04/25/2024

Why Gasoline is Going Higher in California

It has become raison d’etre to blame President Trump for everything wrong with California; including higher gasoline prices plaguing our state and contributing to a slowing statewide GDP. But in today’s world that is connected via air, land, sea and increasingly cyberspace; globalization and policies knit countries and states together like never before. Many times rendering geography and borders on maps obsolete – consequently, events in one region or country – affect continents, countries and states. California’s decision to never allow pipelines into the state, drill for oil and natural gas off our coasts and certainly not explore the billions in untapped fossil fuel reserves trapped in the Monterrey Shale is rippling across our state in the form of higher gas prices.

The Monterrey Shale – though considered technically hard to recover – is 64% larger than all other shale plays in the lower 48 US states. To believe the Monterrey Shale can’t be unlocked is economically unwise when you consider that in September Kuwaiti oil exports to the US dropped to zero for the first time since the first Persian Gulf War over rising US production. Furthermore, “U.S. net imports of foreign oil have dropped to a 45-year low.”

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