California is a state of contradictions. We have led the environmental regulation of the environment, with our clean energy purposes with pride and champion a vigorous transition from fossil fuels. However despite this green image, our economy – and everyday life – more running oil and gas.
Fossil Fuels Account for almost 8% of the $ 3 Trillion Economy in California – But that’s first 8%. “If you don’t get the first 8%,” I told my students, “You didn’t get the rest of our economy.” The oil power of all from trucks to tractors of building equipment. Without it, you can’t build roads or bridges or take items in grocery stores. Without refined petroleum products, you do not make cement, steel, plastic or even lithium-ion batteries in electric vehicles.
Despite these realities, California’s energy policy leads to breakthrough critical infrastructures that support the important system. Our state has lost over 30 refineries in the last few decades. We are now in nine fuel-making facilities, and two are scheduled to end upcoming months, Phillips 66 in Los Angeles and Valero in the Bay Area. Those two plants represent 284,000 barrels in daily production and account for almost 18% of the overall refinement of the state.
California is sitting on top of one of the largest inaccessible world reserves, Monterey Shale. But because of policy and regulation, most of our oil is imported – including Iraq, Saudi Arabia, Brazil, Guyana and Ecuador. California also imports oil from Russia and Venezuela. In contrast, there is a clean standing standards in the world, but we import gasoline from areas with lower environmental and labor protection.
All of this is moved by a supply chain that is more dirty than mostly realizes. We do not have large pipelines that carry oil in California. We depend on ships – many from Asia – of 30 to 40 days to deliver fuel. These foreign tanks are dirty in crowded rates. Interestingly, because pollution occurs in international water, it does not count on the California Air Resources Board. Ending a California refinery and imports of large fuel causes to increase in net. And increasing our trust in foreign oil is dangerous when the world’s inability to rise.
It is not a self inflicted energy crisis to make. This is also a national security issue.
California’s military bases, Nevada and Arizona depend on in-state places for specialized aviation products and other petroleum products. As the refineries are closed, the binds of supply, increasingly dependent on imports from Asia and wherever. These gaps make unacceptable logistical and strategic risks for US military readiness in Western States.
And remember, estimated hundreds of millions of guns with available oil under our feet. Yet we establish a model of energy dependent on the import of foreign oil and, now, a growing dependence on foreign gave fuel.
It is not unstoppable. This is also borderline not irresponsible.
California energy transfer is unavoidable – but how can we get things. We can’t pretend fossil fuels are gone. We still need them for the economy, for action, for National Security and for working people who cannot afford a $ 60,000 power car or a roof of the electric or solar roof.
We have tools, talents and resources to lead a responsible energy transfer, one that moves our states that treat economic economy on the economy.
But we need to be honest where we are. And now, fossil gases still have the power of gold state.
Especially due to future refinery rules and a new tax Effect of JulyCalifornians are scheduled to pay the highest gas price in the country. Our prices are degraded by a taxable web, fee and boutique regulations that are greater than more expensive for hours. Although oil is dropped by $ 0 per barrel and Capital, Californians will pay for $ 1.82 in Pump – $ 1.64 from Pump – $ 1.64 by Pump – $ 1.64 by Pump – $ 1.64 by Pump – $ 1.
According to Caltrans, California drives about 1,200 miles a month. If you are a class working in California and gas progresses 50 cents per gallon, adding about $ 500 to the annual fuel costs. And because you pay for after tax tax, you need to meet at least one additional $ 750 just to cover it.
The cause of a construction worker that prompts 60 miles a day at a pickup truck. Cause a mother cleaning houses throughout the city or a physical therapist driving calls at home. Most people are not easy to trade their vehicles for Teslas and Dodge Gasoline Hike. Consumer analysis As mentioned in the calm It is shown that most EVs have purchased higher income Californians living in areas such as Atherton, Palo Alto, Sunnyvale and view of the field.
People who are most difficult by increasing fuel prices are the least able to make alternatives. For most Californians, no mass transit available available. People just hit the spending more of their income on gas-driven vehicles that are trusted in their lives. Our state’s policies punish people who do not immediately adapt to a green future that is not yet built. This is a regressive tax masquerading as environmental action.
Until the California realistic rotates the gape between caliirational gape climate, the upper-shoulder’s shoulders on shoulders on shoulders on shoulders on shoulders on shoulders on shoulders on shoulders Shoulder on shoulders on shoulders on shoulders on shoulders on shoulders on shoulders on shoulders on shoulders at the same time.
State Tax State adding about 2 cents a gallon has carried out July 1, and Carb pushes for a new low-carbon petrol pattern and diesel fuel. No one knows how much – not even the board suggests the rules.
In a recent congregation hearing, carb officials were asked if they examined their regulations for consumer effects. Their answer: We cannot calculate that. The room is silent. This is an odd claim – regulators who push the policy without running mathematics.
It is not surprising that we see an exodus in working families. By setting up new and vague costs above an already-overstretched system, carb and other regulators make what can be a self-inflicted economy.
And what? Not progress in the environment. Force California to reap more and more fuel from abroad – at least costs to environmental and economy. By believing in the pollution of sources and withdrawing carbon-intensive shipping, we exerted our emissions in other countries. California is not reduced to emissions. We have exported it.
If this sound is incessant, it is. But more than that, it is unreasonable.
These policies are not overwhelmed by the rich. They crushed the working class. They force families to pick up between gas and groceries, between access to work and home stability. They are also jobs in outsourcing abroad.
And the uncelted bureaucrats were executed, by their own claim to testify before lawmakers in California, did not calculate the real-world effect.
California people deserve better than this. They deserve faithfulness, transparency and policy based on economic realism, non-idolical fantasy and environmental dogma. If new and future changes will be a point in tipping, it is not due to some unexpected global event. This is because we choose not to look before we jump.
The way forward asks a stop, a change and return to common sense. If not, this summer may not only mark another price increase – but on the day we started to lose control of future force.
Michael A. Mische is an Associate Professor at Marshall School of Business. A former KPMG chief, he is the author of eight business books and strategies.
