California’s fuel crisis threatens Orange County’s economic engine

California’s economy is at a crossroads. With two major refinery closures looming, the entire state is bracing for a substantial reduction in critical refining capacity.  Experts predict these closures will spike gas prices in the coming months. For businesses  and working families alike, California’s fuel supply crisis is actually an affordability crisis. And the economic consequences for Orange County businesses and families are alarming.  The California Energy Commission (CEC) projects a 15–30¢/gallon further increase in gasoline prices in the short-term following the shutdowns. 

Click Here to Subscribe to the California Political Review

Orange County Business Council has long advocated for multiple sources of energy to support further growth of our economy. And we have sounded the alarm about avoidable pressures which are driving up fuel costs in California. The results are all too predictable with a regulatory environment that discourages local oil production and hampers the economics of refining to the point of now facing refinery closures. Higher prices at the pump, higher costs for goods and services and a growing reliance on imported fuel from foreign countries many of whom are dismissive about environmental concerns. 

But in recent months, we have seen a notable shift in tone from our state legislative delegation. Assemblymember Cottie Petrie-Norris deserves credit for hosting a critical oversight hearing that brought transparency and urgency to this issue. Her leadership, and that of others in the Orange County delegation, signals a growing understanding in Sacramento of the economic magnitude of this challenge. The seriousness behind the questions from the dais deserves recognition and reflects genuine engagement with the issue. 

Working openly with our Orange County delegation, we are encouraged by their responsiveness. They are acknowledging the real-world impacts of refinery closures and the policy constraints that have led California to this point. They understand how these affordability issues harm our most vulnerable communities and businesses. Most importantly, they are beginning to chart a path forward and we are proud to work with them. 

However, words must now translate into urgent action because of what is at stake. 

Orange County is not just a beautiful place to live. It’s also one of the most economically dynamic regions in the country. With more than 3.2 million residents and a GDP exceeding $333 billion, our local economy is more robust than those of 25 other states —underscoring the county’s role as a global economic engine fueled by thriving industries like advanced manufacturing, life sciences, technology and tourism. 

These sectors depend on reliable, affordable fuel to move goods, serve customers and support workers. Rising gas prices threaten to undermine the economic “fuel” driving growth and prosperity in one of the most desirable places to live and work in the world – a region that is already combating increased costs of living. 

For small businesses, higher transportation costs mean tighter margins and higher prices for customers. For working families in a largely car-dependent region, elevated fuel prices strain already-stretched budgets.  

Click here to read the full article in the OC Register

Comments

  1. Does any read begin to believe this is an accident? How many of the elite in Sacramento are positioning themselves to take advantage of the change in fuel and energy? Read below:

    “Experts predict these closures will spike gas prices in the coming months…..””” Here is another one “signals a growing understanding in Sacramento of the economic magnitude of this challenge. “””””

    Magnitude of this challenge????

    Gaseous Fuels: Methanol can be reformed into hydrogen-rich gas or converted into dimethyl ether (DME), a clean-burning gaseous fuel that can power modified internal combustion engines or fuel cells. Alternatively, syngas (a mixture of CO and H₂) derived from methanol can be used to produce methane or other gaseous hydrocarbons. It can also produce liquid gas.

    More and more large corporations are saying goodbye to Calif. It is intentional and based upon a top down Socialist government structure.

    There has been since the 1970’s a safe alternative storage of gaseous fuels as was proven by the Billings Hydrogen Energy Company proved. They also created “a/b” switch fuel delivery that the alternative of gasoline or natural gas.

    This quote at the end of the article is clear….. “For small businesses, higher transportation costs mean tighter margins and higher prices for customers. For working families in a largely car-dependent region, elevated fuel prices strain already-stretched budgets. “””

    This is intentional and is to force the general population to do what a minority controlling Sacramento wants.

    AI plus new tech. that captures Carbon is here and will continue to expand. But then again this is a government that is bound and determined to force on the taxpayers there admitted failure of High Speed Rail.

    This comment brought to you by Cars Are Basic – CarsAreBasic.org

  2. Goleta the Good says

    The 15-minute vision zero bike and emotorcycle guys and their affiliated megadevelopers commandeered the outcast of the oil industry and promoted Chinese manufacturing and forced policies like our RHNA and similar policies which are promoting slums and homeless camps around the World.

    They deindustrialized and gentrified downtown Long Beach and Santa Monica, but OC, with its wide arterial roads, “gentrified” express lanes instead of real estate, resulting in the full spectrum of jobs available for singles who don’t mind renting fire-trap condos next to off-ramp and bustling restaurants, and also those with families who prefer peaceful suburbs, as much of OC used to be. Complete automobile freedom, except for the transponder.

    In the last century, I worked on the toll roads in Orange County, which allowed people to efficiently commute greater distances to high-paying jobs from areas that were farms and ranches just 30 years ago.

    My greedy boss went off to work on high Speed Rail for a few years until everyone realized that HSR is doomed. Yes, the so-called Reason Foundation, which began taking funds from Gates and other globalists, said in 2008 that it may pay for itself, but they were ignoring all the sidings and steep grades to be constructed.

    In China, where the government owns the land and have basically no labor laws, I saw them building elevated lines on columns, but HSR here would be mostly at grade with flooding, cows and homeless (and I have seen brain and body parts on the tracks under bridges). And the bored valley kids would have fun pelting the trains with rocks, since everyone likes their truck in the valley.

    Santa Barbara used to have a wind turbine blade manufacturer, until the local gov policies ran them off, much like the greasy turbines have culled off the birds which the Audubon ignores. Warren Buffet just said that he will never buy another railroad again. We should not either.

Speak Your Mind