California’s oil industry tore into Democratic leadership on Monday after the last oil tanker arrived in the state, carrying fuel from the Middle East.
Now, the state will face its first real test of how to replace 200,000 barrels of oil a day as Iran restricts the passage of ships through the Strait of Hormuz in its ongoing war with the US.
Last year, based on state data, California refineries sourced around 30% of their foreign crude oil from the Persian Gulf.
Unless action is taken, gas prices could spike even more, experts have warned, and suppliers may soon start trying to seek out oil from outside the Middle East in response.
That reliance on foreign oil is due to the state’s climate policies that have discouraged domestic oil production, landing California in the situation it’s in, oil groups told the California Post.
“This is the consequence of shutting down in-state production in favor of foreign imports,” said Rock Zierman, CEO of the California Independent Petroleum Association.
“Slow permitting, illegal bans on well stimulation and urban production has led to our dependence on oil from the Middle East and the Amazon Rainforest,” he added.
He called for an emergency meeting to be convened by the governor with industry “to keep in-state refineries, pipelines, and wells operational so this problem doesn’t keep growing out of hand.”
Jim Stanley, a spokesperson for the Western States Petroleum Association, said it shouldn’t make sense for California to rely so much on imported oil.
“This shows the recklessness of California’s policy of intentionally outsourcing our critical energy infrastructure to other parts of the world,” he told the Post.
“California’s economy depends on a reliable supply of fuel — when that supply is interrupted, consumers and business pay the price.”
Chevron has been vocal about the state’s energy policies that have led refineries to shut down, as state Democrats push for less reliance on fossil fuels.
“We believe many years of Sacramento’s adversarial policies toward refining and energy production have left the state at the end of a long, fragile supply chain,” the company’s spokesperson told The Post.
“California lost 18% of its refining capacity in just the past eight months because the state made those operations uncompetitive.”
“Now California imports as much as 25% of gasoline and 20% of its jet fuel from overseas refineries that are more leveraged to Mideast crude oil than American refineries are.
“We believe California needs to cut taxes, reduce red tape and do everything it can to hold onto its remaining manufacturing capacity.”
Chevron added: “Energy security demands an all-of-the-above approach to policy and we urge Sacramento to embrace it.”
The US Oil & Gas Association told the Post that California is suffering from “really bad California one-party energy policy.”
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“Refineries are scrambling for replacement barrels from anywhere and shortages are on the horizon — that only means higher energy costs for consumers and manufacturers,” the association said.
“That was predictable because decades of blocking in-state drilling, killing pipelines, imposing the nation’s strictest fuel specs, and driving refinery closures made the state dangerously dependent on foreign tankers,” it added.
The association called for a state energy emergency to fast-track domestic production.
Democrats in the state have shifted blame of the current situation on President Donald Trump, who is attempting to free up the Strait of Hormuz. Gov. Gavin Newsom has repeatedly said Trump is at fault for going to war, leading to price spikes.
“Trump’s Iran war has driven US gas prices up 44% to a four-year high,” Newsom’s office said Friday. “Every more expensive fill-up, grocery run, and flight is a Trump Iran war tax — and there’s still no plan to bring it down.”
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