California Implements Measures to Retain Oil Refineries Amid Industry Exodus and Rising Gas Prices

California, under Governor Gavin Newsom, is reversing its long-standing push to phase out fossil fuels by enacting new policies aimed at retaining oil refineries and increasing drilling permits, particularly in Kern County. This shift comes in response to refinery closures by major companies like Phillips 66 and Valero, which together account for a significant portion of the state's gasoline production, raising concerns about fuel shortages and high gas prices. Senate Bill 237 facilitates this transition by allowing up to 2,000 drilling permits annually in Kern County and streamlining environmental approvals to expedite the process. Newsom's administration has actively engaged with oil companies, including Chevron, to encourage them to maintain operations in California, highlighting a pragmatic approach amid voter frustration over rising living costs. Meanwhile, debates continue over environmental safety, as seen in opposition to restarting the Las Flores pipeline, linked to a major 2015 oil spill, underscoring the ongoing tension between economic interests and environmental protection. Additionally, California is preparing to potentially lift its moratorium on carbon dioxide pipelines, aiming to advance carbon capture technology as part of its broader climate goals.