Think $6 Gas Is Bad? It’s About to Get Even Worse in California

Golden State depends more on crude-oil shipments from Middle East than any other U.S. state

By Collin Eaton of The WSJ. Excerpts:

"U.S. drillers have fled the state and dozens of refineries have closed since the mid-1980s, forcing California to import 75% of the oil it consumes. Almost one-third of that comes from the Middle East"

"The energy crunch in California is worsening by the day. Gasoline prices averaged $6.16 a gallon Friday, the highest in the U.S. and about $1.61 above the national average. Diesel cost $7.48 a gallon, about $1.82 over the U.S. average."

"two of the state’s major refineries closed in the past six months, cutting off almost one-fifth of its fuel-making capacity."

"In mid-March, the Trump administration issued a 60-day waiver of the Jones Act, a rule put in place by then-President Woodrow Wilson in 1920 that prohibits foreign vessels from carrying goods between American ports. The waiver allows companies to ship oil and fuel to California on bigger tankers"

"The Trump administration also used the Defense Production Act, a Cold War-era law allowing presidents to speed up the flow of goods in emergencies, to allow oil producer Sable Offshore to restart an offshore pipeline. California regulators had kept the pipeline closed following a 2015 oil spill that fouled the coastline. It is now pumping 50,000 barrels a day of crude into the state."