Let’s talk about oil and why the costs are so high. Then let’s look at how California is dealing with the oil crisis.
Finally, I’ll tell you why the oil crisis is not much of a crisis.
Before I Rant
Here is some news:
- The new Supreme Leader of Iran missed his own coronation. Apparently, he’s in a coma and is missing a leg thanks to an Israeli missile.
- The citizens of Cuba are protesting again , asking for a new government. President Trump is not counting out the thought of helping the Cuban people take over the government. Remember, Marco Rubio is Cuban.
- Fifty-three percent of voters questioned in the poll, which was conducted Friday through Sunday, said they oppose the U.S. military action against Iran, which was ordered by President Donald Trump, with 40% supporting the operation.
- Yamaha has decided to ditch California and head to Georgia.
https://www.foxnews.com/politics/where-american-support-trumps-iran-strike-stands-new-polls-roll
I Don’t Want to Hear It!
Gas prices are going through the roof because of the war. The reason is simple: The Middle East countering are having trouble delivering their of because of the war in Iran. Not because the don’t have oil. In fact, countries like Kuwait have so much oil they’re stopped producing because the do not have anymore storage capacity. This is a very important point and I will get back to that later.
The problem is that gas has jumped $0.30 over the last few days and is expected to continue to go up until the war is over and deliveries can resume.
Democrats, including my brother-in-law, are jumping all over this, whining about how Trump doesn’t care about the working man. I don’t want to hear a damn thing from Democrats about the price of gas. They have gone four years raising the price of gas under the Biden administration and all they did was talk about how great Biden’s policies were and how great the economy.
Let’s go over what the Biden administration inherited from the first Trump administration and what they did.
When Biden took office:
- Gas was averaging $2.17 a gallon.
- The United States was energy independent.
- The oil reserves were at 95% to capacity.
- The XL pipeline was being constructed.
- Regulations were being wiped off the map.
- We left that stupid climate agreement that smothered the oil industry with regulation.
- Oil was $10-20 a barrel. At one point, the cost of oil was at a negative. People were paying us to take their oil.
When Biden left office:
- Gas prices were $3.30 and maxed out at over $5 a gallon.
- Construction of the XL pipeline was cancelled.
- They rejoined the Climate Agreement, pouring regulations onto the oil industry.
- Biden regulated the transportation of oil across state lines.
- Biden cancelled drilling leases on federal lands.
- Biden overregulated refineries, forcing the closure of several refineries.
- He insulted the OPEC nations. They refused to produce oil.
https://www.perplexity.ai/search/what-was-the-average-gas-price-kxac1zvSSyKcoZGv5ufD.Q
He’s a Sneaky Dick!
According to the New York Post:
Californians have torn into Gavin Newsom for plotting new legislation that will likely spike gas prices even further, claiming he is “taxing us to death.”
The backlash centers on draft regulations tied to the state’s Cap-and-Invest program, overseen by the California Air Resources Board, which sets a statewide cap on greenhouse gas emissions and requires major polluters to purchase allowances for each ton of carbon they emit.
Critics say tightening those caps — strongly backed by Newsom — could further drive up the cost of gasoline and diesel in a state where drivers already pay far more than the national average.
According to the California Energy Commission, the Cap-and-Invest program currently adds about 24 cents per gallon to the cost of gasoline in the Golden State.
Gas prices averaged around $4.80 per gallon in early March, compared with roughly $3.25 nationwide, according to AAA data.
The system works by limiting emissions from large polluters — covering roughly 80% of the state’s greenhouse gases — and forcing companies to buy allowances for each ton emitted. Each year, fewer allowances are issued, gradually tightening the cap.
Revenue from the program flows into California’s Greenhouse Gas Reduction Fund, which finances climate initiatives such as transit projects and environmental programs.
But critics argue the tightening rules could ripple through the fuel market and land directly on consumers.
Oil companies and energy groups have warned that stricter regulations could threaten the viability of California’s remaining refineries. In a letter to regulators, energy giant Chevron warned that the proposed amendments could “cripple the survivability” of the state’s refining industry, potentially leading to more shutdowns, job losses and higher fuel costs.
The company noted that the oil and gas sector supports more than 530,000 jobs statewide and contributes about $64 billion annually in tax revenue.
Meanwhile, environmental groups are urging regulators to go even further.
In a letter submitted to CARB, advocacy organization Biofuelwatch called on the board to close what it described as a “biogenic CO2 exemption loophole” that allows biofuel producers and distributors to avoid buying carbon allowances for certain emissions.
The group argues that these exemptions reduce demand for carbon credits and suppress carbon prices, costing the state potentially hundreds of millions of dollars in revenue.
Using 2024 emissions data, the organization estimated that more than 23 million tons of emissions linked to biogenic fuels were exempted from the program — representing as much as $593 million to $712 million in potential revenue, depending on allowance prices.
But while policy experts debate the mechanics of the program, many California residents say they’re simply tired of paying more at the pump.
Some also blamed the state’s energy policies for weakening the local industry and increasing reliance on imports.
Other residents also argued the state is moving too aggressively toward electrification without the infrastructure or affordability to support it.
Sounds Like a Good Idea!
According to the New York Post:
California Republicans are saying Donald Trump could take control of the state’s spiraling oil crisis amid concerns it impacts national security.
Some suggest the president may intervene over fears that if it gets worse it will impact the Golden State’s huge military build up due to its reliance on fuel.
Gas has skyrocketed across the region over the last week, averaging $5.159 on Sunday — more than the $3.450 national average — with one hitting $8.21.
Gov. Gavin Newsom has tried to blame it on the conflict in Iran, but experts have also pointed to crippling taxes in the state that has driven up the cost for years.
State Senator Suzette Valladares told the California Post on Sunday: “California is in a death spiral when it comes to our gas and oil prices. If the President sees our gas crisis as a national crisis he could step in.”
That national crisis she predicts could be the conflict in Iran and keeping America safe.
She continued: “California produces jet fuel for commercial and military use, they could use some sort of war order to at least keep up California production because of what’s happening in the Middle East.”
California refineries supply gasoline and jet fuel to military installations throughout the state, most of which is currently produced by in-state refineries, according to State Senator Tony Strickland.
That includes 11 Air Force bases, along with dozens of Navy, Marine Corps, and Army facilities. They use about 370 million gallons of fuel annually.
Trump could use the Defense Production Act of 1950 to override California laws and regulations that are blocking offshore oil operations in the state.
