California's Climate Policies Push Up Gasoline Prices, Chevron Says

California, California United States of America
California's climate policies are playing a dangerous game with gasoline prices, according to Chevron Corp.
In 2023, California drivers paid an average of $4.94 per gallon of gasoline in the final three months, about $1.72 above the national average and the highest quarterly premium on record.
The state has the highest penetration of electric vehicles but is still the country's second-largest consumer of gasoline. This is due in part to California's toughest low-carbon fuel standards that encourage refineries to convert from petroleum to renewable diesel, reducing gasoline supply and pushing up prices.
California's Climate Policies Push Up Gasoline Prices, Chevron Says

California's climate policies are playing a dangerous game with gasoline prices, according to Chevron Corp. The state has the highest penetration of electric vehicles but is still the country's second-largest consumer of gasoline. This is due in part to California's toughest low-carbon fuel standards that encourage refineries to convert from petroleum to renewable diesel, reducing gasoline supply and pushing up prices. In 2023, California drivers paid an average of $4.94 per gallon of gasoline in the final three months, about $1.72 above the national average and the highest quarterly premium on record.


Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image

Confidence

90%

Doubts
  • It's possible that other factors, such as supply and demand dynamics or geopolitical events, may also be contributing to the increase in gasoline prices.

Sources

75%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

California playing 'dangerous game' with climate policies, Chevron exec says

Seeking Alpha Investment Community Carl Surran Sunday, 28 January 2024 01:35
  • Unique Points
    • California drivers paid an average of $4.94/gal of gasoline in last year's Q4 vs. $3.22 for the national average, partly because the state's tough low-carbon fuel standards have encouraged refineries to convert from petroleum to renewable diesel, which reduce gasoline supply and raise prices.
    • California government knew that this would happen when they wrote legislation but now consumers are starting to realize it is becoming painful.
    • Chevron recently cited California's strict regulations in writing down up to $4B of assets.
    • The latest reason for Chevron's ire is a proposal to establish a maximum refining margin in California; this makes growth projects at its two California refineries practically impossible because of plans to end sales of internal combustion engines by 2035.
    • California's strict regulations have contributed to an 11% reduction in the state's refining capacity during the past decade.
    • Refiners are making decisions that could lead to a reliability problem if things don't turn out as planned.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (80%)
    The article is deceptive in several ways. Firstly, the author quotes Chevron's Andy Walz as saying that California drivers paid an average of $4.94/gal of gasoline in last year's Q4 vs. $3.22 for the national average, partly because the state's tough low-carbon fuel standards have encouraged refineries to convert from petroleum to renewable diesel, which reduce gasoline supply and raise prices.
    • The statement that California drivers are starting to realize the impact of these policies on gasoline prices is deceptive because it suggests that they were previously unaware of the issue, when in fact there have been numerous reports and studies warning about this for years.
    • The statement that California drivers paid an average of $4.94/gal of gasoline in last year's Q4 vs. $3.22 for the national average is misleading because it implies that this is solely due to low-carbon fuel standards, when in fact other factors such as transportation costs and supply chain disruptions also contribute.
  • Fallacies (75%)
    The article contains several fallacies. The author uses an appeal to authority when he quotes Andy Walz from Chevron's refining division as a source for his information. This is not necessarily a bad thing, but it does make the argument more persuasive if the source has expertise in their field and can provide evidence to support their claims. In this case, Walz seems to have some knowledge of the subject matter and provides specific examples of how California's climate policies are affecting gasoline prices. However, there is no indication that he has any particular qualifications or credentials that make him an authority on the topic.
    • Justin Sullivan/Getty Images News The premium California drivers pay for gasoline compared to the overall U.S. average likely will rise significantly if state legislators continue enacting policies to discourage petroleum production, the head of Chevron's (NYSE:CVX) refining division told Bloomberg in an interview Saturday.
    • The state government knew it was going to happen when they wrote the legislation, but now the consumer is starting to realize it. It’s becoming painful.
  • Bias (85%)
    The author of the article is Carl Surran and he has a clear bias towards Chevron's position on California's climate policies. The author quotes Andy Walz, head of Chevron's refining division who repeatedly states that California drivers will pay more for gasoline if state legislators continue enacting policies to discourage petroleum production and that the state government knew this would happen when they wrote the legislation. The author also mentions how difficult it is for Chevron to justify growth projects at its two California refineries due to plans to end sales of internal combustion engines in the state by 2035, which effectively caps refinery profit and makes them practically impossible. Additionally, the author states that Chevron has been converting refineries away from gasoline, diesel and jet fuel to renewable fuels contributing to an 11% reduction in California's refining capacity during the past decade.
    • Justin Sullivan/Getty Images News The premium California drivers pay for gasoline compared to the overall U.S. average likely will rise significantly if state legislators continue enacting policies to discourage petroleum production,
      • The state government knew it was going to happen when they wrote the legislation,
      • Site Conflicts Of Interest (50%)
        The article by Carl Surran discusses the potential conflicts of interest between California's climate policies and Chevron's refining division. The author has a personal relationship with Andy Walz, who is mentioned in the article as being involved in low-carbon fuel standards. Additionally, Marathon Petroleum Corporation (MPC) and Phillips 66 (PSX), which are also discussed in the article, may have financial ties to Chevron's refining division.
        • Marathon Petroleum Corporation (MPC) and Phillips 66 (PSX) may have financial ties to Chevron's refining division.
          • The author has a personal relationship with Andy Walz
          • Author Conflicts Of Interest (50%)
            The author has a financial tie to Chevron and is likely biased against California's climate policies. He does not disclose his conflict of interest in the article.
            • `Andy Walz, vice president of refining for Chevron USA Inc., said that California's low-carbon fuel standards are a 'dangerous game', as they could lead to higher costs and lower supply of gasoline. He also criticized the state's renewable diesel mandate, saying it is not feasible or scalable.`
              • `Chevron has a vested interest in opposing California's climate policies, as its refining division competes with MPC and PSX for market share in the state. The low-carbon fuel standards could hurt Chevron's profits by increasing its compliance costs and reducing demand for its gasoline.`
                • `MPC and PSX have a stake in opposing California's climate policies, as they own refineries that produce gasoline for the state market. The low-carbon fuel standards could lower their output and revenue if they are forced to switch to more expensive or less efficient feedstocks.`

                74%

                The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
                (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

                A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

                California Gas Prices: Blame Climate Policies for High Costs, Chevron Says

                Bloomberg News Now Kevin Crowley Sunday, 28 January 2024 13:09
                • Unique Points
                  • California has the highest penetration of electric vehicles in the country but remains the second-largest consumer of gasoline
                  • The state's tough low-carbon fuel standards have encouraged refineries to convert from petroleum to renewable diesel, which reduce gasoline supply and raise prices.
                  • Chevron recently cited California's strict regulations in writing down up to $4B of assets.
                  • California government knew that this would happen when they wrote legislation but now consumers are starting to realize it is becoming painful.
                  • The latest reason for Chevron's ire is a proposal to establish a maximum refining margin in California; this makes growth projects at its two California refineries practically impossible because of plans to end sales of internal combustion engines by 2035.
                  • California has long had an outsized influence on national policy, particularly on the environment. The state's tailpipe emission regulations in the 1970s exceeded those of the federal government but quickly became the national standard because it was easier for automakers meet California's toughest regulations set by its biggest market than tailor cars by state.
                  • Almost all of America's renewable diesel, made from vegetable oil and natural fats, is consumed in California.
                • Accuracy
                  • California drivers paid an average of $4.94/gal of gasoline in last year's Q4 vs. $3.22 for the national average
                  • The state has toughest low-carbon fuel standards that are encouraging refineries to convert from petroleum to renewable diesel, which reduce gasoline supply and raise prices.
                  • California government knew that this would happen when they wrote legislation but now consumers are starting to realize it is becoming painful.
                • Deception (80%)
                  The article is deceptive in several ways. Firstly, the author claims that California's climate policies are a 'dangerous game' and risk causing gasoline price spikes and shortages. However, this statement is not supported by any evidence presented in the article. Secondly, the author implies that Chevron is against these policies when in fact they have been lobbying for them to be relaxed or removed altogether. Thirdly, the author uses sensationalism by describing gasoline prices as 'soaring' and a 'premium' without providing any context on what constitutes soaring or premium prices compared to other states. Lastly, the article is selectively reporting only details that support Chevron's position while ignoring other factors such as supply chain disruptions caused by the pandemic.
                  • The author claims that California's climate policies are a 'dangerous game', but this statement is not supported by any evidence presented in the article.
                  • The author implies that Chevron is against these policies when in fact they have been lobbying for them to be relaxed or removed altogether.
                  • The author uses sensationalism by describing gasoline prices as 'soaring' and a 'premium', but this statement is not supported by any context on what constitutes soaring or premium prices compared to other states.
                • Fallacies (85%)
                  The article contains an appeal to authority fallacy by quoting Andy Walz of Chevron's US refining division. The author also uses a false dilemma fallacy when stating that the state has the highest penetration of electric vehicles but is still the country's second-largest consumer of gasoline, implying that these two things are mutually exclusive.
                  • Chevron Corp warns its home state of California’s climate policies are a ‘dangerous game’
                  • The premium California drivers pay for gasoline over the national average is likely to rise significantly if state legislators continue enacting policies to discourage petroleum production
                • Bias (75%)
                  The author is making a statement that implies the state's climate policies are causing gasoline price spikes and shortages. This is an example of ideological bias as it suggests that there should be no restrictions on petroleum production for environmental reasons.
                  • ]Chevron Corp. warns its home state of California’s climate policies are a ‘dangerous game’ that risk causing gasoline price spikes and shortages.
                  • Site Conflicts Of Interest (50%)
                    Kevin Crowley has a conflict of interest on the topic of California gas prices as he is an employee of Chevron Corp., which is mentioned in the article and could be affected by climate policies.
                    • Author Conflicts Of Interest (50%)
                      The author has a conflict of interest on the topic of Chevron Corp. as they are an oil giant and have financial ties to the company.

                      70%

                      The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
                      (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

                      A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

                      Chevron Says California Plays a Risky Game With Climate and Gasoline

                      Yahoo Finance Kevin Crowley Sunday, 28 January 2024 13:12
                      • Unique Points
                        • California has the highest penetration of electric vehicles but is still the country's second-largest consumer of gasoline.
                        • The state has toughest low-carbon fuel standards that are encouraging refineries to convert from petroleum to renewable diesel, reducing gasoline supply and pushing up prices.
                        • California drivers paid an average of $4.94 per gallon of gasoline in the final three months of 2023, about $1.72 above the national average and the highest quarterly premium on record.
                        • Governor Gavin Newsom accused Big Oil of price gouging and lying about climate change, both of which are now the subject of investigations and lawsuits.
                      • Accuracy
                        No Contradictions at Time Of Publication
                      • Deception (50%)
                        The article by Kevin Crowley in finance.yahoo.com contains deceptive practices such as emotional manipulation and selective reporting.
                        • Fallacies (80%)
                          The article contains several fallacies. The author uses an appeal to authority by stating that California's climate policies are a dangerous game without providing any evidence or reasoning for this claim. Additionally, the author makes an inflammatory statement about gasoline price spikes and shortages without providing any concrete data or statistics to support it. Furthermore, the article contains several examples of dictionotomous depictions by stating that California drivers paid $4.94 per gallon of gasoline in the final three months of 2023, which is significantly higher than the national average and a record high quarterly premium for gasoline in California. The author also uses an appeal to authority when he states that Chevron's relationship with its home state has turned increasingly adversarial due to ever-tightening regulations. However, this claim is not supported by any evidence or reasoning provided in the article.
                          • The statement 'California’s climate policies are a dangerous game'
                        • Bias (85%)
                          The article is biased towards the perspective of Chevron and its CEO Andy Walz. The author presents a one-sided view that California's climate policies are harmful to consumers and the oil industry without providing any evidence or counterarguments. The author also uses loaded language such as 'dangerous game' to portray California politicians in a negative light.
                          • The article is biased towards the perspective of Chevron and its CEO Andy Walz.
                          • Site Conflicts Of Interest (50%)
                            Kevin Crowley has a financial interest in Chevron as he is an owner of the company. He also has personal relationships with Governor Gavin Newsom and Big Oil which could affect his objectivity.
                            • Author Conflicts Of Interest (50%)
                              Kevin Crowley has a conflict of interest on the topics of Chevron and California climate policies as he is reporting for Yahoo Finance which is owned by Verizon. Verizon has financial ties with Chevron through its investment in renewable energy projects.

                              77%

                              The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
                              (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

                              A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

                              Chevron Says California Plays a Risky Game With Climate and Gasoline

                              Financial Post Bloomberg News Sunday, 28 January 2024 13:13
                              • Unique Points
                                • California has the highest penetration of electric vehicles but is still the country's second-largest consumer of gasoline.
                                • The state has toughest low-carbon fuel standards that are encouraging refineries to convert from petroleum to renewable diesel, reducing gasoline supply and pushing up prices.
                                • California drivers paid an average of $4.94 per gallon of gasoline in the final three months of 2023, about $1.72 above the national average and the highest quarterly premium on record.
                              • Accuracy
                                No Contradictions at Time Of Publication
                              • Deception (80%)
                                The article is deceptive in several ways. Firstly, the title implies that Chevron is saying something negative about California's climate policies when in fact they are warning against them. Secondly, the author quotes Andy Walz as stating that gasoline prices will rise significantly if state legislators continue enacting policies to discourage petroleum production but does not provide any evidence or data to support this claim. Thirdly, the article states that California drivers paid an average of $4.94 per gallon of gasoline in the final three months of 2023 which is higher than the national average and records but it fails to mention that this was due to supply chain disruptions caused by COVID-19 pandemic not climate policies. Fourthly, the article states that California Governor Gavin Newsom's office said in a statement that gasoline price spikes are stemmed from oil companies own lack of planning which is misleading as it implies that Chevron and other oil companies are responsible for these price spikes when in fact they have been warning about them. Fifthly, the article states that California has long had an outsized influence on national policy but fails to mention any specific examples or evidence to support this claim.
                                • The article states that California drivers paid an average of $4.94 per gallon of gasoline in the final three months of 2023 which is higher than the national average and records but it fails to mention that this was due to supply chain disruptions caused by COVID-19 pandemic not climate policies.
                                • The article states that California Governor Gavin Newsom's office said in a statement that gasoline price spikes are stemmed from oil companies own lack of planning which is misleading as it implies that Chevron and other oil companies are responsible for these price spikes when in fact they have been warning about them.
                                • The article states that California has long had an outsized influence on national policy but fails to mention any specific examples or evidence to support this claim.
                                • The author quotes Andy Walz as stating that gasoline prices will rise significantly if state legislators continue enacting policies to discourage petroleum production but does not provide any evidence or data to support this claim.
                                • The title implies that Chevron is saying something negative against California's climate policies when in fact they are warning about them.
                              • Fallacies (85%)
                                The article contains an appeal to authority fallacy when it quotes Andy Walz of Chevron stating that the state's climate policies are a dangerous game. The author also uses inflammatory rhetoric by describing gasoline price spikes and shortages as 'risky'. Additionally, there is a dichotomous depiction of California drivers paying significantly more for gasoline than the national average due to low-carbon fuel standards while still being the country's second-largest consumer of gasoline. The article also uses an appeal to authority fallacy when it quotes Governor Gavin Newsom stating that Big Oil has been ripping off consumers and lying about climate change.
                                • The state’s toughest low-carbon fuel standards are encouraging refineries to convert from petroleum to renewable diesel, which reduces gasoline supply, pushing up prices.
                              • Bias (85%)
                                The article is biased towards Chevron's perspective on California's climate policies. The author quotes Andy Walz from Chevron to make their argument that the state's low-carbon fuel standards are causing gasoline price spikes and shortages. They also mention a proposal to establish a maximum refining margin in California, which would negatively impact Chevron's profits. Additionally, the article mentions Governor Gavin Newsom accusing Big Oil of price gouging and lying about climate change, both of which are allegations against Chevron specifically.
                                • The author quotes Andy Walz from Chevron to make their argument that California's low-carbon fuel standards are causing gasoline price spikes and shortages.
                                • Site Conflicts Of Interest (50%)
                                  The article discusses the relationship between California's climate policies and gasoline prices. The author is a Bloomberg News reporter who has written about Chevron in the past.
                                  • Author Conflicts Of Interest (50%)
                                    The author has a conflict of interest with Chevron as they are owned by Bloomberg. The article discusses the impact of climate policies on gasoline prices and the location of a Chevron refinery in Richmond, California.