Governor’s Effort to Reduce Energy Production Will Hurt Consumers and the Environment, Kill Jobs, and Further Delay California’s Economic Recovery (09/23/20)
A California Independent Petroleum Association (CIPA) Chief Executive Officer Rock Zierman today issued the following statement regarding Governor Gavin Newsom’s executive order on in-state production of oil.
“Let’s be clear: today’s announcement to curb in-state production of energy will put thousands of workers in the Central Valley, Los Angeles basin, and Central Coast on the state’s overloaded unemployment program, drive up energy costs when consumers can least afford it, and hurt California’s fight to lower global greenhouse gas emissions.
A recent report made an flawed connection between low birth weight and oil and natural gas production. Pinpointing direct health outcomes to one highly regulated activity ignores the fact that are many socioeconomic variables that can impact public health, such as income levels, underlying health conditions, access to quality prenatal care, and education. Examining these types of health care access inequities would better serve public health. California has the nation’s, if not the world’s, most stringent laws governing oil and natural gas production, proving that responsible production can provide affordable energy to consumers while protecting the environment.
A National Geographic analysis demonstrated the environmental risks of an over-reliance on imported oil, which is produced without California's strict regulations and comes from countries that do not pay California taxes or support our humanitarian values. The impacts of tankered crude is a preview of what California’s energy supply chain will look like if extremists get their wish of shutting down in-state production, in addition to the lost jobs, taxes, and energy security. Key facts from the analysis:
A recent joint story by the Center for Public Integrity and Los Angeles Times overstated the risk to the state of idle wells in California and falsely implied taxpayers would be held liable for plugging these wells. The story neglected to account for legislation recently enacted to strengthen management of idle wells. (CLICK HERE TO READ MORE)
The Wall Street Journal editorial board recently wrote:
“Following the attacks on Saudi Arabia’s oil facilities last month, many forecasters warned that gas prices would spike. Yet prices have hardly budged—except in California, where they are surging due to policies that have made the state more reliant on foreign oil.
“A big reason gas prices didn’t spike after the Saudi attack is growing U.S. shale oil production, which has doubled since 2012 to about 12.5 million barrels a day and added about six million barrels to global supply. This has more than offset the 5.7 million barrels that were temporarily knocked out of Saudi production.”