Newsom’s Oil Reversal: Big Oil Triumphs!

A man in a suit speaking at an outdoor event with a microphone

Governor Gavin Newsom’s abrupt reversal on oil company penalties hands Big Oil a massive win, leaving California families crushed by sky-high gas prices under radical green policies.

Story Snapshot

Newsom drops price gouging penalties amid refinery closure threats from Phillips 66 and Valero, prioritizing industry over consumers.
Chevron warns CARB amendments will hike gas $1/gallon, destroy 536,000 jobs, and endanger national security.
California gas averages $4.81/gallon statewide, up to $5.74 in counties—double the national $3.25—after $59 billion in pump overcharges.
Newsom backs SB 237 for 2,000+ drilling permits and lax bonding on $1.6 billion idle wells, eroding prior setbacks.

Newsom Backs Away from Oil Accountability

Governor Gavin Newsom reversed course on price gouging penalties for oil companies in early 2026. Refinery giants Phillips 66 and Valero threatened closures, forcing Newsom’s hand. Consumer Watchdog charges this abandons reforms started in 2020-2025, including anti-fracking measures and community setbacks. Now, SB 237 sails through, authorizing over 2,000 drilling permits annually. This shift ignores lessons from Jerry Brown’s supply-side failures, handing oil firms expansion without accountability. Families pay the price at pumps while green promises fade.

Chevron Slams CARB’s Price-Spiking Agenda

Chevron President Andy Walz fired off a March 2026 letter to Newsom and CARB, blasting cap-and-invest amendments. The plan cuts 118.3 million allowances from 2027-2030, aiming for 90% carbon reduction by 2045. Walz predicts a $1 per gallon gas hike, loss of 536,770 jobs, and crippled refineries. This “adversarial shakedown” threatens West Coast fuel security, forcing reliance on distant supplies. With President Trump securing borders and energy independence nationwide, California’s regulatory overreach stands out as self-inflicted pain on working families.

BURN! US Oil & Gas Association BODIES Newsom Press Office 'Pajama Boy' in SAVAGE Back and Forth Over Gas https://t.co/Xy1fRhfGSz

— Twitchy Updates (@Twitchy_Updates) March 10, 2026

Idle Wells and Lax Oversight Burden Taxpayers

Regulators approved California Resources Corp.’s $1.6 billion acquisition of Berry Petroleum without higher bonding requirements. This deal controls nearly 50% of California’s idle wells, saddled with over $4 billion in cleanup costs. Taxpayers face the bill as liabilities shift from firms to the public. AB 825 establishes a Western grid, risking Enron-style price spikes and coal dependency. Meanwhile, LA’s Inglewood field phases out under enforced setbacks, yet new drilling booms erode health protections for Kern County communities.

Consumers Hit Hardest by Green Overreach

California gas prices average $4.81 statewide and $5.74 in high-cost counties, versus $3.25 nationally. CEC probes uncovered $59 billion in overcharges from 2015-2024. Low-income households suffer most, spending disproportionately on fuel amid refinery consolidations. Newsom’s office deflects to CARB’s May 2026 hearing, but closed-door auctions persist via exemptions. Environmental groups decry CCS pipelines as greenwashing, extending fossil fuels over true renewables. Union jobs vanish, living costs soar—classic government mismanagement frustrating patriots nationwide.

Industry Pressures Expose Policy Flip-Flop

Oil firms leverage closure threats for wins like gutted CEQA reviews and CCS enablement. Legislators Grayson and Petrie-Norris champion SB 237 and AB 825, blending industry ties with climate rhetoric. Consumer Watchdog insists the accountability movement outlives Newsom’s bailouts. Chevron highlights Eastern grid resistance as a model. With Trump’s America slashing illegal immigration and boosting domestic energy, California’s saga underscores radical agendas’ toll: eroded affordability, job losses, and national security risks for everyday citizens.