California’s two major refineries have closed within the past year. The state now imports twice as much gasoline as it did before. No replacement supplier has been identified. The modeling that would show the full impact of that gap has not been made public.

The supply chain California now depends on runs through foreign refineries that are themselves struggling to source crude through the Strait of Hormuz, which is operating at less than half its normal capacity.

Prices at the pump have already risen by more than a dollar per gallon, and wholesale costs have climbed even faster. The next wave has not reached the street yet.

C.J. Nord, founder of Supply Chains for Good, and Skip York, senior vice president and chief energy strategist at Turner, Mason & Company and nonresident fellow at the Baker Institute, have been watching this from inside the supply chain.

Views expressed in this video are opinions of the host and guests and do not necessarily reflect the views of The Epoch Times.