For nearly 60 years, the Valero oil refinery has shaped life in Benicia, a small city 40 miles north of San Francisco. The refinery, which Valero acquired from Exxon in 2000, has been a dominant economic force, providing well-paying jobs, tax revenue and support for local businesses and community programmes. However, as California pushes towards its goal of carbon neutrality by 2045, the refinery's days are numbered.
In April 2023, Valero announced plans to idle or cease operations within a year, citing the state's tough regulatory environment. The company confirmed in January that it would begin winding down, permanently idling most processing units by April and laying off nearly 70% of its workforce—about 240 employees. The closure will remove the city's largest employer and a source of nearly 20% of its tax revenue.
The news has divided the community of about 28,000 people. Some local leaders, including city council member Kari Birdseye, see the closure as an opportunity for a 'just transition' to cleaner industries and more housing. 'I would like Benicia to be the poster child for a just transition for other refinery cities,' Birdseye said.
But many business owners and workers are less optimistic. Chantel Sprankle, owner of Sprankle's Deli, a downtown mainstay, has already lost many regular customers who worked at the refinery. 'Valero leaving is the worst possible thing that could happen to our little community,' she said, blaming California's climate goals for hastening the company's departure.
The closure highlights a broader challenge for California as it reduces gasoline consumption—down more than 15% over 20 years—while the refining industry declines. Benicia now serves as a reluctant test case for whether an oil town can successfully reinvent itself in a post-fossil-fuel era.
