San Pablo Bay Pipeline risks closure while California refineries lose capacity

By Vince Fong

As California Democratic Gov. Gavin Newsom traveled to Brazil touting his failed energy agenda in mid-November, the reality back home is unavoidable: because of his policies, Californians are paying some of the highest gas and electricity prices in the nation. Fox News has the story.

We are being crushed by the Newsom energy affordability crisis — and it’s crippling our national security. 

Since 2018, more than 360 energy companies have left California due to the state’s debilitating regulations and new oil drilling permits have fallen by 95% since Newsom assumed office in 2019. 

As a result, California has produced nearly 128,000 fewer barrels of oil per day over the past five years — despite holding the fifth-largest petroleum reserves in the country.

The undeniable consequence of Newsom’s refusal to support domestic production is a greater reliance on foreign oil. 

In 1982, less than 6% of California’s crude oil came from outside the United States.

Today, according to Newsom’s own California Energy Commission, that number has skyrocketed to over 60%. Brazil now accounts for 20% of our imported supply and 21% comes from Iraq.

By early 2026, the state is projected to lose nearly 20% of its remaining refining capacity, and without urgent action, blackouts, price spikes and fuel shortages will become the new normal – not only for Californians, but for millions across the West Coast who depend on our energy supply. 

This drastically impacts the viability of California’s pipelines, most of which require 90,000 barrels a day in production to remain financially solvent and operational. However, due to shortages, they are barely operating at 50,000 barrels a day, causing $2 million in losses a month for operators.

Currently, Crimson Midstream, the operator of California’s largest crude oil pipeline network, cannot sustain its operations because of Sacramento’s ineptness.

 California Democrats’ war on domestic energy production has created so much uncertainty that the San Pablo Bay Pipeline is now at risk of shutting down in the new year – further destabilizing California’s fragile energy supply chain and jeopardizing refinery capacity already hanging by a thread. 

These disastrous policies have created a manmade shortage of fuel, increasing prices at the pump exponentially for working families and leading to more gasoline imports.

This will likely force California to purchase refined gasoline from oil reserves off its coast, making the state pay a higher price to buy back its own supplies. 

But unaffordable prices aren’t the only consequence of Newsom’s war on oil. His created crisis is also undermining our military readiness.

California is home to dozens of U.S. military installations in the U.S. Indo-Pacific Command.

The brave men and women who serve at our bases are capable of deploying anywhere in the world within a handful of hours, but only if they have the fuel, they need to accomplish their mission. 

Military aviation fuels are highly specialized and of the highest grades, which California’s refineries are equipped to process.

In 2024, California’s military installations consumed approximately 10 million gallons of gasoline. With the two most recent refinery closures, jet fuel production is estimated to decrease by at least 600,000 gallons a day.  

No amount of Newsom’s strategic, political headlines can hide the threat his policies pose to our national security.

Read the full story here.