Latest news with #BigOil
Yahoo
9 hours ago
- Business
- Yahoo
California energy regulator recommends pause on plan to penalize excess oil profits
SACRAMENTO, Calif. (AP) — California should pause Gov. Gavin Newsom's plan to penalize oil companies if their profits climb too high, a top energy regulator said Friday while unveiling proposals aimed at addressing high gas prices. The Democratic governor signed a law in 2023 giving the California Energy Commission the authority to penalize oil companies for excess profits, declaring the state had 'finally beat big oil.' More than two years later, the commission hasn't imposed a single penalty or determined what counts as an excessive profit. Now, Siva Gunda, the energy commission's vice-chair, says the state should pause the effort in favor of pursuing other policies to lower prices and maintain a steady oil supply — all while pushing to phase out reliance on fossil fuels over the next two decades. 'Together, we will evolve California's strategy to successfully phase out petroleum-based fuels by 2045 while protecting communities, workers, and consumers, and foster market conditions that support the industry's ability to operate safely, reliably, and successfully to meet demand through the transition,' Gunda wrote in a letter to Newsom. Gunda's recommended pause of the penalty would have to be agreed upon by the full commission. Newsom has pitched the penalty as a way to rein in profits by oil companies, but critics said it would only raise prices. California has the highest gas prices in the nation, largely due to taxes and environmental regulations. Regular unleaded gas prices were $4.61 a gallon Friday, compared to a national average of $3.20, according to AAA. The commission still plans to set rules that would require oil refineries to keep a minimum level of fuel on hand to avoid shortages when refineries go offline for maintenance, Gunda said. That proposal came out of a law Newsom signed last year after convening a special session aimed at preventing gas price spikes. Gunda's recommendations come months after Newsom in April directed energy regulators to work with refiners on plans to ensure the state maintains a reliable fuel supply as it transitions away from fossil fuels. Newsom spokesperson Daniel Villaseñor said in an email that the governor would review the recommendations and 'advance solutions that maintain a safe, affordable, and reliable supply of transportation fuels for California.' Two major oil companies announced plans over the past year to shut down refineries in the state, further driving uncertainty about how the state should maintain a stable fuel supply as California transitions toward renewable energy. Phillips 66 announced plans to shut down its Los Angeles-area refinery, and Valero said it would cease operations at its Benicia refinery. The two refineries combined account for more than 17% of the state's refining capacity, according to the energy commission. A group of about 50 environmental and consumer groups penned a letter to Newsom and legislative leaders Friday criticizing the proposal to pause implementing a penalty on oil company profits. 'California oil refiners do not need a bailout,' they wrote, adding that the state should 'finish the job' it started to prevent prices at the pump from spiking. ___ Austin is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on X: @sophieadanna
Yahoo
14 hours ago
- Business
- Yahoo
California energy regulator recommends pause on plan to penalize excess oil profits
SACRAMENTO, Calif. (AP) — California should pause Gov. Gavin Newsom's plan to penalize oil companies if their profits climb too high, a top energy regulator said Friday while unveiling proposals aimed at addressing high gas prices. The Democratic governor signed a law in 2023 giving the California Energy Commission the authority to penalize oil companies for excess profits, declaring the state had 'finally beat big oil.' More than two years later, the commission hasn't imposed a single penalty or determined what counts as an excessive profit. Now, Siva Gunda, the energy commission's vice-chair, says the state should pause the effort in favor of pursuing other policies to lower prices and maintain a steady oil supply — all while pushing to phase out reliance on fossil fuels over the next two decades. 'Together, we will evolve California's strategy to successfully phase out petroleum-based fuels by 2045 while protecting communities, workers, and consumers, and foster market conditions that support the industry's ability to operate safely, reliably, and successfully to meet demand through the transition,' Gunda wrote in a letter to Newsom. Gunda's recommended pause of the penalty would have to be agreed upon by the full commission. Newsom has pitched the penalty as a way to rein in profits by oil companies, but critics said it would only raise prices. California has the highest gas prices in the nation, largely due to taxes and environmental regulations. Regular unleaded gas prices were $4.61 a gallon Friday, compared to a national average of $3.20, according to AAA. The commission still plans to set rules that would require oil refineries to keep a minimum level of fuel on hand to avoid shortages when refineries go offline for maintenance, Gunda said. That proposal came out of a law Newsom signed last year after convening a special session aimed at preventing gas price spikes. Gunda's recommendations come months after Newsom in April directed energy regulators to work with refiners on plans to ensure the state maintains a reliable fuel supply as it transitions away from fossil fuels. Newsom spokesperson Daniel Villaseñor said in an email that the governor would review the recommendations and 'advance solutions that maintain a safe, affordable, and reliable supply of transportation fuels for California.' Two major oil companies announced plans over the past year to shut down refineries in the state, further driving uncertainty about how the state should maintain a stable fuel supply as California transitions toward renewable energy. Phillips 66 announced plans to shut down its Los Angeles-area refinery, and Valero said it would cease operations at its Benicia refinery. The two refineries combined account for more than 17% of the state's refining capacity, according to the energy commission. A group of about 50 environmental and consumer groups penned a letter to Newsom and legislative leaders Friday criticizing the proposal to pause implementing a penalty on oil company profits. 'California oil refiners do not need a bailout,' they wrote, adding that the state should 'finish the job' it started to prevent prices at the pump from spiking. ___ Austin is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on X: @sophieadanna Sophie Austin, The Associated Press Sign in to access your portfolio
Associated Press
14 hours ago
- Business
- Associated Press
California energy regulator recommends pause on plan to penalize excess oil profits
SACRAMENTO, Calif. (AP) — California should pause Gov. Gavin Newsom's plan to penalize oil companies if their profits climb too high, a top energy regulator said Friday while unveiling proposals aimed at addressing high gas prices. The Democratic governor signed a law in 2023 giving the California Energy Commission the authority to penalize oil companies for excess profits, declaring the state had 'finally beat big oil.' More than two years later, the commission hasn't imposed a single penalty or determined what counts as an excessive profit. Now, Siva Gunda, the energy commission's vice-chair, says the state should pause the effort in favor of pursuing other policies to lower prices and maintain a steady oil supply — all while pushing to phase out reliance on fossil fuels over the next two decades. 'Together, we will evolve California's strategy to successfully phase out petroleum-based fuels by 2045 while protecting communities, workers, and consumers, and foster market conditions that support the industry's ability to operate safely, reliably, and successfully to meet demand through the transition,' Gunda wrote in a letter to Newsom. Gunda's recommended pause of the penalty would have to be agreed upon by the full commission. Newsom has pitched the penalty as a way to rein in profits by oil companies, but critics said it would only raise prices. California has the highest gas prices in the nation, largely due to taxes and environmental regulations. Regular unleaded gas prices were $4.61 a gallon Friday, compared to a national average of $3.20, according to AAA. The commission still plans to set rules that would require oil refineries to keep a minimum level of fuel on hand to avoid shortages when refineries go offline for maintenance, Gunda said. That proposal came out of a law Newsom signed last year after convening a special session aimed at preventing gas price spikes . Gunda's recommendations come months after Newsom in April directed energy regulators to work with refiners on plans to ensure the state maintains a reliable fuel supply as it transitions away from fossil fuels. Newsom spokesperson Daniel Villaseñor said in an email that the governor would review the recommendations and 'advance solutions that maintain a safe, affordable, and reliable supply of transportation fuels for California.' Two major oil companies announced plans over the past year to shut down refineries in the state, further driving uncertainty about how the state should maintain a stable fuel supply as California transitions toward renewable energy. Phillips 66 announced plans to shut down its Los Angeles-area refinery, and Valero said it would cease operations at its Benicia refinery. The two refineries combined account for more than 17% of the state's refining capacity, according to the energy commission. A group of about 50 environmental and consumer groups penned a letter to Newsom and legislative leaders Friday criticizing the proposal to pause implementing a penalty on oil company profits. 'California oil refiners do not need a bailout,' they wrote, adding that the state should 'finish the job' it started to prevent prices at the pump from spiking. ___ Austin is a corps member for The Associated Press/Report for America Statehouse News Initiative. Report for America is a nonprofit national service program that places journalists in local newsrooms to report on undercovered issues. Follow Austin on X: @sophieadanna
Axios
2 days ago
- Business
- Axios
Why BP takeover speculation won't go away
Shell's firm denial that it's eyeing acquisition of BP may tamp down chatter of a blockbuster deal for now — but it won't end speculation about BP's fate as long as it underperforms its Big Oil rivals. Catch up quick: Hours after the WSJ's buzzy scoop Wednesday about "early stage" talks, a Shell spokesperson said, "This is further market speculation. No talks are taking place." "As we have said many times before we are sharply focused on capturing the value in Shell through continuing to focus on performance, discipline and simplification," the company said. It also circulated execs' past comments about using capital to buy back shares, and the company's high bar for outside acquisitions. BP did not comment. Yes, but: The idea of a Shell-BP mega-merger has been floating around for a while. BP has trailed Shell's and TotalEnergies' performance among European-headquartered giants. And Big Oil has gotten bigger among U.S. multinationals, with Exxon's roughly $60 billion acquisition of Pioneer Natural Resources that closed last year, and Chevron's efforts to acquire Hess. What they're saying:"A combination could be the first step toward improving the valuations of the combined company" and boosting free cash flow, Rob Thummel, senior portfolio manager at Tortoise Capital, said in emailed comments about a Shell-BP tie-up. BP has recently pivoted back toward its core oil and gas business and gotten more selective about renewables, a move Thummel said recognizes its "core strengths." He notes BP's "top tier" assets in the Gulf of America (formerly the Gulf of Mexico), among other holdings. The bottom line: Thummel was asked whether Shell's comments will put merger speculation to rest. He doesn't think so, noting BP trades at a "cheap valuation."
LeMonde
3 days ago
- Automotive
- LeMonde
Judge orders Trump admin to release billions in EV charging funds
A federal judge has ordered the Trump administration to release billions of dollars allocated for the construction of electric vehicle charging stations in over a dozen US states. In a ruling Tuesday, June 25, US District Judge Tana Lin granted a preliminary injunction to require distribution of funds for National Electric Vehicle Infrastructure (NEVI) development, which was allotted $5 billion for use from 2022 to 2026. Signed into law by then-president Joe Biden in 2021, the NEVI program was defunded by the Trump administration's Department of Transportation in February, axing expected funding for 16 states and the District of Columbia. President Donald Trump has repeatedly called climate change a "hoax," abandoned electric vehicle booster programs and campaigned to drill for oil extensively. Trump has also blocked California's plan to ban internal combustion engine vehicles by 2035. Seventeen attorneys general sued the Trump administration to unfreeze funds in May, led by California, the state with the largest number of electric vehicles. "It is no secret that the Trump Administration is beholden to the fossil fuel agenda," said California Attorney General Rob Bonta, adding legal programs can't be dismantled "just so that the President's Big Oil friends can continue basking in record-breaking profits." The Democrat praised Lin's order and said California "looks forward to continuing to vigorously defend itself from this executive branch overreach." In responding to the ruling, a Department of Transportation spokesperson on Wednesday blasted the Biden-era NEVI program as a "disaster" and said Lin was "another liberal judicial activist making nonsensical rulings from the bench because they hate President Trump." It was not clear whether the administration intends to appeal the ruling. "While we assess our legal options, the order does not stop our ongoing work to reform the program," the spokesperson added. The Trump administration has until July 2 to appeal or release funds under Lin's order, which applies to Arizona, California, Colorado, Delaware, Hawaii, Illinois, Maryland, Minnesota, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Washington, Wisconsin and the District of Columbia.
