Question: Who do you trust?
A) The California Legislature
B) Big Oil
C) Governor Gavin Newsom
D) None of the above.
Newsom on Saturday called for a special session of the legislature specifically to address high gas prices at the pump.
What possibly could go wrong?
His solution, of course, focuses 100 percent on Big Oil.
After all, the state has done nothing to help California enjoy the second highest gas price in the United States based on reporting by Forbes as of Sept. 2, right?
The Forbes survey puts California’s average price at $4.65. That’s a penny less than national leader Hawaii and 49 cents more than the State of Washington coming in at third.
We pay a lot for gas.
One reason is reformulated gas.
Federal estimates put the cost differential between reformulated and conventionally refined gas at 30 cents a gallon.
Some 25 percent of the gas sold in the USA is reformulated.
That’s due to federal Environmental Protection Agency mandates aimed at reducing ozone levels in urban areas.
California has tighter mixing standards due to unique geological features such as the Central Valley and the Los Angeles Basin, so the cost is higher.
Summer blend requirements in effect from May 1 to Sept. 15, can add 15 cents or so to the cost per gallon.
For argument’s sakes, let’s say that California reformulated gas rules adds 40 cents to a gallon of gas in the Golden State.
If you’re in favor of ditching California’s reformulated gas mandate, get ready to wheeze and be prepared that you may take those savings with you to an early grave.
Anyone that was around California in the 1980s should able to recall air that was 50 percent dirtier than it is now, especially in the Central Valley.
Then there’s the greenhouse “tax” California-based refineries pay that is collapsed into the price of a gallon of gas to help fund high speed rail, among other things, to reduce the state’s carbon footprint.
Depending on what side you talk to, that adds between 10 and 25 cents a gallon although Newsom has previously stressed the oil companies pays it and not the consumer.
And if you think the oil companies eat that and don’t build it into the price of gas, text me your credit card number as you might want to buy the Golden Gate Bridge for $19.99 a month for three easy monthly payments with the San Mateo Bridge tossed in for free.
Yes, we have the highest gas tax at 68.1 cents per gallon.
But it’s the price we pay for roads to drive on.
Cut the gas tax back, and spend your money instead at your neighborhood alignment shop.
So what is Newsom’s big solution?
A state commission determined it is a supply issue.
Before you channel Homer Simpson and say “duh”, Newsom has a plan to save us all.
It’s simple.
The state is going to mandate oil companies keep larger oil reserves to ride out supply fluctuations at their California refineries given they are the only facilities able to produce the more stringent reformulated gas Sacramento mandates.
That assumes, of course, refineries have adequate tank storage facilities.
No one in Sacramento has a clue if they do.
There would, however, be no need to build more tanks if more oil was pumped within California’s borders from quick delivery to nearby refineries
According to annual California Energy Commission reports regarding the source of barrels of oil refined in the state, in 2023 some 23.4% or 123,947,000 barrels of the roughly 528,000,000 barrels of oil we used was pumped from the ground in state.
That compares to 1982 when 61.4 percent or 365,942,000 barrels of the 590,000,000 barrels of oil we used originated in California.
If you noticed, despite significantly more cars than 40 plus years ago, oil consumption has gone up just over 10 percent while oil that originated in California that is refined into gas is now a third of what it was.
Why not just allow more oil pumping in California?
Just joking.
We know who won’t allow that to happen.
Let’s say the oil refineries need more tanks to have more oil in reserve.
How much of a solution will that be?
If the law Newsom wants is passed and more oil tanks are needed, is Newsom going to fast track them, make them exempt from the permitting and environmental review process that can easily take three or so years, plus make them immune to lawsuits?
Assuming there’s no lawsuits to stop tank farm expansions from going forward, you’ve looking at 2029 at the earliest.
Unless Newsom or his successor are going to backtrack with the legislature’s concurrence, gas demand is going to start dropping making the entire reserve idea superfluous as it won’t be needed by then.
In case Newsom has forgotten, he championed the idea of implementing a mandate to outlaw the sale in California of new vehicles powered by fossil fuel starting in 2035.
Last year, electric vehicles already accounted for all new vehicles sales.
The use of existing fossil fuel powered vehicles will continue after 2035.
Given the average lifespan of cars, they will almost all be gone from California by 2050.
Rest assured the state will slap a severe tariff if a Californian buys a new car out of state and drives it here.
If they don’t do that, the odds are they will charge such culprits with a felony and confiscate the vehicle.
And let’s forget the mantra of committed greenies who favor higher gas prices to squeeze people out of driving vehicles powered by an internal combustion engine.
It is why Newsom championing lower gas prices seems a bit disingenuous.
If he’s truly driven by a desire to cut the cost of driving for Californians, why doesn’t he just ease up on the accelerator on his green initiatives surrounding the automobile?
That said, wouldn’t easing up on the cost of driving gas-powered vehicles make people feel rich enough to drive more?
Newsom’s political preening as the self-anointed executioner of the internal combustion engine in California trying to ease the pump pain of Californians makes all of his huffing and puffing as believable as the CEO of Chevron calling for the nationalization of oil companies.
This column is the opinion of editor, Dennis Wyatt, and does not necessarily represent the opinions of The Bulletin or 209 Multimedia. He can be reached at dwyatt@mantecabulletin.com
