California’s energy crisis, driven by Governor Gavin Newsom’s policies, has led to the departure of over 360 energy companies from the state, causing a significant drop in oil production and a surge in gas prices. Newsom’s agenda, which emphasizes environmental regulations, has resulted in a reduction of oil drilling permits by 95% since his 2019 inauguration. This has led to a 128,000-barrel-per-day decline in oil production, with California now relying heavily on imported oil, over 60% of which comes from foreign sources. Brazil and Iraq account for a substantial portion of the imports, highlighting the state’s increasing dependence on international suppliers.
The state’s refining capacity is also in decline, projected to lose nearly 20% of its remaining refining capacity by 2026, exacerbating the problem of fuel shortages and price increases. The impact on pipelines, which are vital for maintaining energy supply, is evident as they operate at only 50,000 barrels a day instead of the required 90,000 barrels, resulting in $2 million in monthly losses. The San Pablo Bay Pipeline is at risk of shutting down, further destabilizing the energy supply chain.
Newsom’s policies are not only affecting the economy but also national security. California’s military installations, which are crucial for the Indo-Pacific Command, are facing a critical shortage of fuel. The state’s refineries are essential for producing specialized aviation fuels, but recent closures have led to a decrease in jet fuel production by at least 600,000 gallons daily.
The call to action is clear: increase drilling permits, expand production, and support domestic energy efforts to restore California’s energy independence and strengthen national security. The current policies are seen as undermining the state’s role in meeting energy demands and securing the nation’s defense posture in a region threatened by rising challenges. Newsom’s approach is criticized for being short-sighted, prioritizing political agendas over the state’s and nation’s energy security.