This is like the dog that chases a car so often that it doesn’t know what to do when it finally catches up with the car. Doug Sheridan on LinkedIn again has some great points about the California refinery problems.
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Doug Sheridan Writes:
Allysia Finley writes in the WSJ, California is facing a political crack-up after two major refineries owned by Valero and Phillips 66 recently announced they will shut down. And lawmakers in Sacramento have experienced a political awakening after a study last month by a USC business school professor projected that gasoline prices could rise to more than $8 a gallon because of the constricted supply.
Now the lawmakers who backed the Gov Gavin Newsom’s climate diktats that brought about the refinery shutdowns are up in arms. “We have a crisis on our hands that may have been self-created by the actions perhaps taken by the state, by regulators,” Assemblyman David Alvarez huffed.
Newsom claimed the Legislature needed to give his regulators more power to punish refineries for price-gouging. “I don’t hear today any evidence” of such gouging, Alvarez said. Assemblywoman Cottie Petrie-Norris asked, “If California companies were raking it in, why did we have two refineries announce their intent to close?”
Assemblyman Mike Gipson mused that increasing fuel imports once the refineries are closed could increase pollution. California Air Resources Board Chairman Liane Randolph concurred. But when asked whether the board considered costs of its regulations, Randolph demurred, “We don’t analyze a retail cost” of gasoline or “specific costs to specific consumers.”
After the hearing, Assemblywoman Jasmeet Bains demanded Randolph’s resignation, “CARB has been given so much power, they were prepared to ban gas and diesel cars and trucks single-handedly. It is outrageous that the director would pursue such policies without even trying to analyze the impact on prices.”
Yes, it is. But who gave the board so much power? And who authorized Newsom’s other energy regulators to tax refinery “excessive” gross margins and micromanage their operations despite warnings from oil and gas companies that such laws could cause refinery shutdowns and increase gasoline prices?
Only last week lawmakers voted down legislation that would block a new CARB regulation, set to take effect next month, that independent economists estimate will increase prices by 65 to 85 cents a gallon. After abetting Newsom’s war on fossil fuels, they are running for political cover as the economic and political fallout hits.
The goal of California’s climate regulations is to raise gasoline prices to goad people to buy EVs. Politicians, however, don’t want to pay a political price for the costs and consequences of their policies, so they are lashing out at regulators. At a gubernatorial candidate forum last month candidates took turns lamenting the refinery shutdowns.
To replace the closing refineries, the state may have to import gasoline from China at a premium. The result? More pollution and carbon emissions. But don’t expect the Golden State’s oppressive economic climate to change until voters wake up and break up with those running Sacramento.
Several Key points from Doug’s article are that this was entirely intentional to raise the prices of gasoline and diesel, forcing consumers to buy EVs. Then, over the years, the Newsom administration convinced about 17 other states to follow their path of deindustrialization and financial devastation.
So, what is California going to do now that the EV tax incentives are about to be removed? This week alone, let’s examine the stories we’ve run on California’s National Security Risk to the United States.
The real question is how the Trump Administration will keep our military operating when the refineries close next year? Jet fuel, diesel, and gasoline are going to be in short supply.
This Week’s Stories on California as a National Security Risk.
California’s net-zero emissions plan is a ‘national security’ risk for America
California is a National Security Risk, Funding the Ukrainian/Russian War, and Closing Refineries in California
California to Examine Amazon Oil Ties Following Pleas from Ecuador’s Indigenous Leaders: A Closer Look at Newsom’s Energy Choices
California is a U.S. National Security Risk, and the Gas and Diesel Crisis Was Manufactured
California Helps Iraq Claim Top Spot Among OPEC Crude Oil Suppliers to the United States
And check out the podcast, California’s Energy Policies are a Problem: A Major National Risk?.
Mike Umbro and Ronald Stein are exceptional energy leaders with a passion for helping to save California.
We will be watching, but the clock is ticking. We have only a few months, and considering that gasoline and diesel are already being imported from India, and Russian oil was involved, it’s hard to imagine how this will turn out. Will President Trump have to take control of the refineries for military purposes? I believe the War Powers Act allows for it, but what a mess.
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