Gov. Gavin Newsom (D-CA) has directed state officials to “demonize” the industry through years of industry to help oil refineries open in the state. [emphasis, links added]
Newsom directed state officials to guarantee a reliable fuel supply to the largest U.S. auto market.
The action comes as Valero Energy said on Wednesday that it will permanently close or reorganize its refineries in Benicia by the end of April 2026, accounting for 9% of the state's crude oil refining capacity.
Phillips said in October 1966 that it plans to stop operations for its Los Angeles-area refinery.
“I write to guide you to double your efforts to work closely with short- and long-term refineries, including through advanced, immediate engagement to help ensure that Californians continue to have a safe, affordable and reliable transportation fuel supply,” Newsom wrote.
Refineries face heavy regulatory costs as Newsom's administration leads one of any state's most anti-climate change policies.
California also plans to ban new gasoline-powered cars by 2035.
“California's gasoline prices are the highest in the United States as the state relies on imports from Latin America and the Middle East to offset the decline in state supply,” Reuters wrote.
Industry officials and representatives believe California's hostility to the U.S. energy industry has led to the crisis.
“Governor Newsom has established a career in the demonized oil and gas industry. Now, he wants California refineries to stay open. Some ideas, Governor: Abolish your EV mandate, stop demonizing American energy workers, and end the expensive refineries you have created,” Write.
“Governor Newsom's letter to the California Energy Commission directing it to “double up” its efforts to work closely with the refineries so that 'they see the value of serving the California market' is ridiculous and a blatant effort to cover up his back, Chet Thompson, CEO of U.S. fuel and petrochemical manufacturers, said.
He added, “National policy, not Washington’s new administration, is why fuel manufacturers are working hard to operate in California and why California drivers face the highest fuel prices in the country.”
In August, the California Energy Commission announced the implementation of government control over the oil industry to combat potential energy prices soaring.
Live image via Bill Maher/YouTube screenshot
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