California Considers State-Owned Refineries Amidst Looming Gasoline Shortage
Facing a potential gasoline crisis due to refinery closures, California is exploring the drastic option of state ownership of one or more refineries. Declining gasoline demand, driven by electric vehicle adoption and efficiency improvements, coupled with refinery closures and shifts towards biodiesel production, have created a precarious situation. While the state grapples with the high costs and operational complexities of running refineries, its geographical isolation and unique gasoline formulations limit reliance on outside supply. This proposal has sparked political debate, with Republicans strongly opposing the move and Democratic leaders remaining silent. California faces a critical decision: risk state-owned refineries to secure gasoline supply or allow market forces to potentially lead to shortages and price spikes.