Chevron warned of a potential California energy crisis linked to the Iran conflict. The company may halt state refining operations unless officials reduce taxes and regulations.
California currently imports approximately 20% of its refined fuels from Asia. Iran’s blockade of the Strait of Hormuz now threatens this specific supply chain.
Andy Walz, Chevron’s president of Americas Products, urged officials to declare an energy emergency. He called for climate regulation reforms to incentivize in-state production.
California gasoline prices are approaching $6 per gallon. These prices remain significantly higher than the national average.
Global supply shocks have disrupted nearly one-fifth of world oil and gas supplies. This geopolitical crisis now directly impacts the domestic market of the largest U.S. state economy.