MJP –
Legislators in California have been debating Gov. Gavin Newsom’s plan to establish new fuel storage standards for oil refiners for months now to forestall future gas price rises.
The proposal was panned by a Chevron executive on Tuesday who expressed his disapproval in a letter that he characterized as “inaccurate” and including “flawed arguments.”
A new president for Chevron’s Downstream, Midstream & Chemicals division, Andy Walz, was just appointed. In this position, he oversees Chevron’s shipping, pipeline, power, and trading divisions in addition to the company’s global production, marketing, lubricants, chemicals, and additives operations.
“The California government remains unique in its focus on marketplace interference with negative effects on consumers resulting in the highest U.S. gasoline prices,” Walz stated. “California has investigated the industry numerous times for price gouging and come up with no evidence or charges.”
Walz, who was president of Chevron’s Americas Products before the measure passed, said that officials without experience in refining would be in charge of maintaining safety requirements.
“This undermines the decades of expertise our teams maintain for ensuring safety in refining operations,” said he.
The attached documents provide a critical analysis of the infographics utilized by the California Energy Commission during the legislative process; they were authored by Andy Walz, President of Chevron’s Americas Products.
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Walz also contended that the bill’s policies may cause gas prices to permanently climb and supply shortages to last longer. He warned that the effects might reach Arizona and Nevada in addition to California.
“Without investment in the critical energy infrastructure that allows California consumers to live their daily lives, your body will ensure these products become more expensive and less reliable,” according to Walz.
Senate Special Committee on Fuel Supply and Price Spikes approved Newsom’s plan on Monday afternoon.
On Friday morning, the Senate will hold a floor session.
