Uploaded February 2026 | Updated September 2026, 2 weeks ago

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California is losing refining capacity as major plants shut down and others reach points where large reinvestment decisions must be made. When a refinery chooses not to commit new capital, what happens next to supply and prices?

In this episode, UC Berkeley economist Severin Borenstein explains how those investment decisions are evaluated over decades and how market responses work when capacity tightens. He addresses the persistent price premium Californians pay above the national average and why outages have led to extended spikes, focusing on the logistics and incentives that determine outcomes.

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Views expressed in this video are the opinions of the host and guests and do not necessarily reflect the views of California Insider.
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