Chevron Warns Newsom Climate Policies Could Threaten Refineries, Jobs and Fuel Prices
Chevron is raising serious concerns about California climate regulations promoted by Gov. Gavin Newsom, warning the policies could damage the state’s economy, threaten refinery operations and increase fuel prices for consumers.
The warning came in a letter from Chevron President Andy Walz to the governor and state regulators regarding proposed changes tied to California’s carbon-reduction policies and emissions programs.
Energy producers and refinery operators have increasingly voiced concerns about the impact of new environmental regulations on the state’s already strained fuel supply and refining capacity, particularly as California continues to pursue aggressive climate goals.
Chevron Letter Raises Alarm Over Refinery Survival
Chevron had a blunt assessment this week of the climate policies promoted by California Gov. Gavin Newsom—his “misguided” policies will lead the state to economic collapse, crippling job losses and sky-high gas prices.
It’s the warning from Chevron’s President in a letter to Newsom.
“The proposed regulation will cripple the survivability of the state’s remaining refineries, which will result in California losing the entire industry to this misguided program,” read the letter from Chevron President Andy Walz, obtained by the California Globe and also reported by the New York Post.
Concerns Over Rising Fuel Prices and Job Losses
Chevron warned that the policies could significantly disrupt California’s transportation fuel market, potentially leading to higher prices for gasoline and aviation fuel while affecting workers in the energy sector.
“This regulation will increase transportation and aviation fuel prices for consumers. It will risk significant job losses, including many high-paying union jobs, while reducing funding for essential public services. It will upend California’s fuels market and threaten critical energy and national security assets,” the letter from Chevron continued.
Chevron Urges Regulators to Reconsider
The letter also said Newsom’s carbon-cutting program will “cripple the survivability” of the remaining refineries in California.
“Chevron urges policymakers and regulators to reconsider and revise the proposed regulation before it causes lasting and irreversible harm to California’s economy and energy security and broader vital American interests,” Walz said in the letter.
Debate Over California Cap-and-Invest Program
The oil giant’s bleak outlook in the letter to Newsom and the California Air Resources Board (CARB) came amid calls to block proposed amendments to the Cap-and-Invest program, which places a strict limit on greenhouse emissions that decreases each year.
The program is a key part of California’s broader climate strategy aimed at reducing emissions across the state’s economy. Supporters argue it encourages companies to lower emissions and invest in cleaner energy technologies, while critics contend the program could increase operational costs for businesses and ultimately impact fuel prices and energy markets.
California already has some of the highest gasoline prices in the United States, and refiners have warned that tighter regulations could further affect refining capacity, fuel production and supply stability in the state.
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