Despite Penalties on Newsom’s Profit, the Oil Industry is at the End of California’s Road
Sacramento, Calif.- It may be the least of the industry’s concerns, but California Oil companies are planning a full-blown battle with Gov. Gavin Newsom over his proposal to punish what he called “unscrupulous” profits/interests.
According to a published post by Politico, in California, State and local officials are restricting or even banning new wells; some cities have also banned gas stations and non-electric lawnmowers. As fossil fuel companies face an existential crisis as it moves toward a carbon-neutral future.
State expenses at the pump were about $3 above the national par of $6.42 a gallon in October, and oil company profits nearly doubled year-over-year. So, if California gas raises prices again to a record high of $6 a gallon in the fall, oil companies and their lobbyists will work harder to fend off Newsom’s current proposal that it will hurt companies.
Oil companies in California are planning an all-out fight against Gov. Gavin Newsom (Photo: Politico)
Oil Industry Faces End in California Regardless of Newsom Penalty
It could be a nationwide first step that will have a major impact on other states, accelerating or slowing the transition to clean energy. If lawmakers pass Newsom’s version of the proposal. However, the state legislature plans to discuss the plan with him in January, but his recommendation still lacks details.
And industry insiders and analysts say the problem is not as easy as Newsom, which has directed regulators to ban the sale of new gasoline vehicles by 2035. By 2045, the air quality regulator on Thursday approved a plan to reach carbon neutrality, by decreasing our need for fossil fuels by about 90%.
Gas usage has declined in recent years as more individuals buy electric vehicles, work from home, or commute due to the pandemic. But expenses at the pump are usually the highest in the country, and politicians have felt the sting of voter outrage this summer and fall.
Attempts to control fuel prices have proven useless in the past, especially under Richard Nixon and Jimmy Carter. Details of the EU measures vary widely but are mainly based on profits tax, which transcends average profits over the past 4 years by more than 20%, according to Reuters.
READ ALSO: Repsol And Santos Will Invest 2555 Million In An Oil Megaproject
