State Pauses Fight with Oil Industry as Refinery Closures Loom

The Los Angeles Times reports that Governor Newsom is shifting gears in his long-running battle with California’s oil industry.

Three years ago, political ads in Florida ignited a high-profile feud, with Newsom accusing oil companies of price gouging and pushing aggressive climate and production cutbacks. Now, with two California refineries expected to close within the next year, the Los Angeles Times suggests that the governor is signaling a truce.

Instead of pushing new penalties, the administration is urging lawmakers to help refineries stay open and keep California’s fuel supply stable. Recent meetings between oil industry leaders and state officials have focused on keeping production steady, particularly in Kern County and other existing oil fields.

What Needs to Happen:

• Streamline drilling approval.

• The California Energy Commission should seriously consider pausing a planned cap on oil industry profits and delaying new oversight rules on refinery maintenance.

• Try to figure out a way to keep the Valero and P-66 refineries open.
  

Environmental groups are frustrated and throwing a fit, but they are unconcerned about the affordability crisis hitting California families that may cause a much broader backlash against climate programs if gasoline skyrockets to $8 a gallon as experts are warning could happen.