California has managed a remarkable feat over the past 20 years. Even as its economy has grown to overtake Germany’s as the fourth-largest in the world, the state’s consumption of gasoline has declined by almost 15 percent, and consumption of petroleum diesel has fallen by around two-thirds. This has happened due to some of the world’s most aggressive climate policies, including a tax on carbon emissions and a strict requirement to adopt clean-burning fuels such as “renewable diesel” made from fats and oils.
During the same period, California’s production of crude oil has also fallen by around half, and many oil wells have shut down. The state now imports almost two-thirds of its crude oil from tanker ships, which is cheaper and more practical because it is separated by steep mountains from oil-producing zones such as Texas. Some of the state’s largest gasoline and diesel refineries are also shutting down amid declining demand, which will make the state dependent on imports of refined gasoline, too.
The state’s diminished fossil-fuel sector has made it especially ... Read more
