California is evaluating state ownership of oil refineries to maintain gasoline supplies as oil companies reduce operations in the state. The California Energy Commission highlighted concerns over future refinery closures and their potential impact on fuel availability, prices, and the economy. Gasoline demand has been gradually decreasing since 2005 due to efficiency improvements and the rise of electric vehicles. Some refiners are shifting from gasoline to biodiesel production, contributing to ongoing structural changes in the industry.
The state recognizes that they're on a pathway to more refinery closures, which poses risks of fuel shortages, higher prices and severe logistical challenges.
Gasoline consumption has fallen 15% from its peak in 2005, influenced by efficient engines and the growing prevalence of electric vehicles.
California may consider state ownership of oil refineries to ensure steady gas supplies as major oil companies pull back from refinery operations.
The closure of any major refinery in California could result in significant gasoline supply issues amid ongoing industry shifts and increased demand for cleaner fuels.
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