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New California gas price law another defeat for oil industry
Posted on 3/29/23 at 1:06 pm
Posted on 3/29/23 at 1:06 pm
New California gas price law another defeat for oil industry
SACRAMENTO, Calif. (AP) — It was just a few weeks ago that California Gov. Gavin Newsom called the oil industry the second most powerful force on earth, trailing only Mother Nature in its ability to bend the elements — both physical and political — to its will.
Yet on Tuesday, Newsom signed a new law that gives state regulators the power to penalize oil companies for making too much money, the first of its kind in the country. It's the type of legislation the oil industry might have crushed in the past. But on Monday, the bill cleared the state Assembly with only one Democrat voting against it.
“We proved we could finally beat big oil,” Newsom said Tuesday after signing the bill.
The bill is the latest in a string of defeats for the oil industry in California, a state many don't think of as a fossil fuel powerhouse. But for decades, California was one of the leading oil producers in the United States with a bustling industry that was a key part of the state's economy. The state is now the nation's seventh-largest oil producer, according to federal data.
The oil industry doesn’t mind a David vs. Goliath comparison “as long as you think we’re David and not Goliath,” Kevin Slagle, spokesperson for the Western States Petroleum Association, said about the industry’s influence at the state Capitol. “Just look at the results the last couple of years on legislation.”
Oil production has been steadily declining since the late 1980s from a combination of exhausting supplies and the state's changing policy priorities. A state law requires California to be carbon neutral by 2045, meaning the state would remove as many carbon emissions from the atmosphere as it emits. The state's plan to do so would reduce demand for liquid petroleum by 94% by 2045.
State regulators have banned the sale of most new gas-powered cars in California by 2035. And last year, the state Legislature approved a bill limiting where new oil wells can be drilled, providing buffer zones around homes, schools and other sensitive sites.
“We're never going to get it right, in terms of this transition (away from oil), unless we minimize and mitigate the power and influence of big oil in this country,” said Newsom, now in his second term in office and widely seen as a potential presidential candidate beyond 2024. “They're the biggest impediment to a just transition.”
LINK
SACRAMENTO, Calif. (AP) — It was just a few weeks ago that California Gov. Gavin Newsom called the oil industry the second most powerful force on earth, trailing only Mother Nature in its ability to bend the elements — both physical and political — to its will.
Yet on Tuesday, Newsom signed a new law that gives state regulators the power to penalize oil companies for making too much money, the first of its kind in the country. It's the type of legislation the oil industry might have crushed in the past. But on Monday, the bill cleared the state Assembly with only one Democrat voting against it.
“We proved we could finally beat big oil,” Newsom said Tuesday after signing the bill.
The bill is the latest in a string of defeats for the oil industry in California, a state many don't think of as a fossil fuel powerhouse. But for decades, California was one of the leading oil producers in the United States with a bustling industry that was a key part of the state's economy. The state is now the nation's seventh-largest oil producer, according to federal data.
The oil industry doesn’t mind a David vs. Goliath comparison “as long as you think we’re David and not Goliath,” Kevin Slagle, spokesperson for the Western States Petroleum Association, said about the industry’s influence at the state Capitol. “Just look at the results the last couple of years on legislation.”
Oil production has been steadily declining since the late 1980s from a combination of exhausting supplies and the state's changing policy priorities. A state law requires California to be carbon neutral by 2045, meaning the state would remove as many carbon emissions from the atmosphere as it emits. The state's plan to do so would reduce demand for liquid petroleum by 94% by 2045.
State regulators have banned the sale of most new gas-powered cars in California by 2035. And last year, the state Legislature approved a bill limiting where new oil wells can be drilled, providing buffer zones around homes, schools and other sensitive sites.
“We're never going to get it right, in terms of this transition (away from oil), unless we minimize and mitigate the power and influence of big oil in this country,” said Newsom, now in his second term in office and widely seen as a potential presidential candidate beyond 2024. “They're the biggest impediment to a just transition.”
LINK
Posted on 3/29/23 at 1:08 pm to djmed
All gas companies should close up shop in California. Let them have the gas desert they want.
Posted on 3/29/23 at 1:09 pm to djmed
The industry’s plan to handle this is likely re-routing refinery capacity to service states other than Cali.
Not many profits to threaten in Cali if you move most of your sales from there.
Not many profits to threaten in Cali if you move most of your sales from there.
Posted on 3/29/23 at 1:11 pm to teke184
CA will just die on the vine. We might as well declare the whole state a national park and let it all self implode.
Posted on 3/29/23 at 1:13 pm to djmed
quote:
New California gas price law another defeat for Californians, who will soon be living as they did during the first gold rush
Proper headline.
Posted on 3/29/23 at 1:17 pm to loogaroo
quote:
CA will just die on the vine. We might as well declare the whole state a national park and let it all self implode.
The problem with this is all the residents are going to flee to other states and bring their shitty voting habits that caused this ruin
Posted on 3/29/23 at 1:26 pm to djmed
quote:
“We proved we could finally beat big oil,” Newsom said Tuesday after signing the bill.
Yea. We will see.
Posted on 3/29/23 at 1:39 pm to djmed
EU just announced that by 2035 all new vehicles must be zero emissions. This means worldwide demand for fossil fuels goes down. That means prices go down. And that means states like CA are going to get the absolute shite kicked out of them. When gas prices fall off a cliff, people will leave CA by the millions. Texas, Florida, and other similar states are going to explode with profit.
Say hello to muscle cars, diesel trucks, cheaper air travel etc.
When I'm elected, I'm taking the brakes off of all of this, and purging all special assistance for electric vehicles. Now that China has secured most of the special materials needed for EV batteries, making an economy dependent on EVs means making it dependent on China and that's a non-starter.
US oil companies will also find new business avenues into developing nations as the fossil fuels will be cheaper for them as well, so those markets are going to expand.
CA is going to implode.
Say hello to muscle cars, diesel trucks, cheaper air travel etc.
When I'm elected, I'm taking the brakes off of all of this, and purging all special assistance for electric vehicles. Now that China has secured most of the special materials needed for EV batteries, making an economy dependent on EVs means making it dependent on China and that's a non-starter.
US oil companies will also find new business avenues into developing nations as the fossil fuels will be cheaper for them as well, so those markets are going to expand.
CA is going to implode.
Posted on 3/29/23 at 1:42 pm to djmed
How are they defining "too much money"? Are they looking strictly at costs/profits existing only within state boundaries? How are dividends viewed? Are they allowing carryforward losses?
This has huge potential to become a crippling joke to the state.
This has huge potential to become a crippling joke to the state.
Posted on 3/29/23 at 1:44 pm to Bard
“Too much money” is likely set as a gross profit amount, NOT the ROI used to obtain it.
$50b in profits sounds huge until you realize how much had to be spent to get that. ROI on oil and gas is much less than other industries.
$50b in profits sounds huge until you realize how much had to be spent to get that. ROI on oil and gas is much less than other industries.
Posted on 3/29/23 at 1:48 pm to djmed
Meanwhile all of his family wealth came from his father representing Getty Oil.
Posted on 3/29/23 at 1:54 pm to djmed
quote:
enalize oil companies for making too much money,
Yeah...the good old American dream. Its what we all strive for everyday. Make just enough not to be penalized
Democrats are fricking nuts.
Posted on 3/29/23 at 2:02 pm to teke184
quote:
“Too much money” is likely set as a gross profit amount, NOT the ROI used to obtain it.
$50b in profits sounds huge until you realize how much had to be spent to get that. ROI on oil and gas is much less than other industries.
Exactly. My feeling is that this wasn't a well-thought bill and they are just going after annual net profits (and "net" could have a very loose definition).
This has the potential of backfiring on a Wile E. Coyote level.
Posted on 3/29/23 at 2:18 pm to djmed
Big oil should spin off their California oil and gas investments into subsidiaries and then have the subsidiaries shutdown.
Posted on 3/29/23 at 2:27 pm to djmed
quote:The article doesn't seem to say what the law actually does. Are you saying it addresses gasoline prices?
New California gas price law
Posted on 3/29/23 at 2:29 pm to Bard
quote:
How are they defining "too much money"? Are they looking strictly at costs/profits existing only within state boundaries? How are dividends viewed? Are they allowing carryforward losses?
If the congressional hearings on TikTok have showed us anything, it's that our politicians (local and federal) know less than nothing about anything and couldn't possibly be any more out of touch than they already are.
This post was edited on 3/29/23 at 2:30 pm
Posted on 3/29/23 at 2:44 pm to djmed
If I’m an oil producer in that state, I ASAP move my production to another state. (which will lead to tens of thousands of job losses there)
Big oil should also respond by giving Newsom what he wants by not delivering a drop of gas there again.
Big oil should also respond by giving Newsom what he wants by not delivering a drop of gas there again.
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