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California energy regulator open to working with Trump on oil refineries

Created at 11 Aug · 9:56 PM1 source↑ Market-relevant
IN SHORT

California energy regulator says he is open to working with the Trump administration on issues like keeping gas prices down, but criticized the administration's approach to energy policy. The Trump administration, meanwhile, is exploring setting up a strategic petroleum reserve in California and supporting oil production in the state.

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Key Numbers

370,000 barrelsinitial storage facility for California reserve
30 million barrelspotential second phase of California reserve
1975year US reserve was created
400 million barrelsreleased by Biden administration from reserve
172 million barrelsbeing released by Trump administration from reserve
60,000 barrelsdaily oil production from Sable Offshore Corp.

Who's Involved

Michael Hochschild
California energy regulator
Donald Trump
President of the United States
Chris Wright
Energy Secretary
Doug Burgum
Interior Secretary
Gavin Newsom
Governor of California
Anthony Martinez
Newsom spokesperson
Sable Offshore Corp.
Oil company operating off California's coast
Bob McNally
Energy consultant and former energy adviser
Robert Waldron
CEO of CorEnergy Infrastructure Trust
Jim Flores
CEO of Sable Offshore Corp.

↳ Why This Matters

The statements highlight a potential clash and areas of cooperation between state and federal energy policy, particularly concerning fossil fuel production and climate initiatives. The Trump administration's focus on increasing domestic oil production and establishing strategic reserves in California could directly challenge the state's climate goals and dependence on renewable energy.

Key facts

  • California energy regulator Michael Hochschild expressed willingness to collaborate with the Trump administration on lowering gas prices.
  • Hochschild criticized the Trump administration's energy policies, including efforts to restart offshore oil production and cancel offshore wind leases.
  • The Trump administration is considering establishing a strategic petroleum reserve in California.
  • The administration has supported Sable Offshore Corp.'s oil operations in California, overriding state objections.
  • California Governor Gavin Newsom's office has criticized the Trump administration's support for Sable and linked rising gas prices to Trump's actions.

California energy regulator Michael Hochschild has indicated a willingness to work with a potential Trump administration on issues such as lowering gas prices, while simultaneously criticizing the former president's energy policies. Hochschild stated he would 'work in good faith... wherever we have common cause to keep gas prices down,' but would 'evaluate on a case-by-case basis' any potential support for a refinery sale.

Hochschild also sharply criticized Donald Trump, attributing rising gas prices to the 'Iran war' and labeling the federal government's efforts to restart offshore oil production and cancel offshore wind leases as 'unbelievably reckless.' He compared the potential return of the Trump administration to 'a political version of COVID,' emphasizing the need to use the judiciary to counter its agenda.

Meanwhile, the Trump administration has been in 'active dialogue' about establishing a strategic petroleum reserve in California, a move aimed at bolstering West Coast supplies and enhancing national defense security. This initiative comes as the administration has embraced Sable Offshore Corp., supporting its oil operations against state objections. Energy Secretary Chris Wright has criticized California's energy policies, suggesting federal intervention to 'bring it to heel' and champion oil production.

Governor Gavin Newsom's office has previously criticized Sable's relationship with the Trump administration and accused the company of defying court orders. Newsom's spokesperson linked rising gas prices to Trump's actions concerning Iran, stating that 'no number of taxpayer-funded trips for photo ops on oil platforms can distract from that fact.'

Experts like Bob McNally, however, expressed skepticism about the strategic petroleum reserve idea, citing California's declining refining capacity. Sable CEO Jim Flores, conversely, praised the Trump administration for its attention to California's refining and strategic reserve needs.

Frequently asked questions

The Trump administration has criticized California's energy policies, viewing them as detrimental to industry and oil development. They have expressed a desire to assert federal authority and support increased oil production in the state.

A reserve in California would bolster supplies on the West Coast, which has faced high fuel prices, and could serve military installations and maritime transport in the Asia Pacific region. It aims to combat supply disruptions.

Sable Offshore Corp. operates oil platforms off California's coast and has received support from the Trump administration in its efforts to increase oil flow, even overriding state objections.

What Happens Next

01The Trump administration may continue to explore establishing a strategic petroleum reserve in California.
02Further actions from the Trump administration to support oil production in California are anticipated.
03California may continue to challenge federal energy policies through legal means.

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Cadence

How It Developed

California energy regulator Michael Hochschild stated he would work in good faith with the Trump administration on common causes like lowering gas prices.
Hochschild criticized Donald Trump's impact on gas prices and called the administration's efforts to restart offshore oil production and cancel offshore wind leases 'unbelievably reckless'.
The Trump administration is in 'active dialogue' about potentially establishing a strategic petroleum reserve in California.
The administration has supported Sable Offshore Corp.'s oil operations in California, overriding state objections.
California Governor Gavin Newsom's office criticized Sable's relationship with the Trump administration and the company's alleged defiance of court orders.
Newsom's spokesperson linked rising gas prices to Trump's actions regarding Iran.
Energy Secretary Chris Wright criticized California's energy policies and stated Washington intends to assert federal authority.
Wright suggested changing California's refinery regulations, reshaping its pipeline system, and creating a strategic oil cache in the state.

Sources

T1
California energy regulator says he’s open to working with Trump on oil refineriesPolitico
T2
Trump administration in 'active dialogue' on strategic petroleum ...politico.com
T2
Here's how a small oil company became a weapon in Trump's ... - POLITICOpolitico.com

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