California Fuel & Vehicles—Supply & Demand
Fuel & Vehicles Markets
- California fuel markets are tightly balanced due to California special fuel formulation requirements.
- In 2015, California’s fuel refineries received approximately 36.25% of their crude from California, 11.75% from Alaska, and 52% from foreign sources.
- All crude oil produced in California is used in California refineries.
- There are 38.8 million people in California, with forecasts of 48 million by 2040.
- 26 million passenger vehicles and light trucks, more than 1 million medium- and heavy-duty transport trucks that drive 185 billion miles
- California consumes 2 million gallons of gasoline per hour 24/7/365.
- Petroleum comprises about 92 percent of all transportation energy use, excluding fuel consumed for aviation and most marine vessels.
- According to the CEC, California is the third largest gasoline consuming market on the planet, behind China and the U.S. as a whole.
- The U.S. Energy Information Administration forecasts that by 2040, fossil fuels (oil, natural gas, coal) will still comprise 80 percent of the nation’s energy portfolio.
“Petroleum comprises about 92 percent of all transportation energy use, excluding fuel consumed for aviation and most marine vessels.”
Taxes & Compliance Costs
There are several tax and regulatory policies that contribute to the cost of gasoline and diesel. The following policies are drivers of cost in addition to inputs such as crude oil.
California Excise Tax:
30 cents/gallon (CEC)
18.4 cents/gallon (CEC)
10.3 cents/gallon (CEC)
Low Carbon Fuel Standard:
4.3 cents/gallon (CEC)
Other California Taxes:
10.62 cents/gallon (API)
Industry’s Economic Impact
LAEDC Study: Industry Economic Impact Analysis (Summer 2015)
Energy drives California and its state and regional economies. California relies on the state’s oil and gas industry to deliver affordable and reliable energy for every industry and business in California. As a result, the economy and jobs are severely at risk when petroleum and refined petroleum products are reduced.
“California relies on the state’s oil and gas industry to deliver affordable and reliable energy for every industry and business.”
In 2013, the oil and gas industry’s total economic impact:
- 455,940 direct/indirect and induced jobs
- $38 billion in total labor income
- $204 billion in economic activity, which was 5.7% of California’s total output.
In 2013, total fiscal impact:
- $21.2 billion in state/local tax revenues
- $12.8 billion in federal taxes
- Total: $34 billion in tax revenues
LAEDC Study: California Industries Linked To Petroleum (Fall 2015)
According to the LAEDC, the industries and jobs most closely linked to petroleum supply are: manufacturing, agriculture/forestry, and transportation sectors.
- Manufacturing: 1,260,430 jobs
- Agriculture: 511,000 jobs
- Transportation: 465,970 jobs
- Total: 2.4 million jobs statewide
These 3 primary industries purchased more than $24.2 billion worth of products from California’s refineries in 2013. A reduction in petroleum supply would result in a ripple effect that would severely damage California’s economy as well as massive job loss in the biggest industries in the state.
Jobs linked to petroleum represent 11.1 percent of employment in California and more than $187 billion in labor income.
Closely linked industry sectors account for 14.4 percent of the state’s GDP and combine to add more than $306 billion to the state economy.