In a stunning reversal that underscores the pitfalls of California’s aggressive green energy agenda, the state’s plan to cap refiner profits—a measure signed into law by Governor Gavin Newsom in 2023—has been delayed by five years. This decision, set for a vote by the California Energy Commission, represents a major win for the oil industry and a clear admission that hasty regulations are backfiring. Originally designed to curb price spikes at the pump, the policy’s postponement highlights broader failures in Newsom’s energy strategy, which prioritizes renewables at the expense of economic stability and energy security.
California’s green energy policies under Newsom have aggressively pushed for a transition away from fossil fuels. Key initiatives include a 2035 ban on new internal combustion engine vehicles and stringent regulations that have drastically reduced in-state oil production. While these moves aim to promote wind and solar power for electricity generation, they’ve led to a sharp increase in crude oil imports—from just 5% in 1992 to over 70% today. This shift stems from restrictions on drilling permits and overregulation, forcing the state to rely more heavily on foreign suppliers.
The state’s economy, the fourth-largest in the world, still relies heavily on oil-derived products and fuels that renewables cannot replace, including aviation fuel, gasoline, and diesel for its massive transportation network.
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The consequences of these policies are dire and multifaceted. California’s oil production has plummeted from 1 million barrels per day four decades ago to under 200,000 today, due to political barriers that make new drilling nearly impossible. Refinery closures, such as those at Phillips 66’s Wilmington-area facility (handling 8% of gasoline production) and Valero’s Benicia refinery (9% of crude processing capacity by 2026), are set to reduce refining capacity by 20%, potentially causing gasoline shortages and skyrocketing prices.
With only 11-13 days of fuel inventory on hand, the state teeters on the edge of a crisis, exacerbated by high electricity rates—the highest in the nation—and inadequate infrastructure, like the absence of a pipeline connecting Northern and Southern California.On the economic front, Newsom’s push for electric vehicles (EVs) is straining the system. While adoption hovers around 20%, mandates aiming for 51% EVs by 2030 and 100% by 2035 have prompted threats from major logistics companies to relocate. Fuel taxes, which generate $8.8 billion annually for roads and environmental programs, are expected to dwindle as EVs proliferate, leaving funding gaps for critical infrastructure. Moreover, the policies ignore the reality that over 6,000 everyday products—from medical equipment to electronics—are made from petrochemicals, with no viable alternatives in sight.
National security risks loom large as well. California’s shift to importing 65% of its oil from abroad includes sources from adversarial nations like Russia and Iran, sometimes rerouted through Malaysia to obscure origins. This dependency threatens the 34 military bases in the state, which rely on steady supplies of diesel and jet fuel. As the hub for 40% of U.S. imports and major shipping ports, California’s vulnerabilities could trigger nationwide inflation and supply disruptions.
Critics argue that these policies represent a “national security disaster,” calling for federal intervention to restore energy independence. Governor Newsom’s approach has drawn sharp criticism for its lack of “energy literacy.” Renewables generate intermittent electricity but can’t manufacture the fuels and materials society demands. Without a plan to replace crude oil’s role in the supply chain, the rapid phase-out of fossil fuels risks catastrophe for hospitals, airports, military operations, and transportation.
The profit cap delay is just the latest symptom, rolling back regulations amid industry pushback and economic realities.
Looking ahead, warnings abound: A gasoline crisis could hit by 2026, especially with refinery closures, and seismic risks—like the Chevron refinery on the overdue Hayward Fault—add urgency. Recommendations include stabilizing fuel supplies, boosting industry confidence for investments, and developing a comprehensive transition strategy. Yet, without reversing decades of restrictive policies and curbing the influence of climate NGOs that block projects through lawsuits, California may need a full-blown failure to force change.
Newsom’s green vision has exposed California’s energy fragility. As the profit cap faces delay, it’s time for pragmatic solutions that balance environmental goals with economic and security needs—before the pump runs dry.
“This is a stark reminder to the Trump administration that you can have the Three Horsemen of the Energy Dominance Apocalypse. Still, Global Energy Dominance cannot happen with Gavin Newsom’s Energy Policies crippling California and causing a National Security Risk. – Stu Turley”
Check out our other California National Security Risk articles.
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