Publisher's Note: One of the most significant things you can do to promote Liberty is to support our mission. Please make your gift to the 2024 Independence Day Campaign today. Thank you! —Mark Alexander, Publisher

June 5, 2024

Crazy California Wants to Cap Oil Profits

Governor Newsom is considering limiting oil company profits to mitigate the nation’s highest gas prices.

California’s golden days are rapidly fading under the shadow of a growing mountain of regulations from a leftist-dominated legislature.

At one time, California was the goose that laid the golden egg. Few states can boast the wide variety of natural resources and lovely weather that California does with its beaches, mountains, and lush farmland. The state is both a leading agricultural producer and a leading tech developer. And thanks to Hollywood, arguably, no single state has had more cultural impact on America and the entire world. Thus, the notion that what starts in California eventually ends up being adopted across the rest of the country is largely due to the Golden State’s historical culture-setting impact.

Ever since the gold rush began in 1849, California has been a magnet for people seeking fame, fortune, and a better life. Historically, few states have delivered on those hopes more than California. However, Democrat politicians now appear determined to kill the golden goose.

In 2020, California saw its population shrink for the first time in state history. That trend has continued each year since then as more people are picking up stakes and heading for greener pastures. Since 2020, when the state’s population peaked at roughly 39,500,000, over half a million residents have moved out.

And now the state’s Democrat-dominated legislature seems intent on ensuring that the out-migration continues apace.

Energy, the lifeblood of economic growth, has been a driving force behind California’s development. The state’s rich fossil fuel resources, particularly oil, played a significant role in this growth. In fact, as recently as 2012, California was the nation’s third-most-prolific oil-producing state, trailing only Texas and North Dakota. However, the state has now slipped to seventh place on the oil production list, a decline that should raise concerns about the future of California’s economy.

But California Democrats are working to ensure that energy becomes less abundant and, as a result, costlier. Thanks to the Democrats’ climate change agenda, Californians pay the highest gas tax in the nation, over 77¢ per gallon. Of course, thanks to Bidenflation, the price Californians are paying at the pump would make anyone demand a change.

However, these Democrat lawmakers don’t seem worried about the high gas tax or the high inflation that Joe Biden’s massive spending has caused; rather, they foist the blame onto those “greedy” oil companies. This is why last year, the legislature passed SBX1-2, which was dubbed the “gas price gouging law.”

SBX1-2 created a new state government bureaucracy, the Division of Petroleum Market Oversight, which monitors oil companies to ensure they are not engaging in illegal market manipulation. In other words, the Democrats will spend more tax dollars on another government program.

To make matters worse, Democrat Governor Gavin Newsom wants to impose a cap on oil refineries’ profits. The trouble is that such a move would affect not only Californians but also the price of gas and fuel availability in neighboring states. As Nevada Republican Governor Joe Lombardo warned in a letter to Newsom regarding the profit cap, “While we have no details on what this might look like, I’m concerned that this approach could lead to refineries either constraining supplies of fuels to avoid a profit penalty or even leaving our shared fuels market entirely.” After noting that Nevada receives 88% of its fuel from California, Lombardo wrote, “Either scenario would likely lead to limited supplies and higher fuel costs for consumers in both of our states.” Exactly.

The trouble is, California Democrats have long demonized the state’s fossil fuel industry, and their radical climate cult pipe dream includes banning the sale of new gas-powered cars in the state by 2035.

So California’s leftist lawmakers have gone out of their way for years to attack and inhibit the state’s fossil fuel industry, and no new oil refineries have been opened in the state since the 1960s. Adding price controls to further curtail the fossil fuel industry’s profits merely makes the cost of doing business in the state that much higher.

Is it any wonder a growing number of people are seeing the writing on the wall and are leaving while there’s still time?

Who We Are

The Patriot Post is a highly acclaimed weekday digest of news analysis, policy and opinion written from the heartland — as opposed to the MSM’s ubiquitous Beltway echo chambers — for grassroots leaders nationwide. More

What We Offer

On the Web

We provide solid conservative perspective on the most important issues, including analysis, opinion columns, headline summaries, memes, cartoons and much more.

Via Email

Choose our full-length Digest or our quick-reading Snapshot for a summary of important news. We also offer Cartoons & Memes on Monday and Alexander’s column on Wednesday.

Our Mission

The Patriot Post is steadfast in our mission to extend the endowment of Liberty to the next generation by advocating for individual rights and responsibilities, supporting the restoration of constitutional limits on government and the judiciary, and promoting free enterprise, national defense and traditional American values. We are a rock-solid conservative touchstone for the expanding ranks of grassroots Americans Patriots from all walks of life. Our mission and operation budgets are not financed by any political or special interest groups, and to protect our editorial integrity, we accept no advertising. We are sustained solely by you. Please support The Patriot Fund today!


The Patriot Post and Patriot Foundation Trust, in keeping with our Military Mission of Service to our uniformed service members and veterans, are proud to support and promote the National Medal of Honor Heritage Center, the Congressional Medal of Honor Society, both the Honoring the Sacrifice and Warrior Freedom Service Dogs aiding wounded veterans, the National Veterans Entrepreneurship Program, the Folds of Honor outreach, and Officer Christian Fellowship, the Air University Foundation, and Naval War College Foundation, and the Naval Aviation Museum Foundation. "Greater love has no one than this, to lay down one's life for his friends." (John 15:13)

★ PUBLIUS ★

“Our cause is noble; it is the cause of mankind!” —George Washington

Please join us in prayer for our nation — that righteous leaders would rise and prevail and we would be united as Americans. Pray also for the protection of our Military Patriots, Veterans, First Responders, and their families. Please lift up your Patriot team and our mission to support and defend our Republic's Founding Principle of Liberty, that the fires of freedom would be ignited in the hearts and minds of our countrymen.

The Patriot Post is protected speech, as enumerated in the First Amendment and enforced by the Second Amendment of the Constitution of the United States of America, in accordance with the endowed and unalienable Rights of All Mankind.

Copyright © 2024 The Patriot Post. All Rights Reserved.

The Patriot Post does not support Internet Explorer. We recommend installing the latest version of Microsoft Edge, Mozilla Firefox, or Google Chrome.