The oil and gas industry is a complex system of activities that have a far-reaching effect on the California economy. Recently, Katie Porter has proposed to make it illegal for large oil companies and other firms to receive tax credits for any marketing that promotes the use of oil or gas. Kinder Morgan is the largest independent transporter of petroleum products in North America, transporting around 2.4 million barrels per day through their Products Pipelines business. This business segment transports gasoline, jet fuel, diesel, crude oil, and condensate through 9,500 miles of pipelines and has 65 liquid terminals that store fuels and offer ethanol and biofuel blending services.
The Midway-Sunset oil field is situated southwest of Bakersfield in California's San Joaquin Valley. This oil field has been producing billions of barrels of oil since the late 19th century and has contributed to California's position as one of the top oil-producing states in the United States. The Midway-Sunset oil field intersects with oil and oil pipelines while a cogeneration plant releases steam to the bottom in Kern County, California. The proposal from Katie Porter's team is part of a broader campaign to stop what is known as “greenwash”, which is when companies take advantage of customers' desire for more environmentally friendly products and services without being held accountable for what is behind these statements.
The Oil-Climate Index Plus Gas (OCI+) project will provide an analysis of the emissions over the life cycle of most of the world's oil resources, along with the specific production, processing, and refining activities that contribute to those emissions. The Center for American Progress estimates that repealing nine key tax breaks for oil and gas companies would save the United States at least $20 billion. California is a leader in electric vehicles, solar energy, and other clean energy technologies but is also home to some of the world's dirtiest oil operations. Oil companies are now using “improved recovery techniques” such as injecting steam into the oil field to force crude oil to rise to the surface.
The recent breakdown of an oil pipeline off the coast of Orange County serves as a reminder of the important presence of the oil industry in California. Giving greater visibility to this sector will allow companies, investors, advocates, legislators, and regulators to take steps to curb the dirtiest production and refining operations and dramatically reduce emissions associated with fossil fuels in the state. Porter's team claims that it should not be tax-deductible for any company to pay for ads that “deny climate science, divert responsibility to people, and falsely defend oil and gas derivatives, such as methane, as 'clean' solutions”. When Democrats lobbied in the past to eliminate tax credits for oil and gas companies, industry supporters argued that these are common business deductions that help keep domestic oil production flowing and that it's not fair to exclude them.
California remains the third largest oil-refining state by refinery capacity after Texas and Louisiana. The rupture of an oil pipeline off the coast of Orange County has spilled up to 126,000 gallons of crude oil into the Pacific Ocean, closing beaches and endangering wildlife. The oil and gas industry plays a major role in California's economy. It is essential for businesses involved in this sector to understand how their activities affect both their bottom line and their environmental impact.
Katie Porter's proposal seeks to make it illegal for big oil companies and other firms to receive tax credits for any marketing that promotes the use of oil or gas. This would help reduce emissions associated with fossil fuels in California by making it more difficult for companies to greenwash their operations without being held accountable for their actions. Kinder Morgan is one example of an oil and gas company operating in California that transports petroleum products through 9,500 miles of pipelines across North America. The Midway-Sunset oil field has been producing billions of barrels of crude since the late 19th century while a cogeneration plant releases steam into Kern County.
The OCI+ project will provide an analysis of emissions over the life cycle of most world's oil resources while improved recovery techniques are used by companies to extract crude from underground reserves. The recent breakdown of an offshore pipeline off Orange County serves as a reminder that these activities can have serious consequences on wildlife and local communities if not properly managed. Democrats have lobbied in the past to eliminate tax credits for oil and gas companies but industry supporters argue that these are common business deductions that help keep domestic production flowing. By giving greater visibility into this sector, lawmakers can take steps to reduce emissions associated with fossil fuels in California.