POLITICO Energy Why Gavin Newsom is softening his stance on Big Oil
Aug 5, 2025
Gavin Newsom's surprising shift from critic to supporter of Big Oil raises eyebrows amid California's fuel crisis. He navigates the tightrope of stabilizing fuel supplies while trying to uphold climate goals. The podcast delves into the tensions within the Democratic Party as they juggle environmental aspirations against economic realities. As refinery closures threaten fuel prices, Newsom's recalibrated policies spark mixed reactions from environmentalists and political peers. The discussion highlights the broader national challenge of balancing climate action with rising living costs.
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Newsom's Shift Supports Big Oil
- Governor Gavin Newsom shifted from attacking big oil to supporting refinery operations in California.
- This change aims to prevent refinery closures that might spike gas prices by over $1 per gallon.
Why California's Fuel Prices Spike
- California's fuel vulnerability stems from limited refineries and lack of infrastructure to import refined gasoline.
- Climate policies further raise fuel prices through carbon offsets and market concentration of few refiners.
Mixed Reactions to Newsom's Proposal
- Newsom claims his new oil support aligns with a just climate transition.
- Environmentalists are split, with some accepting the need for affordability and others furious about industry giveaways.