I’m so hoping that Chevron will tell the People’s Republik Of California they will no longer sell their production in the state, especially to the state government
Chevron threatening to leave California
Chevron said it is threatening to close its oil refineries in California due to overregulation, which the oil company said is contributing to price spikes amid the war in Iran.
Due to California’s taxes, emissions rules and other regulations, which hit gas costs harder than in many other states, the price per gallon is well over the national average.
Tehran’s decision to effectively shut off the Strait of Hormuz has left millions of barrels of crude oil stationary, hurting economies in Asian countries, which heavily rely on oil from the Middle East.
In turn, Chevron, which imports fuel from China, South Korea and Singapore, is facing the brunt of the blockade. Amid the energy crisis, Beijing has banned fuel exports.
Andy Walz, who heads Chevron’s oil refining efforts, said leaders in California should be worried about the possibility of a fuel deficit in the Golden State.
First, why do we need to import fuel? America can produce more than enough. S. Korea does a pretty good business export. As for China, they import crude and export refined. So, apparently, rather than allowing production in California, which has lots of reserves, and refining it, because they’re worried about climate doom, the PRC imports it from those three countries and it comes on fossil fueled ships across the Pacific.
The Chevron executive said California has decided to “rely on imports,” which is playing a “dangerous game” when it comes to the fuel market.
Walz has urged California Gov. Gavin Newsom (D) and other officials to consider boosting in-state oil production and reevaluating its proposed incentives for companies that utilize renewable energy.
Even if Newsom wanted to do something, no way that the far left PRC state assembly allows it.
Chevron, which has operated in California for more than 140 years, says others are likely to follow suit.
“California refineries supply a broad range of transportation fuels, including aviation fuels that are critical to commercial and military operations, and they operate near major ports, military installations, and strategic hubs serving the Pacific region,” Chevron wrote in a letter to Newsom earlier this month.
And they well might. And, if they leave, do they sell in the PRC at all?
Capitalists sell to the highest payer.
The UssA exports almost 1 million
B/d
If other countries will say more for USA refined fuel, it gets exported. Domestic buyers get zero discount. And it only costs 5 or 10 cents per gallon to ship anywhere on the planet
Drill baby drill, does not give lower domestic prices.
Cali is the 2nd largest gasoline market in USA after TX (even though Cali has a larger population they. do not burn as much gas)
You are hoping Chevron walks away? Dream on Teach dream on
Teach asks: “… why do we need to import fuel? America can produce more than enough.”
why does the United States import oil? Capitalism!!
Should the federal government nationalize U.S. oil production? Or make Venezuela, with the worlds largest oil reerves, the 52nd state (after Canada)?
Oil reserves… Venezuela: ~303–307 bbl; Saudi Arabia: ~267–268 bbl; Iran: ~208–209 bbl;
Canada: ~163–170 bbl; Iraq: ~145 bbl… the U.S. is #9 at 45–74 bbl.
Is it a coincidence that trump invaded nations with the #1 and #3 oil reserves and wants to take over Canada?? The Saudis have paid off trumpInc.
Why not just use U.S. crude?
1. Petroleum is a global commodity. The U.S. imports certain grades of oil while exporting domestic crude for higher prices. The U.S. maintains diversified, secure, and reliable supply chains, sourcing a majority of its imports from allies like Canada.
2. U.S. crude is more expensive to produce than crude from most other sources. (3 to 5 times more expensive than Iran, Saudi Arabia, Iraq etc)
3. U.S. refineries are designed to process heavy, sour crude, while most domestic production is light, sweet crude. Importing allows U.S. refineries to operate at peak efficiency and lower costs, even while the U.S. exports its own lighter crude.
4. Due to pipeline infrastructure and shipping costs, it is often more economical for East Coast and Gulf Coast refiners to import crude than to ship it from domestic fields.
As long as there is $1 to be made, Chevron will stay. However, the State is decreasing the margin between cost (due to regulation strangulation) and profit which grows much smaller by the day. The loonies in southern CA want to run on sunshine and moonbeams which we all know is not reality.
California is the 4th largest economy on Earth!! Chevron is in business to make money.
Sure, they can move their refineries to a low regulation red state like Texas, Oklahoma or Louisiana.
1. United States
2. China
3. Germany
4. CALIFORNIA
5. India/Japan