After years of criticism, regulation, and legal challenges aimed at the oil and gas sector, California’s Democratic Governor Gavin Newsom is now racing to support it, likely prompted by looming concerns over a potential gas crisis and whispers of a 2028 presidential bid.
The Newsom administration is reportedly working to keep one refinery operational and encouraging more oil drilling in the state. This comes after a history of lawsuits against energy firms and strict regulations, but now, as California faces energy challenges, Newsom and some fellow Democrats find themselves defending the oil and gas industry. It’s striking, considering his prior stance. Additionally, the looming possibility of his presidential run in 2028 adds a complex layer to this situation.
“After years of advocating for aggressive climate policies that have harmed working families, Governor Newsom is finally realizing what Californians truly need. He’s scrambling to secure the very fossil fuel sources he once aimed to eliminate,” Jason Isaac, CEO of the American Energy Institute, commented. “This sudden pivot is more about survival than true leadership. California’s energy future demands a realistic approach, not idealistic fantasies.”
Furthermore, Newsom’s recent signature on legislation requires oil refineries to store extra gasoline to prevent shortages, responding to public pressure and criticism. He expressed his frustration, stating, “They keep lying, they keep manipulating, they’re raking in record profits at our expense, and it’s been going on for years.”
In a recent address, Newsom positioned himself as being consistent in his calls for accountability and achievable net-zero goals. He mentioned, “I understand the complexities, especially since I travel across the state frequently. We are all, often unwittingly, beneficiaries of oil and gas.”
While California officials maintain strict rules over the oil and gas sector, the state still pursues a target for net-zero emissions by 2045. Despite this, California continues to import oil, yet imposes regulations that don’t seem to align perfectly with its green energy ambitions.
In July, the Newsom administration began sharing draft bills that would enable more drilling in Kern County, a move opposed by environmental activists. This shift contrasts sharply with his previous alignment with these groups, notably during a campaign promoting restrictions on oil wells earlier in May 2024.
The administration also pursued a lawsuit against the Trump administration over electric vehicle policies and has taken action against major oil companies related to climate change damages. “For over 50 years, Big Oil has been deceiving us about the dangers their products pose to our planet,” Newsom remarked, highlighting the historical context of his current actions.
With two major refineries set to shut down next year, there’s growing concern over rising gas prices, a situation that has drawn criticism towards regulators. State officials are reportedly exploring options to find buyers for refineries before they close permanently.
Newsom’s advocacy for more transparency in the oil and gas industry is tied to the need for advance information about refinery closures. Just days after legislation was signed requiring additional gas storage, Phillips 66 announced plans to cease operations at one of its refineries, while Valero also planned to close another location soon.
Overall, Newsom seems to be leaning toward a more moderate stance on energy policies, particularly as speculation about a presidential run in 2028 continues to circulate.
