Chevron Says California Carbon Plan Adds $1/Gal, Declares Force Majeure at Leviathan
Chevron warned that California’s proposed Cap-and-Invest changes could raise gasoline costs by over $1/gal by 2030, force refinery closures and jeopardize 536,000 petroleum jobs and $64 billion in tax revenue. It also declared force majeure at Israel’s Leviathan field, halting 8.1 billion cubic meters of gas supply.
1. Warning on California Cap-and-Invest Amendments
Chevron urged state regulators and Governor Gavin Newsom to reconsider tightening of greenhouse gas limits under California’s Cap-and-Invest program, arguing that allowance prices could climb toward $135 per ton. The company warned this would add over $1 per gallon to fuel costs by 2030, exacerbate the 18% loss of refining capacity, destabilize supply and endanger 536,000 jobs plus $64 billion in annual tax revenues.
2. Force Majeure at Leviathan Offshore Field
Chevron declared force majeure at the Leviathan gas field offshore Israel after a government-ordered suspension on security grounds. Leviathan delivered 8.1 billion cubic meters of gas to Israel, Egypt and Jordan in the first nine months of 2025, and its $2.3 billion expansion to boost capacity from 12 to 21 billion cubic meters per year has been postponed.