(Daily Caller)—California has gone after the fossil fuel industry with vigor, but those efforts do not seem to have made much impact on climate change while proving detrimental to the state’s economy.
The state’s long-term and ongoing efforts to undermine energy production within its borders have effectively displaced, rather than reduced, fossil fuel production — and jobs related to that production — to other states and areas of the world while U.S. oil production is at record levels. California’s anti-fossil fuel push also has not moved the needle much on climate change, which alarmists continue to insist is accelerating at a dangerous pace, but it has raised energy costs for Californians, diminished grid reliability and disincentivized corporate investment that would create or maintain jobs in the state, energy policy experts told the Daily Caller News Foundation.
In the first week of 2024, Chevron, a California-based oil major, announced that it is writing down its existing interests in California by more than $4 billion, a move largely prompted by the state’s burdensome environmental regulatory structure. Exxon Mobil, the largest oil company in the U.S., announced Friday that it is also impairing its California assets, similarly citing regulatory challenges in the state.
While the companies are writing down the value of their operations in California, they are making major plays to expand the scope and scale of their interests in states that are more amenable to energy production, especially Texas. Chevron and Exxon Mobil acquired Hess and Pioneer Resources, respectively, in late 2023. While the deals are not yet finalized, Hess and Pioneer each have considerable portfolios in Texas’ Permian Basin that made each smaller firm an attractive target for acquisition by major competitors.
Meanwhile, the U.S. is producing about 13.2 million barrels of oil per day, a number that stands as a record high, according to Forbes.
“For well over two decades now, politicians like Governor Newsom have hammered California’s conventional energy producers, both large and small, with excessive taxes, regulations, and threats of profit taking … Large companies can better withstand the onslaught of red tape, but smaller producers can ill afford the book the types of liabilities being saddled on the industry,” Tom Pyle, president of the American Energy Alliance, told the DCNF. “Many companies have already moved out of the state, along with hundreds of thousands of residents as a result of these and other harmful policies … like a cap on profit margins, that hurt consumers by making conventional energy investments uneconomic. These types of policies have outsourced jobs to other states and increased California’s reliance on oil and electricity imports — all with little or no environmental benefit.”
California’s local oil and gas production provides about 50,000 jobs statewide, including 31,000 jobs in the San Joaquin Valley, a region that is generally less economically successful than other parts of the state, according to Californians for Energy Independence.
California was one of the leading states of the U.S. in terms of oil production in 2022, with operators in the state pumping more than 124 million barrels that year, according to data from the U.S. Energy Information Administration (EIA). The state saw its local oil and gas production drop by nearly 30% over the course of the last four years, according to EIA data, a trend which Californians for Energy Independence attributes primarily to “state and local energy policies shutting down production.”
The state is widely considered to be on the leading edge of climate policy, according to Stateline. Away from the regulations focused on oil and gas production, the state has pushed aggressive electric vehicle and truck rules, filed a climate change lawsuit against Chevron and other oil majors alleging that they deliberately tried to mislead the public about the nature of climate change and enacted a landmark corporate emissions disclosure requirement.
With regard to the lawsuit against the large oil firms, Democratic California Gov. Gavin Newsom has been openly hostile in his remarks about the defendants, painting them as liars.
“The state is home to well-understood, rich reserves of oil and natural gas that Democrat policies have rendered non-economic to produce. California’s ruling Democrats have destroyed tens of thousands of high paying jobs that would otherwise be employed in the oil and gas industry in efforts to take advantage of those resources,” David Blackmon, a 40-year veteran of the oil and gas business who now consults and writes regularly about the energy industry, told the DCNF. “The supreme irony in all of this, of course, is that Newsom has created a situation in which his state now imports most of its oil from a fellow economic basket case — Venezuela — to meet its consumption needs that the US domestic industry could easily satisfy if it were allowed to access California’s own oil and gas resources.”
The current average per-gallon gas price at the pump that Californians pay is about $4.70, which is the highest such price in the country, according to AAA data. By comparison, the national average currently sits at about $3.09 per-gallon.
Beyond energy production and high fuel prices, the residential ratepayers in the state faced the second-highest average retail electricity rates in the entire U.S. in October 2023, according to the most recent monthly data published by the EIA.
“Extreme events driven by climate change are leading to increased demand for power and putting the electric grid at increased risk of outages — in California and beyond. Events include extreme heat and wildfires that threaten the grid with growing frequency and intensity,” a spokesperson for the California Energy Commission (CEC) told the DCNF. “Electrifying California’s economy and building a reliable, safe, affordable and clean electric grid are cornerstones of both our climate leadership and our economic plan for the future. The state is taking action on multiple fronts.”
Additionally, the state’s power grid has come very close to blackouts in recent years, particularly in September 2022, when California’s grid operator urged residents to turn up their thermostats during the late afternoon and evening hours to conserve energy for ten consecutive days amid a heatwave that strained the grid’s reliability.
“Reasonable people might expect that state governments would do as much as possible to make the lives of residents easier. Unfortunately, California’s government is doing just the opposite,” Diana Furchtgott-Roth, the director of the Heritage Foundation’s Center for Energy, Climate and Environment, told the DCNF. “That’s one reason why 75,000 people left California over the past year, according to the Census Bureau.”
Power supply adequacy is such an issue in the state that Newsom decided to refill the Aliso Canyon gas storage facility to protect against energy price spikes and blackouts in August; Newsom had previously made a campaign promise to shutter the facility. That same month, the CEC voted against shuttering three fossil fuel-fired plants in Southern California to keep them available in order to stave off blackouts if needed.
“The people of California deserve to know when their state-wide green agenda will begin to work, and by ‘work’ I mean when will both grid reliability and overall costs reflect the promises made by going green. California’s price at the pump and cost of electricity are among the highest in the nation, and only continue to increase, while the electric grid grows more unstable,” Daniel Turner, executive director and founder of energy advocacy group Power The Future, told the DCNF. “Green-backed elected officials including Governor Newsom have promised that going green will be a benefit, and yet the only result has been pain for the average Californian who is unable to flee the state like hundreds of thousands have already done … In no place where ‘going green’ has been implemented has it been a benefit to the people: not Germany, not California, not New York.”
Newsom’s office and the California Independent System Operator did not respond immediately to requests for comment.
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Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
