How Green Is My Cult: CA Now Importing US Gas From *check notes* 4000 Miles Away

AP Photo/Reed Saxon

I don't know if any of you got to see California's oleaginous presidential ass-pirant (and still technically governor), Gavin Newsom's performance at the Munich Security Conference. I know between Secretary of State Rubio's tour de force appearance, the Hillary traveling freakshow, and AOC's sideshow comedy act, there's been a lot of news made, so Randall Flagg Lite might have slipped past your radar.

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But he was there, fresh as skunkweed ankle-deep in the flow of a new septic tie-in, every 'lithe, ardent, energetic, a glimmer of optimism in his eye; Kennedy-esque' inch of his skeevy frame.

He was so comfortable onstage in that august assemblage that he could convivially remind the Germans that they knew what Nazis were. 

He genially whaps the German sitting next to him.

YEAH, YOU GUYS KNOW WHAT I'M TALKIN' 'BOUT NAZIS

As the governor worked the room, making the best possible impression - I only spotted a couple of his trademark shimmies - I thought of another thing he has in common with the Germans - a failed state.

While he's hiding out in Europe pretending to be someone...

...California is finally slipping off the cliff Newsom carved away for them with his insane war on the fossil fuel industry in the state. The greasy governor woke up too far too late to stop his state from reaping the consequences of his actions.

I'll bet Germany looks good right about now. Or at least very familiar but not mad at him.

California 'truly at a breaking point,' state senator says as refineries close and gas prices surge

California's fuel market is entering another period of strain as refinery capacity continues to shrink in the nation's largest gasoline market. The planned closure of Valero's Benicia refinery, one of the state's remaining major facilities, is expected to tighten supply in a system that already operates with little margin for disruption.

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Gas prices 'surging'? Hang on. Newsom said that wouldn't happen.

What's a surge? Almost half a buck in two weeks.

Gasoline prices in California have climbed in the past 14 days, approximately 40 cents per gallon.  In the Northern part of the state, farmers and ranchers are feeling the increase in gas and diesel.

Two refineries are shutting down, which means that this 64% reliance on imported foreign oil is going to increase in a state with almost 2 BILLION - with a 'B' - barrels in proven reserves.

...That tightening supply has already translated into higher prices and growing uncertainty for drivers, according to California lawmakers, who warn the situation is no longer theoretical.

"California is truly at a breaking point. Refineries are closing, supply is diminishing, and my constituents are paying more at the pump every single day," Republican state Sen. Suzette Martinez Valladares said. 

The Benicia facility, located in Northern California, has played a significant role in supplying gasoline to a state that consumes more fuel than any other except Texas. Its closure follows a wave of refinery exits that has steadily reduced California's ability to produce its own gasoline, leaving the state increasingly dependent on a small number of remaining plants and imported fuel that must meet its unique regulatory standards.

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Well, why not buy American? Well, actually, they are.

But thanks to Newsom and Co.'s making this misery, compounded by the Jones Act rules for shipping, the Texas gasoline they're buying in a desperate attempt to fill the gaps is coming from *checks notes* the Bahamas.

That's over a four-thousand-mile trip, burning dirty, filthy old shipping 'bunker fuel*,' all the way through the Panama Canal to California.

So, virtue-signaling California can pretend to be greener than you or me.

You couldn't make this up if you tried.

US supplies of gasoline are being shipped out of the country to travel thousands of miles via the Bahamas before finally ending up in California, a state battling shrinking fuelmaking capacity and high pump prices.

Shipments on the circuitous route are increasing. California imported more gasoline in November than ever before, with more than 40% coming from the Bahamas.

The lengthy journey adds another layer of cost to California’s already expensive gasoline market. Yet the phenomenon isn’t likely to disappear soon, thanks to a combination of disappearing oil refineries, a lack of interstate pipelines and a loophole in a 106-year-old maritime law.

And heck, yeah - Texas refiners are more than willing to ship it. The margins for fancy pants CA fuel are enormous compared to the rest of the country.

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GO WEST, YOUNG MAN!

...Under the Jones Act, any goods shipped between US ports must travel on US-built, owned and operated vessels. Those tankers are in short supply and expensive to charter. There are about 55 Jones Act-compliant oil tankers worldwide, compared with more than 7,000 oil tankers globally.

“Even if there are such vessels, they would charge more than a foreign-flagged vessel would,” said Martin Davies, director of Tulane University’s Maritime Law Center.

When California’s specialized gasoline trades at a premium, particularly during refinery outages, Gulf Coast refiners can capture higher margins by sending barrels west, De Haan said. Routing through the Bahamas allows them to avoid higher-cost US-flagged shipping and preserve that spread.

As Katy Grimes at the California Globe notes, this is already affecting the farmers in the inland valleys, because those tankers aren't beringing in the diesel products they are going to need that will shortly be hard to find and expensive as hell when they do.

...Petroleum expert Michael Ariza, told the Globe Friday, “I’m afraid Valero will have more of an effect on our region. In the Bay Area we only have two out of five refineries producing gasoline, jet fuel, and propane. Valero is down, Conoco Phillips in Rodeo and Marathon in Martinez are only producing bio diesel!”

...A Northern California farmer near Chico, California told Ariza, “It’s happening big time!! We knew it!! You tried to tell everyone
We bought a lot of red diesel for the tractors for harvest already.”

The farmer continued:

The high price of diesel and gas for our tractors and in our farming almond and apiary operation is going to put a lot of farmers and beekeepers out of business especially during harvest in July thru October for almonds, walnuts and honey production. If there is a shortage we won’t be able to get our crops harvested.
The price has already drastically risen and all the farmers are really worried.

Most farmers in our area Northern California use diesel pumps for irrigation and it will be unaffordable.”

...He said, “With the price of fuel increasing due to refineries shutting down, many bee keepers and farmers will not be able to continue to operate the equipment they need on a day to day basis.”

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Where's much of the fuel coming from now?

...Notably, China is bringing in a lot of our jet fuel and the gasoline their Chinese Costco tankers, Ariza said. Why would Gov. Gavin Newsom allow that? (she asked tongue-in-cheek).

This isn't a Jones Act problem; this is a California problem.

As Katy's article pointed out, in 1988, the state only had to import 4.5% of all the oil it used. 

Period.

...Transportation of gas through the Panama Canal is going to be expensive no matter what ship does it.

By 2020, that oil import figure was over 70% and climbing.

If there's any tropical activity in the Caribbean or the Gulf this summer, there goes the cost and the transit time for those vessels from the Bahamas.

I wonder where Newsom will be hiding by then?

Wherever it is, there will be plenty of cameras, guaranteed.

*Cargo ships primarily burn Heavy Fuel Oil (HFO), a thick, inexpensive residual byproduct of the refining process, often referred to as "bunker fuel".


 

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