Nearly bankrupt California turned down an energy proposal from Plains Exploration & Production (NYSE:PXP), that would have increased revenue to the state and advanced the state's (and nation's) "energy independence."
PXP wanted to use an existing oil platform, but was still rebuffed. I suppose it's hard to expect sanity from the CA State Assembly, which is led by a woman who accused those against tax increases of being "terrorists."
Details of the company's rebuffed proposals.
- Donation of nearly 4,000 acres of PXP coastal land for permanent conservation.
- Termination of PXP's existing oil and gas production operations offshore California in 14 years, and removal of all related onshore processing facilities at the end of the project, instead of the company's current 30+ year production/drilling program.
- Mitigation of the project's greenhouse gas emissions.
- Economically, to the people of California, the project would provide a $100 million advance to the California General Fund this budget year and as much as $4 billion in royalty revenue over the life of the project.
What's more offensive? California's insistence on enjoying the highway/suburb lifestyle while declining to spoil its coastal views to drill for the oil it uses? Or its ignorance in chasing away business in the midst of a budget meltdown?