Why Chevron and Other Major Businesses are Leaving California – Mike Mauceli, Mayor David Noerr
In this episode of the Energy Show with REI Energy, host Mike Mauceli is joined by David Noerr, Mayor of Taft, California, to explore the complex factors driving major companies out of California. From the state’s turbulent energy policies to the significant economic impacts on local communities, this conversation sheds light on the ongoing exodus of industry giants like Chevron and what it means for California's future.
Green Ambitions vs. Economic Reality
California is known for its progressive climate initiatives, proudly championing green energy. However, as Mike and Mayor Noerrr discuss, there’s a stark contradiction in this eco-friendly image. A significant portion of California’s oil is imported from countries with less rigorous environmental standards, indirectly contributing to global environmental degradation. This irony highlights the broader impacts of California's green policies, which, despite good intentions, have led to unforeseen economic consequences.
Chevron’s Departure: A Major Blow to California
The episode takes a deep dive into Chevron’s departure from California, a state where it has been a cornerstone of the oil industry since the late 1800s. Mayor Noerr details Chevron’s historical significance, particularly in Kern County, once the largest oil and gas-producing county in the continental U.S. However, stringent climate policies and a hostile regulatory environment have driven Chevron and other companies to relocate, signaling a broader trend with severe repercussions for California’s economy.
The Domino Effect: Job Losses and Economic Decline
Chevron’s exit is symptomatic of a larger trend of companies leaving California due to unfavorable policies. Since 2018, the state has lost over 350 headquarters, resulting in the loss of high-paying jobs and significant tax revenues. Mayor Noerr explains how these corporate departures erode local economies, affecting community support programs, law enforcement, veterans’ services, and education.
A Looming Crisis: California’s Shrinking Tax Base
Mayor Noerr warns of the long-term consequences if these trends persist. With a shrinking tax base and rising poverty levels, California faces a grim future. The state’s high individual income tax rates are driving affluent individuals and businesses to more tax-friendly states, further exacerbating economic challenges.
The Double-Edged Sword of Green Energy
While California’s push for green energy is commendable, it has come with significant economic costs. The state’s energy policies have driven up electricity prices, making it less affordable for residents and businesses. In contrast, states like Texas offer much lower energy costs, making them more attractive to companies. Mayor Noerr highlights the irony of California’s position, where the pursuit of green energy is heavily reliant on oil-dependent processes.
Innovative Solutions: Carbon Capture in Taft
Despite the challenges, there are efforts underway to balance environmental and economic goals. Mayor Noerr discusses a carbon capture initiative in Taft, designed to reduce CO2 emissions while leveraging existing oil infrastructure. This project exemplifies how fossil fuel industries and green initiatives can coexist with sensible policy and innovation.
00:00 Introduction
00:24 Chevron's Exit from California
04:45 Impact on Local Jobs and Economy
07:57 California's Energy Policies and Costs
19:56 Carbon Capture Initiatives
23:42 Political Landscape and Future Outlook
26:11 Conclusion and Final Thoughts
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Disclaimer: The information provided in this video is for educational and informational purposes only. It should not be considered as financial advice or a recommendation to buy or sell any financial instrument or engage in any financial activity.
The content presented here is based on the speaker's personal opinions and research, which may not always be accurate or up-to-date. Financial markets and investments carry inherent risks, and individuals should conduct their own research and seek professional advice before making any financial decisions.
Cause California taxes are a joke
Sounds like the government in Cali is not working for the rights of its people. Pitiful!!!
Santa barbara channel island chevron closing all oil dericks platforms .. by closing all the platforms it will create enough pressure to send tar to all beaches in Santa Barbara.. all the beaches I our area will end up closing
Mmm…..that’s wild!! The 💩 app?? It sounds like a village.I pray things will get better.Anyway awesome show.
11:37 perfect example that wind and solar AREN’T endless. I work in the wind energy business indirectly through the transportation sector, and I’ve known for years it’s a dirty business that’s cleaned up only through the positive PR, but that doesn’t change the facts. Most don’t know that those windmill blades only have a 10-year lifespan, and once they’ve reached it, they’re cut in half and sent to the nearest landfill. I truly care about the environment, and that’s why I hate seeing this happen. Not only that, but those wind turbines are lubricated by OIL in order for them to rotate. That’s not to mention the toxic chemicals that they use to make and paint the towers and blades with. If that were to catch fire, which has been known to happen during malfunctions due to the wind generator (nacells) or lightning strikes, will make the air quality within a two miles radius of the wind turbine toxic to breathe. The construction of these projects is largely subsidized by the government, and without such subsidies, it wouldn’t be profitable to make the wind turbines. However, I do what I do knowing what I do because the money is good and it pays the bills, but even I know it’s not sustainable.
Lets get more information on the Cryptonica Liquidity Pool.
If inflation continues to re-accelerate, don’t you think they will be forced to increase interest rates? It’s not like they have the option to just stand back and watch it increase and hope it comes back down. They indicated they will act not just if it does not re-accelerate but if it does not demonstrate, it is actively on the way down to 2%, so the likelihood of an interest rate hike seems very significant. There’s nothing to naturally bring inflation down at this point unless the labor market implodes…….currently I’ve been engaged in active trading, which is generally safer, allowing investors to weather market volatility and also managed to grow a nest egg of around 2.3Bitcoin to a decent 24Bitcoin….I’m especially grateful to Adriana Jensen, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
Access to good information is what we investors needs to progress financially and generally in life. this is a good one and I appreciate
This is why it is advisable to connect with a true market strategist in order to avoid missing such opportunity and maintain steady gains.
The internet is filled. with so many useful information. about Adriana Jensen.
Thanks for keeping it light and real at the same time. Much needed for us traders in times like these!
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
When I lived in California, I was robbed by the mafia tax franchise board decades ago. Moving out of the state was the best move I ever made.
Sounds like he needs to run for Governor of California!
Thanks for the financial information Mike and Rich Dad Team.
Gruesome newsom