Chevron warns that California faces a severe energy crisis due to heavy reliance on foreign fuel imports. Refining chief Andy Walz stated that conflict with Iran could block the Strait of Hormuz and disrupt Asian shipments. These disruptions would cause significant gasoline and jet fuel shortages in Los Angeles and San Francisco.
Proposed emissions rules could add $500 million in costs to California refineries. Chevron indicated it may abandon state refining operations within the next decade without regulatory and tax reforms.
The state remains geographically isolated from other U.S. refining hubs. This isolation has contributed to gasoline prices nearing $6 per gallon, significantly exceeding the national average.