California refinery closures threaten U.S. fuel supply and national security

California has lost about 35% of its crude‑oil refining capacity after a series of state policies and regulatory actions. The shutdowns of the Phillips 66 Wilmington refinery in October 2025 and Valero’s Benicia refinery in January 2026, along with earlier conversions to renewable diesel, have cut gasoline output by roughly 40% and jet‑fuel output by 30%. The state now imports more jet fuel in two months than in the previous 36 years combined, straining the ports of Los Angeles, Long Beach and Oakland, which are not designed for such volumes.

The shortfall forces the U.S. military, international airports and food‑distribution networks that rely on California’s fuel to draw on emergency reserves, raising concerns of a systemic collapse that could affect the 39 million residents of the state and downstream regions. Industry leaders, including Chevron’s Andy Walz, have called for a state of emergency, warning that without federal intervention under the Defense Production Act the logistics chain could fail entirely.