California’s oil production has declined during Newsom’s time in office. Most recently, two major refineries have begun shutting down operations.
“Gas prices are going up… you’ll be paying more because of Trump’s war,” Newsom said during a press conference in Hayward. “We have specifically… had extensive conversations over the weekend gaming out worst-case scenarios,” Newsom said, pointing to concerns about “gas scarcity and the potential spiking of prices in the next days, weeks, and potentially months.”
According to The New York Post, Republicans and oil industry representatives pushed back on Newsom’s comments, accusing the governor of trying to shift blame while state policies have increased California’s reliance on foreign oil. Rep. Vince Fong, R-Calif., called Newsom’s statements “dangerous and irresponsible, a failure to meet the moment.” Fong wrote, “His policies have made our state increasingly dependent on foreign oil while dismantling in-state production, jeopardizing pipeline infrastructure, and crippling our refining capacity. Now, California is weaker and more exposed to foreign powers than ever before.”
Gas prices were already increasing before the joint US/Israel attacks on Iran, as crude oil hovered near $80 per barrel. According to AAA, California’s average price was $4.65 per gallon as of Monday, compared to a national average of $2.99.
California’s oil production has declined during Newsom’s time in office. Most recently, two major refineries have begun shutting down operations. The Phillips 66 site in Bakersfield shuttered in December, and the Valero facility in Benicia is expected to close this year due to Newsom’s radical environmental agenda, including a refinery price-cap law he signed in 2023.
The legislation accelerated refinery closures and increased the state’s demand for imported oil. In response to pushback from spiking prices, Newsom signed SB 237 last year to allow up to 2,000 new drilling permits per year in Kern County.
On Sunday, Newsom attempted to brag that California gas prices have remained below $5 for two years, even as the state continues to post the highest average prices in the US. The US Oil & Gas Association responded on X that California has made itself vulnerable by leaning on overseas supplies. “California imports 63% of its crude from foreign countries, despite sitting on at least 1.7 billion barrels of proven reserves. The only state worried about rattling foreign markets is California because you have let yourselves become dependent on foreign supplies. You’ve done this to yourselves.”
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