Blog

Authored by Mike Shedlock via MishTalk.com,

Common sense returns to Virginia as California Governor Gavin Newsom struggles to defend inane policy.

Let’s start with Newsom and gasoline prices.

In a Wall Street Journal Op-Ed, Newsom says “What people pay at the pump isn’t simple supply and demand but the result of a highly concentrated and opaque market.“

A Concentrated and Opaque Market

OK, why is the market in California concentrated and opaque?

• California has the most regulations of any state

• Refiners tired of California nonsense have left the state

• California seasonal blend requirements have costs. But there’s not just one summer blend. Refineries make more than 14 kinds due to different state regulations.

Two California Refiners Shut Down

Please note that on October 11, 2023, 2 of 5 Bay Area Refineries to Stop Making Gasoline

California Issues Major New Emergency Rules

Totally oblivious to what’s going on, please ponder Newsom’s solution to high gas prices and refiners leaving the state.

Effective May 20, 2024, California Issues Major New Gasoline Regulations for Refiners, Traders, and Brokers Through Emergency Rulemaking

What Newsom Deserves

What Newsom and his supporters deserve is for all California refiners to leave the state.

However, if the refiners all did leave, innocent bystanders who don’t support Newsom’s madness would also suffer in the debacle.

A Higher Gas Price Is Part of the Plan

A small opinion letter to the WSJ sums up the situation nicely: A Higher Gas Price Is Part of the Plan

Virginia Exits the California Way

Please consider Virginia Exits the California EV Way

Virginia Has Had Enough

Expect a challenge from the climate fearmongers, but it won’t go anywhere. The bill signed by Democratic Gov. Ralph Northam lets (but does not require) Virginia to follow California nonsense.

No matter what idiots decide, 35 percent of new car sales in 2026 will not be EVs.

Assuming Trump is elected, he will seek to reverse ruling that lets California set stricter rules than those set by the Environmental Protection Agency.

And expect those increasingly ridiculous EPA rules themselves to be watered down.

AAA Gas Prices June 10, 2024

California Governor Escalates the War on Gasoline

On May 20, I noted California Governor Escalates the War on Gasoline Impacting Neighboring States

California already pays $1.48 more than the national average. Governor Newsom wants you to believe gouging is more likely in California than anyplace else in the nation.

As of April, 2024, the World Resources Institute reports “While around 50 oil refineries were in operation across California a few decades ago, 11 refineries operate in California today.”

Newsom’s proposal will impose more still costs on gasoline refiners, perhaps to the point more leave the state.

It’s on purpose.

Virginia now says no thanks to the path California is on.

Reflections on Progress

On March 22, I commented In the Name of Progress, Biden Will Take Away Your Truck

Trump will stop this nonsense cold.

EVs will happen, but at a pace set by markets, not by subsidies and demands with no reasonable plan to execute the plan.