Re-elected Governor Newsom's Energy Literacy Will Be Challenged Over Next 4 Years


Despite Newsom’s statewide policy decisions that are driving up costs of energy in the state, only a few Californians are upset with the ever-increasing costs for their electricity and gasoline, resulting in the excessive costs of living, increasing homelessness and crime. But most voters have just showed their approval of the bizarre energy policies that Newsom promotes and wish to incur four more years of financial torture.

The continuous exodus of residents from the state has resulted in a loss of a representative in Washington for the first time in its 171-year history. Departing residents are being followed by large corporations and privately owned businesses that have moved their headquarters out of California in 2021 at twice their rate in both 2020 and 2019 and at three times their rate in 2018.

California has a history of having the highest gasoline prices in the country. Why? For one, the West Coast fuels market is isolated from other supply/demand centers as California is an energy island. The Sierra Mountains are a natural barrier that prevents the state from pipeline access to any of that excess oil. As such, the West Coast is susceptible to unexpected outages of West Coast refineries as it is unable to backfill an unexpected loss in supply by quickly supplying additional products from outside of the region.

Newsom is emphatically complaining that the oil companies are making outlandish profits, but he may be out of touch with reality as two California refineries have shut down under his current watch and two more may be closing in his new term.

Under Newsom’s watch in the last few years, two of California’s refineries have virtually shut down and are no longer manufacturing gasoline, aviation fuels, or any oil derivatives. Those two, Phillips66 at Rodeo and Marathon at Martinez, are now only focusing on renewable diesel.

More financial sad news may occur under Newsom’s next term with the permanent closure of two more California refineries, the Chevron Refinery at Richmond and the PBF Refinery at Martinez. If the courts uphold the 2021 Bay Area Air Quality Management (BAAQMD) rule 6-5 for a further reduction in particulate emissions, both have stated that they will shut down before spending one billion dollars to retrofit their refineries to comply with further particulate emission reductions.

The world has seen the impact on Germany and Britain with their dependency on Russia for most of its energy, but for the 4th largest economy in the world, in California, Newsom already has the State more than 56 percent dependent on imported crude oil, but continuously seeks further reductions of in-state oil production that places greater dependency on foreign countries.

California’s growing dependency on foreign countries is a national security risk for all of America. Does Newsom expect a better outcome than what Germany and Britain experienced by not controlling more of its energy future demands?

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Ron Stein is an engineer who, drawing upon 25 years of project management and business development experience, launched PTS Advance in 1995. He is an author, engineer, and energy expert who writes frequently on issues of energy and economics.

Photo: Courtesy CFACT.