WEST COAST FUEL — Supply Constraints and The West Coast fuel system is entering a period of structural stress that policy-makers and market participants can no longer treat as cyclical. What is unfolding is not a temporary imbalance, but a convergence of long-term policy decisions, infrastructure constraints, and geopolitical exposure that is reshaping the region’s energy outlook. At the center of this shift is a steady erosion of refining capac- ity — particularly in California — which has historically anchored fuel supply not only for in-state demand, but for neighboring markets. As these constraints intensify, pipeline infrastructure projects emerge as a long-term solution for en- suring energy reliability and fuel stability. Regional Ripple Effects: Arizona and Nevada Nowhere are these pressures more visible than in Arizona and Nevada, which are deeply tied to California’s refining system. California currently supplies roughly one-third of Arizona’s gasoline demand and nearly all of Nevada’s. The planned closure of major refining assets — including facilities in the Los Angeles Basin and the Bay Area — could reduce California’s gasoline production capacity by more than 15 percent. That loss will not remain contained within California’s borders. Reduced output will likely translate into lower export volumes to neighboring states, tightening supply in already constrained markets. Compounding the issue is infrastructure. Pipeline capacity into the region is not optimal and alternative supply routes — whether by truck, rail, or barges — are costlier and less reliable. The result is a system where even modest disruptions — planned or unplanned — can trigger disproportionate price spikes across the region. The Pipeline Solution If refining capacity is the first constraint, infrastruc- ture is the second — and arguably the more solv- able one. There are active discussions around new pipeline projects that could connect Gulf Coast and Mid-continent supply to Western markets. These projects reflect a growing recognition that the region must diversify supply pathways to remain resilient. But here, too, policy friction looms large. Jorge Roman Energy Marketers of America (EMA) Regulatory Associate at Bassman, Mitchell, Alfano & Leiter Chtd Spring 2026 MARKETER MEMBER News 30 www.wpma.com / Spring 2026
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