January 1, Newsom Turns to Big Oil as Gasoline Runs Low

Wyatt’s Take

• California faces gas shortages while its governor works with oil companies he once criticized.
• Some worry new laws and refinery shutdowns will raise prices and hurt families.
• Out-of-state officials warn California’s fuel rules could cost consumers more.

California’s gas supply is shrinking as refineries shut down. Governor Newsom now relies on oil companies to import fuel, despite previously saying he beat “Big Oil.”

Valero is closing its Benicia refinery by April but promises to bring in gasoline for the state. Newsom claims his leadership is protecting consumers by working with industry and promoting energy change.

“While others point fingers to spread fear and divide us, California is doing the actual work — collaborating with industry, using data and transparency to protect consumers, and building the all-of-the-above energy future America needs,” Newsom said Tuesday.

Critics argue Newsom’s past fights with oil companies are part of why California has fuel trouble now.

“Governor Newsom trumpeting his leadership is like the captain of a sinking ship taking credit for handing out life jackets after he’s crashed the ferry on the rocks. It was the lack of leadership on energy policy that got California to this point, and ultimately the White House may have to intervene to mitigate further damage from the governor’s leadership on this issue,” said Tim Stewart, U.S. Oil and Gas Association.

Newsom signed laws against price gouging even though his own officials found no evidence it was happening. Oil companies had to reveal their profits, but still, no price gouging was uncovered.

New rules now force refineries to keep large reserves on hand, which some argue could lead to artificial shortages. Industry leaders say these laws make California too risky for new investments. Chevron and Phillips 66 closed or moved refineries after the rules took effect.

Neighboring state leaders warned California’s strict regulations could drive up gas prices everywhere. Chevron’s Andy Walz warned the state was becoming “uninvestable,” causing higher costs and weaker energy infrastructure.

California’s special gasoline formula, CARBOB, complicates imports and can’t be easily sourced elsewhere. Rules like the Jones Act make shipping even harder due to limits on available U.S.-flagged ships.

The California Energy Commission has even looked at the state running shuttered refineries to keep fuel flowing. For now, families in California and neighboring states must brace for higher costs at the pump as policies catch up with supply realities.

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Wyatt Matters

Working families bear the brunt when energy policies drive up prices and chase away jobs. Leaders shouldn’t play politics with issues that hit rural communities and small towns the hardest.