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| Economy |
| California Regulators Propose Gov't Takeover Of Oil Refineries To Stave Off Energy Crisis |
| 2024-08-04 |
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… released Thursday by the California Energy Commission (CEC). As the Golden State continues to pursue its green agenda, the CEC expects some of California’s nine oil refineries to be shuttered due to falling demand, which would give the remaining refineries increased pricing power and raise the possibility of a surge in gas prices, the study concluded. To solve this problem, the commission proposed a variety of government interventions, including expanded regulation on private refineries, the establishment of state-owned refineries and an increase in imports. (RELATED: Chevron Leaving California Behind After Years Of ‘Adversarial’ Dem Policies) “The deployment of ZEVs [zero-emission vehicles] and a robust mass transit system are critical for achieving the state’s climate goals, reducing local air pollution, and eventually eliminating dependence on the volatile global petroleum markets. As demand for gasoline shrinks, refineries may close or convert to processing clean transportation fuels,” the report states. “This will lead to fewer gasoline refineries, with increased market concentration and associated market problems that often accompany it.” To address the market concentration issue, the CEC proposed a variety of state interventions, including setting up state-owned refineries. “The State of California would purchase and own refineries in the State to manage the supply and price of gasoline,” wrote the study’s authors, with the scope of the initiative ranging from “one refinery to all refineries in the state.” However, the CEC appeared to question whether creating state-owned refineries to replace privately-owned refineries pushed out of business by government energy policy was counter-intuitive, asking, “as demand for fossil fuel declines, will the presence of State-owned refineries inhibit an orderly phase out of refinery capacity?” The CEC also suggested increasing oil imports, saying, “as the transition unfolds, California may wish to consider developing a relationship with a supplier and refiner or marketer to bring CARBOB [California-specific gasoline] into California via regular ship loads so consumers are assured a reliable import supply.” Finally, the California Energy Commission proposed new regulations, “requir[ing] refiners and terminals to maintain contingency reserves of gasoline fuel in refineries and terminals,” that they’d be required to release “during price shocks.” California is set to ban the sale of purely gas-powered vehicles purely gas-powered passenger vehicles after 2035. However, “even under the most aggressive scenario transition to ZEVs [zero-emission vehicles], millions of petroleum fueled vehicles are anticipated to remain on California’s roads and highways beyond 2035,” the CEC study concluded. “These vehicles will need fuel to operate, and many of the vehicles may be owned by lower income individuals and families, making it even more compelling to identify ways to ensure an affordable, reliable, equitable, and safe supply.” Read more: https://wattsupwiththat.com/2024/08/03/california-regulators-propose-govt-takeover-of-oil-refineries-to-stave-off-energy-crisis/ |
| Posted by:Fred |
| #18 California should just take over the refineries (and oil wells) and just shut them down. That will do the most good for the environment. Then everybody will have to drive EVs. /sarcasm |
| Posted by: Rambler in Virginia 2024-08-04 16:21 |
| #17 ^All part of a plan to promote EV. |
| Posted by: Grom the Reflective 2024-08-04 15:50 |
| #16 If it's not a crisis yet it sure as hell will be when the government takes over. |
| Posted by: Abu Uluque 2024-08-04 15:48 |
| #15 Is this because Chevron just announced it is moving its corporate location to Texas? Or is it why Chevron is moving? |
| Posted by: Glenmore 2024-08-04 15:44 |
| #14 Taking of property must be accompanied by compensation in value. Worthless unbacked California bonds do not constitute something of value. |
| Posted by: Procopius2k 2024-08-04 13:11 |
| #13 All the safety conscious workers will flee, knowing how well the places will be maintained and I'd wager they all burn to the ground inside of 3 years. |
| Posted by: Silentbrick 2024-08-04 11:00 |
| #12 Well, aint that just the Socialist thing to do? Ca will slip into total failure, yes further than it is, and its getto will reach far beyond the cities, |
| Posted by: 49 Pan 2024-08-04 10:31 |
| #11 California is Venezuela complete with the fleeing population. |
| Posted by: Super Hose 2024-08-04 10:13 |
| #10 “The State ... would ... manage the supply and price of gasoline,” There you have it. |
| Posted by: Mercutio 2024-08-04 09:04 |
| #9 Great way to make sure they have NO oil refineries in a few years. You want less of something, put the government in charge of making it. |
| Posted by: DarthVader 2024-08-04 08:46 |
| #8 You ain't seen nothing yet: Hollywood Mirage How George Clooney plans to make Kamala Harris president despite everything she and her party have done - and why that should worry Americans. Op-Ed. |
| Posted by: Grom the Reflective 2024-08-04 08:19 |
| #7 |
| Posted by: Besoeker 2024-08-04 08:16 |
| #6 So, are these refineries going to be run as well as the road maintenance that they don't do? This is gonna be epic. I await the State of Cali suing itself over an oil spill. |
| Posted by: ed in texas 2024-08-04 08:10 |
| #5 So lemme see if I got this right. As EV sales surge, the demand for gas will plummet, so refineries will close, giving the remaining refineries power to raise prices even higher. Is that pretty much the story? |
| Posted by: Bobby 2024-08-04 08:02 |
| #4 Yep! California is taken another step towards State Socialism, by taking ownership of the Oil industry that itself has vilified for 30 years.... eg. Venezuela Nationalization of its oil industry. eg. NY Time article how Venezuela Nationalization of its oil industry is causing Serious Environment problems now. |
| Posted by: NN2N1 2024-08-04 04:58 |
| #3 Albert Speer got 20 years in Spandau for picking up where Fritz left off. Some say Speer himself was disappointed he didn't hang. |
| Posted by: DooDahMan 2024-08-04 02:29 |
#2  Nationalized and taken over. Manned by Todt workers (Organization Todt - OT, 1938-1945). No shortage of replacement people. Food and lodging provided on-site. Mining and road construction positions also available. |
| Posted by: Besoeker 2024-08-04 01:39 |
| #1 California is already a large net importer of gasoline having lost 10% of its refinery capacity since 2019 and about 30% since 1982. It also is a major importer of electricity and water fwiw. Woody Allen said the streets are clean because the garbage is made into movies. |
| Posted by: Lord Garth 2024-08-04 00:36 |