California is seeing a return to an old method of oil transport.
The Trump administration has decided to permit foreign-flagged oil ships to move oil between U.S. ports, reversing a law from 1920 that blocked this practice.
This change could enable California to gain considerable supplies of much-needed gasoline, especially since pipelines within the state can’t meet the demand.
California often struggles with high gas prices, currently averaging $5.84 a gallon, largely due to a lack of interstate pipeline access.
Despite the potential relief from soaring gas prices, Governor Gavin Newsom is against opening up the pipeline further, citing environmental concerns. Interestingly, he’s been vocal about his opposition, even amidst growing frustration over gas prices that are among the highest in the nation.
White House Press Secretary Taylor Rogers mentioned to Axios that a final call on extending the Jones Act waiver hasn’t been made yet. However, it seems the administration is working to mitigate rising costs, noting that more supplies are arriving more quickly at U.S. ports.
There have already been nine oil shipments, potentially bringing in millions of gallons of fuel, at the Port of Martinez, located near Los Angeles and San Francisco, with another delivery set for April 29.
The Trump administration believes these shipments could help reduce gas prices, stating that this action will permit resources like oil and natural gas to enter U.S. ports freely for 60 days.
