California, September 24, 2025
News Summary
California has enacted new legislation to stabilize its oil supply in response to rising gas prices and refinery closures. Governor Gavin Newsom signed a bill to fast-track the approval of 2,000 new oil wells annually in Kern County for the next decade. This initiative is crucial as the state faces a reduction in refinery numbers and rising gasoline costs, with California motorists currently paying an average of $4.65 per gallon. The legislation aims to balance fossil fuel production while transitioning towards greener energy solutions.
California has introduced new legislation aimed at stabilizing its oil supply amid rising gas prices and refinery closures. Governor Gavin Newsom recently signed a bill that will fast-track the approval of 2,000 new oil wells per year over the next decade specifically in Kern County, a significant oil-producing region in the state. This bill aims to counterbalance the challenges posed by a diminishing number of refineries—set to decrease from 13 to 11 with the anticipated shutdowns of Valero and Phillips 66 facilities, which have raised concerns about the state’s fuel supply.
Currently, California residents pay an average of $4.65 for a gallon of regular gasoline, marking a stark increase compared to the national average of $3.17. This price disparity has been exacerbated by the state’s past regulatory challenges, resulting in an exodus of oil and gas companies over the last 25 years. Notably, California’s refining capacity has drastically reduced from 40 refineries in 1983 to just 11 operational facilities today. This decline has rendered the state increasingly reliant on foreign oil sources for approximately three-quarters of its supply.
The legislation signed by Newsom is designed to stabilize the state’s gasoline supply while simultaneously preventing severe price spikes at the pump. It represents a significant attempt to diversify the state’s fuel supply and to stabilize petroleum markets at a time when California is grappling with its energy future amidst climate challenges. A notable aspect of the legislation includes easing regulations on oil production in Kern County, characterized as “targeted and environmentally responsible.”
In a broader context, California is also focused on transitioning to greener energy solutions. Just recently, the state passed a comprehensive package of bills promoting a shift towards green energy while attempting to maintain affordable energy costs. The state’s cap-and-trade program—aimed at cutting emissions from large polluters—has been extended to 2045, with a focus on reinvesting funds into climate-friendly projects. Moreover, the administration has updated California’s Wildfire Fund to provide additional financial support for utilities handling wildfire liabilities.
Despite these measures, advocacy groups have voiced opposition, claiming that the new oil well approvals could jeopardize the state’s climate goals and disproportionately affect communities near refineries. Consumer Watchdog also expressed discontent, asserting that the legislative actions might result in higher expenses for consumers instead of resolving critical issues surrounding oil supply and pricing. Additionally, the California Energy Commission has postponed proposed penalties for excessive oil industry profits, signaling a notable shift in the state’s regulatory approach.
While industry leaders have expressed cautious optimism about the policy changes fostering a more collaborative relationship between the state and oil companies, the legislation presents a complex balancing act. California must navigate the need for fossil fuel production while simultaneously committing to the ongoing transition towards sustainable energy, reflecting the ongoing challenges the state faces in ensuring its energy security and affordability of gasoline.
FAQs
What is the new legislation in California aiming to do?
The legislation aims to stabilize the state’s gasoline supply and prevent severe price spikes at the pump by fast-tracking the approval of 2,000 new oil wells per year over the next decade in Kern County.
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, which is significantly higher than the national average of $3.17.
How many refineries will California have after the planned closures?
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.
What has been the impact of past regulations on California’s oil companies?
California has faced hostility from oil and gas executives for the past 25 years, leading to a significant exodus of companies from the state. As a result, California has increasingly relied on foreign sources for three-quarters of its oil.
Key Features of California Legislation
| Feature | Description |
|---|---|
| New Oil Wells | Fast-tracking the approval of 2,000 new oil wells per year in Kern County over the next decade. |
| Gasoline Prices | California residents pay an average of $4.65 per gallon, which is significantly higher than the national average of $3.17. |
| Refinery Closures | The number of operational refineries will decrease from 13 to 11 with the shutdown of Valero and Phillips 66 facilities. |
| Oil Dependency | California is increasingly reliant on foreign sources for three-quarters of its oil due to the decline in local production. |
| Environmental Goals | The state is balancing fossil fuel production with transitioning to greener energy amid climate goals. |
Deeper Dive: News & Info About This Topic
- CBS News
- Politico Pro
- Los Angeles Times
- ABC7 News
- Los Angeles Times Opinion
- Wikipedia: California
- Google Search: California oil regulations
- Google Scholar: California energy policy
- Encyclopedia Britannica: California
- Google News: California energy legislation
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego 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 the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
