Gavin Newsom warms to Big Oil in climate reversal: https://calmatters.org/politics/2025/08/oil-compromise-calif...
I think your idea is a great solution to the problem and would give politicians cover with their environmental base and a win for their constituents.
Newsom is not a refinery nor does he own any refineries. He cannot increase any production by definition.
Marathon Martinez (2020) converted to renewables. Crude capacity 157 MBD, Renewables capacity 48 MBD
P66 Rodeo (2022) converted to renewables. Crude capacity 120 MBD, Renewables capacity 50 MBD
P66 LA (2025) shutdown. Crude capacity 139 MBD
Valero Bencia (2026) shutdown. Crude capacity 145 MBD
The California Air Resource Board (CARB) has promulgated a revised Cap and Invest rule that threatens the viability of the remaining refineries. All the remaining California refineries have sent CARB, the Governor and the CA legislature letters pointing this out.
California is now a net importer of gasoline following these refinery closures.
This is all about keeping China down, and preserving American Hegemony. That's his definition of "making America great again". He doesn't care that you're paying more for food, gasoline, etc. and that the rest of the third world will soon be starving.
Gulf States get a swap line (can't let Wall St crash), but you get no bail out because the elites don't care that you are hurting. They care about the Gulf States hurting because that ultimately means Wall St will crash which would hurt the Billionaire elites.
So to sum up, the reason is maintain America's Hegemony and protect the Billionaire class.
https://today.usc.edu/las-environmental-success-story-cleane...
>Would you really want to hurt children for cheaper gas?
Nice appeal to emotion.
Yes. Most voters would, too. "Cheaper gas" understates how serious even a $20/week increase in living costs can be for a household on the margin.
We produce more oil than we use, but we can’t refine it all.
The real cost to not processing heavy crude oil is that many refinery assets will be sitting idle because they aren't needed to process light crude.
That's not too much of a problem. A refinery tooled for heavy sour crude technically can process light, heavy, sour and sweet crude - the other way around would be an issue because you'd need to construct hydrocracker and desulfurizer stages first.
The issue is a financial one. A refinery is often a multi-billion dollar asset, and having significant parts of its value sit around unused for prolonged times means write-offs which means stonk number go down, and as we all know there is nothing more important for the economy than the stonk market.
Another, but smaller, problem is that running a refinery on different crude compositions means that the volume ratio of the various oil products changes, and the refinery may find itself sitting on more, say, heavy fuel oil than it can store, sell and ship. And once the tanks are full, production has to stop.
It could help in the long term by underwritig refinery retooling. The problem is you'd almost certainly need public support for those investments, given they could be undone by the lifting of such a ban. (An export ban would also trash America's reputation with our import partners.)
Or from Alberta.
https://sherman.house.gov/media-center/press-releases/congre...
If you agree with the parent that Americans are going to feel more energy market pain in the coming months I would imagine the pressure for this will only increase.
American oil on the other hand (As in extracted out of the ground) is actually too high quality for domestic consumption therefore gets shipped overseas and sold at a premium. The weird economics of this are made possible by globalization. While it’s not fungible on a dime it’s easy to solve and the US really does hold all the cards when it comes to the petroleum industry.
Technically, the refineries can be retooled to take a different blend, but it is expensive to do.
"U.S. crude oil and lease condensate proved reserves decreased 1% from 46.4 billion barrels to 46.0 billion barrels at year-end 2024" [1]. At February's 180 million barrel/month import rate, that's only 21 years of supply in the ground.
Reliance on oil, for America, is a long-term reliance on foreign oil.
[1] https://www.eia.gov/naturalgas/crudeoilreserves/
[2] https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=M...
Also, there's the bigger geopolitical problems that creates. If the US knocks over the global energy supply and then retreats and abandons our trading partners, the knock-on effects would be even worse.
A large part of the reason WWII existed was the breakdown of international trade during the Great Depression. Countries without domestic supplies of their own were forced to grab territory instead of peacefully trading for what they needed.
We’re witnessing “American exceptionalism” transform from a brash claim to a whiny demand in real time.