Valero Energy Corporation is putting its refineries in California on the market rather than have to deal with new air pollution rules that are part of AB 32, the Global Warming Solutions Act, passed by the California legislature signed into law in 2006 by then Governor Arnold Schwarzenegger.
According to a report in the Wall Street Journal, Valero is in the early stages of the process of marketing both its California refineries and is enlisting help from Citigroup Inc.
“That article is based on speculation and unnamed sources,” said Valero spokesman Bill Day from San Antonio. Day would neither confirm nor deny the speculation.
“It’s our policy not to comment on speculation in the media,” said Day. “I will say that a year ago in a conference call with Wall Street analysts Bill Klesse said the company is exploring options with regard to the California refineries.” Klesse is the Valero chairman and CEO.
Mayor Elizabeth Patterson believes the sale of the Valero Benicia Refinery will benefit any buyer. “I’d say the sale is a great opportunity for an oil business with a diverse portfolio of energy production,” said Patterson. “There’s much to admire about Valero as a business.”
“I also think we need to continue to diversify our industrial park to meet the needs of an economy that’s in transition,” said Patterson.
Patterson ssid she found out about the sale rumor from City Manager Brad Kilger who also learned of the possible sale from the Wall Street Journal report and not from Valero personnel.
Do you think Benicia will be better or worse off with a new owner taking over the Valero Benicia Refinery?
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