County Supervisors Laura Capps, Joan Hartmann, and Roy Lee are planning to shut down all oil operations in Santa Barbara County.
Why is this a horrible idea?
The number one reason California residents and businesses are paying upwards of $2 more per gallon than the rest of the country is because a multitude of CA politicians, including these locals, have declared war on the oil industry which predates the war on Iran. By shutting down oil drilling throughout the state, politicians of the same ilk have created a shortage of oil that can be refined here. That has led to refineries closing one after another. For the record, our state once had over 40 refineries; there are about seven major ones left.
But that doesn’t mean we are using less oil and gas. It simply means we are importing oil from various places around the globe, and refined gasoline from India and South Korea.
You read that right.
We aren’t just importing oil to our state; we are now shipping gasoline here from these faraway places. Our local supervisors have aligned with the Governor and the state legislature to sabotage our economy while increasing emissions via tankering oil and gas from elsewhere rather than producing it here.
How ludicrous is that?
The resulting high fuel prices by importing oil and gasoline from half-way around the world, coupled with refinery closures, means California residents and businesses will soon see prices of $8 or more per gallon at the pump, according to a study from USC, a study which predates the war with Iran. What’s worse – for our business sector and consumer prices – is that diesel costs even more than gasoline.
Diesel is expected to hit $10 per gallon. This will directly harm farmers, truckers, freight trains, and the construction industry, among others. And it will eventually result in higher prices for consumers, because virtually every product we create and use involves a vehicle fueled by diesel.
However, because no other state has gone this far via the war on fossil fuels, this effort could serve to cripple our economy because our producers will not be able to pass on these higher costs to consumers in a competitive domestic and global marketplace.
Considering the current county budget deficit amounting to tens of millions of dollars, and the county’s own reliance on fossil fuels for such things as paving our roads with asphalt, these three supervisors are doing our county much harm. This has to do with the fact that the oil industry has historically paid the highest property taxes to the county. We are talking tens of millions of dollars per year, especially from offshore oil and the associated former Exxon facility (now Sable) on the Gaviota Coast.
Fortunately, President Trump may end up pulling California out of this political and economic self-immolation. It is well known that the President’s Executive Order that facilitated Sable’s resumption of production could help keep at least one major refinery in business, via the production of some 60,000 barrels of oil per day. However, many people are unaware that Trump could soon sign several more orders affecting the production of onshore oil here in CA.
The Executive Orders
In an exclusive report, Katy Grimes of the California Globe, reported that “seven draft Executive Orders to address California’s war on the oil and gas industry are making their way through Washington, D.C. to President Donald J. Trump. The Executive Orders are intended to ensure that the United States has the necessary fuels from California to provide for its national security”.
These orders include the first one that helped Sable restart.
Order #2 would rescind the California blend which would allow us to import gasoline from other states rather that half-way around the world.
Order #3 would remove and revoke state and local control and development restrictions on both offshore and onshore in-state crude oil and gas proven and potential reserves and existing crude oil production assets (such as platforms) and drilling restrictions to immediately increase oil production, by any means necessary, including here on the Central Coast.
Order #4 would vest all control and management of California crude oil and gasoline pipelines under the auspices and direction of the Department of Energy and other designated Federal agencies.
Order #5 would direct all California refineries to increase jet and diesel fuel production and encourage importation of U.S. refined gasoline products from Gulf of America refineries.
Order #6 would direct the Secretary of Energy to immediately enter into a lease and operating agreement with Valero for the reanimation of the Benecia refinery complex for a guaranteed period of seven years. The agreement would provide for the U.S. government to procure 100% of Valero Benecia refinery production primarily for military uses.
Order #7 would direct the Secretary of Energy, or his delegate, to create an operational and organizational structure for the deployment, oversight, and coordination of the Executive Orders in California and the state’s energy strategies for a period of seven years.
To read the exclusive story with full details, see here:
In Conclusion
California has shut down most in-state oil production, which has already led to refinery closures, although we are still consuming over one billion gallons of gasoline per month. Experts are sounding the alarm, sans the intervention of the Trump administration, having to do with the fact that we will soon be incapable of serving the fuel demands of our military and civilian airports, our international ports, along with the farming, construction and transportation sectors of our economy, let alone your average consumer.
This is what we get for electing fact-challenged zealots to office rather than informed public servants.
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