Energy Companies Fleeing California, Proving Newsom Would Be 'Terrible President'

Sen. Cynthia Lummis says exodus of billionaires, CEOs, and major corporations shows Newsom's economic mismanagement.

Mar. 13, 2026 at 9:24pm

Got story updates? Submit your updates here. ›

Sen. Cynthia Lummis (R-WY) told Breitbart News that the exodus of energy companies from California, including Chevron, Phillips 66, and Valero, proves that Gov. Gavin Newsom (D-CA) would be a 'terrible president' due to his misunderstanding of the economy. Lummis cited the state's strict environmental regulations and the predicted closure of all in-state refineries by 2030 as driving factors behind the companies' relocation to red states with lower taxes and more business-friendly climates.

Why it matters

The departure of major energy companies from California raises concerns about the state's energy independence and its ability to meet its own fuel demands, as it will increasingly rely on imports. This exodus also highlights the broader economic challenges facing California under Newsom's leadership, which Lummis argues would translate to disastrous policies if he were to become president.

The details

According to Lummis, energy companies have warned the Newsom administration that proposed amendments to the California Air Resources Board's Cap-and-Invest program would 'destroy what remains of the state's oil refineries.' PBF Energy has warned that the amendments, if enacted, 'will inevitably drive in-state refining capacity to zero.' Chevron has also threatened to shutter its remaining refineries in the state, citing the 'death knell' of the investments required by the program.

  • In late October, oil refiner Phillips 66 announced it will 'cease operations at its Los Angeles-area refinery in the fourth quarter of 2025'.
  • Valero shut down its Benicia refinery.
  • GAF Energy last year closed its San Jose headquarters and will relocate to Texas.

The players

Cynthia Lummis

A Republican senator from Wyoming who criticized California Gov. Gavin Newsom's economic policies and their impact on the state's energy industry.

Gavin Newsom

The Democratic governor of California whose environmental regulations and policies have been cited as driving factors behind the exodus of energy companies from the state.

Chevron

An American multinational energy corporation that is relocating its headquarters from San Ramon, California, to Houston, Texas.

Phillips 66

An American multinational energy company that has announced it will cease operations at its Los Angeles-area refinery in the fourth quarter of 2025.

Valero

An American multinational oil and gas company that has shut down its Benicia refinery in California.

Got photos? Submit your photos here. ›

What they’re saying

“This is Gavin Newsom proving, beyond a shadow of a doubt, that he would be a terrible president because he just doesn't understand the economy.”

— Cynthia Lummis, U.S. Senator (Breitbart News)

“Honestly, when I visit California, I just think, this is one of the most beautiful, diverse places on Earth, and it's destroyed itself.”

— Cynthia Lummis, U.S. Senator (Breitbart News)

“This is a massive move for American energy independence. Wyoming has always powered this nation. Now we're leading the next generation of nuclear energy technology.”

— Cynthia Lummis, U.S. Senator (X)

What’s next

The U.S. Nuclear Regulatory Commission (NRC) approved TerraPower's construction permit for the Kemmerer Power Station in western Wyoming, marking the first commercial reactor construction approval in ten years.

The takeaway

The exodus of energy companies from California highlights the state's growing economic challenges under Newsom's leadership, raising concerns about energy independence and the potential implications if Newsom were to become president. This underscores the need for business-friendly policies that balance environmental concerns with economic realities.