California, September 24, 2025
News Summary
California has enacted new legislation to stabilize its oil supply in response to rising gas prices and the planned closure of two refineries. The bill permits the expedited approval of 2,000 oil wells annually in Kern County over the next decade. With average gasoline prices in California at $4.65 per gallon, the state’s ongoing reliance on foreign oil underscores the challenges faced by the local industry. Governor Newsom’s legislation aims to balance fossil fuel production with a transition toward renewable energy, addressing consumer concerns about prices at the pump.
California has initiated new legislation aimed at stabilizing its oil supply amidst rising gas prices and the impending closure of several refineries. Governor Gavin Newsom recently signed a bill that allows for the accelerated approval of 2,000 new oil wells each year for the next decade in Kern County, a region known for significant oil production. This strategic move comes as residents in California currently pay an average of $4.65 for a gallon of regular gasoline, which is well above the national average of $3.17.
The state’s operational refineries will soon decrease from 13 to 11 as the Valero and Phillips 66 facilities plan to close. This reduction highlights a major shift from 1983, when California had 40 refineries, illustrating a substantial decline in local refining capacity over the years. Newsom emphasized that the legislation is pivotal to stabilize the state’s gasoline supply and prevent severe price spikes at the pump.
California’s increasing reliance on foreign sources for three-quarters of its oil is a stark contrast to its historical production capabilities. This reliance has been largely attributed to the ongoing exodus of local oil companies, compounded by legislation that has drawn criticism from industry executives for over two decades. Chevron’s president of Americas products noted significant challenges for businesses operating in California.
The recently signed legislation focuses on diversifying the state’s fuel supply and stabilizing petroleum markets while maintaining a balance between fossil fuel production and the shift towards greener energy solutions amidst ongoing climate challenges. A notable part of this legislative package eases certain regulations on oil production in Kern County, which has been characterized as “targeted and environmentally responsible” to address fuel supply issues.
Additionally, California recently passed a comprehensive suite of bills aimed at transitioning the state towards renewable energy while ensuring energy affordability for consumers. The state’s cap-and-trade program, designed to reduce emissions from large polluters, has also been extended to 2045, with a focus on channeling funds into climate-friendly initiatives.
Further adjustments include updates to California’s Wildfire Fund, which provides additional support for utilities facing liability issues due to wildfires. However, advocacy groups have voiced concerns over these legislative developments, stating that they could undermine the state’s climate objectives and disproportionately affect communities situated near refineries.
Consumer Watchdog has expressed significant dissatisfaction with the new measures, claiming that they may result in increased costs for consumers instead of addressing critical issues. In another regulatory shift, the California Energy Commission has postponed proposed penalties for excessive profits made by the oil industry, indicating a potential change in the state’s regulatory approach.
Historically, Governor Newsom had pursued a ban on the sale of new gas-powered vehicles by 2035, a proposal that encountered federal challenges. The current efforts to modernize California’s oil supply framework coincide with the state’s broader struggle to transition from fossil fuels while ensuring that consumers remain shielded from escalating prices at the pump. Industry leaders are hopeful that these policy changes will foster a more collaborative environment between the state and oil companies moving forward.
FAQs
What has California legislated to help stabilize its oil supply?
Governor Gavin Newsom signed legislation that fast-tracks the approval of 2,000 new oil wells per year over the next decade in Kern County.
What is the average price of gasoline in California?
California residents currently pay an average of $4.65 for a gallon of regular gasoline.
How many refineries will be operational after the planned closures?
The number of operational refineries in California is set to decrease from 13 to 11 with the planned closures.
Key Features of the Legislation
| Feature | Description |
|---|---|
| New Wells | Approval for 2,000 new oil wells per year for ten years in Kern County. |
| Gas Prices | California’s average gas price is $4.65 per gallon, significantly higher than the national average of $3.17. |
| Refinery Closures | The number of refineries is set to decrease from 13 to 11 with closures of Valero and Phillips 66. |
| Oil Dependency | California now relies on foreign sources for three-quarters of its oil. |
| Emissions Program | California’s cap-and-trade program has been extended to 2045, targeting emission reductions. |
Deeper Dive: News & Info About This Topic
- CBS News: Newsom’s Climate and Energy Legislation
- Wikipedia: Oil Industry in California
- Politico: Newsom Signs Energy Affordability Package
- Google Search: California oil legislation
- ABC7 News: California Energy Regulators and Oil Companies
- Encyclopedia Britannica: Oil
- LA Times: Newsom and Oil Politics
- Google News: California energy policy
Author: STAFF HERE BEVERLY HILLS WRITER
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
