"California Energy Commission" issues report that's pure communism; Media yawns

The California Energy Commission is one of the endless gruberment agencies that suck up money that could be put to far more productive uses.  The CEC just announced that it "expects some of that state's California’s nine oil refineries to soon be "shuttered due to falling demand."

The lie here is "shuttered due to falling demand."  It's true that gasoline consumption in that state has fallen about two percent due to electric cars--more of which have been sold in California than any other state.  But such a tiny drop in demand wouldn't cause the owners of a profitable refinery to shut it down.

Instead, refiners are reading the signals from the state government, which has sued all oil companies for billions.  It's a shakedown, and refinery owners are trying to decide when to throw in the towel--because no legit company would buy a refinery in California today if you gave it away.  

Okay, after "some" of the state's nine remaining refineries are forced to shut down, what effect do the oil-hating morons at the CEC predict will that have on residents, eh?

You'd think the obvious would be "There will be a shortage of gasoline."  But the lackeys never mention that as such.  Instead they double down on demonizing refiners: the authors of the report bleat that

After they begin shutting down, the remaining refineries will have increased pricing power.  This would increase the possibility of a surge in gas prices.

Ahh, "A surge in gas prices," y'say?

Say, that couldn't possibly have anything to do with that mythical principle--which Democrats have long sneered at--called "the Laws of Supply and Demand, could it?

Nowhere in the 87-page report do the lackeys ever mention "drop in supply" as a problem, just "increased pricing power" for those nasty refineries that haven't been forced to shut down.  Wow.

Again: Democrat morons utterly reject the notion that there is any relationship at all between the supply of anything, demand for that thing, and prices.  Instead of admitting that when demand exceeds supply, buyers bid up the price, the report blames just "increased pricing power."

It would be fun to get every member of the CEC on the witness stand, under oath, and cross-examine 'em on whether they know fuck-all about the laws of supply and demand.

SO...to prevent refineries from raising the price of gasoline (which again, the CEC blames NOT on a supply shortage but on the vague "increased pricing power" of remaining refiners), the Energy Commission proposes a variety of "government interventions," which I'll detail below.  These  recommended "government interventions" show you how communists think.

First is more regulation on what the CEC inexplicably calls "private refineries."  That's odd because there aren't any "private refineries."  I think they mean refineries owned by companies instead of by the State.  But today that's ALL refineries, eh?  Yes but just wait...

The next "intervention" the CEC proposes is "the establishment of taxpayer-funded state-owned refineries."  And note that cunning baffle-gab word "establishment."  The communist bastards know the state can't afford to either build a large refinery or buy one at market price.  But don't worry, they've got a plan (explained later).

So the moronic authors apparently believe having the state own and run refineries would make those operations way more efficient!  For one thing, as State-owned enterprises they'd no longer have to pay income taxes and property taxes like "private refineries" do, eh?

Wait, I thought gruberments LOVED tax revenue!  Under this faaabulous plan that revenue vanishes. But don't worry...

And of course like all state-owned enterprises,  employees would be state employees, paid from tax revenue.  But don't worry your empty head, deplorable, cuz tax revenue not beez reel money!  Nope nope nope!  Ouah state-paid PhD consultants said hiring lots mo' state employees iz reeeally guud cuz...we gets lots mo' Democrat voters!

[For those with no energy background: when Venezuela's socialist dictator Hugo Chavez seized all the refineries in that poor nation, making all the workers state employees, gasoline output fell by 90 percent within a year.  Oil-rich Venezuela ended up having to import gasoline.]

So how many refineries does the Commission think the state should own, eh?  Its report unhelpfully states, this "could range from one to all refineries in the state."  Seriously.

On the ‘pro’ side, the CEC document said this would allow the State to "operate a market-independent source of production which would eliminate potential market manipulation."

Note well that phrase "market-independent source of production."  That's communism.

If a "market-independent source of production" is really better, why not have government run every company in the state, eh?  Why not have the government run all health insurance, as the obscene disaster named Obamacare did?  Hell, why not have the government run ALL medical care, eh?  You claim that's a GREAT idea for the energy business, so why isn't it just as great for all other businesses too, eh?

Just for fun, ask your kids.  You'll find the ones over about 15 have been taught that it's really FAR better for the government to run all businesses, but adults should quickly recognize all these ideas as utter leftist/communist/Demonrat bullshit.  And yet everyone at the CEC signed off on the report's bullshit without a dissenting word!

In a rare moment of candor the Commission concedes that "there are complex industrial processes that the State has no experience in managing."  Gee, ya think?  But for people who can twist words as skilfully as these lackeys, running a refinery should be easy by comparison, eh?  

Plus the morons have seen how easily lies have been working for the harris/biden/garland/mayorkas regime and figure "If we screw up we'll just lie about it.  And no one will ever know.  We'll just blame Climate Change, or "supply-chain dynamics.  It'll be easy!"

The Commission also noted that buying one or more refineries would be expensive.  But they have a plan, even though they didn't put it in their report: they'll simply have Newsom and the Dem-controlled Assembly slap any refineries the State wants with million-dollar-a-day fines for "harming an EJ community" (baffle-gab for "environmental justice") and when the oil company doesn't pay, simply seize the place.  Easy-peasy.

More juicy bullshit from the "report:"

Like most product prices, gasoline prices should ideally obey the laws of supply and demand.  However, supply dynamics in California’s transportation fuels market differ from many other markets in the United States.

Translated from baffle-gab: "Duh laws of supply an' demand do NOT apply to OUR state, cuz...um..."supply dynamics."  Ahh.  Horseshit.  Your state uses roughly 11% of the nation's oil and gas, but only produces 2.7% of the oil.  The rest is imported, either as "crude oil" or as finished gasoline.  Your moronic Democrat "leaders" have painted you into a corner and now they're quietly, cunningly looking for something else to blame for their stupid, stupid policies.  

I'm laughing my ass off.  "Suppy dynamics," eh?

Despite being geographically connected to other states, California’s relatively isolated transportation fuels market makes it essentially a fuel island.

Ahh, "a fuel island," y'say?  You stupid bastards have made it totally unprofitable for companies to drill more wells in the state.  You've shown companies they'll lose money if they build more refineries (and you'd never give 'em permission to anyway).  And NOW you wail that you're a "fuel island"?
   Your stupid pols and judges have crushed your refining capacity down to nine refineries, which are running at capacity, so your only choice is to import finished gasoline from...somewhere else.  
   Your stupid Dem pols did this to you.  And now, like good lackeys, you state employees are doing what your masters want: finding any excuses you think the public is dumb enough to believe to explain the coming price hikes--which you people are ECSTATIC about. 

Sadly (for civilization, but happily for the CEC morons), with the help of the Dem-fellating Mainstream Media the public will buy your bullshit, because most people don't have a fraction of the education needed to see through your lies.

In addition, the critical need to address the state’s unique air quality challenges means that the state must require a unique fuel specification that differs from the rest of the nation.

This is the notorious "California Air Resources Board" blend demanded by the CARB because...they have the power.  Hey assholes, the molecular composition of the air in your state is no different from the rest of the country.  It's no hotter in Los Angeles than in Phoenix, but CARB decreed that all gasoline in the state must meet the board's unique formulation, and that was the end of it.  There's effectively no appeal.  Dictatorial board.

Related to the isolated market, the state’s opaque spot market appears to have an outsized influence on prices in a way that does not align with supply or demand fundamentals.

Ahh, so the state's "experts" may believe in the laws of supply and demand after all.  Oh wait...what they really mean is "State prices for gas went up when the rest of the nation didn't, so we iz sure dis means prices iz bein' rigged!"  Ahh, so your "expert solution" is to have even fewer refineries?  Smaht.

And I can't help noticing that state lackeys--having zero familiarity with arcane things like "operating margin" and "profits"--are sure they know more than refinery operators about running a refinery.  Operators know they have to keep enough crude in their tanks to keep operating if a "supply-chain disruption" happens.  If you can't crack that code you'd better stay in government, where no one has to worry about silly things like profit and loss--or getting fired for mistakes or stupid decisions.

Here's the real situation about crude oil and refining in California in 2022 (the basis for the Commission's report):
● Every day, refineries in California refine an average of 1,446,000 barrels of crude oil.  Again that's every DAY.
● Almost 60% of this--853,000 barrels every day--is bought from foreign countries
● Just over a quarter of the oil (25.8 percent) is from California wells;
● About 15.2 percent is from Alaska (219,000 barrels per day);
● The largest single foreign supplier was Iraq,  187,000 barrels per day (12.9 percent).

Say, the gruberment says Alaska is producing about 480,000 bopd.  If 219,000 barrels are being sold to California, where are the other 260,000 barrels per day going, eh?  Just asking.  Cali refiners could be buying crude from Alaska instead of Iraq, eh?  Anyone know how much a barrel of oil costs today?

[In 2022 Cali refiners were buying 187,000 barrels of Iraqi oil per day.  At $75 per barrel that's $14 million PER DAY going to Iraq that could instead be going to American oil companies.]

Other policy options reviewed in the document included a "gas price stabilisation fund" and using state-leased or state-owned Jones Act vessels to move fuel between domestic ports.

Ahh yes, let's have the state buy or lease tankers to move gasoline from one Cali port to another.  Cuz dat will change the net supply situation, keeping prices down, eh?  Wow, totally clueless.

Oh, and a "gas price stabilization fund," y'say. I've reviewed it, and it's a bureaucrat's and grifter's dream--i.e. a total disaster.  Hard to believe anyone could seriously suggest such a crappy idea.  But of course the lackeys did--because it would be a huge political winner for duh "EJ" folks who'd get a state check every month if some bureaucrat decided duh price of gasoline wuz "too high."  A grifter's dream.

These people are all lying Democrats (communists).  Or morons, I'll happily go either way on that one.  And half of 'em are also members of an "electrification board."  Hmmm...

Oh, the CEC also proposed one other "government intervention" to compensate for the shutdown of "some" of the nine remaining refineries: "an increase in imports."  We presume they mean imports of already-refined gasoline, since importing crude oil won't help if your nine refineries are at capacity.  So we "offshore" more jobs to overseas refiners.  

Say, how has "offshoring" worked when it comes to, say, critical medicines, or computer chips, or steel, eh?  And you morons want to do MORE of it?  Yep, stone-cold communists.

Summary: this "report" accidentally explains why the economy in the former Soviet Union was so awful: dumb apparatchiks (the Russian word; we'd call 'em "lackeys") pretending they know how to produce things better than the folks who actually DO produce things.  Like governments everywhere, eh?

Source: California Energy Commission report--and you have to read it to believe they really said stuff this damn stupid!

https://www.energy.ca.gov/publications/2024/transportation-fuels-assessment-policy-options-reliable-supply-affordable-and