The Biz Bucks Blog provides former Biz Bucks students and other busy professionals with a summary and commentary of seminal articles from the opinion pages of the Wall Street Journal. You can be notified of a new posting by subscribing to the blog (enter email in box on right) or by following on Twitter: @BizBucksGuy.
Cheap CA Gas: RIP July 20, 2015 8:00 AM | Tagged as Gas Prices, Renewables, RPS, Steyer
WSJ July 18, 2015, Page A9: “Sky-High California Gas Prices Have a Green Additive” By Allysia Finley
Dovetailing with The Biz Bucks Guy’s last blog post, renewable portfolio standards for electricity in California are partially responsible for the extremely high gas prices the Golden Staters “enjoy”. In tandem with a host of other green initiatives, renewables continue to plague all states that have taken the RPS KoolAid with their resulting high energy prices. Consider the CA story:
Nationally, gasoline prices have dropped nearly 25% to $2.76, compared to last year. This is partially driven by the US shale-oil boom. How about CA? Statewide, it’s $3.88 per gallon with LA at $4.30, some 20 cents greater than last year. In downtown LA, gas prices are over $5.00. Local consumer groups blame the oil companies. To quote Finley, “The real culprit is anti-carbon regulation promoted by a cartel of green activists and liberal politicians that is aimed at raising energy costs to discourage consumption.”
In 1999, Democrats took over the governorship of CA. Since then, CA’s gas prices have steadily risen above the national average. What drives gas prices, next to the cost of crude to refine, refineries largest production cost of the price of electricity. Enter the Renewable Portfolio Standards in CA. CA’s RPS laws mandate 33% renewables by 2020. Gov. Jerry Brown wants to increase it to 50% by 2030. As lower cost generation has been shut down in favor of renewables, electric rates have increased 2.18 cents per KW-hr. About four times the rate of the average of other states.
Finley goes on to explain gas prices are also high because environmental regs have driven smaller refineries out of business. Thus, supply is off. Any disruption at a refinery automatically leads to a jump in gas price. She also bemoans the rhetoric of uber-rich environmentalist Tom Steyer who is demanding a full investigation of the oil companies and is advocating a new oil-extraction tax to penalize them. What a farce! It’s the policies of Steyer and his cronies that have caused this mess in California.
[Although opinion is included, The Biz Bucks Blog is primarily written to former students of Biz Bucks training courses to encourage their daily reading of the three opinion pages of the WSJ. This refreshes principles of Biz Bucks courses and improves business acumen on topics not discussed in Biz Bucks training.]
Posted in Energy Policy, Environment | 0 Replies
To receive email updates when a new post is made, please enter your email address in the box below and click Subscribe.
Use these key words to search past blogs:
1994 97% Alesina Recession Alinsky Allesina austerity Baloney BAT Binz bird kills Bogle Border Adjustment Tax Brulle Bryce capitalism carbon Carbon Dioxide CBO CFTC chains China Churchill Climate Climate Change Clinton Comparative Advantage Crichton Cronyism Cummins Curry Darwin Death panel demographics population economics Denier derivatives Dodd-Frank Drug dynamic Dynamic Scoring education electric car Energy Energy Policy Enron Debt Entitlements Eugenics Fat Fry Flat Earthers fracking free markets free trade Free Trade E-Verify Free Trade Zoellick Freedom Heritage Foundation Friedman gas lines Gas Prices glaciers Global Warming Global Warming Sustainability global warming subsidies IMF Globalization Trade God Google Gore Gramm Green Blob Grifo Groupthink Growth Hannity Hayek Hostess Hybrid Immigration Imports index funds Indexing Intellectual Denial investing investment IPCC JFK Joint Tax Kennedy Kerry Keynes Keynesian Keynesian Tax Cuts King Barak Bird Kills Koch Koonin Laffer Lamar Smith Lomborg macroeconomics macroeconomics;static; dynamic MACT Makiel markets Marxist medical care minimum wage Mitchell Model T Moore Morgenthau Navarro Neumark NOAA NY Times Obamacare ObamaCare Rove Health Insurance O'Reilly participation rate Patrick Moore peer review Peer Review EPA Piketty Pipelines plywood Presidential authority Price Controls Pruitt Racial divide Rare Earth Reagan Recession REE Renewable Portfolio Standards Renewables Ricardo Ridley robotics RPS Ryan Schlaff Science science integrity scoring Settled Science Shaffer shortages socialism socialized medicine Solar Panels Solvaldi Sovaldi static steel STEM Stephens Steyer stimulus subsidies subsidy sugar Supreme Creator tax policy tax reform Taylor territorial taxes corporate taxes Tesla Trade train wreck Trump unemployment wages Wind wind power women Zuckerman