So even though ConocoPhillips is aiding and
abetting the NRDC to achieve the green dream of absolute government
control over the U.S. energy supply, the enviros still are in
take-no-prisoners mode, refusing to allow the expansion of a single
refinery.
Imagine what the rest of us can expect from the greens.
Meanwhile,
in California, green groups are working through the state attorney
general’s office to block the upgrade of the Chevron refinery in the
city of Richmond. The $800 million upgrade essentially would expand the
useable oil supply by permitting the refinery to process lower-quality,
less-expensive crude oil.
California Attorney
General, ex-Gov. and climate crusader Jerry Brown claims the upgrade
will produce an additional 900,000 tons of greenhouse gas emissions per
year. But Chevron says the upgrade actually will reduce the emissions
by 220,000 tons.
Whose figure is closer to the truth?
It’s
hard to know for sure at this point, but it’s worth noting that
material false statements made by Chevron are prosecutable under the
federal securities laws and California state law, while Brown and the
activists pretty much can say whatever they want without legal
accountability.
Whatever the facts are, Brown and
the city of Richmond insist that Chevron eliminate 900,000 tons of
greenhouse gas emissions so that the upgrade will be "carbon neutral."
While the greens remain vehemently opposed to the project, it seems
their plans for blocking the refinery might go awry as Brown and the
local government eventually may side with Chevron rather than the
greens, but only because the company has deep pockets and is open to
being shaken down.
Brown and the city have
proposed that Chevron ensure that half the total emissions-reduction
projects be undertaken on-site at the refinery and the other half be
done either in the city of Richmond itself or elsewhere in California.
Translating
the latter part of this "offer that can’t be refused:" Chevron
essentially must purchase 450,000 tons of "carbon credits" annually
from the city of Richmond or the state. As the street value of carbon
credits is about $10 per ton, Chevron is being "green-mailed" to the
tune of perhaps $4.5 million per year to upgrade its refinery —
amounting to perhaps a 1 percent annual "tax" on the gains in gross
revenue produced by the upgrade. And the local government officials are
not the least embarrassed about this extortion.
"When
you’re dealing with a refinery where the project will cost close to a
billion dollars and someone like Chevron with tremendous resources,
that’s not a constraint, so they should do everything possible," an
unidentified state official told Carbon Control News in a June 9
article.
The farcical nature of the entire
transaction is underscored by that state official’s apparent lack of
understanding about how greenhouse gas-induced global warming is
supposed to work.
The official told Carbon
Control News that the greenhouse gas emission reductions "are vital to
protect low-income minority communities in the Richmond area, which
already suffer disproportionate pollution impacts."
Climate
alarmism, of course, is based on the notion of global emissions causing
global warming, not local emissions causing local warming; moreover,
the allegation that low-income minority populations are
disproportionately harmed by industrial emissions — the basis of the
so-called "environmental justice" concept of the 1990s — hasn’t stuck
since no scientific evidence supports it.
Though
green and local government shenanigans can be a source of endless
amusement, let’s get back to the main point. As the 2005 hurricane
season dramatized, oil production, itself, is only one factor in
determining gasoline supply and prices.
Damage to
Gulf Coast refineries by hurricanes Katrina and Rita reduced gasoline
supplies and increased prices worldwide — a real problem given that
U.S. refineries operate at or near capacity thanks to other green constraints.
We
may produce all the oil we need, but if we can’t refine it, then it
won’t do much for reducing gasoline supply problems. So while working
to expand domestic drilling, we’ll simultaneously need to expand
domestic refining capacity.
It will be quite the Pyrrhic victory to finally produce oil from ANWR and then not be able to do anything with it. Source