California Should Partner with Its Oil Producers

California’s independent oil producers stand ready to supply more local crude oil to local refineries, support California workers, and help deliver more affordable fuel. Sacramento should make that partnership a priority as it spends billions on natural resources and environmental programs.

The Legislative Analyst’s Office’s new review of the 2026–27 spending plan identifies $19.7 billion for departments overseen by the California Natural Resources Agency and California Environmental Protection Agency. That includes approximately $13.6 billion for natural resources departments and $6.1 billion for environmental protection departments. Spending is down 28 percent from the previous year, largely because of substantial one-time funding available in 2025–26.

Those expenditures deserve scrutiny, but California also has an opportunity to address affordability by supporting the energy resources already beneath its feet. CIPA’s message is straightforward: allowing responsible in-state production can provide refineries with more local crude, reduce dependence on overseas tanker shipments, and help ease costs that ultimately reach consumers at the pump.

Replacing imported barrels with California production can avoid ocean freight costs and reduce exposure to shipping disruptions. Although fuel prices also reflect global crude markets, refining capacity, taxes, and regulatory costs, stronger local supply can contribute to a more affordable and reliable fuel system.

The benefits extend beyond the gas station. Local production supports oil field workers, contractors, small businesses, and the communities that depend on their paychecks and tax contributions. Policies that suppress California production while refineries continue purchasing foreign oil send those economic opportunities overseas.

CIPA continues to urge state leaders to replace their adversarial approach with practical cooperation: timely permitting, workable regulations, and a commitment to responsible production. California’s oil producers are ready to help meet California’s energy needs. The state should partner with them.