Senior Environmental Engineer

Chevron launches new sign campaign targeting Sacramento as California gas prices hit new highs. It will be interesting to see how the Chevron sign campaign works out for the company, on this busy Memorial Day weekend. For years, I hoped the petroleum energy giants would push back against global warming activists, eco-nuts who believed carbon dioxide was toxic, and regulation-mad bureaucrats. However, these corporations were content to try to negotiate with these extremists. This encouraged the extremists in California to double down, as there is no effective check on their lunatic policy-making ideas. For example, Gavin Newsom signed into law a measure ordering energy producers to stockpile gasoline, despite pushback from industry. Then, the oil companies began to see the handwriting on the wall and made a strategic retreat. Phillips 66 terminated operations at its Los Angeles-area refinery in the fourth quarter of 2025. Chevron moved its headquarters to Texas, citing high taxes and burdensome regulations. Valero Energy Corporation, which announced plans to close its Benicia oil refinery (located just northeast of San Francisco, in 2026), has just been fined for "air quality violations" to the tune of $3.25 million. However, Chevron has taken a new approach... this time directly targeting the regulators and politicians who view its firm as evil and a cash cow deserving to be pilfered. Drivers across California, including here in the Central Valley, may be noticing new signs posted at some Chevron gas stations pointing the finger at Sacramento for high gas prices. The signs carry messages like: "Sacramento policies did this. Now, you pay more." Others saying, "California has the highest gas taxes and fees in America." The signs also include a QR code customers can scan for more information. Chevron says the campaign is meant to explain why Californians are paying some of the highest gas prices in the country. Chevron is letting customers know in California that it's not Donald Trump causing the insane gas prices in the state, it's California Democrats Chevron just added these new signs to their pumps educating customers, "Sacramento policies did this. Now you pay more" "California... pic.twitter.com/MzIYrzjaBz - Wall Street Apes (@WallStreetApes) May 21, 2026 California Governor Gavin Newsom's Press Office was quick to respond with snark. California Gov. Gavin Newsom is in a spat with a major oil company over who is to blame for the state's high gas prices, with the Democratic governor's office urging drivers not to fill up at Chevron stations over Memorial Day weekend. "Pro tip: unbranded gas comes from the same refineries, storage tanks, and pipelines, and it meets the same state standards to keep your engine running clean," Newsom's office posted Thursday on X. "Big Oil is already making billions off Trump's Iran War; don't let them rip you off even more by overpaying for the brand name." Newsom's office cited an analysis by a group within the state's energy commission, which oversees the oil and gas industry, that found that Chevron averaged more than 60 to 80 cents per gallon above unbranded alternatives. However, the response really wasn't what Newsom was expecting: Thanks for the tip: I'll be sure to spend some extra money at @Chevron this weekend! #Buycott pic.twitter.com/wkxuLPCAlL - Tom Kattman (@TomKattman) May 22, 2026 Then the U.S. Gas and Oil Association bolstered Chevron's position with feedback of its own. "Pro tip: Don't take Pro tips from a Politician who hasn't driven himself anywhere since 2004," the group wrote in a post on X Thursday that had gotten nearly 100,000 views. The association's president doubled down on the criticism in a statement to The California Post. "It's interesting how the politicians who are picked up every morning by a black SUV are experts on gas prices but always fail to recognize the impact their bad decisions actually have on gas prices," Tim Stewart said. The group had been referencing Newsom's taxpayer-funded drivers, who ferry the governor between events across the state and leave him out of touch with everyday commuters. "Chevron works hard to help educate Californians about Sacramento's energy and tax policies. These adversarial policies have resulted in California losing nearly 18% of its refining capacity in less than a year," a Chevron spokesperson told The California Post. "Most Chevron-branded gas stations in California are independently owned and operated. Attacking California's small businesses like this is deeply unfair and irresponsible. We urge Sacramento to take energy policy seriously and stop making life expensive for California drivers," they added. Pro tip: Don't take Pro tips from a Politician who hasn't driven himself anywhere since 2004. https://t.co/3m6Rk7I40u - US Oil & Gas Association (@US_OGA) May 22, 2026 The growing tension between California regulators and oil companies underscores a disconnect between policymakers and the realities of energy demand, with producers continuing to supply a critical, everyday resource even as they face increasingly burdensome and counterproductive regulations. As companies push back and scale operations in response to these policies, they are highlighting the essential role they play in keeping the state moving and raising important questions about whether current regulatory approaches are driving up costs and undermining energy reliability rather than supporting practical, balanced solutions. It will be interesting to see how the Chevron sign campaign works out for the company, on this busy Memorial Day weekend. Donations tax deductible to the full extent allowed by law.

Valero swings to profit on strong refining margins in Q1. Valero Energy Corporation posted a strong turnaround in first-quarter 2026 earnings, as robust refining margins and improved operational performance lifted the U.S. downstream giant back into profitability. The company reported net income of $1.3 billion, or $4.22 per share, compared with a net loss of $595 million a year earlier, when results were weighed down by impairment charges tied to its California refining assets. The earnings rebound was led by Valero's core refining business, where operating income surged to $1.8 billion from a loss of $530 million a year earlier. Throughput volumes averaged 2.9 million barrels per day, underscoring the company's ability to capitalize on favorable margin conditions despite broader commodity market volatility. Performance also improved across its low-carbon and biofuels segments. Renewable diesel swung to a $139 million operating profit from a loss a year ago, while ethanol income rose to $90 million, reflecting stronger margins and higher production volumes. Valero generated $1.4 billion in operating cash flow during the quarter and returned $938 million to shareholders through dividends and buybacks, highlighting continued capital discipline. The company also raised its quarterly dividend by 6% to $1.20 per share, reinforcing its commitment to shareholder returns amid improving fundamentals. On the balance sheet, Valero issued $850 million in senior notes during the quarter to refinance debt and ended March with $5.7 billion in cash, maintaining a relatively low net debt-to-capitalization ratio of 18%. The results come as global refining markets remain structurally tight, with distillate margins - particularly diesel - continuing to outperform gasoline in several regions. Valero's geographically diversified refining system allows it to optimize across these regional spreads, a key advantage in volatile markets. At the same time, the company is advancing targeted capital projects to enhance yield and profitability. Its $230 million fluid catalytic cracking (FCC) optimization project at the St. Charles refinery is expected to come online in the third quarter, boosting output of higher-value products. Valero is also continuing to expand its exposure to lower-carbon fuels through its Diamond Green Diesel joint venture, positioning itself within tightening regulatory frameworks and growing demand for renewable fuels in the U.S. and Europe. While the company did not provide formal forward guidance in the release, management emphasized its ability to "benefit from the current margin environment" and highlighted operational execution as a key driver going forward. The strong first-quarter performance suggests Valero is entering 2026 with momentum, supported by resilient refining economics, disciplined capital allocation, and a gradually improving contribution from its low-carbon portfolio. By Charles Kennedy for Oilprice.com More Top Reads From Oilprice.com