California, September 24, 2025
News Summary
California has approved legislation to allow the approval of 2,000 new oil wells annually in Kern County to tackle rising gas prices and declining refinery operations. This comes as Californians face gas prices significantly above the national average, raising concerns about affordability and energy reliability. Governor Gavin Newsom aims to stabilize the gasoline supply while balancing environmental goals, although advocacy groups have expressed concerns over potential impacts on climate initiatives.
California has recently taken significant steps to address its oil supply crisis amidst rising gas prices and declining refinery operations. Governor Gavin Newsom signed legislation that allows for the approval of 2,000 new oil wells per year over the next decade in Kern County, a vital oil-producing region. This action comes as California residents face an average gas price of $4.65 per gallon, markedly higher than the national average of $3.17, raising concerns about affordability and energy reliability.
The legislative change is particularly crucial as the number of operational refineries in California is set to decrease from 13 to 11 due to the planned closures of Valero and Phillips 66 facilities. Reflecting on historical context, California had 40 refineries in 1983, showcasing a dramatic reduction in local refining capacity over the past decades.
In response to these challenges, Newsom emphasized that the new legislation aims to stabilize the state’s gasoline supply and prevent severe price spikes at the pump. The measures are designed to diversify California’s fuel supply and stabilize petroleum markets, especially as the state has become increasingly reliant on foreign sources for three-quarters of its oil. The exodus of in-state production has raised concerns about the vulnerability of California’s energy landscape.
The recent regulatory changes include easing restrictions on oil production in Kern County, which officials describe as “targeted and environmentally responsible” to help boost fuel supply. The legislation aligns with California’s ongoing transition to greener energy solutions, as seen in the passing of a comprehensive package of bills directing the state’s energy transition while striving to maintain affordable energy costs.
The legislative efforts reflect a balance between continuing fossil fuel production and moving toward climate-friendly alternatives in light of increasing climate concerns. Additionally, California has extended its cap-and-trade program, aimed at reducing emissions from larger polluters, to 2045, focusing on reinvesting funds into environmentally sustainable projects. In tandem with these initiatives, the state’s Wildfire Fund has also received additional funding to cover utility wildfire liabilities.
However, advocacy groups have voiced criticism over the recent developments, arguing that they could jeopardize California’s climate goals and disproportionately impact communities near refineries. Consumer Watchdog has expressed strong dissatisfaction, claiming that the legislative measures could lead to higher costs for consumers rather than addressing essential issues directly affecting them.
The California Energy Commission has also made a notable shift in its regulatory strategy by delaying proposed penalties for excessive oil industry profits, signaling a change in how the state interacts with the oil industry. Previously, Newsom had pushed for a ban on new gas-powered vehicles by 2035, but this faced federal opposition.
As California grapples with enhancing its refining capacity while ensuring consumers are not burdened with rising energy costs, industry leaders remain optimistic that the new policy changes will foster a constructive relationship between the state and oil companies going forward.
FAQ
- What significant legislative change did California recently implement to address oil supply?
California’s 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, a major oil-producing region. - What is the current average price of gasoline in California?
California residents currently pay an average of $4.65 for a gallon of regular gasoline, significantly higher than the national average of $3.17. - How many operational refineries are expected in California after the closures?
The number of operational refineries in California is set to decrease from 13 to 11 with the planned closures of Valero and Phillips 66 facilities. - What was California’s number of refineries in 1983, and how does this compare to today?
In 1983, California had 40 refineries, highlighting a significant reduction in local refining capacity over the years. - What does the new legislation aim to achieve?
The new legislation aims to stabilize the state’s gasoline supply and prevent severe price spikes at the pump. - What measures have been criticized by advocacy groups?
Advocacy groups have criticized the legislation, claiming that it jeopardizes the state’s climate goals and disproportionately impacts communities near refineries.
Key Features of California Legislation on Oil Supply
| Feature | Description |
|---|---|
| New Oil Wells | Fast-tracks approval for 2,000 new oil wells annually in Kern County for ten years. |
| Gas Prices | California’s average gasoline price is $4.65, compared to the national average of $3.17. |
| Refinery Count | Operational refineries in California will reduce from 13 to 11 due to closures. |
| Historical Context | California had 40 refineries in 1983, marking significant capacity loss. |
| Legislative Goals | Aims to stabilize gasoline supply and diversify fuel sources while balancing environmental needs. |
| Advocacy Response | Criticism surrounds potential jeopardization of climate goals and community impacts. |
Deeper Dive: News & Info About This Topic
- CBS News: California’s Green Energy Affordability Legislation
- Los Angeles Times: Newsom’s Oil Politics Newsletter
- ABC7 News: California Energy Regulators Pause Penalties on Oil Companies
- Politico: California’s Energy Package Impact on Electricity Markets
- Los Angeles Times: Opinion on California Gasoline Costs and Refineries
- Wikipedia: California Energy Crisis
Author: STAFF HERE MISSION VIEJO WRITER
MISSION VIEJO STAFF WRITER The MISSION VIEJO STAFF WRITER represents the experienced team at HEREMissionViejo.com, your go-to source for actionable local news and information in Mission Viejo, Orange 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 Oso Fit 5K Fun Run and Community Health Fair, Walk Against Drugs & Community Fair, and National Night Out. Our coverage extends to key organizations like the Mission Viejo Chamber of Commerce and Providence Mission Hospital Mission Viejo, plus leading businesses in retail and education that power the local economy such as The Shops at Mission Viejo, Capistrano Unified School District, and Amazon Delivery Station. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
