Gavin Newsom is the Democratic governor of California and a national figure who has aggressively promoted a green energy agenda at home and abroad. While he has traveled internationally to promote climate leadership, the impact of his policies inside California has been severe. Californians now face some of the highest gas and electricity prices in the country, and the state’s energy system is becoming more fragile by the year. What Newsom presents as climate progress has instead created an affordability crisis and growing risks to national security.
The Policies That Are Closing Refineries
Since Newsom took office in 2019, California’s regulatory environment has become increasingly hostile to domestic energy production. New oil drilling permits have fallen by 95 percent, and more than 360 energy companies have left the state since 2018. These policies have steadily reduced in state oil production and made it harder for refineries to operate profitably or plan for the future.
Refinery closures and conversions have accelerated. Phillips 66 shut down its Los Angeles area refinery at the end of 2025, and Valero is closing its Benicia refinery in April 2026. Together, those facilities accounted for roughly 139,000 barrels per day, nearly 12 percent of California’s refining capacity in just a few months. By early 2026, California is projected to lose close to 20 percent of its remaining refining capacity.
Why Refineries Matter So Much
California is not like other states when it comes to fuel. The state uses a unique reformulated gasoline blend that is only produced by a limited number of in state refineries. That means fuel cannot simply be piped in from the rest of the country. Any replacement supply must be specially refined and shipped by sea, which is expensive, slow, and vulnerable to disruption.
In 1982, less than 6 percent of California’s crude oil came from outside the United States. Today, more than 60 percent is imported. Brazil supplies about 20 percent, and Iraq accounts for another 21 percent. Despite holding the fifth largest petroleum reserves in the country, California now depends heavily on foreign oil because Newsom has refused to support domestic production.
Refineries are also the backbone of California’s pipeline network. Most pipelines need about 90,000 barrels per day to remain financially viable. Today, some are operating closer to 50,000 barrels per day, losing about $2 million per month. This has placed critical infrastructure like the San Pablo Bay Pipeline at risk of shutdown, further destabilizing the entire fuel supply chain.
Gas Prices and the Real Cost to Californians
California drivers already pay far more at the pump than the rest of the country. In 2025, average gas prices were about $1.47 higher per gallon than the national average. Roughly $0.93 of that difference comes from higher taxes, environmental fees, and the cost of producing California’s special blend. Another $0.54 is a long running mystery surcharge that has persisted since 2015.
With refinery capacity shrinking faster than demand is realistically declining, the risk of severe shortages is growing. Analysts warn that losing this much refining capacity could push gas prices toward $6 or even $7 per gallon. Importing gasoline from outside the state would require costly retrofitting of refineries elsewhere and expensive shipping, and it could not happen fast enough to prevent sharp price spikes.
Newsom’s policies have created a manmade fuel shortage that forces California to buy back refined gasoline from offshore reserves at higher prices, even when the oil originally came from California soil.
How This Undermines the U.S. Military
The damage goes far beyond consumer prices. California is home to dozens of major U.S. military installations tied to Indo Pacific operations. These bases depend on a steady supply of high grade, specialized military fuels that California refineries are specifically equipped to produce.
In 2024 alone, California military installations consumed about 10 million gallons of gasoline. With recent refinery closures, jet fuel production is estimated to drop by at least 600,000 gallons per day. As refining capacity continues to shrink, the fuel supply chain that supports rapid military deployment on the West Coast is increasingly at risk.
Military forces can only deploy quickly if fuel is available. Newsom’s policies threaten that readiness at a time when the United States is focused on countering China and strengthening its posture in the Indo Pacific. Weakening refinery capacity in California directly weakens national defense.
Politics, Image, and Incompetence
Newsom’s energy agenda reflects political ambition and image management rather than practical governance. While he once embraced aggressive climate rhetoric, he has quietly reversed course on issues like keeping the Diablo Canyon nuclear plant open when faced with the loss of nearly 9 percent of California’s electricity supply. That same realism has not been applied to oil and refining.
Instead of working with Congress and President Donald Trump on expanding domestic energy production, Newsom has continued to obstruct permitting, reduce in state production, and create uncertainty that drives refineries out of business. His approach appeases far left activists while ignoring the real world consequences for working families, businesses, and the military.
California’s affordability crisis did not happen by accident. It is the direct result of policies that choke supply while pretending demand can be legislated away. Gasoline and diesel still underpin daily life in California, from commuting and goods movement to emergency services and military readiness.
The choice before Newsom is clear. He can continue down a path of scarcity, foreign dependence, and rising prices, or reverse course by supporting domestic production, keeping refineries operational, and stabilizing the fuel supply. So far, he has chosen ideology and personal ambition over the people of California.
The consequences are already visible at the pump, in fragile pipelines, and in growing risks to national security. If this path continues, California will become a cautionary tale of how reckless energy policy can cripple an economy and undermine the nation it is supposed to serve.
