CA shuts down oil refineries, more dependent on foreign electricity

Energy policy expert Ronald Stein dissects the folly of Sacramento pols’ decision to shutter existing oil refineries (converting several into “renewable” diesel facilities), which forces local Californian taxpayers to subsidize expensive foreign oil. A Heartland Institute excerpt follows.

President Biden and Sacramento leaders, from Governor’s Brown, Schwarzenegger, and now Newsom, have supported reductions of in-state oil production. And all remain supportive of Biden’s pledge that “we are going to get rid of fossil fuels“….

There were almost 700 oil refineries as of January 2020, but as a result on continuous over regulations and permitting delays and the worldwide support of the Environmental, Social, and Governance (ESG) to divest in fossil fuels, the right operating model and level of integration will be crucial for survival and sustained profitability of refineries.

Consequently, one in five oil refineries are expected to cease operations over the next five years. One in five is 20 percent, or almost 140 refineries expected to be shuttered worldwide, resulting in a 20 percent decline in the products manufactured to meet the ever-increasing demands form society. With the reduction in manufacturing capabilities, shortages and inflation in perpetuity are likely the new norm!

As of 2021, there were eighty-eight new facilities in planning or under construction in Asia and Europe is set to see an addition of twelve petroleum refineries. The amount of oil fed through refineries in Asia has significantly increased in the past three decades as demand for petroleum products surged in developing countries such as China and India. China is on track to succeed the United States as the country with the greatest oil refinery throughput….

It is mind boggling that America continuously perpetuates greater reliance on foreign countries for the products demanded by society, and for the exotic minerals and metals to support wind, solar, and EV batteries. America is successfully pursuing ESG, i.e., Extreme Shortages Guaranteed and inflation in perpetuity that is associated with unreliable supplies to meet ever increasing demands.

This article originally appeared in the Heartland Institute. Read the whole thing here.

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