Chevron warns Newsom California rules at risk of 500K jobs and rising gas prices
The ‘Big Money Show’ panels discuss California’s energy policies and their impact on gas prices and the oil industry.
Chevron is sounding the alarm, warning Gov. California’s Gavin Newsom and state regulators say the proposed new “cap-and-invest” reforms are the death knell for California’s remaining refineries.
The energy executive warns that the move will kill more than half a million jobs, threaten national security and raise gas prices by more than a dollar per gallon — all fueling “disruption” of the energy sector — in a letter written to Newsom and obtained by the California Globe.
“This proposed rule would jeopardize the survival of the state’s remaining refineries, which would result in California losing an entire industry to this flawed system,” wrote Chevron President Andy Walz.
“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,” he continued. “It will disrupt California’s gas market and threaten critical energy and national security assets.”
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The California Air Resources Board (CARB) aims to make companies cleaner by lowering the limit on how much air pollution is allowed in the state. Specifically, the board proposes to issue 118.3 million grants in the national market between 2027 and 2030 and recently increased its carbon reduction rate to 90% by 2045.
Chevron’s president wrote a strongly-worded letter to California Gov. Gavin Newsom about the proposed energy regulations. (Getty Images)
Walz warns that the green energy agenda comes at a price for working families, writing that Chevron’s projections show a $1 increase per gallon of gas by 2030 and an estimated 536,770 industry jobs at risk.
California already has the highest gasoline prices in the nation, with the current state average listed at $4.81 per gallon, according to AAA. The national average, by comparison, is $3.25 as of March 4.
In some California counties, gas costs about $5.74 per gallon.
“These impacts will be most severe for low-income households that spend a large portion of their income on transportation fuel, increasing costs without addressing the underlying driver of California’s fuel prices,” Walz said. “Affordability is a major concern for Californians and Chevron, and these proposed amendments will exacerbate the cost of living in the state.”
Walz frames this not only as a local issue but as a threat to the power stability of the entire United States.
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“California refinery shutdowns reduce fuel supply capacity on the West Coast, increasing risks to military readiness and national security,” Walz warned. “Maintaining a stable policy framework that supports the continued operation of California’s refineries is therefore not only an economic and consumer issue, but also a matter of broader energy security and national security.”
CARB is reportedly exempt from standard open meeting rules, allowing it to handle billions of dollars in carbon auctions behind closed doors.
“California’s economic, industrial, environmental and security benefits have been the foundation of a healthy, prosperous state and nation. Conflicting policies at the local, state and federal levels have eroded that foundation,” Walz said.
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Chevron CEO Mike Wirth joins ‘Mornings with Maria’ to discuss record oil production, rising dividends and the company’s long-term growth strategy.
“These proposed regulatory changes threaten to destroy it. Chevron urges policymakers and regulators to rethink and review this proposed regulation before it causes permanent and irreversible damage to California’s economy and energy security and to America’s vital interests,” he concluded.
Newsom’s office did not immediately respond to Fox News Digital’s request for comment.
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