Surprise: Fossil Fuels Hating PRC Trying To Keep Fossil Fuels Companies From Leaving

Here’s from October 2024

Why Oil Companies Are Leaving California

On October 16, 2024, the refiner Phillips 66 announced that it will cease operations at its Los Angeles-area refinery in the fourth quarter of 2025. This announcement came a few days after California Governor Gavin Newsom signed a new law placing additional regulations on refineries.

The closure will affect approximately 600 employees and 300 contractors that currently work at the Los Angeles-area refinery. Politico reported that this closure would also impact 8% of the state’s already tight gasoline production.

Although Phillips 66 spokesperson Al Ortiz denied in an email to Politico that the closure was a response to Newsom’s signing the new law, California’s treatment of its oil industry has undoubtedly been a factor.

The news follows an announcement in August 2024 that Chevron, the second-largest U.S. oil company, will relocate from its California headquarters to Texas. The company, with roots in California dating back to 1879, will transition its headquarters to Houston over the next five years.

Chevron’s move comes as a response to California’s stringent regulations and aggressive climate policies. Chevron’s CEO, Mike Wirth, expressed concerns about the state’s business environment in an interview with The Wall Street Journal.

I still maintain the companies should stop selling their products to the state government of the People’s Republic Of California. Stopping operations in the PRC will increase the cost of energy in the state, and moving operations to other states will deny a lot of tax money. Anyhow, now

California trying to keep oil and gas firms from leaving the state

Following 25 years of what oil and gas executives categorize as hostility to the industry, the state is now making a play to keep those companies from leaving.

Concerned with the exodus of oil and gas companies, refinery closures and the expensive price of gasoline in the state, California Gov. Gavin Newsom signed legislation last week that fast tracks the approval of 2,000 new wells per year over the next 10 years in Kern County, a significant oil-producing region.

But, will the companies actually want to develop those wells, wondering when the other shoe in the PRC will drop, having watched the Democrat operate the past 25 years? Particularly since there are still lawsuits from cities and counties in the PRC? Will they take the chance?