California’s energy regulators are pushing the envelope with their newest proposals.
The California Energy Commission (CEC) has put forward ideas that some critics say go too far, including state ownership of oil refineries.
As California pursues its green energy goals, the CEC expects some of the state’s nine oil refineries to close due to falling demand.
They worry this could lead to higher gas prices. Their solution? More government control over the energy sector.
The most striking proposal is for California to buy and operate its own oil refineries.
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The CEC report states: “The State of California would purchase and own refineries in the State to manage the supply and price of gasoline.”
This idea ranges from owning one refinery to taking over all of them in the state.
California’s regulators want to take over an industry in the name of mitigating the costs of their own destructive policies. No wonder Chevron is fleeing for its life.https://t.co/CeSQqH01gt
— Wall Street Journal Opinion (@WSJopinion) August 3, 2024
This move raises serious questions about the role of government in the energy market.
It’s especially puzzling given that California is actively pushing policies that make it harder for private refineries to operate.
The state seems to be considering stepping in to replace the very businesses its policies are forcing out.
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State-owned refineries aren’t the only idea on the table. The CEC also suggests increasing oil imports, creating new regulations requiring refineries to keep emergency gas reserves, and expanding regulation of private refineries.
These proposals aim to keep gas prices stable as California transitions to cleaner energy.
However, they represent a significant increase in government involvement in the energy market.
Government taking over private industry. Isn’t that what Nazi Germany did & communist do? Well that’s the next phase of the leftists in CA. They pretend this is to lower gas prices when they’ve literally done everything to raise gas prices.https://t.co/70ANFH5veo
— Dan Farley 🇺🇸 (@realDanFarley) August 4, 2024
It’s worth noting that Californians already pay more for gas than the national average.
In 2022, when energy prices spiked globally, California’s wholesale gas prices hit $6.21 per gallon – $2.61 higher than the U.S. average.
While the state plans to ban the sale of new gas-powered cars by 2035, the CEC acknowledges that “millions of petroleum fueled vehicles are anticipated to remain on California’s roads and highways beyond 2035.”
This puts the state in a tricky position as they try to balance their environmental goals with the practical needs of residents, especially lower-income families who may rely on older, gas-powered vehicles.
The proposal for state-owned refineries seems like a step into uncharted territory.
Having the government directly control oil production and distribution is reminiscent of the old Soviet Union where the state owned and controlled the means of production.