February 5, 2026 • 30 mins
The John Kobylt Show Hour 2 (02/05) - Rick Caruso has decided not to run for mayor after saying he'd reconsider running after the LA Times article that came out reporting that Mayor Karen Bass wanted the Palisades Fire after-action report altered. Oil and gas expert Mike Ariza comes on the show to talk about Valero beginning to shut down the oil refinery in Benicia, CA. More on Valero beginning to shut down the oil refinery in Benicia, CA and why Gov. Newsom should not be the Democratic nominee for President. There is a new federal taxpayer fraud taskforce that VP J.D. Vance is going to lead.
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Speaker 1 (00:00):
Can't.
Speaker 2 (00:00):
I am six forty.
Speaker 3 (00:02):
You're listening to the John Cobel podcast on the iHeartRadio app.
We're on every day from one until four o'clock. And
before we get to Mikeriza, former Valero oil and gas
expert and manager there, Alex Michaelson and the Los Angeles
Times are both reporting that Rick Caruso is not running
(00:24):
for mayor of Los Angeles. This came out just a
few minutes ago. Alex from CNN said he will not
run for LA mayor according to his political advisor, Mike Murphy,
and Los Angeles Times also has the same quote or
the same story. Political consultant for Rick Caruso says he
(00:47):
will not run. So Caruso is out. Austin Buttner, who
worked as a school's chancellor and a former deputy in
the viragostration, he is out. His daughter died of tragic
death a month ago. So no Caruso, no Austin Buttener.
(01:10):
We've got Spencer Pratt and other people you've never heard
of running against Karen Bass. And this comes on the
heels of the Times exposing the big lie. But Bass
that all she has to do is tell us who
did direct the rewrite of the fire department after action report.
(01:36):
She's not doing that. Neither is Ronnie van Oeva, the
in or in chief. Neither is Haimi Moore, the current chief.
Everybody says we're supposed to move on. Nobody's going to
move on. She told the big lie she needs to resign,
she needs to be fired, she needs to be replaced.
We've got tomorrow's last day to file to run for mayor.
(01:56):
But it's not gonna be Rick Caruso and it's not
gonna be Austin Butner. All right, Now on to Newsom.
Newsom has got about a dollars fifty worth of taxes
laid on the price of gas. And this week I
(02:17):
didn't check today yet, but the price a couple of
days ago was two eighty eight nationally for regular and
four thirty six in California. And the difference is Newsome.
It's taxes at the pump, taxes on refineries, regulations that
(02:38):
drive up the price, and the regulations and the price
is it's so onerous that Valero oil refinery in Benetia
shut down, started shutting down January thirty first. And we
also know that a couple of a few months ago.
The refinery in Wilmington right by Phillip sixty six that
(03:01):
closed down. So two major, two major refineries are now quiet.
That's about twenty percent of the refining that goes on
in this state. We're going to be importing more oil
from overseas, which is not only expensive, none of the
other countries have the pollution control as we do. Let's
(03:25):
get now. Mike Ariza on he's a former manager at
Valero Oil and gas expert, and he told the California
Globe this week that the shutdown began on January thirty first,
about five days ago.
Speaker 2 (03:37):
Mike, how are you good?
Speaker 1 (03:40):
Thanks for having me on, John, how you doing.
Speaker 3 (03:42):
I'm doing well. So tell me what do you know?
It was beginning of the week they had had that.
Just go through the whole timeline.
Speaker 1 (03:52):
Well, we need to step back real quick, back to
twenty twenty three. And while why Valero is such a
major impact, back in twenty twenty three, the Rodeo and
Marathon refineries they were converted onto renewable diesels, so they
shut down. They stopped processing crude oil. Why that matters
(04:14):
is at that point they are no longer making gasoline
yet fuel of propane. So back in twenty twenty three,
we started importing around eighteen to twenty percent of our
fuel from Singapore, South South Korea, and India. Then Phillips
sixty six went down, as you know, in October. That
(04:36):
was another nine to ten percent of our fuel production.
So we're sitting there with nearly thirty percent of our
fuel being imported at that point. Now Valero per barrel
of crude oil, Valero produces more gasoline than any refinery
in the state. Valero is about twelve percent of our
(04:58):
gasoline production. So now where we have to import forty
two to forty four percent of our fuel, roughly sixty
to seventeen million gallons a day is coming from overseas.
That's where the Valero's kind of like the tipping point.
They're down, they're cold by all the major units are
(05:18):
down now, the crew units down. Originally they were slated
to go back go down in April, but we I'm
working in collaboration with Professor Niche and Assemblon and Ellis
from Bakersfield, and we kind of we were looking at
that fact that Valero canceled their crew all contracts back
in October, so we actually had anticipated that they were
(05:39):
going to go down earlier in what they stated, and
they act to have done so.
Speaker 3 (05:45):
So they're completely shut down now. And is this is
this kind of thing irreversible or difficult to restart?
Speaker 1 (05:53):
It's extremely hard to restart because what she ended up doing.
You know, Valero knew they were shutting down, so they'd
offer transfers to their sites for some of their employees.
Some of their employees were tired, some of their employees
moved on to other jobs. Valero's actually the most complex
refinery in the state. It takes someone with it's the
training and more than anything is the experience. So a
(06:17):
lot of these people are going out of state. I mean,
think about it. You're in your forties or fifties, and
you know they offer you a lateral transfer maybe making
more money in Texas or Louisiana and you get the
heck out of here. You know, would I would jump
on it?
Speaker 3 (06:32):
Does it count down to is it was too costly
to run a refinery in the state of California because
of the regulations?
Speaker 1 (06:42):
Oh, it's all regulation that absolutely. Valero invested somewhere around
six with seven hundred million dollars to take their so
two in particulate matter missions down to zero, and then
recently the state handed them an eighty two million dollar
fine off of the cleanest unit in any refinery, all
the refineries pretty much in the world, these hydrogen generation units.
(07:02):
They got fined eighty two million dollars. And you know,
like their airboard was stating, all there's parcentogens, there's a
reproductive harmony, and so well, in fifty six years that
that plan has been running, there have been no incidents
of elevated cancer or reproductive harm in Venetia, the industrial park,
within the plant itself. So I think that was the
(07:22):
final between that and the tank farm issue. I think
that was the final issue where San Antonio said, we're done,
We're out of here. And in fact, they are taking
a one point one billion dollar loss just to get
out of California financially.
Speaker 3 (07:37):
It's a better deal for them to lose a billion
dollars on the shutdown that it is to stay in
business long term. Correct, Yeah, And they were and Newsome
was warned about this for years.
Speaker 1 (07:52):
He's been warned about this for years. And where I
have I mean, I have a lot of problem issues
with that guy, but the main one I have right
now out that impacts the refineries. It's our ability. We're
at the end. Our state was not designed to import
this much fuel. Our state was designed to bring crude
oil in and refine it. We don't have incoming pipelines
(08:13):
coming from anywhere else in the country. It all has
to come from overseas. There's only three countries that can
that can make our gasoline. So it leaves us extremely
vulnerable when you look at and in recently, you know,
we had a hijacking of a fuels oil tanker in
the Indian Ocean. You had the Chevron El Segundo fire.
We had a big fire on a cargo ship at
(08:35):
the port of Los Angeles. I've had to personally cut
back Valero three different times because of weather, big storms
holding up crude oil tankers, you know, And if something
happened somewhere in the world, you know, you know, the India, Taiwan, whatever.
There are so many things that can impact our fuel
oil supply, our gasoline, our jet fuel, our diesel. They
(08:58):
are all those things I just engine. They can impact
our supply. And now we got four point four million
gallons more a day being imported from overseas.
Speaker 2 (09:09):
All right, can you start?
Speaker 3 (09:11):
Just hang on a second, Okay, I gotta do news
and we're gonna you can hang on for another segment.
Speaker 2 (09:16):
Oh yeah, okay, sorry interrupt.
Speaker 4 (09:18):
You're listening to John Cobelt on demand from KFI AM
six forty.
Speaker 3 (09:24):
We continue with Mike Ariza, a former Valero manager and
oil and gas expert, and uh, he's been explaining what's
going to happen next.
Speaker 2 (09:34):
Uh.
Speaker 3 (09:35):
Valero closed its Benetia refinery. This had been threatened for months.
Gavin Newsom was told really for years, they'd rather take
a over a one billion dollar loss rather than continue
doing business in California because of the taxes and regulations.
We had another refinery closed down in October, Phillip sixty
(09:57):
six in Wilmington. The Chevron Oil Company relocated to Houston.
And now we're looking at gas prices. I just looked
it up. It's up three cents from yesterday. California gas
prices now four dollars and forty cents. The nation average
is two eighty eight. In Oklahoma it's two thirty six. Mike,
(10:21):
how how high can this? How high can this go?
Speaker 1 (10:26):
The thing is we're probably getting it with shortages, but
assuming somehow we managed to might have shortages. It's going
to probably go to like eight eight and a half, No.
Speaker 3 (10:35):
No, eight and a half dollars a gallon you think, yeah, I.
Speaker 1 (10:42):
Eight forty eight fifty somewhere in there. And that's of everything.
The problem is right now we're at a limit where
we can bring fuel in. We don't have We were
not designed with the infrastructure to bring in all this fuel.
And for the reasons I stated, that can affect all
of these ships, tankers coming in. And this is where Newsome,
he's so disingenuous. He does not have control over this.
(11:06):
If we were at the edge of how much we
can bring in and then we have some issue come
up which directly impacts the fuel coming in, we can
very quickly go into shortages, possibly severe shortages, I mean
gas lines. And the difference between the seventies when we
had the oil embargo was when the oil came back,
the refiners were still there. We got the country back
(11:29):
on track. If we have a moderate to severe shortage
for any number of reasons in California, then we don't
have the refineries to help us recover out of it,
to get out of that condition. So Phoenix Las Vegas, Reno,
and all of California. We're going to be in serious trouble.
But at best, we're looking at about.
Speaker 3 (11:51):
Eight dollars a eight forty a gallons, So you're talking
about eight dollars a gallon if nothing bad happens around
the world, rip that impact.
Speaker 1 (12:00):
No storm, no storms, no storms, hold with the tanker,
nothing happens at the Port of Los Angeles. Yeah, I
mean there's so many things and Newsom has no control
over that. For him to sit there and say, oh, yeah,
well we're taking care of No, you're not. You don't
you don't have control over those things.
Speaker 3 (12:16):
Well, he had said that they were going to find
a buyer somewhere around the world for the Valero refinery,
and he didn't.
Speaker 1 (12:23):
No. Well no. Another thing too, is Valero doesn't own
crude oil. There's one reason why Chevron is still here
up and down in El Segundo and up here in
Richmond is they owned their crude hole. They sell their
crude all to their refinery. When Exeon owned Benetia, they
sold their crude oil to the refinery. If the refinery
(12:44):
was taking a slight loss, well they're making a lot
of money on the upstream selling their own oil. They
right off the midstream, which is the refinery, and then
you know, the downstream is going out to the consumers.
Chevron owns their own oil. They're taking big losses at
their refineries too, but they own their own oil. Oh
you know, Phillips, all them, they don't own any oil,
so they have no way to offset. You know, if
(13:05):
there's minor losses in the refinery, then yeah, you can
go with the kind of ride it off and the
rest of the Valero throughout the country in Texas and Louisiana,
they you know what they're making. They just ride off
the losses they're taking the Valero. But the velosses, the
losses have been so egregious because of their environmental regulations.
And then you know, my favorite one was one they
(13:27):
leveled that levied that fine on Valero, record fine of
eighty two million dollars. The city of Benetia got like,
you know, thirty or forty million dollars of it. And
the mayor is on the air board of the City
of Benetia, So help me out here.
Speaker 2 (13:44):
Well, now that it's happened, Uh, what I mean, does
he have any reaction to this?
Speaker 4 (13:49):
I don't.
Speaker 3 (13:50):
I don't understand this is this is like, uh, this
is psychonic.
Speaker 1 (13:55):
Well he's mystified, you know, and mystified. I'm concerned. Yeah,
and Benetia had a fantastic relationship with the refinery. The
refinery would especially Exon and Valero. They would take their
firefighters to schools in Texas and Reno. They paid for
a lot of their equipment. Nisia had some of the
nicest equipment in the Bay Area. You know, they would
(14:17):
take care of their schools and stuff like that. Just
they were really a very good community partner. Well now
that's gone, that cash cow is gone, and nobody's going
to come in and buy that refinery. Nobody's going to
come in and buy it. It's not going to happen.
Speaker 2 (14:31):
This is so crazy, I know. You know that.
Speaker 3 (14:36):
Mike, thanks for coming. We'll talk again. Mike Arisa and
he's an oil and gas expert. Former Valero manager. Yes,
Valero said they were going to shut down the Benetia
refinery and they did did it earlier than expected. So
between that and Phillips sixty six shutting down, it's La
Area refinery down in the Wilmington Carson area. We've lost
(14:56):
twenty percent of the gasline refining capacity. And you heard
mikeresa says, we are going to be looking at eight
dollars a gallon down the road. This is all Gavin
Newsom and his stupid destructive environmental regulations. And if you
followed what Mike Aresa was saying, there aren't any major
(15:19):
oil pipelines that come into California from the other states.
We have to either produce our own oil and refine
our own oil, or we have to take it in
from overseas. And there's a limit to how much we
can take at our ports, and we're already at the limit,
(15:40):
so we're not going to be able to take much
more in to offset the loss. And that he said,
that's assuming nothing bad happens. That you don't have bad weather,
you don't have oil tankers getting hijacked on the high seas,
you don't have wars breaking out in countries we depend on,
or some kind of political instability. If everything goes perfect,
(16:04):
it's eight dollars a gallon. And we've told you this
for the last year and nobody does anything about it.
And Newsom is now mystified. He's the stupidest man alive.
Absolutely a vegetable more coming up.
Speaker 4 (16:26):
You're listening to John Cobels on demand from KFI A
six forty.
Speaker 3 (16:32):
If you haven't heard Rick Caruso not running for mayor,
it was leaked from his one of his political advisors,
Mike Murphy. Alex Michaelson at CNN had it also. Los
Angeles Times reported it. Austin Bututer, that's news came out
this morning. He's not running for mayor either. He's dropped
out of the race. He suffered a terrible tragedy. His
(16:54):
daughter was found dead about a month ago in Bombay.
She was somehow lying on the side of the road
and that's still a mystery as to how that happened.
But Rick Caruso is out, Austin Butener is out. The
deadline to run for mayor is tomorrow, and it is
(17:15):
Karen Bass, Spencer Pratt and other people you haven't heard of,
and maybe we'll get to know them soon.
Speaker 2 (17:22):
I don't know.
Speaker 3 (17:24):
And that that ridiculous Lindsey Horvath is threatening to run.
The best I can say about her is she probably
wouldn't have flown to Africa right before the fire started.
But as far as her policies, there is ridiculous and
destructive as she gets angry when homeless people are removed.
(17:47):
We'll see if she runs, and if she runs, we'll
get into that. She does it does, it does, does
bother greatly when homeless people are are forced off the streets.
And that's just what we need in the mayor.
Speaker 2 (17:57):
Huh uh.
Speaker 3 (17:58):
So you got Spencer Pratt, and I'm sure we'll be
talking to him a lot coming up in the next
few months. The primaries in June, and then if nobody
gets fifty percent, fifty one percent, then there's the runoff
in November. Now we're telling you about Gavin Newsom. It
is impossible to explain to people who are emotionally invested
(18:20):
in Gavin Newsom. His audience seems to be largely young
to middle aged women, many of them who are quite
taken by his handsomeness, As that idiot writer for Vogue said,
he's embarrassingly handsome and he does incredibly stupid, destructive things.
(18:42):
The latest is, we were just telling you in the
first half hour that Valera is closing its refinery in Benetia.
Speaker 2 (18:50):
It was.
Speaker 3 (18:53):
It couldn't sustain the weight of the regulations and the
taxes anymore, and Valera is now willing to take a
billion dollar or loss closing the refinery rather than continue
doing business in California. It's really a huge problem. It's
twenty percent of our refinery capacity and that cannot be
replaced here in the state. We don't have oil pipelines
(19:16):
that come in from other states. We have to take
it by cargo ship, and we can't. We don't have
the space and the ports to take any more cargo imports.
It's really bad. And we just had Michael Reza on
he's in the gas and oil industry. He said, you
really are looking at eight dollars a gallon, which we
warned you about months and months ago, and he says
(19:39):
it's coming. There's no way it can't come because there's
gonna be a great shortage of gasoline and oil. This
of course, gets no coverage at all outside of the
California Globe. Guess all the left wing progressive journalists and
editors and producers don't believe it. But they'll be paying
eight bucks too. But maybe they think that's a appropriate
(20:01):
because we're helping to protect the environment. Okay, now more
Gavin knew some stupidity. He held this ridiculous press conference
yesterday to brag about a high speed rail making progress,
and he's standing in Wasco.
Speaker 2 (20:20):
Did you see this.
Speaker 3 (20:22):
He's trying to claim that they have enough money to
build one hundred and nineteen miles segment between Madera and Wasco.
Speaker 2 (20:30):
Now Wasco.
Speaker 3 (20:33):
Borders a town called Shafter, and at times I have
seen that the high speed rail is going to the
segment that they want to build is going to end
in either Shafter or Wassco, but they're side by side.
The thing is, they're about thirty miles away from Bakersfield.
So if you took the train one hundred and nineteen
miles from the north and you took it to the end,
(20:55):
it would land in Wasco. And then what do you do?
I mean, Bakersfield is the metropolitan center and there's no
public transit that goes from Wassco too. And he's bragging
about this because they hadn't laid track yet, but they
have a what is it a trailhead they said they have.
Speaker 2 (21:13):
I guess maybe it's the end of the line. Really,
I looked it up today.
Speaker 3 (21:22):
I said, okay, well, how close is Wassco to Bakersfield?
Speaker 2 (21:24):
And it's like twenty eight miles and then the north.
Speaker 3 (21:28):
End is supposed to end in Madera, which is well
to the west of Merced. Now there is no market
to travel between Bakersfield and Merced back and forth, but
there's even less of a market to travel between the
Wasco shafter combination up to Madera. These are like small
(21:50):
dots picked at random, and that's the train line. And
he held a press conference to announce the progress, and
then he's putting out videos like promotional.
Speaker 2 (22:00):
He goes and he's standing in front of a freight train, and.
Speaker 3 (22:05):
I guess he thought that most people don't know the
difference between a freight train and a passenger train, like
an old freight train as opposed to a futuristic passenger train,
which is what the high speed rail was supposed to be.
Speaker 2 (22:20):
So it's like, who are you trying a kid? That's
a freight train. Like he made it look like, hey,
we made some progress. Look at that, we have a
train here. What's wrong with him? He's acting more senile
than Biden.
Speaker 3 (22:40):
Now none of this would matter, but he's leading in
the polls to be the Democratic candidate, which he'll never be.
Speaker 2 (22:47):
He's not going to be the Democratic candidate.
Speaker 3 (22:49):
I mean, look what we've learned just in the last
the last half hour. We got eight dollar an hour,
eight dollar a gallon gas looming. We've got the federal
government coming in to try to make heads or tails
out of the Palisades fire situation and the uh Outa
(23:10):
Dina fire situation. We have bass being exposed for the
for the big lie because she did rewrite the report,
and if she didn't, she's not telling who did. H
and and Newsom's role in this is completely overlooked. He
didn't predeploy any fire engines to the Palisades. In fact,
(23:32):
it was his employees that kicked the Los Angeles Fire
Department off the land where the original fire was still smoldering.
He's not gonna get the nomination. Then there's this, well,
it's it's more about high speed rail. High speed rail,
(23:59):
uh Avan news Him, according to the California Post, is
desperately trying to keep the secret details of the high
speed rail project. The California Post has obtained records detailing
fifty eight separate construction projects built over the past eight
years between Merced and Bakersfield, and they have pictures of
(24:21):
this and it Bakersfield and Said have a combined population
of five hundred thousand, So the cost of adding high
speed rail service works out to twenty two thousand dollars
per person. Now, the Democrats are pushing legislation that would
(24:45):
hide high speed rail audit records from public scrutiny.
Speaker 2 (24:50):
They want to hide the true scale of the high
speed rail cost.
Speaker 3 (24:56):
Kevin Kylie is onto this, and he says, at the
very moment we finally started ramping up efforts to figure
out what happened to all the money, they're taking extraordinary
action to hide records related to high speed rail. State
Transportation Committee Chairwoman Laurie Wilson introduced Assembly built sixteen oh eight,
which would allow the Rail Projects Inspector General to withhold
(25:18):
reports if they describe or reveal weaknesses that could be
exploited by individuals trying to harm the interests of the state.
I guess like federal investigators, Newsom's administration has introduced nearly
identical separate legislation, according to calmatters dot com, So they've
(25:40):
introduced legislation that would allow high speed rail to hide
all its financial all its financial problems. That's what Newsom
is doing that's how bad it is. It's like Karen
Bass directed the attorneys to hide for thirty days the
testimony in the civil lawsuit regarding the Palisades fire has
(26:04):
she had fifteen attorneys hired so she wouldn't have to
testify about where her two billion dollars in homeless money
where that went.
Speaker 2 (26:12):
Now you have Newsome.
Speaker 3 (26:14):
He's pushing a bill through the legislature so all the
high speed rail financial records can be covered up.
Speaker 2 (26:20):
More coming up.
Speaker 4 (26:22):
You're listening to John Cobels on demand from KFI AM.
Speaker 3 (26:26):
Sixty moistline is eighty seven seven moist steady six eight
seven seven moist staty six, who used the talkback feature
on the iHeartRadio app. We're gonna have Lee Zelden on
next hour. He is the head of the EPA, and
he's been put in charge of the federal the federal
(26:47):
intervention into the incompetence of state and local officials in
rebuilding Altadena and Pacific Palisades of Trumps, said Leezelden. In here,
we talked with Kelly Loffler yesterday. She's the head of
the Small Business Administration and they have spent the last
(27:10):
couple of days touring and meeting with people in the
Palisades and in Altadena to try to unclog this massive
bureaucratic jam, try to correct all the idiotic incompetence by
Karen Bask, Gavin Newsom, and the La County Supervisor Board,
because none of them are helping out the former homeowners
(27:34):
of those two towns. So Leez Elden's going to come
on about three twenty, all right, three twenty. There's another
investigation coming from the federal government and this is going
to be chaired by J. D Vance, the Vice President.
It's a new federal Anti fraud task Force because of
(27:56):
the billions of dollars of fraud and abuse of the
welfare and other taxpayer funded programs. And Trump is going
to sign an executive order establishing the task for US.
JD Vance as the chairman, Like I said, and they're
going to be looking to see how much money has
been built from federal taxpayers for everything Medicare, Medicaid, food stamps.
(28:23):
You know what's going on. It looks to be tremendous.
Andrew Ferguson is chairman of the Federal Trade Commission. He's
going to be the vice chairman and manage the day
to day operations, and they also have They also have
Colin MacDonald. He's the fraud investigator at the Department of Justice.
(28:46):
He's reporting to Pam Bondi, the Attorney General, and the
Deputy Attorney General, Todd Blanche. And it looks like there
were people, there were people within the Justice Department that
were resisting these investigations. The corruption goes very deep. It's
in the bone marrow of our government. And you could
(29:07):
see what they've discovered here in California, just what doctor
Oz was talking about in the videos. He put out
just a massive hospice, home healthcare fraud in Minneapolis, with
the childcare fraud. When it all gets added up over
the next three years, it's going to be overwhelming. Basically,
(29:28):
the whole world used California as a casino to withdraw
hundreds of billions of dollars. And this isn't even talking
about the homeless money, the thirty two billion dollars in
unemployment money, the high speed rail money. So much of
your tax money, state and federal tax money has been stolen,
(29:49):
just flat out stolen.
Speaker 2 (29:51):
And now jd.
Speaker 3 (29:54):
Vance is going to lead this task force here in
California newsib is going to get nothing but horrific headlines
for the next three years because he drove this place
off the cliff into oblivion and now it's payback time.
And all the Vogue profiles in the world describing in
(30:17):
the describing him as embarrassingly handsome is not going to
save him. And we should just sit back and enjoy
when all right, three twenty, we're gonna have Lee Zelden on.
Deborah Mark has the news live in the KFI twenty
for our newsroom.
Speaker 2 (30:31):
Hey, you've been.
Speaker 3 (30:32):
Listening to The John Cobalt Show podcast. You can always
hear the show live on KFI Am six forty from
one to four pm every Monday through Friday, and of
course anytime on demand on the iHeartRadio app.
Can't.
Speaker 2 (00:00):
I am six forty.
Speaker 3 (00:02):
You're listening to the John Cobel podcast on the iHeartRadio app.
We're on every day from one until four o'clock. And
before we get to Mikeriza, former Valero oil and gas
expert and manager there, Alex Michaelson and the Los Angeles
Times are both reporting that Rick Caruso is not running
(00:24):
for mayor of Los Angeles. This came out just a
few minutes ago. Alex from CNN said he will not
run for LA mayor according to his political advisor, Mike Murphy,
and Los Angeles Times also has the same quote or
the same story. Political consultant for Rick Caruso says he
(00:47):
will not run. So Caruso is out. Austin Buttner, who
worked as a school's chancellor and a former deputy in
the viragostration, he is out. His daughter died of tragic
death a month ago. So no Caruso, no Austin Buttener.
(01:10):
We've got Spencer Pratt and other people you've never heard
of running against Karen Bass. And this comes on the
heels of the Times exposing the big lie. But Bass
that all she has to do is tell us who
did direct the rewrite of the fire department after action report.
(01:36):
She's not doing that. Neither is Ronnie van Oeva, the
in or in chief. Neither is Haimi Moore, the current chief.
Everybody says we're supposed to move on. Nobody's going to
move on. She told the big lie she needs to resign,
she needs to be fired, she needs to be replaced.
We've got tomorrow's last day to file to run for mayor.
(01:56):
But it's not gonna be Rick Caruso and it's not
gonna be Austin Butner. All right, Now on to Newsom.
Newsom has got about a dollars fifty worth of taxes
laid on the price of gas. And this week I
(02:17):
didn't check today yet, but the price a couple of
days ago was two eighty eight nationally for regular and
four thirty six in California. And the difference is Newsome.
It's taxes at the pump, taxes on refineries, regulations that
(02:38):
drive up the price, and the regulations and the price
is it's so onerous that Valero oil refinery in Benetia
shut down, started shutting down January thirty first. And we
also know that a couple of a few months ago.
The refinery in Wilmington right by Phillip sixty six that
(03:01):
closed down. So two major, two major refineries are now quiet.
That's about twenty percent of the refining that goes on
in this state. We're going to be importing more oil
from overseas, which is not only expensive, none of the
other countries have the pollution control as we do. Let's
(03:25):
get now. Mike Ariza on he's a former manager at
Valero Oil and gas expert, and he told the California
Globe this week that the shutdown began on January thirty first,
about five days ago.
Speaker 2 (03:37):
Mike, how are you good?
Speaker 1 (03:40):
Thanks for having me on, John, how you doing.
Speaker 3 (03:42):
I'm doing well. So tell me what do you know?
It was beginning of the week they had had that.
Just go through the whole timeline.
Speaker 1 (03:52):
Well, we need to step back real quick, back to
twenty twenty three. And while why Valero is such a
major impact, back in twenty twenty three, the Rodeo and
Marathon refineries they were converted onto renewable diesels, so they
shut down. They stopped processing crude oil. Why that matters
(04:14):
is at that point they are no longer making gasoline
yet fuel of propane. So back in twenty twenty three,
we started importing around eighteen to twenty percent of our
fuel from Singapore, South South Korea, and India. Then Phillips
sixty six went down, as you know, in October. That
(04:36):
was another nine to ten percent of our fuel production.
So we're sitting there with nearly thirty percent of our
fuel being imported at that point. Now Valero per barrel
of crude oil, Valero produces more gasoline than any refinery
in the state. Valero is about twelve percent of our
(04:58):
gasoline production. So now where we have to import forty
two to forty four percent of our fuel, roughly sixty
to seventeen million gallons a day is coming from overseas.
That's where the Valero's kind of like the tipping point.
They're down, they're cold by all the major units are
(05:18):
down now, the crew units down. Originally they were slated
to go back go down in April, but we I'm
working in collaboration with Professor Niche and Assemblon and Ellis
from Bakersfield, and we kind of we were looking at
that fact that Valero canceled their crew all contracts back
in October, so we actually had anticipated that they were
(05:39):
going to go down earlier in what they stated, and
they act to have done so.
Speaker 3 (05:45):
So they're completely shut down now. And is this is
this kind of thing irreversible or difficult to restart?
Speaker 1 (05:53):
It's extremely hard to restart because what she ended up doing.
You know, Valero knew they were shutting down, so they'd
offer transfers to their sites for some of their employees.
Some of their employees were tired, some of their employees
moved on to other jobs. Valero's actually the most complex
refinery in the state. It takes someone with it's the
training and more than anything is the experience. So a
(06:17):
lot of these people are going out of state. I mean,
think about it. You're in your forties or fifties, and
you know they offer you a lateral transfer maybe making
more money in Texas or Louisiana and you get the
heck out of here. You know, would I would jump
on it?
Speaker 3 (06:32):
Does it count down to is it was too costly
to run a refinery in the state of California because
of the regulations?
Speaker 1 (06:42):
Oh, it's all regulation that absolutely. Valero invested somewhere around
six with seven hundred million dollars to take their so
two in particulate matter missions down to zero, and then
recently the state handed them an eighty two million dollar
fine off of the cleanest unit in any refinery, all
the refineries pretty much in the world, these hydrogen generation units.
(07:02):
They got fined eighty two million dollars. And you know,
like their airboard was stating, all there's parcentogens, there's a
reproductive harmony, and so well, in fifty six years that
that plan has been running, there have been no incidents
of elevated cancer or reproductive harm in Venetia, the industrial park,
within the plant itself. So I think that was the
(07:22):
final between that and the tank farm issue. I think
that was the final issue where San Antonio said, we're done,
We're out of here. And in fact, they are taking
a one point one billion dollar loss just to get
out of California financially.
Speaker 3 (07:37):
It's a better deal for them to lose a billion
dollars on the shutdown that it is to stay in
business long term. Correct, Yeah, And they were and Newsome
was warned about this for years.
Speaker 1 (07:52):
He's been warned about this for years. And where I
have I mean, I have a lot of problem issues
with that guy, but the main one I have right
now out that impacts the refineries. It's our ability. We're
at the end. Our state was not designed to import
this much fuel. Our state was designed to bring crude
oil in and refine it. We don't have incoming pipelines
(08:13):
coming from anywhere else in the country. It all has
to come from overseas. There's only three countries that can
that can make our gasoline. So it leaves us extremely
vulnerable when you look at and in recently, you know,
we had a hijacking of a fuels oil tanker in
the Indian Ocean. You had the Chevron El Segundo fire.
We had a big fire on a cargo ship at
(08:35):
the port of Los Angeles. I've had to personally cut
back Valero three different times because of weather, big storms
holding up crude oil tankers, you know, And if something
happened somewhere in the world, you know, you know, the India, Taiwan, whatever.
There are so many things that can impact our fuel
oil supply, our gasoline, our jet fuel, our diesel. They
(08:58):
are all those things I just engine. They can impact
our supply. And now we got four point four million
gallons more a day being imported from overseas.
Speaker 2 (09:09):
All right, can you start?
Speaker 3 (09:11):
Just hang on a second, Okay, I gotta do news
and we're gonna you can hang on for another segment.
Speaker 2 (09:16):
Oh yeah, okay, sorry interrupt.
Speaker 4 (09:18):
You're listening to John Cobelt on demand from KFI AM
six forty.
Speaker 3 (09:24):
We continue with Mike Ariza, a former Valero manager and
oil and gas expert, and uh, he's been explaining what's
going to happen next.
Speaker 2 (09:34):
Uh.
Speaker 3 (09:35):
Valero closed its Benetia refinery. This had been threatened for months.
Gavin Newsom was told really for years, they'd rather take
a over a one billion dollar loss rather than continue
doing business in California because of the taxes and regulations.
We had another refinery closed down in October, Phillip sixty
(09:57):
six in Wilmington. The Chevron Oil Company relocated to Houston.
And now we're looking at gas prices. I just looked
it up. It's up three cents from yesterday. California gas
prices now four dollars and forty cents. The nation average
is two eighty eight. In Oklahoma it's two thirty six. Mike,
(10:21):
how how high can this? How high can this go?
Speaker 1 (10:26):
The thing is we're probably getting it with shortages, but
assuming somehow we managed to might have shortages. It's going
to probably go to like eight eight and a half, No.
Speaker 3 (10:35):
No, eight and a half dollars a gallon you think, yeah, I.
Speaker 1 (10:42):
Eight forty eight fifty somewhere in there. And that's of everything.
The problem is right now we're at a limit where
we can bring fuel in. We don't have We were
not designed with the infrastructure to bring in all this fuel.
And for the reasons I stated, that can affect all
of these ships, tankers coming in. And this is where Newsome,
he's so disingenuous. He does not have control over this.
(11:06):
If we were at the edge of how much we
can bring in and then we have some issue come
up which directly impacts the fuel coming in, we can
very quickly go into shortages, possibly severe shortages, I mean
gas lines. And the difference between the seventies when we
had the oil embargo was when the oil came back,
the refiners were still there. We got the country back
(11:29):
on track. If we have a moderate to severe shortage
for any number of reasons in California, then we don't
have the refineries to help us recover out of it,
to get out of that condition. So Phoenix Las Vegas, Reno,
and all of California. We're going to be in serious trouble.
But at best, we're looking at about.
Speaker 3 (11:51):
Eight dollars a eight forty a gallons, So you're talking
about eight dollars a gallon if nothing bad happens around
the world, rip that impact.
Speaker 1 (12:00):
No storm, no storms, no storms, hold with the tanker,
nothing happens at the Port of Los Angeles. Yeah, I
mean there's so many things and Newsom has no control
over that. For him to sit there and say, oh, yeah,
well we're taking care of No, you're not. You don't
you don't have control over those things.
Speaker 3 (12:16):
Well, he had said that they were going to find
a buyer somewhere around the world for the Valero refinery,
and he didn't.
Speaker 1 (12:23):
No. Well no. Another thing too, is Valero doesn't own
crude oil. There's one reason why Chevron is still here
up and down in El Segundo and up here in
Richmond is they owned their crude hole. They sell their
crude all to their refinery. When Exeon owned Benetia, they
sold their crude oil to the refinery. If the refinery
(12:44):
was taking a slight loss, well they're making a lot
of money on the upstream selling their own oil. They
right off the midstream, which is the refinery, and then
you know, the downstream is going out to the consumers.
Chevron owns their own oil. They're taking big losses at
their refineries too, but they own their own oil. Oh
you know, Phillips, all them, they don't own any oil,
so they have no way to offset. You know, if
(13:05):
there's minor losses in the refinery, then yeah, you can
go with the kind of ride it off and the
rest of the Valero throughout the country in Texas and Louisiana,
they you know what they're making. They just ride off
the losses they're taking the Valero. But the velosses, the
losses have been so egregious because of their environmental regulations.
And then you know, my favorite one was one they
(13:27):
leveled that levied that fine on Valero, record fine of
eighty two million dollars. The city of Benetia got like,
you know, thirty or forty million dollars of it. And
the mayor is on the air board of the City
of Benetia, So help me out here.
Speaker 2 (13:44):
Well, now that it's happened, Uh, what I mean, does
he have any reaction to this?
Speaker 4 (13:49):
I don't.
Speaker 3 (13:50):
I don't understand this is this is like, uh, this
is psychonic.
Speaker 1 (13:55):
Well he's mystified, you know, and mystified. I'm concerned. Yeah,
and Benetia had a fantastic relationship with the refinery. The
refinery would especially Exon and Valero. They would take their
firefighters to schools in Texas and Reno. They paid for
a lot of their equipment. Nisia had some of the
nicest equipment in the Bay Area. You know, they would
(14:17):
take care of their schools and stuff like that. Just
they were really a very good community partner. Well now
that's gone, that cash cow is gone, and nobody's going
to come in and buy that refinery. Nobody's going to
come in and buy it. It's not going to happen.
Speaker 2 (14:31):
This is so crazy, I know. You know that.
Speaker 3 (14:36):
Mike, thanks for coming. We'll talk again. Mike Arisa and
he's an oil and gas expert. Former Valero manager. Yes,
Valero said they were going to shut down the Benetia
refinery and they did did it earlier than expected. So
between that and Phillips sixty six shutting down, it's La
Area refinery down in the Wilmington Carson area. We've lost
(14:56):
twenty percent of the gasline refining capacity. And you heard
mikeresa says, we are going to be looking at eight
dollars a gallon down the road. This is all Gavin
Newsom and his stupid destructive environmental regulations. And if you
followed what Mike Aresa was saying, there aren't any major
(15:19):
oil pipelines that come into California from the other states.
We have to either produce our own oil and refine
our own oil, or we have to take it in
from overseas. And there's a limit to how much we
can take at our ports, and we're already at the limit,
(15:40):
so we're not going to be able to take much
more in to offset the loss. And that he said,
that's assuming nothing bad happens. That you don't have bad weather,
you don't have oil tankers getting hijacked on the high seas,
you don't have wars breaking out in countries we depend on,
or some kind of political instability. If everything goes perfect,
(16:04):
it's eight dollars a gallon. And we've told you this
for the last year and nobody does anything about it.
And Newsom is now mystified. He's the stupidest man alive.
Absolutely a vegetable more coming up.
Speaker 4 (16:26):
You're listening to John Cobels on demand from KFI A
six forty.
Speaker 3 (16:32):
If you haven't heard Rick Caruso not running for mayor,
it was leaked from his one of his political advisors,
Mike Murphy. Alex Michaelson at CNN had it also. Los
Angeles Times reported it. Austin Bututer, that's news came out
this morning. He's not running for mayor either. He's dropped
out of the race. He suffered a terrible tragedy. His
(16:54):
daughter was found dead about a month ago in Bombay.
She was somehow lying on the side of the road
and that's still a mystery as to how that happened.
But Rick Caruso is out, Austin Butener is out. The
deadline to run for mayor is tomorrow, and it is
(17:15):
Karen Bass, Spencer Pratt and other people you haven't heard of,
and maybe we'll get to know them soon.
Speaker 2 (17:22):
I don't know.
Speaker 3 (17:24):
And that that ridiculous Lindsey Horvath is threatening to run.
The best I can say about her is she probably
wouldn't have flown to Africa right before the fire started.
But as far as her policies, there is ridiculous and
destructive as she gets angry when homeless people are removed.
(17:47):
We'll see if she runs, and if she runs, we'll
get into that. She does it does, it does, does
bother greatly when homeless people are are forced off the streets.
And that's just what we need in the mayor.
Speaker 2 (17:57):
Huh uh.
Speaker 3 (17:58):
So you got Spencer Pratt, and I'm sure we'll be
talking to him a lot coming up in the next
few months. The primaries in June, and then if nobody
gets fifty percent, fifty one percent, then there's the runoff
in November. Now we're telling you about Gavin Newsom. It
is impossible to explain to people who are emotionally invested
(18:20):
in Gavin Newsom. His audience seems to be largely young
to middle aged women, many of them who are quite
taken by his handsomeness, As that idiot writer for Vogue said,
he's embarrassingly handsome and he does incredibly stupid, destructive things.
(18:42):
The latest is, we were just telling you in the
first half hour that Valera is closing its refinery in Benetia.
Speaker 2 (18:50):
It was.
Speaker 3 (18:53):
It couldn't sustain the weight of the regulations and the
taxes anymore, and Valera is now willing to take a
billion dollar or loss closing the refinery rather than continue
doing business in California. It's really a huge problem. It's
twenty percent of our refinery capacity and that cannot be
replaced here in the state. We don't have oil pipelines
(19:16):
that come in from other states. We have to take
it by cargo ship, and we can't. We don't have
the space and the ports to take any more cargo imports.
It's really bad. And we just had Michael Reza on
he's in the gas and oil industry. He said, you
really are looking at eight dollars a gallon, which we
warned you about months and months ago, and he says
(19:39):
it's coming. There's no way it can't come because there's
gonna be a great shortage of gasoline and oil. This
of course, gets no coverage at all outside of the
California Globe. Guess all the left wing progressive journalists and
editors and producers don't believe it. But they'll be paying
eight bucks too. But maybe they think that's a appropriate
(20:01):
because we're helping to protect the environment. Okay, now more
Gavin knew some stupidity. He held this ridiculous press conference
yesterday to brag about a high speed rail making progress,
and he's standing in Wasco.
Speaker 2 (20:20):
Did you see this.
Speaker 3 (20:22):
He's trying to claim that they have enough money to
build one hundred and nineteen miles segment between Madera and Wasco.
Speaker 2 (20:30):
Now Wasco.
Speaker 3 (20:33):
Borders a town called Shafter, and at times I have
seen that the high speed rail is going to the
segment that they want to build is going to end
in either Shafter or Wassco, but they're side by side.
The thing is, they're about thirty miles away from Bakersfield.
So if you took the train one hundred and nineteen
miles from the north and you took it to the end,
(20:55):
it would land in Wasco. And then what do you do?
I mean, Bakersfield is the metropolitan center and there's no
public transit that goes from Wassco too. And he's bragging
about this because they hadn't laid track yet, but they
have a what is it a trailhead they said they have.
Speaker 2 (21:13):
I guess maybe it's the end of the line. Really,
I looked it up today.
Speaker 3 (21:22):
I said, okay, well, how close is Wassco to Bakersfield?
Speaker 2 (21:24):
And it's like twenty eight miles and then the north.
Speaker 3 (21:28):
End is supposed to end in Madera, which is well
to the west of Merced. Now there is no market
to travel between Bakersfield and Merced back and forth, but
there's even less of a market to travel between the
Wasco shafter combination up to Madera. These are like small
(21:50):
dots picked at random, and that's the train line. And
he held a press conference to announce the progress, and
then he's putting out videos like promotional.
Speaker 2 (22:00):
He goes and he's standing in front of a freight train, and.
Speaker 3 (22:05):
I guess he thought that most people don't know the
difference between a freight train and a passenger train, like
an old freight train as opposed to a futuristic passenger train,
which is what the high speed rail was supposed to be.
Speaker 2 (22:20):
So it's like, who are you trying a kid? That's
a freight train. Like he made it look like, hey,
we made some progress. Look at that, we have a
train here. What's wrong with him? He's acting more senile
than Biden.
Speaker 3 (22:40):
Now none of this would matter, but he's leading in
the polls to be the Democratic candidate, which he'll never be.
Speaker 2 (22:47):
He's not going to be the Democratic candidate.
Speaker 3 (22:49):
I mean, look what we've learned just in the last
the last half hour. We got eight dollar an hour,
eight dollar a gallon gas looming. We've got the federal
government coming in to try to make heads or tails
out of the Palisades fire situation and the uh Outa
(23:10):
Dina fire situation. We have bass being exposed for the
for the big lie because she did rewrite the report,
and if she didn't, she's not telling who did. H
and and Newsom's role in this is completely overlooked. He
didn't predeploy any fire engines to the Palisades. In fact,
(23:32):
it was his employees that kicked the Los Angeles Fire
Department off the land where the original fire was still smoldering.
He's not gonna get the nomination. Then there's this, well,
it's it's more about high speed rail. High speed rail,
(23:59):
uh Avan news Him, according to the California Post, is
desperately trying to keep the secret details of the high
speed rail project. The California Post has obtained records detailing
fifty eight separate construction projects built over the past eight
years between Merced and Bakersfield, and they have pictures of
(24:21):
this and it Bakersfield and Said have a combined population
of five hundred thousand, So the cost of adding high
speed rail service works out to twenty two thousand dollars
per person. Now, the Democrats are pushing legislation that would
(24:45):
hide high speed rail audit records from public scrutiny.
Speaker 2 (24:50):
They want to hide the true scale of the high
speed rail cost.
Speaker 3 (24:56):
Kevin Kylie is onto this, and he says, at the
very moment we finally started ramping up efforts to figure
out what happened to all the money, they're taking extraordinary
action to hide records related to high speed rail. State
Transportation Committee Chairwoman Laurie Wilson introduced Assembly built sixteen oh eight,
which would allow the Rail Projects Inspector General to withhold
(25:18):
reports if they describe or reveal weaknesses that could be
exploited by individuals trying to harm the interests of the state.
I guess like federal investigators, Newsom's administration has introduced nearly
identical separate legislation, according to calmatters dot com, So they've
(25:40):
introduced legislation that would allow high speed rail to hide
all its financial all its financial problems. That's what Newsom
is doing that's how bad it is. It's like Karen
Bass directed the attorneys to hide for thirty days the
testimony in the civil lawsuit regarding the Palisades fire has
(26:04):
she had fifteen attorneys hired so she wouldn't have to
testify about where her two billion dollars in homeless money
where that went.
Speaker 2 (26:12):
Now you have Newsome.
Speaker 3 (26:14):
He's pushing a bill through the legislature so all the
high speed rail financial records can be covered up.
Speaker 2 (26:20):
More coming up.
Speaker 4 (26:22):
You're listening to John Cobels on demand from KFI AM.
Speaker 3 (26:26):
Sixty moistline is eighty seven seven moist steady six eight
seven seven moist staty six, who used the talkback feature
on the iHeartRadio app. We're gonna have Lee Zelden on
next hour. He is the head of the EPA, and
he's been put in charge of the federal the federal
(26:47):
intervention into the incompetence of state and local officials in
rebuilding Altadena and Pacific Palisades of Trumps, said Leezelden. In here,
we talked with Kelly Loffler yesterday. She's the head of
the Small Business Administration and they have spent the last
(27:10):
couple of days touring and meeting with people in the
Palisades and in Altadena to try to unclog this massive
bureaucratic jam, try to correct all the idiotic incompetence by
Karen Bask, Gavin Newsom, and the La County Supervisor Board,
because none of them are helping out the former homeowners
(27:34):
of those two towns. So Leez Elden's going to come
on about three twenty, all right, three twenty. There's another
investigation coming from the federal government and this is going
to be chaired by J. D Vance, the Vice President.
It's a new federal Anti fraud task Force because of
(27:56):
the billions of dollars of fraud and abuse of the
welfare and other taxpayer funded programs. And Trump is going
to sign an executive order establishing the task for US.
JD Vance as the chairman, Like I said, and they're
going to be looking to see how much money has
been built from federal taxpayers for everything Medicare, Medicaid, food stamps.
(28:23):
You know what's going on. It looks to be tremendous.
Andrew Ferguson is chairman of the Federal Trade Commission. He's
going to be the vice chairman and manage the day
to day operations, and they also have They also have
Colin MacDonald. He's the fraud investigator at the Department of Justice.
(28:46):
He's reporting to Pam Bondi, the Attorney General, and the
Deputy Attorney General, Todd Blanche. And it looks like there
were people, there were people within the Justice Department that
were resisting these investigations. The corruption goes very deep. It's
in the bone marrow of our government. And you could
(29:07):
see what they've discovered here in California, just what doctor
Oz was talking about in the videos. He put out
just a massive hospice, home healthcare fraud in Minneapolis, with
the childcare fraud. When it all gets added up over
the next three years, it's going to be overwhelming. Basically,
(29:28):
the whole world used California as a casino to withdraw
hundreds of billions of dollars. And this isn't even talking
about the homeless money, the thirty two billion dollars in
unemployment money, the high speed rail money. So much of
your tax money, state and federal tax money has been stolen,
(29:49):
just flat out stolen.
Speaker 2 (29:51):
And now jd.
Speaker 3 (29:54):
Vance is going to lead this task force here in
California newsib is going to get nothing but horrific headlines
for the next three years because he drove this place
off the cliff into oblivion and now it's payback time.
And all the Vogue profiles in the world describing in
(30:17):
the describing him as embarrassingly handsome is not going to
save him. And we should just sit back and enjoy
when all right, three twenty, we're gonna have Lee Zelden on.
Deborah Mark has the news live in the KFI twenty
for our newsroom.
Speaker 2 (30:31):
Hey, you've been.
Speaker 3 (30:32):
Listening to The John Cobalt Show podcast. You can always
hear the show live on KFI Am six forty from
one to four pm every Monday through Friday, and of
course anytime on demand on the iHeartRadio app.
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