{"id":1667809,"date":"2026-03-06T23:00:00","date_gmt":"2026-03-07T04:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1667809"},"modified":"2026-03-06T23:00:00","modified_gmt":"2026-03-07T04:00:00","slug":"we-have-an-emergency-newsoms-climate-obsession-could-wreak-havoc-californias-oil-industry","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/we-have-an-emergency-newsoms-climate-obsession-could-wreak-havoc-californias-oil-industry\/1667809\/","title":{"rendered":"“We Have An Emergency”: Newsom’s Climate Obsession Could Wreak Havoc California’s Oil Industry"},"content":{"rendered":"

“We Have An Emergency”: Newsom’s Climate Obsession Could Wreak Havoc California’s Oil Industry<\/span><\/p>\n

\n

The oil-and-gas industry is sounding the alarm over a tightening of California’s cap-and-invest program<\/strong>, warning that stricter emissions caps could drive up gasoline prices<\/strong> and jeopardize the viability of in-state refining.<\/p>\n

<\/a><\/p>\n

The California Air Resources Board is advancing amendments to the cap-and-invest framework<\/strong>, a market-based mechanism requiring major emitters to purchase allowances for greenhouse-gas emissions, that would significantly reduce the supply of available credits and accelerate reduction targets through 2030, according to the New York Post<\/a>. The program, extended through 2045 last year, generates revenue through quarterly auctions that has helped fund state priorities, including the beleaguered high-speed rail initiative.<\/p>\n

Andy Walz, president of Chevron’s downstream, midstream and chemicals division, told KCRA<\/a> in an interview this week that the forthcoming board vote on the changes could impose billions in additional costs on fuel producers.<\/p>\n

\u201cIf they add this burden \u2026 it\u2019s not whether refineries will close, it\u2019s when<\/strong>,\u201d the executive said.<\/p>\n

Walz pointed to heightened geopolitical risks, including the spiraling U.S.-Iran war, as a reason to pump the brakes on reductions in domestic production capacity.<\/p>\n

\u201cThat makes no sense when you look at global tensions right now<\/strong>,\u201d Walz said.<\/p>\n

Walz described the situation as an \u201cemergency\u201d for the state and highlighted potential national-security implications, noting California hosts 32 U.S. military bases that depend on reliable local fuel supply.<\/p>\n

\u201cIt\u2019s important to national security to have the fuel those facilities need,\u201d he said. \u201cThis isn\u2019t just a California issue.\u201d<\/p>\n

A study by Capitol Matrix Consulting estimates<\/a> the proposal could saddle California refineries with $5.5 billion to $9 billion in added costs over the next decade<\/strong>, a burden that could erase much or all of their projected earnings in some cases.<\/p>\n

Projections from industry sources, including Chevron, indicate the amendments could add more than $1 a gallon to gasoline prices by 2030, with the company specifically estimating an increase of $1.21 per gallon if allowance prices reach projected ceilings around $135. California pump prices already average about $1.54 above the national level, according to the Wall Street Journal<\/a>.<\/p>\n

Yet, Newsom has shown little concern about higher costs at the pump for California voters.<\/strong> Instead, the potential 2028 Democrat presidential contender has framed the state’s climate policies largely in opposition to President Donald Trump.<\/p>\n

\u201cWe\u2019re doubling down on our best tool to combat Trump\u2019s assaults on clean air \u2014 Cap-and-Invest \u2014 by making polluters pay for projects that support our most impacted communities,\u201d Newsom said<\/a> in September.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nFri, 03\/06\/2026 – 18:00<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/political\/newsoms-climate-obsession-could-wreak-havoc-californias-oil-industry-we-have-emergency<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

“We Have An Emergency”: Newsom’s Climate Obsession Could Wreak Havoc California’s Oil Industry The oil-and-gas industry is sounding the alarm over a tightening of California’s…<\/p>\n","protected":false},"author":0,"featured_media":1667810,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1667809","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1667809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1667809"}],"version-history":[{"count":1,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1667809\/revisions"}],"predecessor-version":[{"id":1667833,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1667809\/revisions\/1667833"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1667810"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1667809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1667809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1667809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}