Crude awakening as Gavin Newsom slammed over California’s gas production decline

As gas prices in the U.S. are expected to rise, California Governor Gavin Newsom came under fire Monday from the U.S. Oil and Gas Association for his comments blaming President Donald Trump and the war in Iran as triggers for the increase.

“Holy crap. Where to start?” the group wrote on X. “California’s oil & gas resources are massive but underutilized. In fact, CA’s production has dropped by half since 2005.”

The comments come after Newsom pointed out that California gas prices have stayed under $5 for two years, even though they are the highest in the country.

The premier trade association representing the domestic oil and natural gas industry also noted that the resources for production exist, yet the state has seen a decline.

“Proved oil reserves: ~1.4B barrels with some estimates as high as 30B. Natural gas: Proved ~1 Tcf; est. onshore 2–3 Tcf, with offshore around 16 Tcf,” they wrote, referring to the total hydrocarbon potential of major oil and gas fields. Tcf stands for trillion cubic feet, a standard unit of measurement in the oil and gas industry.

“So why has production steadily declined? Take a wild guess. Maybe because of leadership like this,” the post added.

This is not the first time the oil and gas association has criticized Newsom.

Soon after Trump launched strikes against Iran, a major oil producer in the Middle East, Newsom blamed the president for “rattling markets.”

“California imports 63% of its crude from foreign countries — despite sitting on at least 1.7 billion barrels of proven reserves,” the nonprofit wrote in a Feb. 28 X post.

“The only state worried about rattling foreign markets is California because you have let yourselves become dependent on foreign supplies. You’ve done this to yourselves,” the post continued.

The criticism comes as Newsom faces backlash over the closure of two oil refineries under his governorship.

Phillips 66 and Valero are winding down operations in California. The Bakersfield Phillips 66 refinery closed in December 2025 and Benicia’s Valero facility is set to shut next month. Critics say Newsom’s strict environmental rules — including a 2023 refinery price-cap law — have accelerated closures and boosted reliance on imported oil. In response, Newsom signed SB 237 last year, allowing up to 2,000 new drilling permits annually in Kern County.

Regardless of oil production or the war’s impact on availability and price, Californians are likely to feel the strain in the near-term.

Analysts are warning that California drivers could see gas prices hit $5 per gallon.

“I’m not going to rule out $5, but I’m also not going to rule it in,” Matt McClain, a petroleum analyst with GasBuddy, told the Daily Breeze. “It’s not looking like we will have a ceasefire tomorrow by any stretch, but just in case we do, we won’t make any predictions. An ongoing conflict is unpredictable.”

Given the current uncertainty around the war with Iran and the president warning it could continue for another month, prices could rise by 10 to 30 cents as early as Wednesday morning.

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