California Faces Energy Squeeze as Refinery Closures and Global Risks Converge
California's energy system is experiencing increased pressure due to a combination of local refinery closures and rising global supply risks. Over recent years, the state has seen a reduction in refining capacity as facilities have shut down, converted to renewable fuels, or scaled back operations. This has led to a growing reliance on imported fuels to meet demand. The situation is exacerbated by geopolitical tensions in the Strait of Hormuz, a critical oil chokepoint through which a significant portion of the world's oil supply passes. Any disruption in this region can have widespread effects on global pricing and supply chains, impacting California's ability to secure necessary fuel imports. The state's stringent environmental regulations further complicate the situation, as they limit the number of refineries capable of producing compliant products, thereby increasing reliance on imports. 
