Oil and gas trade group decries Gov. Newsom's 'personal insults' in wake of bill designed to lower pump prices
Newsom signed a bill Monday that would require oil refineries to maintain a minimum inventory level of fuel in an effort to avoid scarce supply
Rep. August Pfluger, R-Texas, discusses the FTC's move to block oil and gas CEOs from joining boards, a report that a Tren De Aragua member was accused of recruiting middle school students, and the use of FEMA funds for illegal immigrants.
California Gov. Gavin Newsom prioritized politics over policy while hurling repeated insults at opponents of a bill he signed into law Monday in an effort to combat rising gas prices, the leader of an energy trade group said.
Shortly after lawmakers passed a law to rein in gas prices, which gives regulators the authority to require that refineries keep a certain amount of fuel on hand in an effort to keep prices low when refineries go offline for maintenance, Newsom blasted oil companies and the Western States Petroleum Association (WSPA), a trade association, for allegedly spreading "mistruths" and engaging in "manipulation."
"Particularly WSPA and their talking points and big oil that knowingly continues to lie to the people," Newsom said while flanked by lawmakers in Sacramento, highlighting the struggles many Californians feel at the pump. "They are the polluted part of this climate crisis. They continue to lie and they continue to manipulate."
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California Gov. Gavin Newsom speaks as he signs legislation at the state Capitol on Monday, Oct. 14, 2024, aimed at preventing gas prices from spiking at the pump. (AP Photo/Sophie Austin / AP Images)
WSPA President and CEO Catherine Reheis-Boyd called Newsom's remarks political theater filled with personal insults.
"This is literally politics above policy," Reheis-Boyd told FOX Business. "To have his attacks, which were filled with personal insults, only serves to divide, not address the real issues that we're trying to deal with."
"To call the hard-working men and women of this industry… polluted hearts is just beneath the leadership that California deserves," she added. "He chose to demonize an industry that powers California's economy and literally fuels everybody's daily lives. I was taken aback by the aggressiveness and the inflammatory nature."
A customer uses a credit card to pump gas as a sign shows gasoline fuel prices above average at over seven and approaching eight dollars a gallon at a Mobil gas station in Los Angeles, California, on October 5, 2023. (Photo by Patrick T. FALLON / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images) / Getty Images)
The new law was inspired by findings from the state’s Division of Petroleum Market Oversight that revealed that gas price hikes are mainly caused by increases in global crude oil prices and unplanned refinery outages. As of Monday, the average price for a gallon of regular unleaded gas in California was about $4.68, compared to the national average of $3.20, according to AAA.
Price spikes in gas have impacted California to the tune of billions of dollars annually, Newsom said, noting that he didn't want to wait for the industry "to do the right thing."
Opponents of the law have said it could unintentionally raise gas prices and threaten the safety of workers by giving the state more oversight over refinery maintenance schedules.
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California Gov. Gavin Newsom signs legislation at the state Capitol on Monday, Oct. 14, 2024, aimed at preventing gas prices from spiking at the pump. (AP Photo/Sophie Austin) (AP Photo/Sophie Austin / AP Images)
Newsom unveiled the legislation in August, during the last week of the regular legislative session. State Assembly lawmakers said they needed more time to consider the bill and Newsom called the Legislature into a special session to pass it.
Reheis-Boyd said the cost of crude oil can be lowered through a variety of ways, including by re-opening pipelines that have been shut down and promoting a better business climate to keep refineries in the state.
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"We are sitting on one of the biggest reserves of oil in Kern County," she said. "So when people say we need a strategic petroleum reserve, I say ‘We have one. It’s in Kern County. We can't get the oil out of the ground because this governor won't allow permits to be issued to producers to produce it."
Newsom's office declined to comment on Newsom's remarks, saying his comments "speak for themselves."