Chevron Stays Key Supplier of California Fuel

Chevron operates two of California’s six refineries and supplies roughly one-third of the state’s gasoline. 3 billion in profit last year and remains the largest single refiner in a market that consumes about 13 billion gallons of gasoline annually.

California’s gasoline use has fallen 15 percent from its 2004 peak. State officials project demand could drop by half over the next two decades as electric-vehicle adoption rises.

During an interview last month, Democratic candidate Xavier Becerra said Chevron’s contributions were the company’s prerogative and that Californians still need its fuel. Opponents, including Tom Steyer and Katie Porter, called on Becerra to return the funds.

Chevron relocated its headquarters from San Ramon to Houston in 2024. In March, refinery president Andy Walls wrote to Governor Gavin Newsom that proposed carbon-tax changes would threaten the remaining refineries.

The Legislature eased drilling rules in Kern County and delayed a refinery profit-cap measure. The state’s climate regulator has considered granting free allowances under the cap-and-trade program to encourage continued operation. A California Energy Commission report released this month stated that repeated crisis interventions at individual facilities are unsustainable.

It listed options including legal obligations to operate and possible state ownership of assets. Emily Grubert, a civil engineer at Notre Dame who has advised the state, said a coordinated plan for refinery closures will be required to avoid supply disruptions.