'We Won't Be Able To Make It' — After 140 Years In California, Chevron May Have To Close Its Gas Plants As State Plays 'Dangerous Game'

Chevron Corp. (NYSE:CVX) has been part of California’s economy since the days of horse-drawn carriages. Now, after more than a century in the state, the oil giant is openly warning it may not last another decade.

The concern isn’t buried in a report. It showed up in both a formal letter to state leaders and a blunt, on-the-record interview during the CERAWeek by S&P Global energy conference in Houston earlier this month.

Chevron didn’t leave its history up for interpretation — it spelled it out.

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In a letter to California Gov. Gavin Newsom and state officials in early March, the company wrote, “Chevron has operated in California for more than 140 years, supporting critical supply chains, providing thousands of jobs, and delivering substantial state and local tax revenues.”

That line wasn’t just background. It set the stage for what came next.

Weeks later, speaking during at CERAWeek, Chevron president of refining Andy Walz made the company’s position unmistakable.

“If it stays that way — Chevron will be gone in 10 years for sure. We won’t be able to make it,” Walz said, according to Bloomberg.

For a company pointing to more than 140 years in the state, the warning carries weight. This isn’t a newcomer weighing options — it’s a long-established operator signaling that the current path may no longer work.

Walz tied the warning directly to California’s regulatory and tax environment, which Chevron says is becoming too expensive to sustain refinery operations.

He also raised concerns about the state’s growing reliance on imported fuel.

“California has decided that they’re going to rely on imports… It’s a dangerous game,” Walz reportedly said at CERAWeek.

That concern connects directly back to the March letter, where Chevron warned that proposed changes to the state’s Cap-and-Invest program — along with existing refinery taxes and emissions rules — could damage the viability of remaining refineries.

California already imports roughly 20% of its refined fuel, much of it from overseas markets. Global instability and export restrictions can make those supplies less predictable, adding another layer of risk if in-state production continues to shrink.

Several refineries have already closed in recent years, with more reductions expected. Fewer local facilities can tighten supply and push prices higher, especially in a state that already has some of the highest fuel costs in the country.

State officials see it differently.

A spokesperson for Newsom said oil companies are “cashing in” on global conditions and running a “coordinated campaign” against California’s policies, according to Bloomberg. The governor’s office has pointed to international factors, including geopolitical tensions, as key drivers behind recent price increases.

Chevron, meanwhile, has been raising similar concerns for years and has already moved its corporate headquarters to Houston, signaling ongoing friction with the state’s regulatory approach.

For Californians, the debate isn’t abstract. If refinery capacity continues to shrink, it could lead to higher gas prices, tighter supply during disruptions, and broader cost increases that ripple into transportation, goods, and travel.

No closures have been formally announced, and any major shift would take time. But by pairing a documented 140-year presence with a 10-year exit warning, Chevron has made one thing clear: the pressure isn’t theoretical anymore.

Image: Shutterstock

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This article ‘We Won’t Be Able To Make It’ — After 140 Years In California, Chevron May Have To Close Its Gas Plants As State Plays ‘Dangerous Game’ originally appeared on Benzinga.com

‘We Won’t Be Able To Make It’ — After 140 Years In California, Chevron May Have To Close Its Gas Plants As State Plays ‘Dangerous Game’

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