California Governor Gavin Newsom’s hostility to the oil industry could lead to the closure of local refineries, which, in turn, could push gas prices past $6 per gallon, or even $9 per gallon, a local analyst has warned. [emphasis, links added]
Local ABC affiliate KABC-7 reported:
The Phillips 66 Refinery in Los Angeles could close by the end of this year, which would send prices skyrocketing above $6, according to USC Professor Michael Mische.
Mische added that if the Valero Refinery in the Bay Area closes by the end of next year, that could send gas prices soaring close to $9 a gallon.
…
In response to the expected closures, Gov. Gavin Newsom’s spokesperson told KFMB-TV that the governor has directed the state to intensify collaboration with refineries to maintain a stable and affordable gasoline supply.
CalMatters.org had warned in April of the closure of the two refineries:
Valero is the latest to announce a shutdown, declaring its “current intent to idle, restructure, or cease refining operations” at its Benicia refinery by the end of April 2026. The announcement followed last year’s decision by Phillips 66 to close its Southern California refinery, two days after Newsom signed a bill requiring refiners to maintain minimum gasoline supplies.
California is a petroleum fuel island, lacking pipelines that could bring in supplies from other states. In fact, motorists in Nevada and Arizona depend on California for their fuel. If refineries continue to close, California could be forced to bring in fuel from other nations via tanker or acquire the in-state refineries by purchase or seizure and operate them itself during the transition [to electric vehicles].
Newsom has demonized the oil industry for years and has sought to ban the sale of gas-powered cars in the state. He has accused the industry of price gouging during past price increases.
In response, the industry has pointed out that California, once a pioneer in fossil fuels, is a very expensive and difficult place in which to operate, thanks to strict emissions standards, the costs of its “cap-and-trade” system, and an attempt to phase out fracking.
A year ago, Breitbart News reported that Newsom was going to “war” with the oil and gas industry in the state, blaming pumpjacks in Los Angeles for local health problems and forcing old wells to be capped.
Newsom declared: “They’ve been gouging. They’ve been taking advantage of you. … They’re lying to you. … They’re the polluted heart of this climate crisis.” He said oil jobs would be replaced by “clean energy” jobs.
Read more at Breitbart
