It's Time to Go - What's Behind the Planned Closure of Phillips 66's Los Angeles Refinery?

RBN Energy Blogcast

Weak refining margins, rising regulatory compliance costs, softening demand for gasoline and the push for lower-carbon alternatives like batteries and renewable diesel have each contributed to a steady decline in California’s refining capacity the past few years. Now, Phillips 66’s plan to idle its 139-Mb/d Los Angeles Refinery in Q4 2025 will leave the Golden State with only seven conventional refineries producing gasoline, diesel and jet fuel — a couple of dozen fewer than it had 40 years ago. In today’s RBN blog, we’ll put P66’s recent announcement in context and discuss the likelihood of additional refinery closures.