The recent communication from Chevron to California state leaders is a technical warning about how modifications to the Cap-and-Invest program could dismantle the state’s economic foundation. The California Air Resources Board (CARB) proposes emission limits that, according to experts, compromise the financial stability of families and the operational viability of businesses.
New Policies of the Cap-and-Invest Program
It is estimated that gasoline prices could increase by more than a dollar per gallon by 2030 due to the accumulated regulatory burden. Likewise, the viability of the remaining refineries in the state is being questioned.
The loss of domestic refining capacity does not imply lower demand, but rather a greater dependence on costly imports arriving by sea, which generates a cycle of volatile prices and greater uncertainty in the fuel supply.
There is also a legitimate concern about the region’s energy sovereignty. The State of California hosts strategic military installations that require an uninterrupted flow of energy to maintain operational readiness.
However, if the current regulatory framework forces the cessation of industrial operations, national security will be compromised by a weakened infrastructure. Furthermore, the threat to more than 500,000 jobs linked to the oil industry is a latent reality that legislators must consider. These jobs represent competitive wages and necessary tax revenue to fund essential public services such as healthcare and education.
Source and photo: Chevron