In the Forever War Against CA's Gas and Oil Industry, Greasy Gavin Is a No-Quitter

AP Photo/Paul Sancya

A couple of things have happened over the past few weeks that shed even more light on California's oleaginous Randall Flagg doppelganger governor Gavin Newsom's unflagging efforts to simultaneously destroy the state's oil industry and what's left of its middle class.

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In what could be seen as a sign from the gods, there was a crash on the 20th of August (thanks to GlobalTrvlr for the heads up) which bodes poorly for Newsom's mandated future highways laden with nothing but electrically operated transport vehicles.

All it takes is one lone, all-electric semi-truck - in this case, a Tesla - in an off-the-road crash to gum up interstate travel for hours.

Eastbound Interstate 80 is reopening nearly 16 hours after a Tesla Semi caught fire east of Nyack early Monday, Cal Fire said.

Drivers were being kept off the interstate for at least half a mile in both directions because the Tesla electric vehicle's battery was on fire, said Jason Lyman, a California Highway Patrol spokesperson. The toxic fumes are an inhalation danger, he said.

...Officials shut down the roadway as the fire spread to nearby brush. Westbound traffic was stopped at Highway 20 and eastbound traffic was diverted at Colfax.

LiveCopter 3 showed crews dousing the truck, which did not have a trailer, with water. Lyman said crews were using "thousands and thousands" of gallons of water on the wreckage, which still measured about 1,000 degrees according to CHP's temperature guns.

Later in the day, Cal Fire dropped fire retardant around the semi to box it in and keep flames from spreading to the nearby forest.

...Lyman said that dealing with an electric big rig fire is a "newer thing" and crews are still learning how to handle it.

The Tesla rig involved in the accident didn't have a trailer. But another big-rig driver on the scene was, ironically, carrying Tesla truck parts to the factory, and he didn't hesitate to speak the obvious.

...Contreras said he won't drive an electric semi truck.

"What happened if this truck burned in the city or something they want to evacuate everybody?" he asked.

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That's not Newsom's problem. That's your problem. He's just the big idea guy saving the earth.

Everyone else gets to work through how to implement and survive his edicts.

In the meantime, the NTSB has announced an investigation, so yay, the feds are on it (I'm guessing only because they can take another shot at Musk).

In March of last year, the CA legislature bought off on 90% of an anti-industry push by Newsom, passing legislation under the guise of "transparency." The state now decides if oil companies are "making excessive profits."

California lawmakers on Monday approved Gov. Gavin Newsom’s legislation to increase transparency in the oil industry, ending a special session he called last year to penalize excessive profits.

After months of deliberation, the final bill does not cap oil refinery profits or penalize the industry as Newsom had intended when he accused companies of intentionally driving up gas prices to boost revenue. Instead, the bill, SBX1-2, gives the California Energy Commission the power to set a cap and impose penalties through a regulatory process if it decides that oil companies are making excessive profits and that a penalty will not result in higher prices for consumers.

When, in fact, most of CA's gas woes are self-inflicted miseries. They have a limited number of refiners available, period.

...Western States Petroleum Assn. argues that prices are higher in California as a result of the state’s policies to limit gasoline production.

California relies on about five main oil refiners to produce gasoline, which means the state is isolated from alternative backup sources, and maintenance issues can reduce supply and cause price spikes.

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This is not an industry drunk on profits, feeling sorry for itself, and lashing out by any means. In CA, the oil and gas industry is already under a Newsom-mandated death sentence. The governor is slicing away at oil and gas producers even as they make the walk to the gallows.

California will work to end oil extraction as part of nation-leading effort to achieve carbon neutrality

Action will halt issuance of fracking permits by 2024

...“The climate crisis is real, and we continue to see the signs every day,” said Governor Newsom. “As we move to swiftly decarbonize our transportation sector and create a healthier future for our children, I’ve made it clear I don’t see a role for fracking in that future and, similarly, believe that California needs to move beyond oil.”

...Under Governor Newsom’s direction, CARB will evaluate how to phase out oil extraction by 2045 through the Climate Change scoping plan, the state’s comprehensive, multi-year regulatory and programmatic plan to achieve required reductions in greenhouse gas emissions. Inclusion of the target in the Scoping Plan means that phasing out oil extraction becomes a part of California’s blueprint to achieve economy-wide carbon neutrality by 2045. CARB will evaluate economic, environmental and health benefits and effects of eliminating oil extraction. CARB’s scoping plan process will be informed by cross-sector collaboration and public input focusing on benefits in disadvantaged communities, opportunities for job creation and economic growth as we achieve carbon neutrality.

No more fracking for natural gas as of last January, and no more oil drilling in California by 2045. Newsom's "made it clear" HE "doesn't see a role" for any of it. 

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Between lawsuits and increasing regulatory pressures from the climate cult lunatics enabling Newsom's relentless scourging, even longtime CA native Chevron threw in the towel at the beginning of August, declaring they were packing their corporate bags and would vacate to friendly climes by December. Enough was enough.

...Before they pull chocks and ride off into the sunset, they'd like to clarify a few things.

Starting with "why."

Starting with "why."Chevron Corp. is relocating headquarters to Houston from California after repeatedly warning that the Golden State’s regulatory regime was making it a tough place to do business.

State Republicans were already sounding alarm bells in July - "Hey, dude - might wanna back off the accelerator. Planes don't fly on unicorn farts, and a lot of people work in O & G."

...The members stressed the detrimental impact ending O&G production would have on military readiness, since California is home to more than 25 active military installations:

“California’s crude oil refining capacity is lower than ever, with only nine remaining refineries for the transportation fuels California military bases need to function properly. If more refineries shut down in California, there could be significant disruptions to the effectiveness of our military bases in the state of California.”

...The members also requested answers to several questions regarding the state’s proposed transition away from O&G, including how the administration plans to transition the nearly 55,000 oil and gas industry jobs in California.

Never one to let common sense or any sense of responsibility impede his princely progress, Newsom issued a new demand on the 15th of August, aimed once again at those villainous and unholy oil industry profits.

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This time, he wants legislation - requested just prior to the close of the session, bringing problems of its own - requiring that refineries stockpile supplies if they're planning to close.

In the latest episode of his political fight with Big Oil, Gov. Gavin Newsom on Thursday called on California lawmakers to pass new requirements on oil refiners during the final two weeks of the legislative session.

Newsom’s last-minute proposal, his office said, would allow his administration to require that petroleum refiners maintain a stable inventory in order to prevent fuel shortages and price spikes when refinery equipment is taken offline for maintenance.

The plan marks a continuation of the governor’s campaign to blame the oil industry for high gas prices in California and another attempt by Newsom to jam legislation through the state Capitol. Newsom unveiled his proposal nearly two years after he announced a special session on oil prices that ultimately fell short of his call to cap the industry’s profits.

The assembly dithered and let the proposal lapse, which had the governor calling for a special session to take up his latest pet peeve. The Assembly broke down and has unhappily agreed to it, but, as of now, the state senate is telling the governor to suck a stone.

...The message was different on the other end of the Capitol, where Senate leader Mike McGuire (D-Healdsburg) told reporters that his chamber was prepared to pass Newsom’s oil proposal during the regular session but will not reconvene this fall.

The Senate Democratic Caucus is 100% united that we’re not going to come back for a special session,” McGuire said.

...It was not immediately clear if the Senate leader has the legal authority to refuse the governor’s call for a special session or whether Newsom would try to force McGuire to acquiesce.

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Lost in all the election-year public posturing by Newsom is the underlying cause and effect of his proposals while setting aside the fact that any refinery has limited storage capacity, to begin with. 

How about those massive price spikes and supposed profits because a refinery shut down - are those entirely attributable to industry malfeasance and greed? 

It turns out, mostly no. Even his own state energy commission corrected the governor's "misinformation," aka propaganda.

...Gov. Newsom claims that the state’s highest-in-the-nation gas taxes and prices are not what led to dramatically spiking gas/oil prices but because of price gouging by the oil industry. In May, Newsom even signed a gas price gouging law into place.

The California Energy Commission disagreed with the governor at the time, showing that gas price spikes occurred in the last few years because of refineries temporally going out of commission because not enough oil was getting to them. The CEC also said that lower prices this year were caused by many factors, including a cut in industry costs and profits, lower crude oil costs, and in how much environmental programs are getting from the industry, the Globe reported. Prices could even be lower, but as the CEC noted, the only thing that went up was the gas tax itself.

As of July 1, 2024, the CA state tax on a gallon of gasoline rose to 60¢.

...Now, the state's gas tax is 60 cents, whereas it was 58 cents from July 2023 to June 2024, according to the California Department of Tax and Fee Administration. This fee is on top of sales tax and the federal fuel tax for gasoline, which currently sits at 18 cents.

...Dating back to 2019, California's gas tax has increased every summer.

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Newsom's been driving that state into the dirt for six years now, so that explains the yearly, unceasing gas tax hikes.

As to that other, kinda-seems-significant refinery shutdown problem thanks to a lack of oil to refine?

Gosh. Permanently shutting down all of California's in-house oil production while keeping the refineries open in a state that is basically a land-locked island for oil deliveries...well...would seem to be a self-defeating move.

I mean, to any rational person.

Or maybe I'm just not that up to speed on how you save the Earth while cutting your own throat.

It hasn't worked for the Germans. We can see the smoking ruins from here.

Then again, every next crusading authoritarian socialist is convinced the other guy did it wrong.

Newson's all, "Hold muh taco, muchacho" - and full speed ahead.


 

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