California’s green dreams are crashing into a fuel-starved reality. With two major refineries shutting down, the state is scrambling to keep gas pumps flowing and jets in the air, as Just the News reports. This isn’t the Golden State’s finest hour.
Phillips 66 kicked things off in October, announcing its Los Angeles-area refinery would close, followed by Valero’s April bombshell that its San Francisco-area plant would shutter by April 2026, threatening supplies of gasoline, jet fuel, and diesel. California, a state that prides itself on leading the nation’s energy transition, now faces a critical shortage of transportation fuels. The California Energy Commission is hustling to broker a deal to keep Valero’s refinery running, but don’t hold your breath for a quick fix.
Reuters reports the state is desperately seeking a buyer for the Valero facility, though the CEC won’t confirm if they’re directly chatting with potential suitors. California’s fuel woes aren’t just a local headache -- 88% of Nevada’s gasoline and nearly half of Arizona’s comes from here, including fuel for their military bases. With 41 military bases and 17% of the nation’s jet fuel consumption in 2019, California’s not just playing with its fire.
Gov. Gavin Newsom, facing a supply crunch, tasked the CEC with finding solutions to keep fuel flowing. “Two refineries shutting down? That gets everybody’s attention,” said Michael Mische, a University of Southern California professor, to Just the News. He’s right -- losing two plants is bad, but a third could be catastrophic, and California’s not exactly swimming in backup options.
Mische also warned, “The market will supply the product.” Sure, but at what cost? California’s already got some of the highest gas prices in the country, thanks to its obsession with boutique fuel blends that require special infrastructure.
Those blends, mandated by the state’s environmental policies, are cleaner-burning but a logistical nightmare. With no inbound pipelines to import fuel from other U.S. refineries, California’s stuck relying on its own dwindling facilities. After these closures, only seven refineries will produce the state’s special-snowflake gasoline.
Northern California’s in an especially tight spot. The Chevron Richmond refinery, one of just two left in the region post-Valero, sits on the Hayward Fault, which is overdue for a major quake. If that fault slips, half of Northern California’s gasoline could vanish overnight.
“You’d have to import that gas through maritime vessels or tanker trucks,” Mische told Just the News. Barges and trucks hauling fuel up I-5 or by rail? Good luck keeping prices from spiking into the stratosphere.
Chevron’s Andy Walz, whose company has been in California for 140 years, didn’t mince words: “We are in a bit of a tipping point.” He’s urging state leaders to rethink regulations that choke reliable suppliers like Chevron. Progressive policies sound nice until you’re stuck paying $7 a gallon.
In a twist, Newsom’s now proposing to ease permitting for new wells in existing oil fields, as long as they meet environmental standards. Politico reports this move aims to stabilize crude oil production to keep in-state refineries humming. So much for the green revolution—when push comes to shove, even Newsom’s eyeing more drilling.
Siva Gunda, CEC vice chair, wrote, “We recommend that the state take action to achieve targeted stabilization of crude oil production.” Stabilization? That’s code for pumping more oil, which is a bitter pill for California’s eco-warriors to swallow.
California’s emissions make up less than 1% of global greenhouse gases, yet its policies jack up fuel costs for everyone. “What are you really accomplishing by forcing these high prices on consumers?” Mische asked. It’s a fair question -- sacrificing affordability for negligible climate gains smells like virtue signaling gone wrong.
The state’s nine international airports and heavy military presence make reliable jet fuel a non-negotiable. With Valero’s closure looming, California’s fuel supply chain is looking shakier than a San Andreas fault line. Newsom’s team better hope they find a buyer fast.
Democrat control of the Assembly since 1970 and the Senate since 1975 has shaped California’s energy landscape, for better or worse. The state’s rigid environmental rules have painted it into a corner, and now it’s scrambling to avoid a full-blown crisis. Mische nailed it: “It’s going to be fragile.”
California’s fuel fiasco is a lesson in what happens when ideology outpaces practicality. The state’s desperate bid to save the Valero refinery and boost oil production shows even progressive poster children can’t escape the laws of supply and demand. Here’s hoping they figure it out before the pumps run dry.
