Category Archives: Valero

Benicia, Benicia CA, Benicia's Budget Crisis, City of Benicia, Mario Giuliani, Stephen Golub, Valero, Valero Benicia Refinery

November 3 Deadline for the Survey That Will Help You Shape Benicia’s Future

October 31, 2023 BenIndy

Benicia’s Capitol State Historic Park. | Uncredited image.

By Stephen Golub, posted in the Benicia Herald on October 29, 2023

Benicia resident and author Stephen Golub, A Promised Land

If you go to https://www.ci.benicia.ca.us/strategicplan, or simply search for “Benicia Strategic Plan,” you’ll find a short but important online survey that the City has commissioned to help set priorities for years to come. The survey is one stage in a strategic planning process, stretching into early next year, by which we can all weigh in on where Benicia goes from here in terms of building on our strengths and tackling our challenges.

An online meeting this past Tuesday, attended by about 80 Benicians, provided a chance to discuss the planning process. We’ll have several more opportunities in the months to come. Watch for emails from and other announcements by City Manager Mario Guiliani for updates and future forums. The survey is a key component of this initiative.

But be aware:

The deadline for survey responses is November 3.

(Given the amount of time it can take for word about something like this to percolate, I’d suggest that the deadline should be extended. But let’s assume it’s set at November 3.)

The exercise takes maybe five or ten minutes to complete. It’s well worth the slight but interesting effort involved.

In taking the survey, I found myself wanting to endorse all fifteen potential answers for the “What are the things that make our community a great place to live?” question. We can only select up to five, however.

Nonetheless, there’s an opportunity to go beyond that list, under the “Other” option. I discussed the City’s waterfront setting as a significant asset that sets us apart from so many other communities.

Conversely, I wanted some more specificity regarding potential answers to the survey’s “What do you think are the top opportunities for improvement that the City of Benicia should focus on?” question. But thankfully, again, there is an “Other” option by which you can add and explain your own preferred answer(s).

Two things came to mind regarding that “Other” option:

First, I realize that we rely on Valero to some degree for jobs and other benefits, I appreciate the many fine Benicians who are its employees or retirees, and I respect the perspectives of our fellow community members who fully support it. But…

A truck drives into the Valero refinery in Benicia in July. | Rich Pedroncelli / AP.

There’s a major need to better address the massive, hazardous, longstanding air pollution violations Valero has committed, and which it didn’t tell us about for many years, while our kids, older adults and many other citizens possibly suffered health effects from potentially toxic emissions hundreds of times government limits. There are too many incidents and ongoing issues to detail here. But I’ll note that two examples of such repeated violations – at least one stretching back well over a decade – only came to light in 2022 and 2023.

Moreover, there’s nothing about Valero’s positive contributions that make them mutually exclusive with it being a better, safer neighbor. It’s the only refinery in the Bay Area that operates without a city or county ordinance geared to protecting citizen health and safety. The Texas-based corporation could do much better in partnering with the City, making its refinery here a less hazardous operation and sharing information vital to our safety and health.

The second thing that the survey brought to mind – even without specifically offering this as a potential answer – is that Benicia has the opportunity to diversify and strengthen its economy by taking advantage of potential private sector, federal and state funding to encourage manufacturing, servicing or otherwise profiting regarding wind, solar and other emerging technologies. Such initiatives would be great for local jobs and businesses, as well as our overall economic growth and health.

In a related vein, and even as we’re wary of the hazards the Valero refinery imposes or grateful for the economic benefits it brings, the facility won’t be here forever – or conceivably could be sold or altered in ways that make the need for alternative economic opportunities much more urgent. The strategic planning process, including the survey, gives us a chance to start considering such alternatives.

But those are just my quick reactions. And to be clear, the survey is about far more than such specific concerns, as it touches on parks, infrastructure, community engagement, arts and culture, festivals, policing, fire protection and a host of other matters.

So what are your thoughts? If you want to weigh in, the survey provides a great chance to offer your own goals and concerns. Yet another of its questions asks us to rank priorities; it’s a pretty thought-provoking exercise to engage in.

And again, it only takes five to ten minutes, at most.

And again, the deadline is November 3. Check it out!

Benicia resident Stephen Golub offers excellent perspective on his blog, A Promised Land: Politics. Policy. America as a Developing Country.

To access his other posts or subscribe, please go to his blog site, A Promised Land.

RECENT POSTS FROM STEPHEN GOLUB:

CA Gov. Gavin Newsom, Gasoline prices, Price gouging, Valero

Valero raked in $11.5 billion in 2022 profits, beating its $930 million for the previous year by a dozen times.

February 10, 2023 Roger Straw

Valero 2022 Profits Skyrocket But Gas Pump Gouging In CA Moderates As CA Threatens Refiner Penalty

Consumer Watchdog, by Liza Tucker, 01/26/2023

Los Angeles, CA—Valero raked in $11.5 billion in 2022 profits, beating its $930 million for the previous year by a dozen times. However, Governor Newsom’s call for a special session in October to deal with price gouging appears to be having an impact on gouging in California as California-reported refinery margins were lower than any other region for the first time this year and in line with historic margins.

“Valero reported profits per gallon of gasoline in California during the fourth quarter at below 50 cents, a red line marker for price gouging,” said Consumer Watchdog Liza Tucker. “It reported per gallon profits off California gas at 36 cents, a reasonable profit in line with what the refiner earned here for the last 20 years. Meanwhile margins elsewhere remained high.

SEE ALSO:

“The threat of a legislative penalty on gasoline price gouging that Governor Newsom called for appears to be reining in gas prices in California already,” said Tucker. “Clearly, California lawmakers should enact that penalty.”

Consumer Watchdog has called for 50 cents as a demarcation line on profits per gallon above which refiners will pay a penalty. SBX 1 2, introduced by Senator Nancy Skinner (D-Berkeley) will set a penalty on California refiners when gas prices and the profits refiners make per gallon off consumers become abnormally high. The legislature has yet to set a profit level for the penalty.

Five refiners control California’s gasoline market by making 97% of the state’s gasoline. They usually report higher profit margins per gallon of gasoline for the US West Coast than any other region in which they operate, said Tucker. Valero’s 4th quarter profits were the first indication the price gouging penalty has impacted the companies’ policies. In addition, November and December gasoline prices in California were more in line with the typical spread between average US and California prices of a little more than a dollar.

“Just raising the price gouging penalty has significantly curbed Valero’s profit taking in California and made gasoline more affordable for Californians and in particular the most vulnerable in the state who were paying as much as 20% of their after-tax income for gasoline,” said Jamie Court, President of Consumer Watchdog. “Imagine how much Californians will save once a penalty is enacted.”

Valero tripled its fourth quarter profits to $3.1 billion from $1 billion. But Valero reported West Coast refining margins per barrel—the difference between what crude oil costs a refiner compared to the wholesale charge for the finished product—that were the lowest among its regions of operation. Since Valero only has Western refineries in California, the margins are California-specific.

Valero reported a margin of $15.43 for the West Coast, compared to $18.88 for the US Mid-Continent, $22.68 for the Gulf Coast, and $29.66 for the North Atlantic. Consumer Watchdog divides margin per barrel numbers to arrive at a per gallon profit. That translated into a profit of 36 cents per gallon in California, 44 cents in the US Mid-Continent region, 54 cents on the Gulf Coast, and 70 cents in the North Atlantic.

In contrast, Valero bagged price gouging profits per gallon in the second and third quarters of 2022. In the second quarter of 2022, Valero reported an 83 cent per gallon profit at the pump and, in the third quarter, a 60 cent per gallon profit in the third quarter, according to Consumer Watchdog research. See refiner profit per gallon chart here.

According to Gary Simmons, Valero’s executive vice president, profits were buoyed by a continued tight market for crude. Simmons said that bad weather also interfered with the restocking that normally occurs at this time of the year. “That sets up the year nicely from the refinery margin perspective,” he said.

As it was, California’s big five oil refiners posted overall profits of $67.6 billion in the first nine months of 2022 – nearly quadruple the profits recorded for the same period in 2021. Chevron reports its fourth quarter and annual earnings tomorrow. It controls 30% of California’s gasoline market.

Big Oil, Valero, Windfall profits

Governor Newsom Convenes Special Session to Hold Oil Industry Accountable for Price Gouging

December 2, 2022 Roger Straw

Valero’s $2.82 billion in profits were 500% higher than the year before.

Newsroom, Office of Governor Gavin Newsom, Nov 30, 2022

SACRAMENTO – As oil companies continue to evade questions about unexplained gas price increases, Governor Gavin Newsom today convened a special session of the California Legislature on December 5 to pass a price gouging penalty on oil companies that will keep money in Californians’ pockets.

The Governor’s action comes on the heels of a state hearing yesterday – which five major oil refiners refused to attend – to investigate this fall’s unprecedented spike in gasoline prices. This spike in gasoline prices resulted in record refiner profits of $63 billion in just 90 days, disproportionately affecting low- and middle-income families.

“Big oil is ripping Californians off, and the deafening silence from the industry yesterday is the latest proof that a price gouging penalty is needed to hold them accountable for profiteering at the expense of California families,” said Governor Newsom. “I’m calling a special session of the Legislature to do just that, and to increase transparency on pricing and protect Californians from outrageous price spikes in the future.”

Governor Newsom signs proclamation convening a special session to pass price gouging penalty on oil companies

This fall’s spike occurred while crude oil prices dropped, state taxes and fees remained unchanged and gas prices did not increase outside the western U.S., so the high prices went straight to the industry’s bottom line.

The text of the Governor’s proclamation convening a special session can be found here.

During the special session, the Legislature will also consider efforts to empower state agencies to more closely review gas costs, profits and pricing as well provide the state with greater regulatory oversight of the refining, distribution and retailing segments of the gasoline market in California.

Taking action to lower prices at the pump, Governor Newsom in September ordered the switch to winter-blend gasoline and demanded accountability from oil companies and refiners that do business in California. Since California’s record-high gas prices of $6.42, the Governor’s actions have reduced those prices to $4.95 most recently – a decrease of $1.47 since the peak.

In the third quarter of 2022, from July to September, oil companies reported record high profits:

Phillips 66 profits jumped to $5.4 billion, a 1243% increase over last year’s $402 million;
BP posted $8.2 billion in profits, its second-highest on record, with $2.5 billion going toward share buybacks that benefit Wall Street investors;
Marathon Petroleum profits rose to $4.48 billion, a 545% increase over last year’s $694 million;
Valero’s $2.82 billion in profits that were 500% higher than the year before;
PBF Energy’s $1.06 billion that was 1700% higher than the year before;
Shell reported a $9.45 billion haul that sent $4 billion to shareholders for stock buybacks;
Exxon reported their highest-ever $19.7 billion in profits;
Chevron reported $11.2 billion in profits, their second-highest quarterly profit ever.