Democrat Gov. Gavin Newsom is asking state regulators to try to keep the state’s oil refineries in state operations after Democrats spent years targeting the industry with aggressive regulations.
Newsam I wrote it On Monday, California Energy Commission (CEC) vice-chairman Shivaganda will urge “reduble” to urge “reduble” to make efforts to keep fuel refiners in the state with Valero’s heels that will take at least one of its California refineries offline by April 2026. California’s hostile regulatory environment is what really drives retreats of the fossil fuel industry from the state.
“I direct the state’s efforts to double down on short-term and long-term plans to continue to have access to a safe, affordable, reliable supply of transport fuels, to ensure that Californians continue to have access to a safe, affordable, reliable supply of transport fuels. “In addition, as a key representative of my administration on this issue, I direct them to strengthen the openness of the state to joint relationships and the firm belief that Californians can protect against price spikes.” and Refiners can operate profitably in California. This is a market where demand for gasoline will be present for years to come. ” (Related: What did California’s war with fossil fuels actually accomplish?)
The aerial view shows the Los Angeles refinery of Marathon Petroleum Corporation, the state’s largest petrol producer. This is because oil prices are cratered on April 22, 2020 in Carson, California with the spread of the coronavirus pandemic. (Photo: David McNew/Getty Images)
Valero announcement April 16th, “They intend to hinder, rebuild or halt the refinement operations at Valero’s Benicia refinery by the end of April 2026.
Petrol analyst Patrick De Hahn was pointed out on April 16th post To X, Valero’s announcement will only leave seven refineries in California by April 2026. For comparison, the state had 20 refineries as of 2000. According to To the US Energy Information Agency.
California’s “Cap and Trade” program, and the tax environment and promotion to ban the sale of new gas-powered vehicles in the state by 2035, have been frequently cited as examples of hostile regulations. meanwhile, Newsam Other California Democrats like the Attorney General Rob Bonta It has torn the fossil fuel industry for years, but it often characterizes it as a malignant force of society, or a collaborative industry committed to misleading consumers.
A Newsom spokesman said, “The governor’s letter speaks for itself.”
California has the highest average price per gasoline for pumps in all states in the country. According to Go to AAA gas price data. Meanwhile, California regulators are proposing to make the nation more involved in managing refineries, including the outlook for state-owned refineries.
Andy Walz, president of Chevron Americas Products, described California in August 2024 as “a place where he struggled to do business” after his company decided to move its headquarters out of the state earlier that year. Walz identified California’s “cap-and-trade” rules and gas-powered car bans as specific headwinds, helping to guide Chevrons to decide to move their center of gravity elsewhere.
“For over 20 years, politicians like Governor Newsom have been hampering California’s traditional energy producers, both large and small. “Many businesses have already moved out of the state, along with hundreds of thousands of residents as a result of these and other harmful policies. Like profit margin caps, they are hurting consumers by making traditional energy investments uneconomical. These types of policies outsource employment to other states and increase California’s dependence on oil and electricity imports.”
In the letter, Newsom pointed to the Trump administration’s trade policy to support his recent closure of the Lyondel Baysel refinery in Houston and his argument that the closure of refineries is part of a wider national trend. When it comes to Lyondellbasell announcement When the refinery closes in January, the company said it will step out of its refinery business completely and instead focus on low-carbon energy.
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