Newsom Finally Relieves Some of California’s Energy Hypocrisy: Oil Production Increase Approved in Kern County to Supply Local Refineries and Reduce Local Fuel Prices

     California has very high energy and fuel prices compared to the rest of the country. Local oil production and refining can potentially lower gasoline and diesel fuel prices. The legislation that Newsom recently signed has three purposes: 1) emissions reduction, 2) lowering energy costs, and 3) increasing oil production, which will also lower energy costs in time.

     In the past, Newsom has blamed oil producers for high fuel prices, but has since changed his focus. He required refineries to keep supplied with fuels to avoid unnecessary price spikes that he attributed to the oil companies. However, that is just an instance of an occasional price spike. Overall, Newsom has made it hard for oil companies to operate in the state.

     I think that California, a state that is very vulnerable to poor air quality, has a responsibility to somehow limit the combustion of the fossil fuels that contribute to that poor air quality. Thus, the state’s strong focus on solar energy deployment and clean energy tech is warranted more than other states. A separate bill was signed to increase air quality monitoring.  The state’s good solar irradiation is helpful as well for its green push. However, when considering things like life cycle carbon and pollution emissions, importing crude oil from across the globe to be refined is more emissions-intensive than producing and refining oil locally. Thus, the decision to increase oil production is one that will lower the life cycle emissions of California’s oil sources. This is one way California’s energy hypocrisy can be reduced.

     Maydeen Merino of the Washington Examiner explains some of the energy challenges California faces in regard to refined fuels:

“State legislators included a measure that would streamline the permitting process for up to 2,000 new oil wells in Kern County to help supply the state's oil refineries and stabilize gas prices.”

“Gas prices in California are typically higher than those in the rest of the country, which has been attributed to oil companies leaving the state. As of Friday, the average gas price in California is $4.65, compared to the national average of $3.19.”

“Valero Energy announced earlier this year plans to end operations at its San Francisco-area refinery by April 2026. The California Energy Commission has looked to find buyers for the plant, Reuters reported at the time.”

“Phillips 66 also announced last year that it would end operations at its oil refinery in Los Angeles. The refinery is set to close at the end of the year.”

     According to an article in Politico, the dominant Democratic state legislature has been focusing on energy affordability.

“State Democrats opened their legislative session in January with a promise to focus on affordability, which gained even more political urgency as wildfires and refinery closures raised the threat of higher electricity and gasoline costs. The final package of legislation came together only last week, in a last-minute agreement capping weeks of talks between state lawmakers and Newsom’s office.”

“The oil drilling package also ratchets up oversight on offshore drilling, a nod to the priorities of soon-to-be Senate President Pro Tem Monique Limón and Central California lawmakers fighting to slow down a Texas-based company that’s moving to quickly restart a Santa Barbara pipeline that spilled in 2015.”

     Newsom depicted his approval of new oil production as bipartisan and as a balanced approach. Of course, he could have done this long ago. A little future progress toward more affordable energy policies is better than none. As can be seen in the graph below, California's oil production has dropped steadily by over 75% since the late 1980s, and the amount of oil imported from other countries has steadily increased, as the 2nd graph shows. 

 

 Source: EIA

 

 

Source: Lodi 411

References:

 

Newsom signs legislation that would boost oil production. Maydeen Merino. Washington Examiner. September 19, 2025. Newsom signs legislation that would boost oil production

Gavin Newsom signs sweeping energy affordability package. Camille von Kaenel, Alex Nieves and Noah Baustin. Politico. September 19, 2025. Gavin Newsom signs sweeping energy affordability package