'We're not going to invest in California': Chevron executive speaks out against Newsom's gas, oil supply proposal
After sending a letter to California lawmakers lambasting their decision to move forward with Governor Newsom’s proposal to set new fuel storage requirements for oil refiners, Chevron executive Andy Walz warned the company may no longer invest in the state it has served for 140 years. Ahead of a full State Senate vote on the proposal later this week, Walz spoke with KCRA 3 in a one-on-one interview. “Lawmakers need to know it, they need to be held accountable because what they’re doing is driving the industry out of the state and we just won’t be there,” Walz said. The governor’s proposal specifically gives the unelected California Energy Commission the power to set new rules around backup oil supply and unplanned maintenance for oil refiners in an attempt to prevent gas price spikes at the pump. Newsom’s administration has said the industry profits off of the price surges, especially significant ones seen in the summers of 2022 and 2023. Newsom’s proposal is close to the finish line on a special legislative session on gas prices and oil supply. Despite concerns from lawmakers from both parties, the proposal has so far cleared every legislative hurdle in the State Assembly and committees in the State Senate. In a recent hearing earlier this week, the chairman of the special Senate committee analyzing the issue, Sen. Steven Bradford, said he had several issues with the proposal, including skepticism around its impact on gas prices plus concerns with how it could impact the health and safety for refinery workers. Walz said the new regulations will add to the already restrictive environment the oil industry is operating in California. The state has spent decades working to shake off its reliance on oil and gas to curb the effects of climate change. Experts note 40 years ago California had dozens of refiners, and now the state is down to nine. “I want people to know we’re not going to invest in California and they’re not going to have the reliable products at an affordable price in the future. That is as simple as I can make it to make people understand,” Walz said. “Exxon is gone, Shell’s gone, BP is gone, they’re all gone because of the environment that exists there.” Chevron in August announced it officially planned to move its headquarters from California to Houston. It’s been one of several Fortune 500 companies anchored in California for more than 145 years. In 2024, it was ranked 15th on the list. Gov. Newsom at the California Economic Summit promoted the state’s economy and how for the first time in a decade, it is home to the most Fortune 500 companies of any state in the country. As Newsom exited the ballroom, KCRA 3 tried asking him about Chevron’s letter. “It’s good to hear from them, they didn’t show up to any hearings,” Newsom replied as he walked away. “We have always picked up the phone, we are always the ones the Energy Commission calls and wants to talk to and we show up. That is not true,” Walz said. “We’ve been at the table. The problem is they don’t want to hear the solutions we’ve come up with. The ideas we have don’t fit the political narrative that they’re trying to drive.” The State Senate is scheduled to vote on the proposal on Friday morning. If passed, it will need another vote in the Assembly to approve changes made to the proposal this week. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter
After sending a letter to California lawmakers lambasting their decision to move forward with Governor Newsom’s proposal to set new fuel storage requirements for oil refiners, Chevron executive Andy Walz warned the company may no longer invest in the state it has served for 140 years.
Ahead of a full State Senate vote on the proposal later this week, Walz spoke with KCRA 3 in a one-on-one interview.
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“Lawmakers need to know it, they need to be held accountable because what they’re doing is driving the industry out of the state and we just won’t be there,” Walz said.
The governor’s proposal specifically gives the unelected California Energy Commission the power to set new rules around backup oil supply and unplanned maintenance for oil refiners in an attempt to prevent gas price spikes at the pump.
Newsom’s administration has said the industry profits off of the price surges, especially significant ones seen in the summers of 2022 and 2023.
Newsom’s proposal is close to the finish line on a special legislative session on gas prices and oil supply. Despite concerns from lawmakers from both parties, the proposal has so far cleared every legislative hurdle in the State Assembly and committees in the State Senate. In a recent hearing earlier this week, the chairman of the special Senate committee analyzing the issue, Sen. Steven Bradford, said he had several issues with the proposal, including skepticism around its impact on gas prices plus concerns with how it could impact the health and safety for refinery workers.
Walz said the new regulations will add to the already restrictive environment the oil industry is operating in California. The state has spent decades working to shake off its reliance on oil and gas to curb the effects of climate change. Experts note 40 years ago California had dozens of refiners, and now the state is down to nine.
“I want people to know we’re not going to invest in California and they’re not going to have the reliable products at an affordable price in the future. That is as simple as I can make it to make people understand,” Walz said. “Exxon is gone, Shell’s gone, BP is gone, they’re all gone because of the environment that exists there.”
Chevron in August announced it officially planned to move its headquarters from California to Houston. It’s been one of several Fortune 500 companies anchored in California for more than 145 years. In 2024, it was ranked 15th on the list.
Gov. Newsom at the California Economic Summit promoted the state’s economy and how for the first time in a decade, it is home to the most Fortune 500 companies of any state in the country.
As Newsom exited the ballroom, KCRA 3 tried asking him about Chevron’s letter.
“It’s good to hear from them, they didn’t show up to any hearings,” Newsom replied as he walked away.
“We have always picked up the phone, we are always the ones the Energy Commission calls and wants to talk to and we show up. That is not true,” Walz said. “We’ve been at the table. The problem is they don’t want to hear the solutions we’ve come up with. The ideas we have don’t fit the political narrative that they’re trying to drive.”
The State Senate is scheduled to vote on the proposal on Friday morning. If passed, it will need another vote in the Assembly to approve changes made to the proposal this week.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter