Nevada's Fuel Dependency Crisis: A National Security Emergency in the Making

The Alarming Reality of Nevada’s Energy Vulnerability

Nevada finds itself in an unprecedented energy predicament that threatens both its economic stability and national security infrastructure. The state imports a staggering 86% of its transportation fuels from California, creating a dangerously fragile supply chain that is now collapsing due to back-to-back refinery closures in the Golden State. In October, Phillips 66 ceased operations at its Los Angeles facility, followed by Valero Energy’s announcement that it will close its San Francisco-area refinery by April. Together, these facilities represent approximately 17% of California’s refining capacity, creating ripple effects that will inevitably hammer Nevada’s fuel supply and prices.

This dependency crisis extends beyond mere economic concerns. Nevada’s military installations, including Nellis and Edwards Air Force bases, rely on the same vulnerable supply lines. In 2023, Governor Joe Lombardo declared a state of emergency when the CALNEV pipeline serving these critical facilities was shut down due to California wildfires. The state’s geographic isolation from other refining centers, particularly the Gulf Coast which houses 55% of U.S. refining capacity, compounds this vulnerability, making alternative supply routes logistically challenging and economically burdensome.

The Structural Challenges and Infrastructure Limitations

Nevada’s energy infrastructure shortcomings are both profound and multifaceted. The state possesses no significant crude oil reserves, producing a mere 170,000 barrels in 2024 compared to the nation’s nearly 14 million barrels per day. Its single crude oil refinery in Nye County is limited to asphalt production, leaving Nevada without any capacity to refine transportation fuels domestically. Furthermore, the state lacks substantial fuel storage capabilities for emergency situations, unlike California which maintains strategic reserves.

The pipeline infrastructure currently serving Nevada is both limited and vulnerable. Three major pipelines supply the state: Kinder Morgan’s CALNEV pipeline providing 90% of Southern Nevada’s fuel, H.F. Sinclair’s UNEV Pipeline supplying about 15% of total fuel from Utah, and Kinder Morgan’s SFPP North Line from California serving the Reno area. Each of these represents a single point of failure in a system that desperately needs redundancy and diversification.

The Human Factor: Leadership Response and Committee Formation

Recognizing the severity of this crisis, Republican Governor Joe Lombardo proposed the formation of the Nevada Fuel Resiliency Committee, which held its first meeting recently. The committee includes key figures like Miranda Hoover, state executive for the Energy and Convenience Association of Nevada, who has been working on fuel affordability issues for four years. Brett Compston, administrator of the Nevada Office of Emergency Management and Homeland Security, chairs the committee, highlighting the national security dimensions of this energy vulnerability.

State Senator Robin Titus, a voting member on the committee, brings particular concern for rural and northern Nevada’s vulnerabilities. She previously sponsored Senate Bill 505 to establish an Energy Independence Task Force, though it never received a hearing. Her perspective underscores the geographical disparities in how this fuel crisis impacts different communities across the state.

Proposed Solutions and Timelines

The committee is exploring multiple infrastructure solutions, primarily focused on pipeline expansion. H.F. Sinclair is evaluating an expansion of its UNEV Pipeline from Utah that could increase capacity into Las Vegas by approximately 35,000 barrels daily, with completion targeted for 2028. Phillips 66 and Kinder Morgan are pursuing the Western Gateway Pipeline, a 1,300-mile project from Texas that would supply gasoline to California, Arizona, and Nevada, with completion projected for 2029.

However, these projects represent long-term solutions requiring years of development and substantial investment. The committee is also considering immediate measures, including expanding storage capacity and addressing regulatory barriers to infrastructure development. The fundamental challenge, as Miranda Hoover noted, is that building a refinery in Nevada isn’t feasible due to the lack of appropriate crude oil resources.

The Broader Implications for American Energy Policy

This crisis transcends state borders and speaks to larger issues in American energy policy and infrastructure resilience. Nevada’s predicament illustrates how regional energy decisions can create national security vulnerabilities. When military bases cannot guarantee fuel supply due to dependencies on environmentally vulnerable or politically unstable regions, we have created a critical weakness in our national defense apparatus.

The environmental policies driving refinery closures in California, while potentially beneficial for climate goals, have created unintended consequences for neighboring states. This highlights the need for coordinated regional energy planning that considers cross-border impacts and ensures that environmental progress doesn’t come at the cost of energy security.

A Call for Strategic Energy Independence

What Nevada faces is not merely an economic inconvenience but a fundamental threat to state sovereignty and national security. The ability to move freely—whether for commerce, emergency services, or military operations—is a basic requirement of a functional society. When that mobility depends entirely on the political and environmental stability of another state, we have compromised our fundamental resilience.

The solutions must be multifaceted and bipartisan. We need immediate investment in storage infrastructure to create buffer capacity against supply disruptions. We require regulatory reform to accelerate pipeline projects that can diversify supply routes. Most importantly, we need a national conversation about strategic energy independence that recognizes how interconnected our states have become and how vulnerable that interconnectedness can make us.

This isn’t about partisan politics—it’s about practical governance and national security. Democrats and Republicans should unite around the principle that American states should not be held hostage to the energy policies or environmental circumstances of neighboring jurisdictions. We must build energy systems that are resilient, diversified, and capable of withstanding regional disruptions without catastrophic consequences.

The Nevada Fuel Resiliency Committee’s work is crucial, but it cannot solve this problem alone. This requires federal attention, interstate cooperation, and a renewed commitment to energy infrastructure that serves all Americans reliably and securely. Our freedom of movement, our economic stability, and our national security depend on getting this right.