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Chevron warns California carbon rules will make gasoline too costly

  • Pending California carbon regulations could make it too expensive to operate refineries in the state, raising gasoline prices and costing thousands of jobs, a senior Chevron (CVX) executive says.
  • CVX is especially opposed to a part of the bill that starting next year would require all California distributors of transportation fuels to purchase carbon permits to cover emissions from automobiles, a cost the Boston Consulting Group estimates could exceed $3.7B.
  • Carbon permits currently cost ~$12/metric ton in California, which if the regulation was in effect on transportation fuels would translate to a ~$0.12/gallon increase.
Comments (14)
  • Surfer Steve
    , contributor
    Comments (17) | Send Message
     
    OMG, 12 cents a gallon increase in CA! That will force everyone to stop driving, the economy will grind to a halt, and we will go back to horse drawn carriages and walking (gasp!).

     

    Give me a break, Chevron. Gas prices fluctuate 12 cents a week out here, and somehow we cope with it. A few people might be forced to a make a rational choice of giving up their 14 mpg cars, but I can live with that.
    13 Mar 2014, 09:26 AM Reply Like
  • DevilDog85
    , contributor
    Comments (266) | Send Message
     
    Hey Steve,

     

    You obviously oppose freedom of choice unless it's your choice. You do realize that high energy costs increase costs of ALL products, and will cost jobs? I guess when it is 110 degrees this summer you can use your hand fan to cool down. Take a class on economics, please.
    13 Mar 2014, 11:01 AM Reply Like
  • Not a MBA and Proud
    , contributor
    Comment (1) | Send Message
     
    It's California for god's sake, they all want to do the right thing for the environment, so they'll gladly pony up the extra money to cover the carbon "TAX". Chevron and all the other refiners and marketers will just have to pass the "TAX" on to the consumer; and they shouldn't be bitching about it. After all California's state government is rolling in the cash.
    13 Mar 2014, 09:57 AM Reply Like
  • jumpnjoey77
    , contributor
    Comments (762) | Send Message
     
    Easy. CVX move.
    13 Mar 2014, 10:25 AM Reply Like
  • chrisadli11
    , contributor
    Comment (1) | Send Message
     
    They will.
    13 Mar 2014, 12:00 PM Reply Like
  • six-oh
    , contributor
    Comments (687) | Send Message
     
    I agree that CVX will simply pass this added expense on to the consumer. Never bet against big oil.

     

    As far as California "rolling in the cash", that is simply not true. This year there is a budget surplus thanks to an improving economy and the economic crusader-governor Jerry Brown. However the state of California is actually rolling in debt and it will take many years to pay it down and stabilize the budget.

     

    http://bit.ly/1hfn6JL

     

    That said, I am long CVX.
    13 Mar 2014, 10:29 AM Reply Like
  • DevilDog85
    , contributor
    Comments (266) | Send Message
     
    California budget has improved on tax increases not growth. Wake up dude!
    13 Mar 2014, 11:01 AM Reply Like
  • B.D.
    , contributor
    Comments (2) | Send Message
     
    Well, Steve, you will be the one paying it, not the Chinese. You might want to keep in mind that it isn't theoretical that the economy tanks when oil and gas prices go up. And if you click through to the hot keyed article the estimate isn't 12 cents a gallon, but more like $1.89 a gallon when ALL things are considered that play into this stuff.

     

    Take a look at the 70's and, most recently, 2007. It tanked the economy which was then finished off by the housing melt down. There is always a secondary effect that has that result. What will it be this time? Add to that the congestion in California, already high prices and the lack of affordable housing near where people work and then factor in the intransigence about light rail being built, or cost prohibitive nature of it, and where does that leave you?

     

    California environmentalists are so rabid they want to shut down refineries and anything else fossil fuel related, but they offer no viable alternatives and want everyone else but them to pay for all kinds of things.

     

    I honestly don't see how you and the other short sighted think you can continue to escalate such things beyond reason and expect the state to function. It really is remarkable. The wealthy environmentalists don't mind paying because they can without much impact on themselves--assuming they even live there after the most recent tax hikes. The other environmentalists don't fund it themselves so it really doesn't impact them. Yet everyone else is expected by them to do as they say while they wile away the hours insisting there is a global warming phenomena at work that is anything but proven to be man made or something that can be controlled. It's nuts.
    13 Mar 2014, 10:59 AM Reply Like
  • maxflatus
    , contributor
    Comments (7) | Send Message
     
    I am waiting for the day California implodes. When all companies such as CVX finally leave, we will have the state of Detroit.
    13 Mar 2014, 11:00 AM Reply Like
  • Surfer Steve
    , contributor
    Comments (17) | Send Message
     
    At the risk of igniting a full blown troll war . . .

     

    I too am waiting for CA to implode, so I can buy some of the dumpy coastal properties we have. It's so horrible and dysfunctional that out-of-state deca-millionaires keep buying desirable homes and moving here. I don't understand why they don't stay in their own low-tax, lightly regulated states. You guys are so correct, we are all stupid, lazy, uneducated, and welfare dependent. Nobody works, or innovates, or builds anything out here. Qualcomm, Intel, Cisco, Amgen, Google, Apple? Nothing happening in those loser companies. No good schools, either. Stanford, Cal Tech, UCLA, sheesh, anyone can get accepted there. No agriculture, no energy, no finance or asset management, nope, nothing out here except organic grocery stores that accept food stamps from illegals.

     

    You guys crack me up. Ironically, we vaguely agree on the California should secede idea. Check out the federal tax revenues vs federal expenditures by state and tell me who loses. Stay cool, chicos.
    13 Mar 2014, 09:16 PM Reply Like
  • taxman100
    , contributor
    Comments (327) | Send Message
     
    No doubt California has beautiful weather, and a lot of natural advantages to other areas of the country. That is why California boomed for most of the 20th Century.

     

    Alas, it has been taken-over by socialists, which is why only the very wealthy, and the dependent, can actually afford to live there with any sort of future for their children.

     

    If you are going to claim all of the good things about California, you have to also take ownership of the bad things -

     

    - out of control taxation which may not matter if you are very rich, or very poor.
    - socialism in not only property ownership, but in Constitutional rights, including the 2nd Amendment
    - Hollywood, which produces nothing but immoral garbage
    - a hostility to Christianity
    - unfettered illegal immigration
    - coming soon, a severe drought

     

    A beautiful state with a lot of advantages that somehow they are working very hard to squander.
    14 Mar 2014, 10:14 AM Reply Like
  • booroy2
    , contributor
    Comments (107) | Send Message
     
    I think California is so foreign to the American way of life and culture that they should secede and go their own way and pay their own way.
    13 Mar 2014, 11:23 AM Reply Like
  • taxman100
    , contributor
    Comments (327) | Send Message
     
    Only 12 cents a gallon?

     

    Just like Obamacare was going to cut my health insurance rates by $2,500 a year.

     

    California has already "jumped the shark". The ignorant, statists, and the dependency class are now the majority, so they vote for whomever gives them the most freebies while preserving the State above all else.

     

    Beautiful place to visit, but I would never live there.
    13 Mar 2014, 12:44 PM Reply Like
  • CoSyBob
    , contributor
    Comments (42) | Send Message
     
    All based on the Orwellian oxymoron "Carbon Pollution" .

     

    The only thing the 33% increase from 3 molecules per 10,000 of air to 4 we have seen of the building block of the biosphere , the sole source of carbon to organic life , is measurably doing is greening the planet as seen from satellite .
    13 Mar 2014, 03:10 PM Reply Like
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