California’s Oil

It has more than anyone else in the country, but by choosing not to extract it, billions of dollars are sent out yearly to purchase oil, as this article from New Geography cites.

An excerpt.

California is home to the largest crude oil reserves in America, but the States’ choice to not drill for that oil requires in-state manufacturers to “export” billions of dollars annually to oil rich foreign countries to import their oil to meet the state’s energy demands.

The subject of energy for the world’s fifth-largest economy is about finding a workable, sustainable balance across equally important concerns for our economy, our shared sense of social equality, our impact on the environment, and a truly sustainable energy future.

The state’s daily need to support its 145 airports (inclusive of 33 military, 10 major, and more than 100 general aviation) is 13 million gallons a day of aviation fuels. In addition, for the 35 million registered vehicles of which 90 percent are NOT EV’s are consuming DAILY: 10 million gallons a day of diesel and 42 million gallons a day of gasoline.

The USA is now a net exporter of crude oil, with crude oil exports exceeding imports. This oil boom coming from Texas, North Dakota, Pennsylvania, Oklahoma, and Colorado, is beneficial to 49 states, but not to California. The insurmountable condition of no pipelines over the Sierra Nevada Mountains results in California having no easy access to the over- supply of USA crude oil east of the Sierra Nevada Mountains. The American shale boom has important security implications as well, as America is now less dependent on crude oil from the turbulent Middle East, again, except for California.

California is an “energy island” to roughly 40 million citizens, bordered between the Pacific Ocean and the Arizona/Nevada Stateline with no pipelines over the Sierra Nevada Mountains. To access the oil shale boom from the rest of the country for California, that oil must to go through the Panama Canal to reach California ports. There are other options of crude oil by trucks, or by railroads, but both have been overwhelmingly ruled out environmentally.

Additionally, the crude oil is needed in California to support the other “stuff” of chemicals and by-products from crude oil that are the basis of 6,000 products from petroleum that are part of every infrastructure and virtually everything in our daily and leisurely lifestyles.

Many in California are working hard to produce hydrocarbon energy efficiently, reliably, and safely, and many others are working hard to develop alternative energy sources that will efficiently, reliably, and safely produce carbon neutral energy, but despite those appreciative efforts, our energy needs continue to grow with the growing populations of people, vehicles, and businesses.

Both California’s in-state oil production, and Alaskan oil imports are both in-decline to meet the States’ energy needs. Shockingly, California increased crude oil imports from foreign countries from 5% in 1992 to 56% in 2017.

In 2017, California imported crude oil from foreign countries at the rate of 354,119,000 barrels annually from oil rich foreign countries, costing California more than $26.6 billion annually at the Brent Average Crude Oil Spot Price which was recently $75.36 per barrel for September 2018. . This equates to “exporting” more than $73,000,000 per day on a daily basis from California to Saudi Arabia, Ecuador, Columbia, Iraq, Kuwait, Brazil, and Mexico and others for the crude oil energy needs of California.

The latest data from the California Energy Commission (CEC), shows that California fuel consumption is at the highest level since 2009, thus continuation of the state’s dependency on foreign countries for the states’ energy needs seems to be the states future.

Retrieved November 6, 2018 from http://www.newgeography.com/content/006133-california-supports-foreign-big-oil

 

About David H Lukenbill

I am a native of Sacramento, as are my wife and daughter. I am a consultant to nonprofit organizations, and have a Bachelor of Science degree in Organizational Behavior and a Master of Public Administration degree, both from the University of San Francisco. We live along the American River with two cats and all the wild critters we can feed. I am the founding president of the American River Parkway Preservation Society and currently serve as the CFO and Senior Policy Director. I also volunteer as the President of The Lampstand Foundation, a nonprofit organization I founded in 2003.
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