Valero California Refinery Idles All Units Ahead of Closure

Valero Energy Corp’s Bay Area oil refinery has shut down key operating units, dashing California’s hopes to retain one of the state’s last remaining fuel-making plants.

The Benicia refinery’s sole crude processing unit was idled in early February followed by other main units, according to data from energy analytics firm Wood Mackenzie. Data released Wednesday by the Department of Energy showed West Coast oil processing fell by 144,000 barrels a day in the week ended Feb. 20, the same amount the Benicia plant processes.

The imminent closure makes Californians more dependent on imports when they already pay the ...