Politics

Another refinery shuts down in California. What happens to gas prices?

Published

4 hours ago

October 18, 2024

Another refinery shuts down in California. What happens to gas prices?

California’s attempt to manage a smooth transition away from gasoline just got roughed up with this week’s decision by Phillips 66 to shutter its refinery in Wilmington next year, wiping out more than 8% of the state’s crude oil processing capacity.

The closure is likely to increase California’s already high prices at the gas pump, given that much of the replacement gasoline will be shipped in by ocean vessel, analysts say.

The price issue will be “most worrisome if we have some kind of disruption in the market” and the Phillips refinery’s not there to help with resupply, said Severin Borenstein, faculty director at UC Berkeley’s Energy Institute.

The planned shutdown, announced by Phillips 66 on Wednesday, came just days after Gov. Gavin Newsom signed a bill that could force the state’s refineries to store extra gasoline, a move intended to minimize price spikes, such as those that occurred in late 2022 and 2023.

A Phillips 66 spokesman said the decision is not related to that bill, but in a press release the company called “the long term sustainability” of the refinery “uncertain.” He told The Times that “the refinery had lower profitability compared to other assets in our portfolio.”

State Sen. Steve Bradford (D-Gardena), who represents the Wilmington-area district where the refinery is located, sees the planned closure as the culmination of “a death of 1,000 cuts” from California energy policy “that led us to where Phillips saw no real future.”

Not only will gasoline prices rise, he said, “but now we’ll have ships docked at our ports spewing pollution while they’re unloading gasoline from countries that don’t have the same environmental standards that we have.”

He laments the loss of up to 600 direct jobs at the refinery, 300 contractors, and an unknown number of ancillary jobs. The Phillips refinery is split into two sites, one section in Wilmington and the other in nearby Carson, linked by pipeline.

“I feel for the men and women who live around that area who have depended on these jobs for decades. The refinery was there first, not the homes,” he said. “These people made a conscious decision to buy homes in these communities to be close to jobs.”

Environmentalists and community activists cheered the news, however, saying it will mean cleaner air for the thousands who live in the area and that the state must continue the transition away from its dependence on fossil fuels.

Jamie Court, president of Consumer Watchdog, acknowledged that gasoline prices could rise after the refinery is shut down, but said that justifies California’s plans to assert more control over gasoline supplies.

“This is the reason for command and control over the refiners,” he said. “So when one changes their plan, the others must make sure they have supply liquidity.”

The loss of the Wilmington refinery will consolidate the state’s refining capacity in fewer hands, in what Court said would raise the potential for price-fixing.

The refinery closure is the latest development in the state’s attempt to rid itself of gasoline and diesel vehicles to reduce pollution and greenhouse gases, but at the same time keep a lid on pump prices.

The governor has not been shy about blaming the industry for what he calls price gouging, and his rhetoric is heated. Earlier this week he posted an Instagram video in which he declares that “Big oil big wigs are up to their oily shenanigans here in California.”

Rather than go tit-for-tat with the governor, Phillips 66 is taking what might be considered a strategic retreat. The closure could indeed boost its bottom line. The company runs nine gasoline refineries in the United States and two in Europe. In an August presentation aimed at investors, the company said it planned to increase its capacity utilization. That can be accomplished by closing one or more refineries and increasing utilization at those that remain, cutting operating and capital costs and improving profit margins.

As to possible supply shortages, Phillips said it will “work with California to maintain current levels and potentially increase supplies.” No details were offered. Phillips has a strong incentive to keep supplies up: it runs about 1,000 service stations in California under the 76, Phillips 66 and Conoco brands.

But importing fuel by ship from its own refineries or buying it from other importers “adds costs,” Borenstein said.

State Sen. Steve Bradford (D-Gardena) represents the district where the Phillips 66 refinery is located. “I feel for the men and women who live around that area who have depended on those jobs for decades,” he said.

(Associated Press)

Newsom declined to comment. Siva Gunda, vice chair of the California Energy Commission, issued a statement saying Phillips 66’s “plan to replace the production lost from the refinery closure is an example of the type of creative solutions that are needed as we transition away from fossil fuels.”

California had 11 gasoline refineries but that number was cut to nine recently when the Marathon refinery in Martinez and Phillips 66’s other California refinery in Rodeo, both in Northern California, converted their plants from fossil fuels to renewable diesel fuel. Those conversions earn carbon credit subsidies in the state’s carbon markets.

While providing lower-carbon fuel to California truckers, with consequent reductions in pollution and greenhouse gases, the shift increased concentration in the gasoline-refining market, leading to more pricing power. Next year, the number of California refineries will shrink to eight.

While Phillips 66 said its decision isn’t related to the gasoline storage bill, it warned in its most recent annual 10-K financial report that California legislation and rulemaking could have “potential adverse effects on our refining, marketing and midstream operations in California, which may be material to our results of operations, financial condition, profitability and cash flows.”

The report cited the passage in 2023 of a bill that gives the state power to set limits on refinery profit margins, with heavy penalties for noncompliance. The state hasn’t yet exercised that option.

Politics

Crunch time: Harris to team up with Barack and Michelle Obama next week in key battlegrounds

Published

4 hours ago

October 18, 2024

Press Room

Crunch time: Harris to team up with Barack and Michelle Obama next week in key battlegrounds

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As the 2024 election showdown between Vice President Kamala Harris and former President Trump reaches the home stretch, Harris will team up next week with arguably the two most popular Democrats in the country.

The Harris campaign announced on Friday that the vice president will join former President Barack Obama and his wife, former First Lady Michelle Obama, for get-out-the-vote events in two of the seven crucial battleground states – Georgia and Michigan.

According to the campaign, Harris will team up with the Obamas in Georgia on Thursday, Oct. 24. Early voting kicked off in the key southeastern battleground earlier this week and instantly set a new record.

Harris advisers also said that the vice president will join forces again on the campaign trail in Michigan on Saturday, Oct. 26, the day that early voting gets underway statewide in the crucial Great Lakes battleground.

CAMPAIGN BATTLE BETWEEN THE BILLIONAIRES: MARK CUBAN AND ELON MUSK HIT THE TRAIL FOR HARRIS AND TRUMP

Former President Barack Obama and former first lady Michelle Obama appear on stage in between their addresses on the second night of the Democratic National Convention at the United Center in Chicago, Ilinois, on Tuesday, August 20, 2024. (Tom Williams/CQ-Roll Call, Inc via Getty Images) (Tom Williams/CQ-Roll Call, Inc via Getty Images)

This will be the first time that Harris has teamed up with either Obama on the campaign trail since she replaced President Biden atop the Democrats’ 2024 ticket nearly three months ago.

KAMALA HARRIS TEAMS UP WITH THESE ANTI-TRUMP REPUBLICANS

The Obamas – longtime friends of Harris – officially endorsed her for president in July, five days after Biden’s blockbuster announcement that he was dropping his re-election bid and backing his vice president.

The former president and former first lady made the case for Harris during back-to-back headlining addresses at the Democratic National Convention in August in their hometown of Chicago.

Former President Barack Obama speaks during a campaign event in support of Democratic presidential nominee and U.S. Vice President Kamala Harris in Pittsburgh, Pennsylvania, U.S., October 10, 2024. REUTERS/Quinn Glabicki (REUTERS/Quinn Glabicki)

And the former president hit the campaign trail for Harris a week ago, in Pennsylvania – which is arguably the most crucial of all seven battleground states that will likely determine the outcome of the presidential election.

The former president is scheduled to return to the campaign in the coming days, with stops in Tucson, Arizona, Las Vegas, Nevada, Detroit, Michigan, and Madison, Wisconsin.

CHECK OUT THE LATEST FOX NEWS POWER RANKINGS IN THE 2024 ELECTION

With a razor-thin margin of error race for the White House, both the Harris and Trump campaigns are scrambling to win over and turn out voters as early in-person, absentee, and mail-in balloting is now under way in roughly 40 states across the country.

The Harris campaign aims to use these campaign events to boost voter enthusiasm among the vice president’s supporters in order to get out the vote ahead of Election Day on Nov. 5, as well as to boost volunteer engagement to help voter turnout.

(Fox News – Paul Steinhauser)

States have long allowed at least some Americans to vote early, like members of the military or people with illnesses. Many states expanded eligibility in 2020, when the COVID-19 pandemic made it riskier to vote in-person.

That year, the Fox News Voter Analysis found that 71% of voters cast their ballots before Election Day, with 30% voting early in-person and 41% voting by mail.

Early voting remained popular in the midterms, with 57% of voters casting a ballot before Election Day.

Fox News Digital’s Kellianne Jones and Rémy Numa contributed to this report.

Get the latest updates from the 2024 campaign trail, exclusive interviews and more at our Fox News Digital election hub.

Politics

Walz says 90-year-old mom lives off social security check during North Carolina rally

Published

11 hours ago

October 17, 2024

Press Room

Walz says 90-year-old mom lives off social security check during North Carolina rally

On the first day of early voting in North Carolina, Democratic vice presidential candidate Tim Walz hit the campaign trail in Durham on Thursday evening, making a personal revelation about his mother.

During his campaign rally, Walz said that his mother has to wait for her social security check every month to feed herself.

According to Forbes, Walz has an estimated net worth of over $1 million.

Walz has spent the better part of his career in the public service sector. He was a former public school teacher and Army National Guardsman who served six terms in Congress before becoming the governor of Minnesota in 2019.

TRUMP-VANCE TICKET HAS DONE COMBINED 81 INTERVIEWS SINCE AUGUST COMPARED TO 44 FOR HARRIS-WALZ

Democratic vice presidential nominee Minnesota Gov. Tim Walz speaks at a campaign event Monday, Oct. 14, 2024, in Green Bay, Wis. (AP Photo/Jeffrey Phelps)

“We are all products of our past. When you grow up a middle-class kid in Oakland or in Butte, Nebraska, you care about Social Security,” Walz said.

Walz continued, claiming Donald Trump and all his “rich friends” don’t care or even worry about Social Security.

“When my mom looks for that Social Security deposit to be made in her bank account, that’s how she’s going to feed herself. That’s how she’s going to get things done. He [Trump] doesn’t give a damn if his Social Security check comes or not,” Walz claimed.

‘MAN ENOUGH’ VIDEO SUPPORTING HARRIS MOCKED AS ‘THE CRINGIEST POLITICAL AD EVER CREATED’

Tim Walz said his mom depends on her Social Security check each month to feed herself. Walz himself is worth an estimated $1 million. (Photo by Chip Somodevilla/Getty Images)

Walz also touted that a hundred million Americans under Kamala Harris as president would see a tax cut, adding that he passed the largest tax cut in Minnesota history, not for the rich, but for the middle class.

“The one thing we understand about this is the economy works best when it’s fair, and it’s focused on the middle class,” Walz said.

Walz, who was joined by former President Bill Clinton, has another campaign event in Winston-Salem, North Carolina. This is his third campaign visit to the Tar Heel state as Vice President Kamala Harris’ running mate.

TIM WALZ BACKPEDALS STATEMENT THAT THE ELECTORAL COLLEGE ‘NEEDS TO GO’

Kamala Harris and Tim Walz smiling and waving at rally

Tim Walz is worth an estimated $1 million, according to Forbes. (Andrew Harnik/Getty Images)

After doing just one joint interview in the first three weeks of her campaign, Harris and Walz have stepped up their media appearances in recent weeks to more match those of their Republican counterparts.

Walz joined “Fox News Sunday” for the second straight week on Sunday, Oct. 13, and he also did interviews last week with Jimmy Kimmel and the “Smartless” podcast. He’s also spoken to Pennsylvania and Arizona news stations in the past week, in addition to an extended interview on ABC News.

Walz spoke with Georgia, Wisconsin and North Carolina TV stations in recent weeks. He spoke with MSNBC and ABC after last month’s presidential debate, and he was interviewed by Michigan station Fox 17.

Walz has also spoken to radio stations in Michigan, Pennsylvania and Wisconsin.

Walz was previously mocked for a comment he made during a speech in Bethlehem, Pennsylvania, at a September rally when he told attendees “we can’t afford four more years of this.”

Although Walz may have been referring to gun violence or Trump’s rhetoric when he cited “four more years” of an issue, his statement led conservative commentators to roast the Minnesota governor on social media for what appeared to be a criticism of the Biden administration.

Fox News’ Andrea Margolis, Brian Flood and David Rutz contributed to this report.

Politics

Fox News interview with Vice President Kamala Harris scores 7.8 million viewers

Published

12 hours ago

October 17, 2024

Press Room

Fox News interview with Vice President Kamala Harris scores 7.8 million viewers

Vice President Kamala Harris’ combative interview on Fox News delivered an average of 7.8 million viewers Wednesday, the Democratic presidential nominee’s most-watched TV news appearance so far.

The Democratic presidential nominee’s conversation with the conservative-leaning network’s chief political anchor Bret Baier delivered the largest audience for his program, “Special Report,” since 2020, according to Nielsen data. (The preliminary figure was 7.1 million).

The audience also surpassed Harris’ interview on the CBS news magazine “60 Minutes,” which was watched by 5.7 million on Oct. 7, and her chat with anchor Dana Bash on CNN alongside running mate Minnesota Gov. Tim Walz, which drew 6.3 million viewers on Aug. 29.

Harris’ appearance was highly anticipated as she is subjected to negative commentary by the vast majority of Fox News commentators throughout the day.

Earlier on Wednesday, Tyrus, a professional wrestler who regularly appears on the Fox News programs “Gutfeld!” and “The Five,” predicted that Harris’ Republican opponent former President Trump is on track for one of the largest electoral vote victories in history, even though nearly every poll shows the two candidates are in a tight race.

Harris’ performance on “Special Report” was lambasted by hosts Jesse Watters and Sean Hannity in the hours following the interview.

But the Harris campaign agreed to appear on Fox News in an effort to reach undecided voters who have misgivings about Trump. Fox News, the most-watched cable news channel, has cited research data showing it reaches a large number of voters who identify as Democrats or are not affiliated with a political party.

Walz appeared on “Fox News Sunday” for the last two weeks.

Harris has been criticized by commentators on Fox News and other outlets for only agreeing to appearances on media outlets supportive of her candidacy, even though she appeared on “60 Minutes” while Trump canceled his scheduled sit-down on the same program. Trump also said he would not participate in a presidential debate moderated by Baier and his Fox News colleague Martha MacCallum.

Baier aggressively questioned Harris on the current administration’s immigration policy and pressed her to define her differences with President Biden, who dropped out of his reelection campaign in July.

The confrontational exchanges on “Special Report” offered a stark contrast to a town hall-style program shown earlier in the day on Fox News with Trump. The event taped in Georgia on Tuesday was in front of an audience largely supportive of the former president, who faced no hostile questioning.

Baier interrupted Harris a number of times during their interview, which led to criticism among some pundits. The anchor said later that he was trying to keep the vice president from running out the clock with long answers.

The Harris campaign agreed to a 25- to 30-minute taped interview held in Washington Crossing, Pa., and it was aired in its entirety without editing. After the interview aired, Baier described how Harris aides vigorously signaled him to wrap up once the time limit was reached.

But some allies and critics of Harris believed the appearance was a success because it showed the candidate was willing to stand up to tough queries.

“Combative interviews can be good,” Jon Favreau, host of “Pod Save America,” wrote on X. “Going on Fox can be good. You just have to be prepared (she was) and stand your ground (she did!).”

“The left is angrily denouncing Bret Baier for interrupting Kamala Harris and being rude,” conservative commentator Erick Erickson wrote on X. “That tells me all I need to know. Kudos for Harris going on Fox News.”