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  • Writer's pictureBy The Financial District

California Law Taxes Oil Firms For Making Too Much Profit

It was just a few weeks ago that California Gov. Gavin Newsom called the oil industry the second most powerful force on earth, trailing only Mother Nature in its ability to bend the elements — both physical and political — to its will, Adam Beam reported for the Associated Press (AP).

Photo Insert: The bill is the latest in a string of defeats for the oil industry in California.

Yet on Tuesday (Wednesday, Mar. 29 in Manila), Newsom signed a law that gives state regulators the power to penalize oil companies for making too much money, the first of its kind in the country.

It’s the type of legislation the oil industry might have crushed in the past. But on Monday, the bill cleared the state Assembly with only one Democrat voting against it.

“We proved we could finally beat big oil,” Newsom said Tuesday after signing the bill.

The bill is the latest in a string of defeats for the oil industry in California. For decades, California was one of the leading oil producers in the US with a bustling industry that was a key part of the state’s economy.

All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

The state is now the nation’s seventh-largest oil producer according to federal data.

A state law requires California to be carbon-neutral by 2045, meaning the state would remove as many carbon emissions from the atmosphere as it emits. The state’s plan to do so would reduce demand for liquid petroleum by 94% by 2045.

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