The Patriot Post® · Crazy California Wants to Cap Oil Profits

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?