After doing everything to get rid of fossil fuel producers, Governor Newsom has second thoughts.
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.
Rich Walsh, Valero’s general counsel, told analysts on a recent conference call that the company hasn’t changed plans. “There’s no solutions that have materialized, at least not from our perspective,” he said.
Last year, Phillips 66 said it planned to close a Los Angeles refinery that produces almost as much fuel as the Benicia site. The prospect of more California-pumped oil hasn’t changed its plans either.
Phillips 66 is moving forward with the property’s redevelopment, CEO Mark Lashier said in an interview. Redevelopment plans for the larger of the two tracts that make up its Los Angeles operations include shops and restaurants, ballfields, offices and industrial space.
Chevron’s Walz, who led a company campaign that laid blame for high gasoline prices on state legislators, said California needs to do more if it wants to be considered a friendly investment environment. He suggests the state roll back regulations that affect oceangoing vessels docked at California ports, among other things.
Walz said he has had productive conversations with the energy commission’s leadership. “But they’ve got to reverse 25 years of trying to put us out of business,” Walz said.
Just Deserts
Newsom hasn’t really changed. He’s just concerned high gas prices and his presidential campaign.
Hopefully all the refiners leave.
This post originated on MishTalk.Com
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