Encouraging local oil production would save CA’n residents’ wallets: A perspective
In the LA Times, oil historian Gregory Brew unpacks why California’s energy remains sky-high expensive: Amidst promises to “green-ify” all energy sources, Sacramento pols have discouraged local fossil fuel production. But because CA’s energy needs haven’t diminished, we now import 56% of our crude oil — for nothing short of a small fortune.
California has long discouraged local fossil fuel production to protect the environment, with processing now increasingly reliant on an array of aging refineries. A statewide shift to electric vehicles will eventually alleviate the pressure of $6 gasoline, but California still has to meet short-term needs while maintaining its course away from fossil fuels….
On Jan. 28, 1969, an explosion at a Union Oil rig sent at least 80,000 barrels of crude oil into the waters less than six miles from the Santa Barbara coast, killing fish and wildlife. The disaster helped form the modern environmental movement and ended new efforts to tap California’s oil reserves. Pressure from the environmental movement forced lawmakers to place a moratorium on further drilling on offshore state land. Since 1984, there’s also been a federal moratorium on drilling on the outer continental shelf farther out to sea.
As a result, the state is largely dependent on imported crude oil, which now accounts for around 56% of the crude supplying the state’s 14 oil refineries. While the price of crude depends on global factors, the price of gasoline depends heavily on conditions in local refineries….
On track to becoming the world’s fourth-largest economy, California requires more energy, not less. To meet short-term demand, the state should consider maintaining and upgrading existing refineries. Changes to existing legislation, including the Jones Act that constricts domestic shipborne energy trade, could assist with reversing the trend of relying on foreign imports, which are more energy intensive to transport over long distances and vulnerable to disruptions such as Russia’s war in Ukraine or Saudi Arabia’s decision to cut production in October.
High gas prices punish consumers, especially those who can’t afford electric cars. Shuttering refineries will make a bad situation even worse. A middle course, one that acknowledges near-term fuel needs, could help prevent further spikes and ensure a sustainable transition to alternative energy.
This article originally appeared in the Los Angeles Times. Read the whole thing here.
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