California may soon have to battle other states for oil resources as itsimported supply runs dry, a leading lobbying group has warned.
Jodie Muller, CEO of Western States Petroleum Association, said the limited amount coming into the Golden State means it will be pitted up against the rest of the US and foreign markets.
It comes as thelast ship to leave the Strait of Hormuzfor California was unloaded in Long Beach, marking the final barrels of oil from the crucial Middle East route until the war in Iran is resolved.
Industry leaders say the state is especially exposed to the crisis due to its fight against refineries and gas giants, which has pushed it to rely heavily on crude oil from abroad.
Muller toldKCRAthe dependence means drivers should expect even more price hikes as well as possible shortages.
She said: “We will see continued pressure on price in an upward direction as supply comes down in the state and consumers should be concerned.
“The global disruption that we are seeing is really just exposing our system and showing how fragile it is because of the policies we’ve had over layered policies on top of each other.”
California’s fuel system has become increasingly vulnerable aftermultiple refineries announced shutdownsin recent months, following years of environmental regulations and political pressure aimed at reducing fossil fuel consumption in favor of renewable energy alternatives.
The Phillips 66 Wilmington/Los Angeles facility and theValero Benicia plant shut downeliminating roughly 20% of the state’s total refining capacity.
Despite the push toward electric vehicles and clean energy mandates, the overwhelming majority of vehicles on California roads still rely on gasoline. State registration figures show nearly 90% of cars in the state continue to use traditional fuel.
Source: California Post – Breaking California News, Photos & Videos
