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Governor Newsom has no solutions how to run California’s economy without crude oil

By Ronald Stein - posted Wednesday, 13 August 2025


Just last year, in October 2024, Phillips 66 announced that it would close its Wilmington-area refining complex this year, which will further reduce the state's gasoline, diesel, and aviation fuels production capacity, wiping out more than 8% of the state's crude oil processing capacity. Losing another 1.3 billion gallons in annual gasoline output will only worsen the state's supply challenges to meet the demands.

The recent announcement that the Valero Benica Refinery in Northern California will be closing by the end of 2026 was disappointing, but shockingly, a prelude to more closures in the future. The Valero refinery at Benicia represents almost 9% of the state's crude oil processing capacity to meet the materialistic demands of the state's residents.

Over the last several decades, California's passion totransition away from fossil fuels has overregulated and overly burdened just the SUPPLY of oil production and refining but has not reduced the increasing materialistic DEMANDS of the State for the more than 6,000 products and transportation fuels made from those fossil fuels. Thus, China is savoring the future with their many refineries coming online to meet the DEMANDS of California.

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Governor Newsom's policies, just on the "supply" side of the equation, continue to force California, the 4th largest economy in the world, to be the only state in contiguous America that imports most of its crudeoil demands from foreign countries. California crude oil production is in terminal decline, driven by the lack of drilling permits,despite ample reserves. That dependence on foreign imports hasincreased imported crude oil from foreign countries from 5 percent in 1992 to more than 70 percent today of total consumption demand.

"Net Zero" policymakers setting "green" policies are oblivious to the reality that so-called "renewables", ONLY generate electricity but CANNOT make anything. In addition, everything that NEEDS electricity, like iPhones and computers, are made with petrochemicals manufactured from crude oil, coal, or natural gas.

Under Gavin Newsom's lack of energy literacy leadership, the number of Californians fleeing the once-Golden State has been accelerating.

California Governor Newsom remains unaware that electricity came AFTER oil, as ALL electrical generation methods from hydro, coal, natural gas, nuclear, wind, and solar are ALL built with the products, components, and equipment that are made from the oil derivatives manufactured from crude oil. Without Crude Oil there can be no Electricity!

 

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About the Author

Ronald Stein is co-author of the Pulitzer Prize nominated book Clean Energy Exploitations. He is a policy advisor on energy literacy for the Heartland Institute, and the Committee for a Constructive Tomorrow, and a national TV commentator on energy & infrastructure with Rick Amato.

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