California Tries to Stop the Exodus of Its Oil Refiners, Oops Too Late
by Mike Shedlock, MishTalk
Climate Focus Shifts in California
The Wall Street Journal reports California Wants to Halt Oil Industry Exodus After Years of Climate Focus
Gov. Gavin Newsom’s office made its first-ever call to Chevron’s refining chief last week, days before state lawmakers passed a bill meant to stop more oil companies from leaving California.
Nathan Barankin, Newsom’s chief of staff, extolled the virtues of that bill, which could boost drilling in oil-rich Kern County, and touted the state’s decision to delay putting a cap on refiners’ profits.
“I said, ‘Yeah, Nathan, all those are good, but we’ve got a long ways to go,’” Andy Walz, who runs Chevron’s refining, pipeline and chemical businesses, said in an interview.
California policymakers who had tried to spur a transition away from fossil fuels are now working to entice fuel-makers to stay open, while polls show voter frustration with rising living costs. Gasoline prices in the state averaged $4.66 a gallon Wednesday, among the highest in the nation, and about $1.45 higher than the national average, according to AAA.
Policymakers this year have also discussed ways to keep Valero from closing its 56-year-old Benicia refinery, which has about 10% of the state’s oil refining capacity, political advisers said. Valero cites the state’s 20-year push away from fossil fuels for its decision to close the plant next April.