For years, politicians in places like Benicia, California, wore their opposition to the energy industry like a badge of honor. They passed regulations, blocked infrastructure, and made oil companies the enemy. They won praise from environmental groups, earned headlines for their “courage,” and claimed the moral high ground.
Now the bill is due.
Valero, one of the largest oil refiners in the country and the backbone of Benicia’s economy, is on its way out. And with it goes 20% of the city’s tax base, hundreds of high-paying jobs, and millions in community support. The people of Benicia are about to learn the hard way what happens when you chase out your largest employer without a plan to replace it.
This isn’t just about Benicia. It’s about the consequences of policy decisions made without economic reality in mind. It’s about what happens when elected leaders push industries out without building alternatives first.
Let’s break it down.
Lost Revenue
Benicia is already slashing its budget. City services are being cut. Public safety is under strain. Library hours may be reduced. Community events and pools could shut down. And if Valero closes the refinery next spring, the financial hole could deepen fast.
It’s not just about losing a big taxpayer. The refinery also supported local charities, unions, contractors, and small businesses. Its ripple effect reached every corner of the local economy.
Lost Jobs
Valero employs hundreds directly and supports hundreds more through unions and local suppliers. Those are real people with mortgages, families, and kids in school. Good-paying, stable jobs that are now at risk and it’s not because the demand for oil disappeared, but because California made it increasingly difficult to do business.
These aren’t theoretical losses. They’re going to hurt.
Higher Gas Prices
As more refineries shut down in California due to mounting regulations, expect fuel prices to go even higher. Fewer in-state refineries mean more reliance on imported fuel, which costs more and increases supply chain vulnerabilities. It’s basic economics — less supply, higher prices.
California already has some of the highest gas prices in the country. That’s not a coincidence. It’s policy.
This didn’t happen in a vacuum. Politicians fought for this. They stood in front of cameras and rallied against the very companies that kept their towns running. They pushed for policies that made energy production expensive, unpredictable, and undesirable. And now, when those companies pull out, they act shocked.
Benicia Mayor Steve Young once led the charge against Valero’s oil shipments. Now he’s pleading for the company to stay. It’s a complete reversal — and a direct consequence of choices made over years of antagonism.
You can’t spend decades attacking an industry, then panic when it walks away.
This is what it looks like when ideology collides with reality.
Climate change is real. Transitioning to cleaner energy matters. But that transition needs to be smart, not self-destructive. Driving out foundational industries before communities are ready isn’t bold and it’s reckless.
Benicia is facing a fiscal cliff. Other cities in California could be next. If leaders don’t start balancing ambition with economic sense, the price won’t just be lost jobs and revenue — it’ll be public trust, lost opportunity, and communities that collapse under the weight of their own short-sighted politics.
The energy industry didn’t abandon Benicia. Benicia drove it out. And now, they’ll have to live with the consequences.