California’s gas prices are skyrocketing, and the situation is far more dire than most realize. The Valero Benicia Refinery has shut down ahead of schedule, and the ripple effects are already being felt across the state and beyond. What was supposed to be a closure in April 2026 has been accelerated to January 31st, 2026, with thermal imaging confirming the facility is now cold. But here’s where it gets even more alarming: the Crimson pipeline, a critical artery transporting crude oil from Southern California to the north, has also ceased operations. This isn’t just a local issue—it’s a crisis with national implications.
Mike Ariza, a former Valero manager and oil and gas expert, bluntly stated, ‘We are in an unprecedented oil crisis.’ His words are backed by hard data: California’s average gas price is already at $4.25 per gallon, compared to the national average of $2.89. And this is just the beginning. Valero’s decision to shut down early comes on the heels of Chevron’s relocation to Texas and Phillips 66’s closure of its Los Angeles refinery in October 2025. Experts like USC Professor Michael Mische warned months ago that Valero might accelerate its exit, and now it’s a reality.
But here’s where it gets controversial: Governor Gavin Newsom’s administration has been quick to tout its ‘clean energy all-electric future,’ including a ban on internal combustion engines by 2035. Yet, this very policy has been a driving force behind the oil industry’s exodus from California. Valero cited low operating margins, skyrocketing costs, and a ‘harsh regulatory environment’ as reasons for its $1.1 billion write-off related to its California operations. Newsom’s recent statement, which read more like a child’s plea for attention than a serious policy response, did little to reassure anyone. ‘While others point fingers to spread fear and divide us, California is doing the actual work,’ he declared. But is it? Or is the state’s energy policy backfiring spectacularly?
And this is the part most people miss: California’s energy crisis isn’t just an economic issue—it’s a national security threat. A recent report by Assemblyman Stan Ellis, Professor Mische, and Ariza warned that the state’s self-inflicted gas crisis is leaving U.S. military bases on the West Coast vulnerable to foreign adversaries like Russia and China. Without domestic refining capacity, how can we ensure energy security? The report calls for federal intervention, but will it come in time?
Here’s the bigger question: Is California’s push for a green energy future worth the immediate and severe consequences we’re seeing today? With 536,770 jobs tied to the oil and gas industry and a $338 billion economic contribution, the stakes are enormous. As refineries close, more Californians are likely to leave the state, and neighboring states like Nevada and Arizona—which rely heavily on California’s fuel—are already scrambling to adapt. Nevada Governor Joe Lombardo has even established a Fuel Resiliency Committee to counter California’s policies. But is this enough?
California now produces less than 23% of its own petroleum needs, importing over 65% of its crude oil from foreign sources. In 1988, that number was just 4.5%. Professor Mische has warned that gas prices could soar to $8.43 per gallon as more refineries close. That’s not just a number—it’s a potential economic disaster that could reshape the state and the nation.
So, what do you think? Is California’s clean energy vision a necessary step forward, or is it a reckless gamble with devastating consequences? Are Governor Newsom’s policies the solution, or are they exacerbating the problem? Let’s hear your thoughts in the comments—this is a debate we can’t afford to ignore.
