Gov. Gavin Newsom (D-CA) has directed state officials to help oil refineries stay open in the state despite years of “demonizing” the industry. [emphasis, links added]
Newsom directed state officials to guarantee a reliable fuel supply for the nation’s largest auto market.
This action comes just days after Valero Energy said on Wednesday it would permanently shut or restructure its refinery in Benicia by the end of April 2026, which accounts for nine percent of the state’s crude oil refining capacity.
Phillips 66 in October said it plans to cease operations for its Los Angeles-area refinery.
“I write to direct you to redouble the State’s efforts to work closely with refiners on short- and long-term planning, including through high-level, immediate engagement, to help ensure that Californians continue to have access to a safe, affordable, and reliable supply of transportation fuels,” Newsom wrote.
Refiners have faced onerous regulatory costs as Newsom’s administration has led one of the most anti-climate-change policies of any state.
California also plans to ban new gasoline-powered cars by 2035.
“Gasoline prices in California are among the highest in the United States due to the state’s reliance on imports from Latin America and the Middle East to offset declining state supplies,” Reuters wrote.
Industry officials and representatives believe that California’s hostility to America’s energy industry has led to this crisis.
“Governor Newsom has built a career demonizing the U.S. oil and natural gas industry. Now he wants California refineries to stay open. Some ideas, Governor: Scrap your EV mandate, stop villainizing American energy workers, and end the costly refinery regulations YOU put in place,” Mike Sommers, the president and CEO of the American Petroleum Institute, wrote.
“Governor Newsom’s letter to the California Energy Commission directing it to ‘redouble’ its efforts to work closely with refiners so ‘they see the value in serving the California market’ is laughable and a blatant effort to cover his backside,” Chet Thompson, the CEO of the American Fuel & Petrochemical Manufacturers, remarked.
He added, “State policies, not the new administration in Washington, are why fuel manufacturers struggle to operate in California and why California drivers face the highest fuel prices in the country.”
In August, reports suggested that the California Energy Commission announced proposals to implement government controls of the petroleum industry to combat potential energy price surges.
Top image via Real Time with Bill Maher/YouTube screencap
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