-June 23,2021-
Kern oil producers are cheering for a change as Midway-Sunset oil has climbed over $70. The increase follows a worldwide price recovery from the pandemic. The last time crude prices were at this level was mid-2018 and red ink has been the order of the day since. Kern County makes up about 70% of the state’s oil production.But the future does not look promising for oil producers here. California Governor Gavin Newsom has proposed a ban on hydraulic fracturing, as well as outlawing the combustion engine and a total ban on oil production by 2045.
Motorists may not be cheering as the cost for a fill-up is now north of $4.25 a gallon.US gasoline demand easily set a new post-COVID Sunday record last week, up 8.9% from the prior Sunday and 7.5% above the average of the last four Sundays.
Wall St Journal points out that the new preference for green energy is likely to depress spending on oil extraction, setting the stage for supply shortages and higher fuel prices. Oil prices are double what they were last October and some wager we will soon be looking at $100 oil.
Again, is this good news for the oil patch who feared regulation would hurt the price of oil?
Despite higher gas prices, Kings County continues to offer some of the lowest pump prices in the state around Lemoore at Yokut Gas and Fastrip.