Energy Crisis | Chevron Warns California Will Face Refined Oil Crisis

U.S. oil giant Chevron warns that due to the Iran conflict, California is rapidly heading toward an energy crisis. If authorities do not relax taxes and regulations, the company may cease refining operations in the state.

Bloomberg quoted Chevron’s refining chief Andy Walz, who expressed concern that California could face fuel shortages, noting that reduced crude oil from some Asian refineries would lead to lower refined product output.

Due to Iran’s blockade of the Strait of Hormuz, oil shipments from China, South Korea, Singapore, and other regions face significant slowdown risks, making it difficult for Asian countries to meet domestic demand.

California, the most populous state in the U.S., imports about 20% of its refined fuel from Asia, making it highly vulnerable to commodity market volatility. As a result of the Iran conflict, the price of gasoline in California has approached $6 per gallon, compared to the national average of nearly $4.

Andy Walz stated that California should declare a “state of energy emergency,” reform climate and tax regulations, and promote domestic oil production. Without such actions, Chevron may cease refining operations in California within 10 years.