California Energy Policy Called a National Security Risk
A new podcast investigation reveals California's energy crisis is now seen as a threat to national security. The state has shuttered so many refineries it can no longer produce enough jet fuel for 32 military installations, forcing it to import 75-80% of its oil and prompting calls for federal intervention.
The impending closures of the Phillips 66 refinery in Los Angeles and Valero's Benicia facility will remove a combined 290,000 barrels per day of processing capacity. This represents a 17% reduction in California's refining capabilities within a single year. The state's refining capacity is projected to drop by 23% between 2019 and 2026. California is the largest consumer of jet fuel in the United States, accounting for about one-seventh of the nation's total consumption. In 2024, aviation fuel accounted for 16% of the state's total consumption of crude oil products, or approximately 97.6 million barrels. "Normal" military aviation consumes about 10 million gallons of this annually, a figure that would surge during a national defense crisis. The state's energy policies have been labeled a "clear and present threat to national security" in a report by California Assemblyman Stan Ellis. Military installations like Travis Air Force Base and the Naval Air Weapons Station at China Lake are almost entirely dependent on jet fuel from California's refineries. With no pipelines to bring in refined fuels from other parts of the country, California is a logistical "island." This forces a reliance on maritime imports, primarily from Asia, to cover the shortfall. Over 95% of the state's inbound crude and gasoline already arrives on maritime tankers, many of which are not U.S.-flagged vessels. The supply issue extends to neighboring states, as California provides 88% of Nevada's and nearly half of Arizona's gasoline. These states, which also have unique fuel blend requirements, will be affected by the reduced regional supply. The reduction in local supply is expected to lead to increased fuel price volatility on the West Coast. With the closure of Valero's Benicia refinery, jet fuel production is projected to drop by 600,000 gallons a day. Calls for federal intervention include proposals to declare California's energy infrastructure as essential assets under the Defense Production Act. Another suggestion is for the president to provide temporary relief to producers and refiners through the National Emergencies Act.
