Golden State Governor Gavin Newsom has been driving out businesses and residents for years. Now, though, he’s having to face the music a little bit. The recent Los Angeles-area wildfires exposed the dangerous rein he had given to ecofascists, and his minimum wage hike is killing jobs. Therefore, he’s had to revamp his image from a radical leftist to a “moderate” so that he looks more presidential come 2028.
In early March, when Newsom interviewed prominent conservative influencer Charlie Kirk on his podcast, he admitted that allowing boys to play in girls’ sports is wrong. Now, he’s also changing his tune on how his Energy Commission is handling oil refineries in the state.
First, a bit of background: Oil companies operating in California have had to toe a difficult line under the reign of Governor Newsom. Not only do they have to refine oil using a very specific blend, which is expensive, but Newsom gave California’s Energy Commission the right to heavily regulate the refineries, resulting in big companies like Phillips 66, Chevron, and Valero shutting down most of their operations there.
Consequently, gas prices have soared. The Wall Street Journal editorial board reports:
After a fire at a Bay Area refinery in February, prices shot up 35 cents a gallon. Democrats, as usual, accused oil companies of “price manipulation.” In their infinite ill wisdom, they passed a law in 2023 letting the Energy Commission set a maximum gross gasoline refining margin and impose a penalty on refiners that exceed it.
Then there’s the California Air Resources Board’s recent tightening of its low-carbon fuel standard, which the board predicted would raise gas prices by 47 cents a gallon this year. All of this plus taxes explain why California’s gas prices are on average $1.64 a gallon higher than nationwide. The Valero and Phillips 66 closures could lift prices by another $1 a gallon by some estimates.
Newsom was clearly no friend to oil and wanted it out of his state. However, you can’t eliminate oil and gas without a viable option to replace it. The electric grid largely runs on fossil fuels, and solar and wind aren’t reliable. (Ask Spain and Portugal, or Texas, for that matter.) Newsom had no backup plan, and with refineries closing up shop, he is being forced to do a 180.
All of this led on Monday to Newsom encouraging his Energy Commission to loosen up on oil refineries so that they can operate profitably in the state. A letter Newsom sent to California Energy Commission Vice Chairman Siva Gunda contained clear instructions:
I write to direct you to redouble the State’s efforts to work closely with refiners on short- and long-term planning, including through high-level, immediate engagement, to help ensure that Californians continue to have access to a safe, affordable, and reliable supply of transportation fuels, and that refiners continue to see the value in serving the California market, even as demand for fossil fuels continues its gradual decline over the coming decades.
Why the change of heart? Newsom is a clever politician. He knows that radicalism isn’t going to win him a presidential election; he needs to moderate before seeking the top national office in 2028. There is also the small but annoying (at least to leftists) fact that even in deep-blue California, everything still needs oil and gas, so excising fossil fuels is going to shoot his state in the foot and continue hurting residents there.
Whatever Newsom’s motivation for capitulating is, this is a step in the right direction. Perhaps Californians will even see gas at the pump go back down to $3.00 a gallon.
