by Katy Grimes, E&E Legal Senior Media Fellow and California Globe Editor
As Appearing in the California Globe
Says he’s returning profits to Californians after passing ‘sweeping climate change’ bills further restricting oil and gas extraction
“Crude oil prices are dropping, but oil and gas companies are still raising prices on California consumers,” California Gov. Newsom said, announcing a new “windfall profits tax” on oil companies. “These price hikes cannot be attributed solely to refinery maintenance issues, hurricane disruptions, or even state taxes,” Newsom said.
“Gas prices have increased by a record $0.84 per gallon in just over one week,” the governor said.
In a video, Gov. Newsom addressed the $2.50 difference between California’s highest-in-the-nation gas prices, over $7.00 in some California locations, and the rest of the country. “This degree of divergence from the national prices has never happened before. And oil companies? They provide no explanation. The fact is, they’re ripping you off,” he said. “Their record profits are coming at your expense.”
Newsom left out of his video the part where in 2021 he largely killed hydraulic fracturing for natural gas in California as part of his overall plan to end oil extraction. He also announced his action to halt issuance of fracking permits by 2024.
Gov. Newsom just signed a package of “sweeping legislation” in September to achieve statewide carbon neutrality as soon as possible, and no later than 2045, by establishing an 85% emissions reduction target, capping oil wells, slowing oil and gas permitting, making it impossible to increase refining capacity, and entirely phasing out oil and gas starting in two years. And that’s just the start.
