Last Updated: March 5, 2024By Tags: ,

In 2023, California Governor Gavin Newsom supported and signed legislation going after the oil industry after they reported billions of dollars of profits from oil production and sales worldwide. Here is what he said: 

“Big Oil hiked prices at the pump and took in huge profits. Instead of passing down savings to consumers, they sent billions to shareholders and Wall Street. We’re continuing to hold them accountable with the new tools from our gas price gouging law.”

Just recently, a California electric company and natural gas utility that only serves central and northern California – from Bakersfield to Eureka and from the Sierra Nevada Mountains to the Pacific Ocean, Pacific Gas & Electric (PG&E), reported a profit for 2023 of $2.24 billion – after becoming “California’s most expensive power provider.”

So, will a price-gouging press conference, investigation, or legislation exist? 

Companies should be able to make a profit, and when you look at these numbers, you don’t get a sense of where the money is going or what they plan to do with it. There has been a lot of discussion about putting powerlines below ground, but that comes with a cost of more than $25 billion for 10,000 miles of lines. 

The same goes for oil, construction, and any other entity. It costs a lot to do business in California. The labor and regulations all come with a premium cost in this state. 

It is dishonesty and political gamesmanship when you are outraged at the profits of one industry but are silent when 20 other industries also make a profit.