Why the rush to complete the job? The state’s almost over the edge already.

hey y’all, watch this1

California Considering Taking Over Oil Refineries Because It Works So Well in Iran and Venezuela

David Strom, HotAir

“It's not only in the fever dreams of Right-wingers seeing communists behind every bush (hint: it's only every third bush). Apparently, according to the LA Times California's communist-inspired politicians are seriously considering taking over the refining of oil in their state.”

“Russia. China. Venezuela. Iran. More than a dozen countries make gasoline at state-owned refineries. Could California be next on the list?” asked the Los Angeles Times in an article this week. “California policymakers are considering state ownership of one or more oil refineries, one item on a list of options presented by the California Energy Commission to ensure steady gas supplies as oil companies pull back from the refinery business in the state.”

Strom: “I love that lede in the Los Angeles Times so much that I will quote it again:

Russia. China. Venezuela. Iran. More than a dozen countries make gasoline at state-owned refineries.

Could California be next on the list?

California policymakers are considering state ownership of one or more oil refineries, one item on a list of options presented by the California Energy Commission to ensure steady gas supplies as oil companies pull back from the refinery business in the state.

“The state recognizes that they’re on a pathway to more refinery closures,” said Skip York, chief energy strategist at energy consultant Turner Mason & Co. The risk to consumers and the state’s economy, he said, is gasoline supply disappearing faster than consumer demand, resulting in fuel shortages, higher prices and severe logistical challenges.

Gasoline demand is falling in California, albeit slowly, for two reasons: more efficient gasoline engines, and the increasing number of electric vehicles on the road. Gasoline consumption in California peaked in 2005 and fell 15% through 2023, according to the Union of Concerned Scientists.

Electric vehicles, including plug-in hybrids, now represent about 25% of annual new car sales. By state mandate, new sales of gasoline cars and light trucks will be banned starting in model year 2035.

Strom:

Is it any shock that oil refineries are shifting their production or closing down in California? Of course it isn't. California energy policies are designed to destroy the oil industry, up to and including pursuing a policy to bankrupt them through lawsuits. If the market weren't so huge--12% of the US population--I would recommend that the companies all bail out of the market as the insurance companies are doing. 

It is just too risky a place to do business. Proto-communists run the state.

…. California has EV mandates designed to eliminate internal combustion engines, but there is no way that they can do that in any conceivable timeline. Even when the date hits for banning the new sales of ICE cars, the ones on the roads will still be there and people will find ways to get them. The policy will fail, but the policy risk for companies in the market is enormous. Any company that can should and will insulate itself from the policy risks as quickly as possible.