Key facts
- Governor Gavin Newsom's energy policy has shifted from environmental advocacy to a more balanced approach.
- Newsom signed legislation to increase oil drilling and eased regulations on refineries.
- He vetoed a bill aimed at studying staffing for closing oil refineries.
- Environmentalists criticize Newsom for backtracking on commitments to phase out fossil fuels.
- The oil industry has shown some appreciation for recent policy shifts but remains distrustful.
- Newsom's energy experts describe the approach as 'adaptive management' to balance transition goals with supply needs.
California Governor Gavin Newsom's approach to the state's oil industry has evolved significantly during his tenure, moving from strong opposition to a more pragmatic, albeit controversial, balancing act. Initially campaigning on an anti-fossil fuel platform, Newsom implemented policies like banning new gas car sales by 2035 and banning fracking. He also initiated investigations into oil companies for alleged price manipulation, leading to a $50 million settlement with two firms.
However, as oil companies began to withdraw from California, with Chevron relocating its headquarters and refiners like Phillips 66 and Valero announcing plans to idle facilities, Newsom's administration shifted its strategy. Facing the prospect of losing nearly 18% of the state's refining capacity, Newsom's office proposed legislation to increase oil production and supported measures to lower costs for refineries. This pivot has been characterized by his administration as 'adaptive management' to ensure fuel supply while pursuing long-term green goals.
This shift has drawn criticism from environmentalists who view it as a betrayal of his initial commitments. Conversely, while some in the oil industry, like Chevron and California Resources Corporation, have acknowledged the positive steps, many remain distrustful due to years of antagonism. Figures like Matthew Lucey, CEO of PBF Energy, have accused Newsom of vilifying the industry, while industry veterans like Dave Noerr and strategist Rob Stutzman view the recent concessions as politically motivated rather than a genuine change in attitude.