05:30 AM EDT, 03/25/2026 (MT Newswires) -- Chevron ( CVX ) may stop refining oil in the state unless taxes and regulations are eased, Bloomberg reported Wednesday, citing the company.

California is particularly vulnerable because it imports about 20% of its refined fuel from Asia, Bloomberg said, adding that supply risks are rising as Iran blocks the Strait of Hormuz, potentially slowing shipments from key suppliers, such as China, South Korea and Singapore.

Chevron's ( CVX ) refining head, Andy Walz, warned that fuel shortages are his 'worst fear', raising concerns about potential disruptions to gasoline and jet fuel supplies in major cities like San Francisco and Los Angeles, according to Bloomberg.

The report also said California's relative isolation from major US refining hubs in Texas and Louisiana, along with recent refinery closures tied to stricter climate policies, has made the state more exposed to global supply shocks.

Walz urged California officials to declare an energy emergency, ease regulatory burdens, and support in-state oil production, warning that the company would exit refining in the state within a decade without changes, Bloomberg reported.

A spokesperson for Newsom's office told Bloomberg that oil companies are exploiting the crisis. The spokesperson criticized policies under Donald Trump and pointed to the administration's use of emergency wartime measures, including easing shipping rules and supporting offshore drilling.

Chevron ( CVX ) did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)