Tuesday, August 12, 2014

Big Oil Attacks California's Climate Revolution

Yeah, because Big Government is so clean and pure!

True to Huff-form a typical liberal screed.\

Don't be fooled. This is a battle between oil industry profits and the health, well-being and economic survival of California families, and it will set a precedent that will reverberate nationwide.

Big oil's latest tactic aims to frighten Californians with scare stories about a "hidden gas tax" that will send pump prices soaring next year. It's baloney, but it's effective.

As I mentioned last time, California's law called AB 32, the Global Warming Solutions Act, commits the state to curbing greenhouse gas emissions. To do this, California began charging polluters for their carbon emissions under a cap-and-trade system, putting a price on pollution and raising hundreds of millions of dollars that will go to clean energy and energy-saving projects. Those projects will create good, urgently needed jobs and help low-income families cut their energy bills.
Hidden gas tax baloney?  I don't think so.  But, hey, you never know.  We'll see what happens.

Green energy bringing urgently needed jobs?  Oh yeah, you bet.  Since regulations in CA are so onerous and so many businesses have fled CA, the jobs really are urgent.  But to think that green energy is going to provide the answer is stupid.

Then the author brings in the large profits that Chevron brought in as an excuse to berate them.  So, she thinks Chevron ought to operate the Richmond Plant at a loss?  As sort of "giving back" and some sort of social moral grounds.  This typifies Leftists Utopian idiotic thinking with no regard to the implications or unintended consequences of their ideals.

And if Chevron would decide that they would really operate the Richmond Plant as some sort of benefactor, allowing it to lose money... The author forgets that Chevron stock is in the hands of thousands and thousands of Chevron retirees who depend on the stock's dividends to offset their living expenses.  She would see that this be lost?  And what about the 10s of thousands of of people who own the stock or the thousands upon thousands of portfolios that contain Chevron stock as a core holding for other retirees?  She would want to see them impoverished?

Chevron upper management understand very well the effect of CA Carbon Taxes.  They stated so much in their quarterly report meeting that anyone can go back and read.  Below is an excerpt from my 2012 blog entry:

And so the expectation is that as we see hundreds of millions or billions of dollars of increased costs, that translates through into the price of the product and that was the basis for my comment earlier that California's consumers will continue to pay a higher premium than the rest of the country. And that is the policy path that we are on.

The issue of CARBOB [CA formulated gasoline] imports is one that we're very sensitive to because if those imports are not subject to some of the same obligations that manufacturers are, then you've got a competitive disadvantage. And that's a subject of discussion with the regulators. And if in fact it were more economic to import than to manufacture, and that's very well what we could do, that's got real implications for jobs and investment. So it's still an evolving and uncertain environment and frankly, we're trying to help people understand that the implications of these things, if it stays on the track that it's on right now, the implications are all bad.

Jason Gammel - Macquarie Research As a former California resident, you've got my sympathies.
Oh yeah.  Those EVIL Big Oil companies.



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