was held on March 29: “Thank you to our new Lede Sponsor @officialWSPA! WSPA is dedicated to guaranteeing that every American has access to reliable energy options through socially, economically and environmentally responsible policies and regulations. Learn more more at http://wspa.org.
In response to this tweet, investigative journalist Aaron Cantu tweeted back on March 20, “As the recipient of @SacPressClub ’s environmental award last year, it’s concerning to see fossil fuel industry talking points passed off uncritically here. WSPA becoming lede sponsor happened in the context of a global PR turn as the climate crisis worsens.”
Unfortunately, Cantu and this writer are the only journalists with the courage to publicly criticize the sponsorship of a “journalism awards reception” by WSPA.
In addition to sponsoring journalism events in California, the Western States Petroleum Association has expanded its campaign to influence journalists nationally. WSPA and the controversial waste management firm Veolia North America sponsored events at this year’s Society of Environmental Journalists (SEJ) conference in Boise, Idaho, according to a report from DeSmog: https://www.desmog.com/2023/04/11/industry-sponsors-dinner-society-environmental-journalists-veolia-wspa.
The agenda for the conference, hosted in Boise, Idaho, revealed that WSPA and the waste management company Veolia North America sponsored two of the “beat dinners” hosted on April 21, the article by Sam Bright reported.
When #BigOil teams up with journalists, columnists and editors at events and only a couple of writers thinks there’s something wrong with this, you know we must be in deep trouble. Of course, no mainstream media reported on this huge scandal because it unveils the deep links between Big Oil and Big Media.
Background: California Oil Refinery Cost Disclosure Act Monthly Report
Senate Bill (SB) 1322 requires all refiners of gasoline products in the state to provide monthly data about various price and volume information. The California Energy Commission (CEC) must publish aggregated, volume weighted reports of this data, within 45 days of the end of each calendar month.
Specifically, SB 1322 requires the CEC to publish the following information from the refinery operators’ monthly reports:
- A volume weighted gross gasoline refining margin for the state.
- The gross gasoline refining margin for each refinery with two or more refining facilities in the state.
- Volume and price of domestic and imported crude oil.
- The breakdown of five types of sales required to be reported by refiners and associated volumes, prices per gallon, and actual or estimated costs associated with the Low Carbon Fuel Standard (LCFS) and Cap and Trade programs.
SB X1-2, which took effect June 2023, expands the monthly reports to require refinery operators to provide net gasoline refining information. For more information, please visit Senate Bill X1-2 Implementation.
The data below complies with the CEC’s requirements to post the data as reported by the refiners. CEC continues to investigate the reported numbers. Additional findings, recalculations, further analysis, revised data, or other conclusions will be publicized here as we continue to verify the reported data.
Refiner Margin Data
Data last updated: October 18, 2023.
On October 3, 2023, the California Energy Commission published new petroleum market data showing the net gasoline refining information for California refiners. Volume-weighted average California gross refiner margin, net refiner margin, and numbers in the “Aggregated Data Reported” section are all calculated using information obtained from all six refinery companies. Gross and net margins reported by refinery company only reflect information from California refiners with two or more facilities which are Chevron, Valero, PBF, and Phillips 66.
The data show that in August, California refineries produced and sold 950,529,000 gallons of gasoline for a total estimated profit of $228,126,960.*
CEC staff will continue to collect and report refiner information on a monthly basis in order to analyze long-term trends as part of its assessment of setting a maximum gross refining margin and penalty for exceeding that maximum, as allowed by SB X1-2.
* Based on data reported by California refiners. The total profit estimate does not include spot pipeline transaction sales and may be considered a conservative estimate as a result.
Three of California’s biggest climate polluters are in the Bay Area (and yes, one of those three is Valero’s Benicia Refinery)
[Note from BenIndy: Valero’s Benicia Refinery is the 5th largest stationary greenhouse gas (GHG) emitter in California. As Sunflower Alliance founding member Shoshana Wechsler notes below, “[t]he thing that continues to strike me is that the Bay Area has no clue how important we are as a major fossil fuel hub. […] We need to understand that refining both petroleum and biofuels has a very negative effect on our public health and obviously contributes mightily to the climate crisis.” Let’s enter 2024 with clear eyes…and hope for clearer lungs come 2025.]
SF Chronicle, by Kurtis Alexander, December 31, 2023
California’s largest greenhouse gas polluters, from power plants to oil refineries to chemical manufacturers, produced slightly fewer emissions last year than the previous year, federal data shows. But it’s still too much planet-warming gas to cut significantly into the problem of climate change, environmentalists say.
Three of the five biggest carbon emitters in the state were in the Bay Area, according to the Environmental Protection Agency’s 2022 data on large polluting facilities. All three were refineries in the East Bay, where the process of turning crude oil into gasoline, jet fuel and other high-demand petroleum products creates substantial greenhouse gas discharges — even before the fuels themselves are used in vehicles or planes.
The refineries were among 367 large stationary sites in California that collectively reported 93 million metric tons of carbon pollution last year, a decline of about 1% over 2021, according to the data. The facilities produce about a quarter of the state’s total human-generated greenhouse gases, which does not include wildfires. Cars and trucks remain the biggest source of carbon emissions.
“The thing that continues to strike me is that the Bay Area has no clue how important we are as a major fossil fuel hub,” said Shoshana Wechsler, a founding member of the Sunflower Alliance, an East Bay group that advocates for reducing refinery pollution. “We need to understand that refining both petroleum and biofuels has a very negative effect on our public health and obviously contributes mightily to the climate crisis.”
Worldwide discharges of greenhouse gases, notably carbon dioxide, methane and nitrous oxide, have contributed to warming the atmosphere about 2 degrees Fahrenheit in the post-industrial age. The heat, scientists say, has led to a host of problems, from an increase in drought and wildfire to rising seas and more extreme weather. The Earth’s 10 warmest years on record all were logged since 2010. This year is on track to be the hottest yet.
California regulators have established some of the most ambitious policies to restrict the release of greenhouse gases from large polluting facilities, including a cap-and-trade program that forces emitters to buy permits to pollute and requirements that electric utilities generate increasing amounts of clean energy.
Over the past decade, carbon emissions from the state’s big polluters have declined nearly 20%, according to the EPA data.
Many, though, say industry is still given too much leeway and stricter regulation is necessary given the climate challenge at hand. The state has a broad goal of reaching zero carbon emissions, on net, by 2045.
“Major polluters continue to pollute somewhat unabated,” said Nihal Shrinath, an associate attorney for the Sierra Club based in Oakland. “We really need to see much more aggressive emission reductions over the next 25 years.”
Shrinath said much of the decline in pollution from large facilities was due, not to regulation, but to unrelated factors, like Californians being more efficient with their energy use and needing less fossil fuels.
California’s top five greenhouse gas emitters were all oil refineries, according to the EPA data. Two were in Southern California in addition to the three in the East Bay: Chevron Richmond Refinery, Valero Benicia Refinery and Martinez Refining Company.
Ross Allen, a spokesperson for Chevron, described the company’s Richmond refinery as “absolutely essential to modern life in the Bay Area,” saying the facility supplied 60% of the fuel for Bay Area airports and about 20% of the gasoline used in Northern California. It also provides more than 3,000 jobs.
“We are working to reduce carbon intensity of our operations, while continuing to provide an essential product,” he said.
The state’s refineries cumulatively emitted 22 million metric tons of carbon pollution in 2022, according to the EPA data. Refineries were the second-most-polluting type of facility, following power plants, which are far more numerous and emitted 35 million metric tons last year. The chemical industry, manufacturing hydrogen, nitrogen and other products, reported 10 million metric tons of emissions.
Also among California’s 25 biggest greenhouse gas polluters were two gas-fired power plants in Pittsburg and an oil refinery in Rodeo.
The EPA data on large polluting sites generally includes facilities discharging at least 25,000 metric tons of carbon dioxide and equivalent greenhouse gases a year, about what’s emitted by burning coal from 136 rail cars, according to the agency.
Since you’re here, learn more about Contra Costa’s search for accountability and transparency from refineries by clicking on any of the following links:
- Contra Costa Health Conducts Inspection at Martinez Refinery (CCH News | December 27, 2023)
- Contra Costa supes deliver letter outlining demands, ultimatum to Martinez refinery (MSN | December 28, 2023)
- ‘Unacceptable’: 21 hazardous materials releases, spills recorded at Martinez refinery (KRON4 | December 28, 2024)
- Turnover Rate Concerns Supervisors As Martinez Refinery Put On Notice (Patch | December 28, 2023)
- Contra Costa Health says PBF’s Martinez refinery incidents ‘unacceptable” (Reuters | December 28, 2023)
- List of demands follows surprise inspection of Martinez oil refinery plagued by problems (SF Chron | December 27, 2023)
Solano residents confront Flannery land grab at Rio Vista town hall
[Note from BenIndy: Plan now to attend Flannery’s Benicia town hall meeting, next Thursday, December 14, 6 – 8pm at the Benicia Historical Museum, 2060 Camel Road, Benicia.]
Sued farmers speak up at California Forever town hall
Crowd of more than 100 attend relatively orderly Rio Vista event
Vallejo Times-Herald, by Daniel Egitto and Nick McConnell, December 6, 2023
The audience gathered for California Forever’s town hall in Rio Vista fell silent for a moment, as Jan Sramek considered an answer during the question-and-answer portion of the event. Then, a single voice rose.
“Good neighbors don’t sue their neighbors,” they said, eliciting a cheer from audience members.
The accusation that California Forever has been less than neighborly to the community of just over 10,000 people – which is now partly surrounded by the company’s land purchases – was a recurring theme Tuesday evening.
Rio Vista residents seized the chance to let CEO Jan Sramek know how they feel about California Forever’s attempts to build a new city in southeastern Solano County – including its decision to pursue legal action against area farmers.
The event struck a less combative tone than a similar town hall in Vallejo last week. But questions and skepticism abounded in the packed audience of well over 100 people.
Neighbors vs. neighbors
California Forever sued a group of local farmers earlier this year alleging that they illegally colluded to increase the price of their land.
Maryn Johnson, whose family is among those named in the lawsuit, asked Sramek in the middle of the meeting to drop the litigation as a gesture of goodwill toward farmers who have been in the area for generations. He declined, after alleging that Johnson asked to settle the lawsuit previously.
Johnson denies this and said she only invited Sramek over for Easter dinner with her family.
“I expected Jan not to commit to dropping the lawsuit,” she said in an interview. “But I think you need to ask these questions and put powerful entities in the position of stating before the public whether they will or will not act with common decency.”
Johnson said it is “patently false” that farmers colluded to fix the price of their properties, but rather that friendly conversation occurred.
“Of course we talk to each other,” she said. “Of course we have interacted with each other. The people that are named in this lawsuit are family even though we share different last names.”
Johnson, who is a teacher, said her brother continues the family tradition of farming and their family has no intention of selling the property – which is why they and others set prices so high.
“I think when you look at it from their business perspective, they did what they needed to do to acquire the land,” she said. “It wasn’t done in a trustworthy manner but I can see from their perspective why they chose to acquire land in the way that they did.”
Sramek said the lawsuit involves a small fraction of the people California Forever has done business with, and he claimed it’s evident that they broke the law.
“I think it’s quite clear,” Sramek said. “There are hundreds of people here who didn’t sell and they are not getting sued, and there are 600 people who we bought from and we are not suing them. So, it’s a small group; we’ve settled with half of them. You heard me say today ‘Hey, if you want to discuss a settlement, we can talk.’”
Skeptical residents
As in Vallejo, Sramek focused much of his presentation Tuesday on ways a new city could benefit Rio Vista’s economy, potentially bringing more jobs, restaurants and tourism to the town. He also noted California Forever’s interest in community benefits including down-payment assistance for home buyers and investments in Solano County’s existing downtowns.
The businessman highlighted his own “blue-collar” background as the son of a mechanic and a schoolteacher in a small Czech Republic town. Having left Goldman Sachs for an education company before moving on to this current project, Sramek said he doesn’t get into business ventures purely for profit.
”If I wanted to do it just to make money, I wouldn’t be doing it,” he said.
Attendees, however, had many questions about Sramek’s approach and what a new city would mean for Rio Vista.
Rio Vista resident Kenny Paul said he has a “laundry list” of concerns about the proposed development. He accused California Forever and its investors of sewing divisiveness, characterizing its opponents as “a fringe element” and “ignorant hicks.”
“In light of all this behavior, how do you expect anyone in this room or the county to believe what you’re saying?” he asked Sramek.
The CEO responded that California Forever will be placing its project in the hands of Solano County voters as a ballot initiative next November.
“Other than doing what anyone doing a project like this would do, which is buy the property, then announce it – we haven’t done anything else,” Sramek said.
Kathy Wright, superintendent of the New River Delta Unified School District, asked what this development would mean for the school district, given the district’s finite resources. Sramek said the ballot initiative would require California Forever to pay for all new students in the area, but he acknowledged that the area is currently in that school district.
One attendee noted that, although Sramek pledged there would be no development to the Sacramento River waterfront, there are renderings in California Forever promotional material that depict waterfront development. Sramek denied this, saying the company is interested in possibly building a man-made lake.
Sramek promised to return to Rio Vista for another town hall after his company announces its ballot initiative in January.
“I’ll be standing here, having people yell at me, calling me names,” he said, “but I’ll still be here talking about it.”
‘The nicest people’
Despite residents’ concerns, responses to Sramek’s presentation were more moderate than those at an explosive town hall hosted in Vallejo just days before.
Scattered claps came from the Rio Vista audience as Sramek introduced himself. Joe Scholtes of Vacaville, who moderated the event, drew chuckles as he noted local residents’ reputation for being “the nicest people.”
In Vallejo, Sramek gave attendees no formal opportunity to ask questions in a public setting, instead encouraging them to speak to company representatives at the end of the night.
Audience members in that city disregarded this request. They interrupted the meeting midway through, pelting the CEO with outbursts and accusations and arguing with his responses.
In Rio Vista, by contrast, California Forever set aside 45 minutes of the two-hour town hall for public discussion. Scholtes called on people to speak and an employee in blue jeans and a Yin Ranch baseball cap brought them a microphone.
Boos and cries of dismay erupted as Scholtes repeatedly attempted to end questions at the end of the allotted period. He closed out audience comments amid heated discussions about California Forever’s pending lawsuits.
A small handful of attendees lingered to speak one-on-one with company representatives for the last hour of the evening.
Sramek said he felt the town hall served its purpose well. He said time in these meetings has to be balanced between question-and-answer time and breakout sessions.
Town halls so far have not been livestreamed. Sramek said the company wants to maintain a more intimate feel.
“We wanted them to feel more like a neighborly event where people can ask questions,” he said.
Despite the city’s relative size, more people attended the Rio Vista town hall than the Vallejo one. California Forever required people in Vallejo to sign up for that meeting in advance. The company lifted that requirement for Rio Vista and all future town halls.
After hosting a Vacaville town hall Wednesday evening, California Forever is scheduled to hold another meeting Thursday at 6 p.m. in Willow Hall at The Fairfield Community Center.
This month’s final town halls will take place Dec. 14 at the Charles P. Stone Hall and Spenger Memorial Garden at the Benicia Historical Museum, as well as Dec. 18 in Dixon Town Hall at Dixon Olde Vets Hall. Both events will start at 6 p.m.
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