From the Daily Caller
Irving Klinsky
Contributor
California regulators have proposed various government interventions in the oil industry to combat future spikes in energy prices, according to a report released Thursday by the California Energy Commission (CEC).
As the Golden State continues to pursue its green agenda, CEC expects some of California's nine refineries to close due to lower demand, which would give remaining refineries greater pricing power and increase the likelihood of a spike in natural gas prices, the study said. Summarize. To address the problem, the committee proposed various government interventions, including expanding regulation of private refineries, establishing state-owned refineries and increasing imports. (Related: Chevron leaves California after years of 'confrontational' Democratic policies)
“Deployment of ZEV [zero-emission vehicles] A strong public transportation system is critical to meeting the state’s climate goals, reducing local air pollution and ultimately eliminating dependence on unstable global oil markets. As demand for gasoline shrinks, refineries may close or switch to processing cleaner transportation fuels,” the report said. “This will result in fewer gasoline refineries, increased market concentration, and the associated market problems that often accompany it.”
To address market concentration issues, the CEC proposed various state interventions, including the establishment of state-owned refineries.
“California will purchase and own the state's refineries to manage the supply and price of gasoline,” the study's authors wrote. The initiative would range from “one refinery to all refineries in the state.”
However, the CEC seemed to question whether it was counterintuitive to create state-owned refineries to replace private refineries that have closed due to government energy policies, asking: “As demand for fossil fuels declines, will the presence of state-owned refineries decrease?” Strain refining Will factory capacity be phased out in an orderly manner?
The CEC also recommended increasing oil imports, saying: “As the transition unfolds, California may wish to consider establishing relationships with suppliers, refiners or marketers to introduce CARBOB [California-specific gasoline] With regular shipping into California, consumers can be assured of a reliable imported supply.
Finally, the California Energy Commission proposed new regulations “requiring[ing] “Refineries and terminals maintain emergency reserves of gasoline fuel at refineries and terminals,” which they will be required to release “during periods of price shocks.”
California plans to ban the sale of purely gasoline-powered cars after 2035. [zero-emission vehicles]Millions of petroleum-fueled vehicles are expected to remain on California's roads and highways beyond 2035,” the CEC study concluded. “These vehicles require fuel to operate, and many may be owned by low-income individuals and families, making it even more compelling to find ways to ensure affordable, reliable, equitable and secure supply.”
The study noted that “Californians already pay more for gasoline than the national average…partly due to state and federal mandates to improve air quality.” In 2022, energy prices soared in the wake of the Russian-Ukrainian war, and wholesale gasoline prices in California soared to At $6.21 per gallon, it’s “$2.61 higher than the U.S. average.”
The California Energy Commission did not immediately respond to a request for comment.
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