Durn

Valero just paid a $1.1 billion breakup fee to leave California. When a company is willing to absorb a billion-dollar write-down just to exit a market, that’s not a routine business decision. It’s a signal that the operating environment no longer works. Valero is shutting down its Benicia refinery by April 2026 rather than continue operating under California’s current regulatory and economic framework. That facility processes roughly 145,000 barrels per day, about 8.6% of California’s gasoline supply. Around 400 jobs are lost. Local tax revenue takes a direct hit. With Phillips 66 also exiting, nearly 10% of California’s in-state refining capacity is coming offline in a short window. The analysts are already modeling the consequences. Economists at University of California, Davis estimate a $1.20 per gallon increase by summer 2026. Translation: your usual 15 gallon fill up goes from $70 to $95+. Fun. Stanford Energy also warns that removing this much capacity materially increases the risk of severe supply disruptions and extreme price spikes. Here’s the core issue: We are taking essential energy infrastructure offline while demand is still growing. AI data centers, electrification, and industrial reshoring are increasing energy intensity, not reducing it. The idea that demand is about to disappear is a fantasy. When supply is forced offline in a high-demand system, the outcome is not transition. It is volatility. And consumers ultimately pay the difference.

In the media tab making a mountain out of a molehill

You platinum like the wrappers on Hershey's boy that shit is worthless

(Not Drake lyrics)