IGNORING THE PROBLEM AND HOPING IT WILL GO AWAY IS NOT USUALLY HELPFUL

By Bob Walsh

 

 

The formerly great state of California is heading for a cliff.  The retail cost of gas will go up about $0.65 per gallon on July 1 due to games the state plays with "summer blend" versus "winter blend" and due to mandates by various agencies that love to diddle with stuff.  When you combine that with the fact that two refineries will close permanently in CA in the next 18-24 months, taking about 18% of California's refining capacity with them, means a likely huge jump in gas prices over the next 12-18 months.  Various prognosticators, mostly university think tanks, are asserting that the CA gas prices will hit at least $8 per gallon in that time and that $10 per gallon are not unlikely.

There is a large chunk of the power base in CA that will be very happy to attempt to FORCE people out of private gas powered cars and into public transit (whether it exists for them or not) or electric cars (whether they live someplace they can be charged or the grid is capable of handling them or not) as a political statement.  Unfortunately the environmental crazies hold great sway in CA and the Republican party is such a small minority in the legislature that they can force nothing and can influence very little.

The working poor and retired fixed income senior citizens are the people who will really get fucked by this.  I am not saying if it happens, I am saying when it happens.  You can't start a new refinery in one year.  You can't even get the permits to start a new refinery in a year.  

The only potential silver lining I see in this very dark cloud is the fact that just maybe when this happens the CA electorate will open their windows and scream "I am as mad as hell and I'm not going to take it any more" and will then actually DO something about it.  Like a mass case of "throw the bums out" or even "heads on a stick" (metaphorically speaking of course).