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Trump Launches Offshore Leases, Newsom Rejects Tax Holiday, Fuel Uncertain

5/9/2026

27 4 Full Breakdown

Summary

Trump Announces Leases

President Donald Trump announced six new offshore lease sales off California.
Governor Gavin Newsom rejected a gas-tax holiday as gasoline rose to $6.16 per gallon.
Two California refineries shut down in six months, removing roughly 200,000 barrels of fuel daily.
The tanker New Corolla arrived at Long Beach with 2 million barrels of Middle-East crude.
Officials say California has enough fuel for six weeks but face uncertainty afterward.

Summary

Wirth Warns Costs

The final Middle-East tanker for California unloaded at Chevron’s El Segundo refinery on April 23, 2026, ending that supply route.
CEO Mike Wirth warned that “shock absorbers are being drained” as state refining capacity has declined for a century.
The Jones Act raises coastal tanker costs, prompting analysts to project California gasoline could climb to $7 per gallon, far above the national average.

History

Historical Context

During the October 1973 OAPEC oil embargo, U.S. gasoline prices jumped from $3 to $12 per barrel, prompting President Richard Nixon to impose price controls and launch emergency fuel allocations, while states resorted to odd-even rationing. The shock spurred the creation of the International Energy Agency and national strategic stockpiles, a model echoed in today’s California fuel-supply challenges.

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Trump Announces Leases

President Donald Trump announced six new offshore lease sales off California.
Governor Gavin Newsom rejected a gas-tax holiday as gasoline rose to $6.16 per gallon.
Two California refineries shut down in six months, removing roughly 200,000 barrels of fuel daily.
The tanker New Corolla arrived at Long Beach with 2 million barrels of Middle-East crude.
Officials say California has enough fuel for six weeks but face uncertainty afterward.

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