Terrible’s Road House in Jean is the world’s largest Chevron gas station with 96 gas pumps. Chevron is mounting a campaign urging Nevadans to contact their state lawmakers to protest what it says is proposed California legislation that will drive Nevada’s gas prices even higher.
After a year of protesting California’s energy policies in advertising between its pumps, Chevron’s advocacy wing has expanded its campaign to Nevada. At up to 240 gas stations in the state, a new ad blames local gas prices on policies in California, a state that provides 88% of Nevada’s gas, according to the oil industry.
“We supply Nevada from northern California into Reno and southern California into Las Vegas,” said Mike Vomund, the company’s regional vice president of fuel sales. “The consumers of Nevada are also being directly impacted by these California policies.” Gas prices in Nevada are the fourth highest in the nation currently averaging $3.91 a gallon on Monday, according to AAA.
“Chevron’s political goal is to bolster its profit, not to do the right thing for American consumers.”
Alex Witt, senior adviser for oil and gas at Climate Power, an environmental advocacy organization that supports many Democratic causes
Chevron’s ad includes a QR code for people to scan while filling up their car. After adding in an address, the Chevron Advocacy Network provides a sample letter to send to elected officials. The campaign at local gas stations, which started at the beginning of September, asks residents to call their representatives in the state legislature.
The company’s request isn’t about policy in Nevada; it’s about California’s. The California Senate is convening this week in pecial session to consider a proposal from Gov. Gavin Newsom calling for refineries to store a minimum amount of oil. The bill last week passed the California Assembly, pushing the upper house to consider Newsom’s legislation.
Its chances in the Senate are not assured despite Newsom’s Democratic Party holding a 31-9 seat advantage in the chamber. The proposal is in response to the California Energy Commission’s finding that refineries’ unpreparedness for scheduled maintenance drove up gasoline prices in 2022.
The commission blamed last year’s summer price spike on refineries going offline “irresponsibly” without backup inventory. Both issues, Newsom argues, would be alleviated with a requirement for refineries to store 15 days worth of fuel even when they would shut down.
But Vomund said the plan would do the opposite, raising prices by restricting supply that could instead be in the market. While Vomund said the Chevron campaign’s overlapping with the session was coincidental, although the sample letter does reference Newsom’s proposal for refineries to store a minimum amount of fuel.
“I urge you to support and speak out for common-sense energy policies that will ensure affordable and reliable energy for our state,” the advocacy network wrote in its example. “Nevada’s economy, which depends on the stability and affordability of energy supplies, cannot bear these increased costs and potential shortages.”
Nevada’s gas prices are 70 cents above the national average, only lower than Washington, Hawaii and California, according to AAA. Chevron said the push in Nevada was to create public opposition to Newsom’s proposal, even though Nevada lawmakers hold no sway in pushing California legislative policies.
Climate Power, an environmental advocacy organization that supports many Democratic causes, said Chevron’s efforts were self-serving. “Chevron’s political goal is to bolster its profit, not to do the right thing for American consumers,” said Alex Witt, Climate Power’s senior adviser for oil and gas.
“They’re trying to distract from what they’re doing in their business, which is price gouging Americans at the gas pump so they can enrich their shareholders and wealthy executives.” Chevron made $9.9 billion in the first half of 2024, a 20% decline from 2023 but higher than prepandemic earnings, according toits financial disclosures.
Nevada’s gasoline supply is directly connected to Chevron, whose El Segundo, Calif., refinery provides 90% of the gasoline, diesel and jet fuel consumed in Las Vegas, the company said. The gas industry found allies in the Silver State with Republican Gov. Joe Lombardo. In a joint letter sent last month to Newsom, Lombardo and Gov. Katie Hobbs, D-Ariz., wrote they were concerned his plan to require California refineries to store a 15-day supply of gasoline would raise prices.
“We too all share concerns about the high cost of fuel and its impact on communities across our states,” the Nevada and Arizona governors told Newsom in the letter. “However, we’re concerned that mandating refinery inventory would directly raise the cost of fuel … and create further economic in stability in the region.”
After meeting with Lombardo and Hobbs, Vomund said that their “discussions centered on maintaining a stable and secure energy supply for all.” “Your letter reflects the oil industry’s talking points rather than facts,” Newsroom responded in his own letter. “Refiners’ failure to backfill supply doesn’t just affect Californians; it hits all of our residents, and that needs to change.”
kyle.chouinard@gmgvegas.com / 702-990-8923 /@Kyle_Chouinard