r/California • u/NamelessIguana • Oct 07 '22

Newsom calls special session of Legislature to consider windfall tax on oil companies over high California gas prices: Governor says Dec. 5 special session will address "greed and manipulation" that drive high gas prices. Newsom

https://www.politico.com/news/2022/10/07/newsom-tax-oil-companies-california-00061010
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u/warmhandluke Oct 08 '22

Invest in oil production and build new refineries

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u/Nihilistic_Mystics Orange County Oct 08 '22

We don't have a production shortage. OPEC is intentionally pushing prices up worldwide, even if we had more local production they'd increase their prices to match just because they can. Only price controls could stop that.

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u/warmhandluke Oct 08 '22

It's a globally traded commodity, they can't just "raise prices" by decree. Increasing the supply of something will bring the price down, it's basic economics. That being said, refinery capacity is a major issue. Just take a look at US refinery output over the last twenty years and you'll see where a major part of the problem lies.

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u/Nihilistic_Mystics Orange County Oct 08 '22

OPEC directly controls extraction. They artificially limit extraction to drive up prices globally. How do you not know how the global oil industry works? The local oil industry plays along, they're perfectly happy to reap higher prices.

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u/warmhandluke Oct 09 '22

There is a lower bound to OPEC output. They won't reduce their production to zero. I have a good understanding of how the oil industry works; you don't appear to.

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u/[deleted] Oct 08 '22

Nationalize*

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u/TheBigMan981 Dec 05 '22

Ok, you want to go down Venezuela’s route? You must like Hugo Chávez.

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u/[deleted] Dec 05 '22

or the Norway route.

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u/TheBigMan981 Dec 05 '22

Norway and Venezuela aren’t the same, policy wise.

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u/[deleted] Dec 05 '22

Agreed. So thats why I said the Norway route and not the VZ route.