California could get its first gasoline pipeline. Would that lower gas prices?

Core Insights - The electric vehicle (EV) market is expanding globally, but the U.S. faces complexities due to policy changes and market dynamics [1] - California is balancing the need for clean transportation with consumer affordability, especially as it prepares for refinery closures [3][4] - The proposed Western Gateway Pipeline aims to connect the Midwest to California, potentially supplying 200,000 barrels per day of refined products [6][8] Industry Dynamics - California's gasoline prices are the highest in the U.S., currently averaging $4.63 per gallon compared to the national average of $3.10 [4] - The state is experiencing a critical trade-off between reducing gasoline dependency and maintaining affordable fuel prices [3] - The pipeline project is seen as a response to California's unique fuel market challenges, which rely heavily on imports and local supplies [5][6] Company Actions - Phillips 66 and Kinder Morgan are leading the Western Gateway Pipeline project, which is expected to be operational by 2029 pending approvals [6][17] - The pipeline would reverse existing lines to facilitate east-to-west flow, enhancing supply resilience against disruptions [7][14] - California's government has approved new oil well drilling to attract oil companies, indicating ongoing reliance on fossil fuels despite decarbonization goals [7][14] Market Implications - The pipeline could mitigate price spikes caused by refinery disruptions, as seen in recent incidents affecting supply [13][14] - Experts suggest that increased supply could help lower fuel prices, although global crude oil prices will still play a significant role [10] - The project reflects a belief among energy companies that California will remain dependent on gasoline for the foreseeable future [14][20]