Part 2/12:
Once home to nearly 50 refineries in 1980, California's refining industry has contracted significantly. As of January 2025, only 13 refineries remain operational, a decline driven by demand shocks, environmental regulations, and industry consolidation. This shrinking capacity has made the state increasingly vulnerable to supply disruptions and price volatility because fewer facilities now produce California-specific gasoline, which already commands higher prices due to boutique blend standards.