VICTOR JOECKS: California’s gas prices could be big problem for Lombardo

California Gov. Gavin Newsom’s terrible fossil fuel policies pose a major threat to Gov. Joe Lombardo’s re-election campaign.

On Thursday, a fire broke out at the Chevron El Segundo refinery in Southern California. The fire was contained, and the refinery has already begun to resume operations. That should limit how much the disruption raises gasoline prices.

That’s good news for Las Vegas drivers because Nevada imports 88 percent of its gasoline from California. The El Segundo refinery is California’s largest. Its capacity is 269,000 barrels a day, which is 16.6 percent of California’s total capacity. If the fire had caused major damage, Nevada gasoline prices could have spiked by almost $1 per gallon.

This is because California doesn’t have much spare refinery capacity. In the early 1980s, the state had more than 40 refineries. Today, it has just 13. Part of the reason for the decline is that California Democrats and Newsom have been waging open war on fossil fuels. Last year, the governor signed a bill imposing new regulations on oil refineries.

Just days later, Phillips 66 announced it would close a Los Angeles-area refinery by the end of the year. Last April, Valero announced it would close its Benicia refinery by April 2026. Combined, those refineries represent more than 17 percent of California’s refining capacity.

The El Segundo refinery might be fully back online soon, but there won’t be a quick reprieve if the other two refineries shut down. If that happens, gasoline prices in California could soar to more than $8 a gallon. Given Nevada’s dependence on California, this could push prices here past $7 a gallon.

This is a major political threat to Lombardo. Rising gas prices are both extremely visible and extremely unpopular. President Joe Biden pledged to “end fossil fuels” on the campaign trail in 2019. But he released a massive amount of oil from the Strategic Petroleum Reserve in 2022. He wanted to artificially lower prices before the election for political reasons.

Lombardo is on record opposing Newsom’s actions. But if gasoline hits $7 a gallon, voters are likely to take their fury out on Lombardo — unless he shows them who’s actually responsible.

First, he should be warning Nevadans now about what may be coming — and why. Next, he should propose new federally funded pipelines that would bring oil from the east into Nevada. Finally, he should urge Nevada’s leaders to call on Congress to support his pipeline plan. He should try to make this a bipartisan effort. Tell the public that there’s a need to work across the aisle because all Nevadans need affordability at the pump. And if Democrats, including Attorney General Aaron Ford, refuse, Lombardo should point that out to voters.

Lombardo recently announced that he will be calling a special session. A legislative resolution on this topic should be on the agenda.

Leaders don’t get to pick their own crises. Even if the results are years away, Nevadans need Lombardo to take steps to eventually mitigate high gasoline prices.

Victor Joecks’ column appears in the Opinion section each Sunday, Wednesday and Friday. Contact him at vjoecks@reviewjournal.com or 702-383-4698. Follow @victorjoecks on X.