Michael Michet estimated that California’s regular gasoline prices could rise by 75% by the end of 2026.
On May 7, California Governor Gavin Newsom’s Bureau criticized an analysis by a professor at the University of Southern California (USC) for refinery closures and the impact of state policies on gas prices.
Two Phillips 66 refineries in Los Angeles are expected to close by the end of this year, while Valero refineries in the San Francisco Bay Area will be closed or rebuilt by April 2026. These and other factors could reduce purification capacity by 21% from 2023 to April 2026, Mische said.
“High operating costs, along with what many consider to be a hostile political and regulatory environment to refiners… creates an inevitable “death spiral” for the oil and gas industry. As a result, refiners have left Golden State. ”
The professor included a set of recommendations to roll back regulations and tempt refiners to stay in California.
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Brandon Richards, assistant director of the rapid response at Newsom’s Office, in his report, charged “fears for personal and professional interests.”
“Mr. Michet has not provided evidence to support his main claim that gas prices could rise 33.6% by the end of 2025 and 75% by the end of 2026,” he told the Epoch Times in an email. “Instead, there are some vague references to the ‘model’, but there are no details regarding the model structure, the data used, or how these numbers are estimated. ”
Miche confirmed during the Epoch era that he worked on a public project funded by Saudi Arabia’s public investment fund.
“(It) had nothing to do with oil. It was an antithesis of oil,” he said. “I’m not an advocate for the oil and gas industry.”
For his latest analysis, Mische said he ran 20-30 variations on the future gas price model in California, and “prices rose in all cases.”
“The real problem is that prices go up,” he said.
Miche also said he has not conducted research for personal benefit.
“There is no ominous motivation here,” he said. “I didn’t go to it with profit motives or self-service.”
In a letter on April 21, Newsom directed the vice-chairman of the California Energy Commission, Shivaganda to work closely with oil companies to “double the state’s efforts to ensure a safe, affordable and reliable transport fuel supply.”
