This was a hard-hitting discussion by Mike Ariza, Downstream Expert, fresh off last night’s Town Hall with Professor Mische and a host of other key people discussing the horrific National Security Crisis in California and how the Strait of Hormuz is about to impact the entire half of the United States. Yes, you heard that correctly.
“ If you can’t move food, I mean, you can, if the Port of Los Angeles shuts down, the Porta Long Beach shuts down. And if you can move food people are going to starve in California and Reno and Vegas and Arizona. And that’s just, it’s a simple fact. If you don’t have the fuel, you don’t have the logistics. “
Mike Ariza, Downstream Energy Expert
Thank you, Mike, and we look forward to seeing you and the Professor with David Blackmon on the next Energy News Beat Panel on California National Security Crisis Unfolding.
1. California’s Energy Crisis
The Podcast focuses heavily on California’s declining refinery capacity (down to just 7 refineries) and the state’s growing dependence on imported fuel—40-60% of gasoline, diesel, and jet fuel now comes from outside the state. This has created infrastructure bottlenecks and supply constraints, leading to price spikes.
2. Economic Impact on Key Industries
- Agriculture: Farmers face bankruptcy due to skyrocketing diesel and fertilizer costs
- Fishing: Small fishermen struggle with increased regulations and monitoring costs
- Broader economy: Risk of food shortages and potential civil unrest if fuel supply is disrupted
3. Criticism of California’s Policy Framework
The discussion critiques several state policies:
- The “cap and invest” program, characterized as ineffective and benefiting certain groups
- Reluctance to approve new oil and gas permits despite available resources
- A perceived disconnect between environmental policies and practical energy security needs
4. Call for Federal Action
There’s an emphasis on the need for federal intervention, particularly invoking the Defense Production Act to stabilize the energy market and keep refineries operational.
5. Potential Solutions
We cover the alternatives, including:
- The Sable offshore project for increased domestic production
- Renewable diesel options, though, with concerns about high energy consumption and costs
For our next one, we are trying to get Professor Mische, Mike Ariza, David Blackmon, and me to discuss an in-depth issue. We will keep you posted, and would you like to see that one live so we could get your questions? Just let me know in the comments.
We need to federalize the Downstream market in California, or we may lose the Republic. It is that bad, and people are not believing me. As I wrote in one of my other articles this week. If Gov Newsom is not the Forest Gump of Energy, he is corrupt.
A Bank audit would prove it one way or the other.
Have a Happy Easter, and I am grateful for Christ and his sacrifice for my family and me. I would not be here without him.
Also, a shout-out to our great Sponsors:
A shout-out to Steve Reese and the Reese Energy Consulting group for sponsoring the Podcast https://reeseenergyconsulting.com/.
A shout-out to our New Sponsor, Data2 – We will be running an AI Centered Series and have lots of data rolling out!. https://www.data2.ai/resources/the-decision-lag-report
And we have WellDatabase rolling in as a new sponsor, and we will be getting their information next week. Thank you all again, and remember why we celebrate Easter. The resurrection story is the most important part of our lives.
