Oil Tanker Arrives in Long Beach; Refineries Close, Pipeline Dispute Continues

The final oil tanker from the Middle East docked in Long Beach on Monday, marking what could be the last shipment from the Strait of Hormuz to reach California for now. This arrival comes as the state grapples with reduced refining capacity and surging gas prices. Once the tanker departs, California's fuel supply chain could face growing pressure, with no certain timeline for the next shipment.

President Donald Trump signed an executive order to grant Sable Offshore permission to resume operations on a pipeline in Santa Barbara that was shut down after a massive oil spill. California sued Sable Offshore in response to the executive order. A judge ordered an injunction against Sable Offshore continuing operations and imposed an $18 million fine on the company.

Sable Offshore is challenging state-level legal restrictions by leveraging federal intervention. The Santa Ynez pipeline restart marks a 15% increase in California’s in-state oil production, according to the Department of Energy. 5 million barrels of foreign crude oil each month, the Department of Energy stated.

The Phillips 66 Carson/Wilmington facility shut down in late 2025, while the Valero Benicia refinery shut down in April 2026. These shutdowns reduced California’s refining capacity by roughly 17–18%. California’s oil output has fallen by about 75% since its peak in the 1980s.

California imports more than 60% of its crude oil from foreign countries and Alaska. S. regions. These factors have contributed to the current energy challenges, including dependence on imported oil.

S. 2 cents per gallon for the state excise tax. As of Tuesday, gas prices in California stand at over $6 per gallon on average, according to AAA. California’s average gas price is about $2 more than the national average, AAA reported.

” The office noted that instead of correcting these vulnerabilities, California leaders are attempting to block efforts to restart critical infrastructure and strengthen domestic energy production. California has been at odds with the federal government over oil issues.

The Trump administration's executive order aimed to address the state's dependence on foreign oil amid perilous conditions in the Persian Gulf that have stranded tankers.

U.S. vowing to help tankers through the narrow lane.