Kern County, California, September 24, 2025
News Summary
California is addressing high gas prices and refining capacity declines with new legislation that will accelerate the approval of 2,000 oil wells annually in Kern County. Governor Newsom aims to stabilize gas supply as two refineries close, leading to a significant dependency on foreign oil. This change, part of a broader energy transition, has drawn mixed reactions, with concerns over climate goals and impacts on local communities.
California is taking significant steps to address rising gas prices and declining refining capacity with new legislation signed by Governor Gavin Newsom. This legislative action aims to fast-track the approval of 2,000 new oil wells annually over the next decade in Kern County, a crucial area for oil production in the state.
Currently, California residents are paying an average of $4.65 per gallon for regular gasoline, which is considerably higher than the nationwide average of $3.17. With two refineries, Valero and Phillips 66, slated for closure, California is expected to see its number of operational refineries drop from 13 to 11. This change is stark when considered alongside the fact that California had 40 refineries back in 1983, indicating a severe decline in local refining capacity over the years.
Governor Newsom highlighted that the primary goal of the new legislation is to stabilize the state’s gasoline supply and mitigate the risk of drastic price surges at the pump. Chevron’s president of Americas products acknowledged the challenges of operating in California, citing ongoing corporate departures from the state.
The new legislation is part of a larger trend where California is becoming increasingly dependent on foreign sources for three-quarters of its oil supply due to the exodus of in-state production. By advancing this legislation, the goal is to diversify California’s fuel supply and stabilize petroleum markets amidst continuous fluctuations.
Earlier this year, California enacted a comprehensive series of bills aimed at transitioning to green energy while striving to keep energy costs affordable for its citizens. Within this context, the legislation aims to find a balance between fossil fuel production and the ongoing shift toward greener energy solutions, all while addressing climate change challenges. A specific bill included in this legislative package eases regulations concerning oil production in Kern County, which is being described as “targeted and environmentally responsible” to enhance the fuel supply.
As part of its long-term strategy, the state has also extended its cap-and-trade program until 2045. This program focuses on reducing emissions from significant polluters and reinvesting funds into projects that promote climate-friendly initiatives. Moreover, Governor Newsom’s administration has provided updates to California’s Wildfire Fund which now includes additional funding aimed at covering utilities’ wildfire liabilities.
However, advocacy groups have expressed concerns about these legislative developments, suggesting that they may undermine California’s climate goals and disproportionately affect communities situated near refineries. Consumer Watchdog voiced dissatisfaction, arguing that the new legislative measures could lead to higher costs for consumers, rather than addressing essential concerns within the oil supply landscape.
The California Energy Commission has also postponed proposed penalties for excessive profits in the oil industry, marking a notable change in its regulatory approach. Governor Newsom had previously advocated for a ban on new gas-powered vehicles by 2035, a measure that faced federal opposition. The state currently faces significant challenges regarding its refining capacity as it navigates the complex shift away from fossil fuels while attempting to ensure that consumers are not burdened with soaring costs.
Industry leaders are optimistic that these changes in policy will help establish a collaborative relationship between the state and oil companies moving forward.
FAQ
What new legislation has California enacted regarding oil wells?
California has enacted legislation that fast-tracks the approval of 2,000 new oil wells per year over the next decade in Kern County.
What are current gas prices in California compared to the national average?
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 closures of Valero and Phillips 66?
The number of operational refineries in California is set to decrease from 13 to 11 with the planned closures of Valero and Phillips 66 facilities.
What is California’s current dependency on foreign oil?
California has become increasingly reliant on foreign sources for three-quarters of its oil due to the exodus of in-state production.
What is the purpose of the cap-and-trade program in California?
The state’s cap-and-trade program aims to reduce emissions from large polluters and has been extended to 2045, focusing on reinvesting funds into climate-friendly projects.
Key Features of California Legislation
| Feature | Details |
|---|---|
| New Oil Wells Approval | Fast-tracking 2,000 new oil wells per year in Kern County over the next decade. |
| Current Gas Prices | Average of $4.65 per gallon in California vs. national average of $3.17. |
| Refinery Closures | Decrease from 13 to 11 operational refineries with Valero and Phillips 66 closures. |
| Reliance on Foreign Oil | California relies on foreign sources for three-quarters of its oil supply. |
| Cap-and-Trade Program | Extended to 2045 to reduce emissions from large polluters and support climate-friendly projects. |
Deeper Dive: News & Info About This Topic
- CBS News: Newsom’s Energy Policy
- Wikipedia: California
- Politico: California Energy Package
- Google Search: California energy policy
- ABC7 News: California Energy Regulators
- Google Scholar: California oil market
- LA Times: California Gasoline Costs
- Encyclopedia Britannica: California energy
- Fortune: California Gas Cars Ban
- Google News: California oil legislation
Author: Anaheim Staff Writer
Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, Orange 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 major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
