Last Wednesday night, after the Presidential debate, we stepped outside and were immediately hit by an unpleasant sulfuric smell that burned our nostrils and stung our eyes. We could almost taste it.
Initially, we speculated it might be remnants of President Obama’s speech in Denver, carried over the Rocky Mountains and across the desert states, before settling above Long Beach and San Pedro Bay. However, further investigation revealed that the foul stench originated from a malfunction at one of the gasoline refineries in the harbor.
By Thursday morning, the air was much clearer. Yet, as we made our way to work, we discovered that multiple issues at refineries statewide had caused a sharp increase in gas prices. A power outage at ExxonMobil’s Torrance refinery had curtailed operations throughout the week, while Chevron’s Richmond refinery was operating at reduced capacity following an August 6 fire.
When we finished work on Thursday, regular unleaded gas had surged to $4.40 per gallon. By Friday morning, the same fuel had jumped to $4.70 per gallon, and reports later indicated prices exceeded $5 per gallon in the San Fernando Valley.
By Saturday, gas prices across California had reached record levels, and on Sunday they soared even higher. In stark contrast, the national average remained at a mere $3.79—emphasizing that California’s gas supply dilemma was largely self-inflicted.
Morons in Sacramento
In California, known for its fruits and nuts, possibilities abound. The state’s vast expanse and energetic spirit create endless opportunities for remarkable achievements. In the realm of state governance, however, the abundance of sunshine and tax revenue can lead to irrational decisions that stifle genuine commerce.
Somehow, the misguided actions of legislators in Sacramento have managed to transform California—once home to the eighth largest economy in the world—into a system that detracts from the lives of its 37 million residents.
Their approach is multifaceted, but last week’s artificial gas shortage serves as a clear example.
In most states, if a few refineries go offline, wholesalers can simply source gasoline from refineries in neighboring states. While this might increase costs slightly, it typically wouldn’t lead to a full-blown supply crisis.
However, California’s situation is different. Lawmakers and regulators have effectively created a closed market for gasoline within the state. Though their intentions may be well-meaning, the consequences are anything but.
Mandated Scarcity in the Land of Fruits and Nuts
“This situation is exacerbated by pollution regulations that require a special blend of cleaner-burning gasoline from April to October,” said Denton Cinquegrana, executive editor of the Oil Price Information Service, which
