While California’s governor recently traveled abroad to promote his energy vision, a stark reality is unfolding back home: Californians are facing some of the nation’s highest gas and electricity prices, caught in a deepening energy crisis.
Since 2018, over 360 energy companies have fled the state, driven away by increasingly restrictive regulations. New oil drilling permits have plummeted by 95% since 2019, despite California holding the fifth-largest petroleum reserves in the country.
The result is a dramatic decline in domestic oil production – nearly 128 million fewer barrels per day over the last five years. This isn’t simply an economic issue; it’s a strategic shift towards reliance on foreign oil sources.
In 1982, less than 6% of California’s crude oil came from outside the U.S. Today, that figure has surged to over 60%, with significant portions now sourced from Brazil and Iraq, according to the state’s own energy commission.
Compounding the problem, California’s refining capacity is rapidly shrinking. Projections indicate a loss of nearly 20% of remaining capacity by early 2026, threatening widespread blackouts, price spikes, and fuel shortages across the West Coast.
This decline is crippling vital infrastructure. California’s pipelines, essential for transporting oil, require 90,000 barrels a day to operate efficiently, but are currently running at barely 50,000, resulting in $2 million in monthly losses for operators.
The largest crude oil pipeline network, operated by Crimson Midstream, is now facing potential shutdown due to these unsustainable conditions, further destabilizing the state’s already fragile energy supply chain.
These policies have engineered a fuel shortage, driving up prices at the pump and forcing California to consider purchasing refined gasoline from reserves off its own coast – essentially paying a premium for its own resources.
The consequences extend far beyond household budgets, directly impacting national security. California hosts numerous critical U.S. military installations within the Indo-Pacific Command, poised for rapid global deployment.
These bases consumed approximately 10 million gallons of gasoline in 2024, relying on specialized jet fuel produced by California’s refineries. Recent refinery closures threaten to reduce jet fuel production by at least 600,000 gallons per day.
This diminished capacity jeopardizes the military’s readiness to respond to threats, particularly as Congress focuses on countering China’s growing influence in the Indo-Pacific region.
Instead of collaborating to strengthen national security, current policies are intentionally reducing California’s refining capacity and domestic oil production, weakening the nation’s defense posture.
A revitalized energy future demands a ten-fold increase in permitting, expanded drilling capacity, and the reinstatement of enhanced oil recovery methods. These steps are crucial to maintaining operational pipelines and expanding refining capabilities.
The state’s leadership faces a critical choice: continue down a path of scarcity and dependence, or reverse course and partner with California’s energy producers to restore true energy independence for both the state and the nation.
The future of California’s economy, and the strength of America’s national security, hangs in the balance.
