CIPA Statement on Bloomberg Report of Pipeline Shutdown Threat

September 12, 2025

SACRAMENTO, CA – Bloomberg recently reported that California’s largest inland oil pipeline, the San Pablo Bay Pipeline, is in danger of shutting down due to “severe financial distress.” The pipeline currently supplies crude from the Central Valley to Bay Area refineries, and any interruption would force refineries to rely even more heavily on imported crude arriving by ocean tanker or truck, driving up prices and pollution.

Rock Zierman, Chief Executive Officer of the California Independent Petroleum Association (CIPA), issued the following statement:

“California already spends $25 billion every year importing oil from foreign countries. These imports come from regimes that have little to no environmental, labor, or health protections, places that destroy the Amazon rainforest, and countries that don’t respect human rights. It is time to let California workers produce that oil here under the strictest laws in the world.”

“The Bloomberg report underscores the risk of Sacramento’s failed energy policies. If this pipeline closes, it will choke off supplies to Bay Area refineries, drive up costs, and put more tankers off our coast. The choice is simple: we can power California with California energy, or we can write bigger checks to foreign dictatorships.”

“Every barrel produced in California is a win for our workers, our communities, and our environment. California oil is the only climate-compliant oil in the world. If we continue to block in-state production, we risk refinery closures, higher gas prices, and the loss of 55,000 good-paying California jobs. Instead, we should give our refineries access to a reliable in-state supply.”

California currently imports about 78% of the oil it consumes, mostly from Saudi Arabia, Iraq, and Ecuador. The state’s demand remains steady at nearly 1.8 million barrels per day. With two major refineries already announcing closure plans, experts have warned gasoline prices could surge above $8 a gallon if local supply is not maintained.

To ensure additional pipelines do not shut down causing refineries to curtain production and gasoline prices to rise, local and state officials must allow for increased local oil production to feed the pipelines.

“We can either keep fueling our state with California oil, produced by California workers under California law, or we can keep exporting jobs, money, and our values overseas. The last barrel of oil California consumes should come from our state, not from dictatorships abroad.”

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