The California Refinery Crisis is a national security risk for America

Guest essay by Ronald Stein, P.E. Originally Published in the Epoch Times as a video interview, April 4, 2026

California transportation fuel demands are among the highest in the nation and are now beginning to be imported from refineries in foreign countries.  The State will be importing transportation fuels from foreign based refineries to run its 30 military airports and 9 international airports – a National Security risk for America.
 
California is the 4th largest economy in the world and an “ENERGY ISLAND” that is isolated from the other 49 States by the Sierra Nevada mountain range. There are no pipelines over those majestic mountains to connect the State to the rest of the country. Thus, California’s in-State refineries have been producing ALL the transportation fuels demanded on the California “Energy Island”.
 
Bunker fuel for the ships servicing three of the busiest Ports in America, located in California. The Port of Los Angeles had more than 1,800 vessel arrivals in 2024, which includes cruise and merchant ships. The Port of Long Beach handled over 9.6 million container units in 2024, indicating a very high volume of ship activity, plus cruise ships. The Port of Oakland, which also handles significant cargo volumes, contributes to the total number of cruise and merchant ships needing fuel.

Jet fuel: California has over 2,400 airports and aviation facilities, including 9 international airports and 30 major military airports. The demand is 13 million gallons of aviation fuel daily.  Several of those airports have direct pipelines to local refineries.  In 2019, California consumed 16.7% of the national total of jet fuel, making it the largest consumer of jet fuel in America.

Gasoline: For its 30 million vehicles, California is the second-largest consumer of motor gasoline among the 50 states, consuming 42 million gallons a day of gasoline, just behind Texas.
Diesel: Diesel fuel is the second largest transportation fuel used in California, consuming 10 million gallons a day of diesel to support the state’s trucking of products from 3 of the busiest shipping ports in America 
 
California’s regulatory environment has created a refining capacity vacuum that global markets are rushing to fill, as regional policy decisions are creating international market opportunities and reshaping geopolitical energy dynamics.
 
Liquid transportation fuels remain essential for sectors that are difficult to electrify. Aviation still depends on jet fuel, global shipping requires bunker fuel, heavy transport, construction, and the petrochemical industry continues to rely on refined petroleum products. Diesel and jet fuel, and petrochemical feedstocks, will remain crucial for decades, even with reduced demand for gasoline from electric vehicles. If local refining capacity decreases in California while demand persists, markets will respond by seeking transportation fuels elsewhere.

It must be remembered that crude oil, by itself, is useless black tar unless you build a multi-billion-dollar refinery to break it down to produce various types of transportation fuels, and oil derivatives that are the basis of virtually all the products in our materialistic world.
 
California’s environmental regulations and aging infrastructure are inadvertently triggering a worldwide refinery construction boom. There will be economic consequences for California consumers as domestic refining capacity shrinks and import dependence grows. The paradox of California’s environmental policies and California’s emissions reductions may be increasing the global carbon footprints through longer supply chains.
 
In the future, 181 new refinery units that are planned or announced in Africa, Asia, and the Middle East will be providing transportation fuels to California’s 9 international airports, 30 major military airports, and 3 of the largest shipping ports.
 
These modern refineries in other countries are designed to operate on a massive scale, process multiple types of crude oil, and export transportation fuels worldwide. Tanker transport allows refined transportation fuels to reach major consumption centers, including ports such as the Port of Los Angeles, the Port of Long Beach, and the Port of Oakland.
 
As California’s refining capacity continues to decline, the California transportation fuel demands for its shipping ports, airports, cars and trucks are among the highest in the nation and will be increasingly imported from refineries in Africa, Asia, and the Middle East.
 
California, the 4th largest economy in the world, with growing dependence on transportation fuels made from refined crude oil at foreign refineries will be a national security risk for the entire country.
 
California has closed 2 refineries, and more closures are on the way as the California Air Resources Board (CARB) is tightening up the regulations on emissions that may drive the remaining 6 refineries in the State to EXIT to more business-friendly States.
 
The 4th largest economy in the world NEEDS new refineries to process crude oil, to be built IN CALIFORNIA. 
 
Energy “REALITY” tells us that we need refineries to convert that useless black tar into usable transportation fuels and products:
 
Planes, ships, trucks, and cars do not run on raw crude oil, they run on transportation fuels manufactured FROM crude oil by multi-billion-dollar refineries.

With no pipelines over the Sierra Mountain, the new refinery in Brownsville in Texas will be useless to the California Energy Island that demands in-state refineries to provide transportation fuels for 30 major military locations, 9 international airports, 3 of the busiest ports in America, and fuels for the trucks that transport imported products to the rest of America.

Wind turbines and solar panels ONLY generate electricity but CANNOT make any of the more than 6,000 products that are based on the oil derivatives manufactured out of raw crude oil, nor can wind and solar make anu transportation fuels for the military, airports, merchant ships, automobiles and trucks. The world is not dependent on raw natural fossil fuels BUT has become dependent on the products and transportation fuels MADE FROM oil, the same products and transportation fuels that Wind and Solar CANNOT make!

The world needs MORE REFINERIES to process that useless black tar into usable transportation fuels and products for life as we know it.
 
Collectively, closure of the Phillips refinery in Southern California and the Valero refinery in Northern California provided about 17% of the state’s crude oil processing capacity to provide transportation fuels demanded in California. Thus, transportation fuel shortages are imminent for California, and will be importing those transportation fuels from Africa, Asia, and the Middle East.
 
The supply chain of fuels and products refined from raw crude oil will face severe imbalances, most likely leading to higher costs and shortages for future generations. With 99.5% of the 8 billion people on this planet Earth living outside the borders of California, CARB is solidifying California’s 4th largest economy in the world as a national security risk for the entire USA!
 
Be sure to watch and listen to the Epoch Times interview:
 
California’s Oil Problem Is Bigger Than California


Ronald Stein, P.E., is an engineer, columnist on energy literacy at America Out Loud NEWS, and advisor on energy literacy for the Heartland Institute and CFACT, and co-author of the Pulitzer Prize-nominated book “Clean Energy Exploitations.” He is also the recipient of an unsolicited Tribute to Ronald Stein from Stephen Hines.
 
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Edward Katz
April 5, 2026 2:31 pm

This is a very informative article. It’s too bad that the advocates for renewable energy are unlikely to comprehend its significance or even bother to read it. One thing’s a virtual guarantee: you won’t see the mainstream media publicizing any of its assertions or even bothering to print/broadcast it.

mleskovarsocalrrcom
April 5, 2026 3:01 pm

California is strangling itself and it’s accelerating. The population is in decline especially with the high tax payers, businesses are moving headquarters to more desirable states with lower taxes and less red tape, crime is increasing and the courts favor the criminals, housing costs are some of the greatest in the nation, homelessness is the highest in the country and $millions wasted on treating it, corruption at all government levels is constantly being uncovered, about 10% of the population is illegal aliens, the state budget is forever being “rescued” only to go red again, and on and on. The weather is the only thing it has going for it.

Mr.
Reply to  mleskovarsocalrrcom
April 5, 2026 3:23 pm

California’s emissions regulations are actually a state suicide note.

1saveenergy
Reply to  mleskovarsocalrrcom
April 5, 2026 5:28 pm

We Brits will get back to a medieval economy way faster than California…
… we’ve got Moronic Miliband to guide us.

ResourceGuy
Reply to  1saveenergy
April 5, 2026 5:49 pm

Yes, you got us on that one. But they’ll be back in about 3 years to catch up and pass the UK on the downhill run to the cliff.

Colin Belshaw
Reply to  1saveenergy
April 7, 2026 12:51 am

Yeah, a total pillock, that’s for bloody sure.
When ridiculous idiotic ideology eclipses reality and common sense . . . then you know we really do have a bloody problem.

KevinM
Reply to  mleskovarsocalrrcom
April 5, 2026 8:47 pm

“The weather is the only thing it has going for it.”

California might have a few other things going for it, no I can’t name any, but whatever they are they seem to be enough. Ditto NY City. These expensive-to-live places have stayed expensive-to-live for my entire life.

Reply to  KevinM
April 7, 2026 9:58 pm

California also has great beaches.

April 5, 2026 3:21 pm

“There are no pipelines over those majestic mountains to connect the State to the rest of the country.”

But, there’s an interstate highway south of those mountains that goes right to LA. Why can’t a pipe go along that- or along the canal with water from the Colorado River? That’s not saying that depending on such a pipeline is a good idea.

mleskovarsocalrrcom
Reply to  Joseph Zorzin
April 5, 2026 3:53 pm

Too easy. California will find a way to not allow it. And if they did, it would take forever and blow through budgets faster than they could write a new one.

KevinM
Reply to  mleskovarsocalrrcom
April 5, 2026 8:50 pm

(They could add an oil car to the bullet train?)

Keitho
Editor
Reply to  KevinM
April 6, 2026 1:27 am

Very droll.

Junkgirl
Reply to  mleskovarsocalrrcom
April 6, 2026 4:55 am

California has been building a bridge for some time now over a highway to allow animals like mountain lions, coyotes, bears, etc to cross. Cross right into upmarket housing areas. Mountain lions. Fresh meat. It’s has been several years building and initial costs are ballooning, no end in sight to the finish. The Golden Gate Bridge was built in 4 years during a depression. More grifter pockets to fill now, I’m thinking.

Reply to  Junkgirl
April 6, 2026 9:46 am

“They didn’t care about worker safety when they built the Golden Gate” – argument I’ve heard.
But
GG is also something like 35 times the length of the one you’re referring to.

Scissor
Reply to  Joseph Zorzin
April 5, 2026 4:38 pm

There is a southern CA fuel pipeline that goes to Arizona, but in the wrong direction. AZ is going to suffer from CA’s folly too.

To your point, a pipeline from Texas/NM to CA through AZ would be of benefit.

ResourceGuy
Reply to  Scissor
April 5, 2026 5:53 pm

Hopefully Phillips 66 can get going a little faster with the planned product pipeline from the TX panhandle down to El Paso and over to AZ. They just need to erase the part about going further to So. Cal. (look up Western Gateway Pipeline)

Scissor
Reply to  ResourceGuy
April 5, 2026 6:37 pm

Looks like a winner. I did some work at Wood River when it was a Shell refinery.

KevinM
Reply to  Scissor
April 5, 2026 8:55 pm

“The driving distance from Dallas to Los Angeles is 1445.8 miles (2326.8 kilometers)”
+
“The Trans-Alaska Pipeline System (TAPS) is approximately 800 miles (about 1,288 km) long”
=
That’s a loooooooooooooooooong pipe.

“The Druzhba pipeline is generally recognized as the world’s longest oil pipeline, spanning over 4,000 kilometers (roughly 2,500 miles) to transport crude oil from Russia to various locations in Central and Eastern Europe ”

It’s been done with 1960’s Russian technology but wow.

KevinM
Reply to  Joseph Zorzin
April 5, 2026 8:49 pm

Along the highway? Where everyone can see it? Yipes! Craziness!

Ex-KaliforniaKook
Reply to  Joseph Zorzin
April 5, 2026 10:46 pm

There are multiple pipelines (to Vegas and Reno) from California. Nevada needs to obtain its fuel needs from another source (Wyoming? Arizona/New Mexico?). That would ensure their fuel security and lower prices. Maybe those existing pipelines could then be reversed. They wouldn’t have that much capacity, but then it would slow California’s slow suicide – maybe enough to allow it a deathbed recovery if sufficient remaining Californians have the intelligence to figure out what they’ve done to themselves.

When I was a kid (the ’50s/’60s) the saying was that the country was tilted on its side and all the loose nuts rolled downhill into California. I suspect those nuts were really drug-befogged idiots who believed government would take care of them and was an intelligent entity who didn’t need tending. They were wrong.

Reply to  Joseph Zorzin
April 7, 2026 10:00 pm

Please remember that California mandates a special blend of gasoline that, insofar as I know, isn’t made anywhere else in the US. You can have a pipeline, but there won’t be anything to pump through it.

cgh
April 5, 2026 4:17 pm

Who cares? History is filled with hundreds of examples of civilizations and nations which destroyed themselves over their own internal political idiocies. In the end, California will be nothing more than what Percy Shelley described in Ozymandias,

“My name is Ozymandias, King of Kings:
Look on my works, ye Mighty, and despair!”
Nothing beside remains. Round the decay
Of that colossal wreck, boundless and bare
The lone and level sands stretch far away.

The rest of the world is utterly indifferent as to whether or not California turns itself into another set of ruins.

abolition man
Reply to  cgh
April 5, 2026 6:17 pm

Not everyone is indifferent to the Marxists destroying the once great state of Commiefornia!
As a fourth generation Californian who escaped before their complete takeover of the state government, I stand ready to load up my 4WD pickup with my arsenal and ammo; and join with other liberty-loving Americans who would like to see their fellow countrymen freed from the chains of Communist oppression!
If Newscum keeps courting the ChiComs, it may necessitate federal action sooner rather than later; and a walled off L.A. County would make an excellent prison for all the DemoKKKrat criminals

KevinM
Reply to  cgh
April 5, 2026 8:56 pm

The people who live there will care.
Yet it is a democracy.
The majority must think they’re getting a good deal.

Ex-KaliforniaKook
Reply to  KevinM
April 5, 2026 10:51 pm

I lived there for over 30 years. My neighbors believed they elected government to do their thinking for them. It is a democracy, where everyone gets to vote, citizen or no, dead or alive. They are getting the government they voted for. It is sufficient for those with no intelligence.

Reply to  Ex-KaliforniaKook
April 6, 2026 3:29 am

Thank you. This sums it up exactly.

It’s not a crisis, why does the author call it that? The people have voted …. they are happy to have sh!t and squalor. I don’t understand it, but the scumbags like Newsom most certainly do.

AWG
April 5, 2026 5:47 pm

What is interesting is that we still have shills like Musk and China who have a vested interest in a 100% EV fleet. When people think about refineries they remember the images of a refinery letting off steam thinking that the vapor is smog and pollution, so refineries get the bad rap of being super-polluters.

Because most people have zero understanding of how refineries work, they don’t think of jet fuel, diesel and other products that are used for fertilizers, plastics and a myriad of other common daily items and industrial necessities.

The ICE automobile was the answer to what to do with the surplus gasoline that came from the refining process of producing kerosene. Prior to the wide adoption of the ICE, gasoline was a waste product that was either burned on site or dumped into rivers.

The article addresses what happens when refineries shutter and they were closed and no pipelines built because most people, if they can think linearly, can only process a sequence of single variable equations so Saving The Planet –> Go EV –> No need for Gasoline –> No Refineries = Utopia.

There is zero consideration for any other products or applications of refined products. These things, like electricity just comes out of a hole in the wall, tap water comes from a pipe in the wall, and food come from the back room of the grocery store.

Reply to  AWG
April 6, 2026 9:49 am

“The ICE automobile was the answer to what to do with the surplus gasoline”

Good point, one I never see mentioned.

Mac
April 5, 2026 5:49 pm

California also imports significant electricity from neighboring states. The four corners area of NM, Colo, Ariz, and Utah is an example. It is a coal plant on the Navajo reservation. Keeps green dreams alive in Calif dontcha know!

KevinM
Reply to  Mac
April 5, 2026 9:08 pm

Strange research – The country Germany and the US state Massachusetts listed as exporters surprises me. I wonder if it’s a gross-vs-net issue?


Below are the 10 countries that exported the highest dollar value worth of electricity during 2024.

France: US$6.4 billion (10.7% of total electricity exports)
Germany: $5 billion (8.3%)
Switzerland: $4.4 billion (7.3%)
Austria: $3.1 billion (5.2%)
Slovakia: $2.5 billion (4.2%)
Laos: $2.4 billion (3.9%)
Canada: $2.2 billion (3.6%)
Poland: $2.08 billion (3.5%)
Spain: $2.07 billion (3.5%)
Czech Republic: $2.07 billion (3.5%)

and


Listed below are 10 US states that shipped electricity during 2024.

Washington: US$586.8 million
Indiana: $115.6 million
Connecticut: $90 million
Montana: $25.2 million
Massachusetts: $15.4 million
New York state: $4.6 million
Maine: $2.5 million
Oregon: $1.4 million
Texas: $901,485
Michigan: $719,787

KevinM
Reply to  KevinM
April 5, 2026 9:10 pm

Yes it is a net-vs-gross thing:
“Massachusetts relies heavily on imported electricity and fuel, with net imports supplying over half of its electricity (56.22%) from September 2024 to August 2025.”

KevinM
April 5, 2026 8:41 pm

Premium for importing vs cost of paying whoever certifies state mandated recipe to have an off day?

StephenP
April 6, 2026 5:41 am

Good luck with getting transportation fuel from refineries in the Middle East until the present situation is resolved.

Bruce Cobb
April 6, 2026 9:54 am

California Doomin’

All the money’s gone (all the money’s gone)
And the energy’s green (and the energy’s green)…

Leon de Boer
April 6, 2026 7:06 pm

Impressive Cali just set a USA record
https://www.instagram.com/p/DWzct-cAdrw/

Diesel $8 a gallon in San Francisco — the highest price ever recorded in any U.S.