Newsom Hits The Gas

 Issues & Insights 

"Seems California voters who have given nearly unchecked power to Democrats for about two decades are getting it good and hard. Newsom is trying to unwind some of the damage, primarily because he’s lusting after the White House, but the briar patch of regulations will make it a difficult task."

"It wasn’t long ago that a California governor made it clear that oil refineries were not welcome in his state. Then another California governor asked regulators to loosen the chains on refineries to ensure that they will be profitable and remain in the state that every day burns an enormous volume of gasoline.

"Actually, it is the same governor, one who has turned his attention from playing to his hard-left, blue-state constituency to shifting toward the middle for a 2028 White House run.

"It was just last summer when Gov. Gavin Newsom announced a “plan to prevent Big Oil ‘profit spikes’” that would also “save Californians money at the pump.” He groused about refiners “playing games to earn even more profits” and vowed to force them to “act responsibly.”

"Two months later, he signed a bill that is intended to limit “higher profits for the industry.” Within hours, Phillips 66 said that it was closing its Los Angeles refinery complex.“Without actually using the words, the company is saying there’s no reason to stick around and be abused,” the Pacific Research Institute said last fall.

"Then, earlier this year, PRI pointed out that “California is literally running out of oil refineries.”

“ 'Phillips 66 announced it was closing its Los Angeles refinery complex in 2025. It will be the fourth refinery shut down in the state since 2020. At that point, there will be only a dozen refineries left to produce the 38 million gallons of California’s boutique blend – which is not made anywhere else, costs more than conventional gasoline, and requires oil companies to invest billions to upgrade their systems to make – that’s consumed daily.”

"Or it could be only 14. Valero is likely to close its California refinery next year.

"Mission accomplished. Then the mission changed. Now, Newsom is asking regulators to do what they can to keep oil refineries open." . . .