Oil industry faces end of the road in California regardless of Newsom penalty on profits

[Elderberry]

Politico by Wes Venteicher 12/17/2022

Fossil fuel companies face an existential threat in California as the state shifts to a carbon neutral future.

Oil companies in California are planning an all-out fight against Gov. Gavin Newsom over his proposal to punish them for what he calls “unconscionable” profits. But that may be the least of the industry’s worries.

Fossil fuel companies face an existential threat in California as the state shifts to a carbon neutral future: Lawmakers have set a deadline to ban the sale of new gasoline-powered vehicles. State and local officials have restricted, or in some cases banned, new oil wells. And some cities are even banning gas stations and non-electric lawnmowers.

These and other measures suggest a grim outlook in the country’s largest car market for an industry more closely tied to the state’s development than the Gold Rush.

“It’s clearly redefining the industry and its role,” Jamie Court, president of Consumer Watchdog, said of efforts by lawmakers. “And it’s consistent with phasing out the fossil fuel industry.”

The industry isn’t giving up without a fight. Oil companies and their lobbyists are working to head off Newsom’s latest proposal, which would penalize companies if they again raise prices to the record-high levels of the fall, when California gas cleared $6 per gallon.

More: https://www.politico.com/news/2022/12/17/oil-industry-confronts-a-growing-threat-newsoms-california-00074434

[SZonian]

As much as it would pain me, I'd tell the oil companies to bail on CA.

Once the full measure and impact of their loss becomes apparent, maybe, just maybe, CA voters will get a smidgen smarter about their choices.

[Fishrrman]

Zonian, you're correct.

What's needed in CA is the "Ellis Wyatt" solution from Atlas Shrugged.

[Smokin Joe]

Sadly, California was at one time the second largest oil producer in the US, a position now occupied by New Mexico, which surpassed North Dakota during COVID.  Offshore production lowered reservoir pressure enough to reduce submarine seeps which used to coat the beaches with tar to much lesser pollution (albeit natural), and made surfing much more attractive. The Hollywood Hills are full of pump jacks, or were at one time. Like so many other resources, this will be one more that those who live there will not benefit from, directly or indirectly.

Starving in the land of plenty seems to be a Socialist knack.

[catfish1957]

Newsome doesn't realize that maybe 50-60% of all goods we use in this country are derivied form oil.  That goes from Asphalt, to to Jet Fuel, to IV Bottles, to vehicular structure, to milk bottles, to a magnitude of other things that are necessary and integral to our day to day life.

This is not me as an Oil company retiree, this is me as a member of society who doesn't want to see our standard of living set back hundreds of years due to an enviro-whacko scam.  If Newsome really wants his environmental scam induced dystopia, I hope his electoral base holds him fully accountable.  and I mean ACCOUNTIBLE in the literal sense.