Please ensure Javascript is enabled for purposes of website accessibility
Walters : A Reminder About Supplies and Demands
dan_walters
By Dan Walters, CalMatters Commentary
Published 4 years ago on
April 18, 2021

Share

We Americans are blessed with abundant —even overabundant —consumer goods and services and often take that fact for granted.

We assume that when we pull into a service station its pumps will dispense fuel, that when we go to a grocery store, we will find full shelves, or that when we flip the switch on the wall the room will light up.

Dan Walters

Opinion

We tend to forget that the goods and services we want or need involve complex supply chains that begin with basic resources, proceed to industrial processes and culminate in delivery on demand.

Even products and services deemed to be “green” are not exempt. Solar power panels and battery-powered cars, for instance, require sophisticated industrial processes and rare minerals such as the lithium, which must be mined or extracted from brine.

That’s why we should be skeptical of politicians who pretend that we can interrupt those supply chains, in the name of environmental protection, without negative consequences.

Senate Bill 467 Failed to Pass without Newsom’s Support

That was the underlining issue last week when the state Senate’s Committee on Natural Resources and Water took up Senate Bill 467, which was aimed at shutting down much of California’s oil industry by banning fracking and other extraction processes.

The bill’s author, Sen. Scott Wiener, a San Francisco Democrat, argued, “California cannot continue to have the image of an environmental beacon while we are actively poisoning our citizens and destroying our state.”

Wiener introduced the bill after Gov. Gavin Newsom called for ending the sale of petroleum-fueled cars by 2035 and asked the Legislature to ban fracking. However, now facing a recall election, Newsom didn’t lift a finger to help Wiener move his bill, apparently because labor unions were adamantly opposed, citing elimination of high-paying union jobs.

Without Newsom’s support, moderate Democrats on the committee refused to vote for the bill and it failed. “This one really does go to shut down the oil industry in California,” Sen. Susan Eggman, a StocktonDemocrat, said. “We are not getting away from oil or gas in California in the next 10 years.” She spoke the simple truth that the vast majority of California’s 30-plus million vehicles run on petroleum-based fuels and despite Newsom’s declaration about 2035, that fact will continue indefinitely.

Supply and Demand Ultimately Dictates Decisions

California supplies about half of the petroleum it consumes, importing the remainder from oil-producing nations across the globe. Shutting down production here would make us more dependent on other suppliers, with a massive loss of jobs and exports of consumer dollars.

The same dynamics hold true in the other commodities that a modern society needs to prosper.

We need, for example, to double housing production, but construction requires immense amounts of lumber, concrete and steel, plus electrical fixtures and plumbing made of copper. These materials begin as raw resources, such as trees, limestone and copper and iron ores, which are then processed and transported to building sites via railroads and/or diesel-powered trucks.

Occasionally, we are reminded that electricity doesn’t come from the walls, gasoline doesn’t come from pumps, lumber doesn’t come from Home Depot and toilet paper doesn’t come from the supermarket.

We got such a reminder last summer, when a severe heat wave overcame the state’s electrical supplies, with air conditioning demand peaking in the late afternoon, just as solar power arrays were beginning to fade.

In response, the state suspended plans to phase out natural gas-fueled power plants, implicitly deciding that going green isn’t worth experiencing blackouts. We expect the juice to be there when we need it, and politicians such as Newsom will feel the heat —pun intended —if it’s not.

About the Author

CalMatters is a public interest journalism venture committed to explaining how California’s state Capitol works and why it matters. For more stories by Dan Walters, go to calmatters.org/commentary.

[activecampaign form=19]

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

DON'T MISS

Soviet-Era Spacecraft Plunges to Earth After 53 Years Stuck in Orbit

DON'T MISS

Tax the Rich? Slash Spending? Republicans Wrestle With Economic Priorities in the Trump Era

DON'T MISS

Israeli Airstrikes Kill 23 in Gaza as Outcry Over Aid Blockade Grows

DON'T MISS

Experts Call Kennedy’s Plan to find Autism’s Cause Unrealistic

DON'T MISS

Trump’s Trip to Saudi Arabia Raises the Prospect of US Nuclear Cooperation With the Kingdom

DON'T MISS

Oh Ohtani! Dodgers Star Hits 3-Run Homer in Late Rally Victory Over Diamondbacks

DON'T MISS

Tariff Talks Begin Between US and Chinese Officials in Geneva

DON'T MISS

Summer Movie Guide 2025: Here’s What’s Coming to Theaters and Streaming From May to August

DON'T MISS

Give Mom the Gift of a Kitchen-Free Mother’s Day

UP NEXT

Jerry Springer — Yes, That Jerry Springer — Can Save the Democrats

UP NEXT

Other States Are Showing California How to Protect Its Budget Without Cutting Needed Services

UP NEXT

State Bar’s Botched Exam for New Lawyers Is CA’s Latest Entry to the Hall of Shame

UP NEXT

I Applaud Fresno Unified’s New Focus, but the Plan Needs Work

UP NEXT

Iran’s Leader Hopes America Can Save His Faltering Regime

UP NEXT

Clash Over Teen Sex Solicitation Reveals the Rift Within CA Democratic Party

UP NEXT

This Is the Moment of Moral Reckoning in Gaza

UP NEXT

The Valley is Driving California’s Economic Growth

UP NEXT

Trump Is About to Steal My Friend’s Christmas … and Yours

UP NEXT

Newsom Jabs at Trump and Musk, but Will AI Make California More Efficient?

Israeli Airstrikes Kill 23 in Gaza as Outcry Over Aid Blockade Grows

17 minutes ago

Experts Call Kennedy’s Plan to find Autism’s Cause Unrealistic

22 minutes ago

Trump’s Trip to Saudi Arabia Raises the Prospect of US Nuclear Cooperation With the Kingdom

30 minutes ago

Oh Ohtani! Dodgers Star Hits 3-Run Homer in Late Rally Victory Over Diamondbacks

36 minutes ago

Tariff Talks Begin Between US and Chinese Officials in Geneva

45 minutes ago

Summer Movie Guide 2025: Here’s What’s Coming to Theaters and Streaming From May to August

1 hour ago

Give Mom the Gift of a Kitchen-Free Mother’s Day

3 hours ago

Got An Idea for a Valley Documentary? CMAC’s Big Tell Contest Seeks Applicants

4 hours ago

Fresno Unified Faces New Legal Claim Alleging Top Official Trapped Employee in Car

16 hours ago

Clovis Police Arrest Two in Connection to Caleb Quick’s Murder

16 hours ago

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

KYIV, Ukraine — Leaders from four major European countries threatened to ratchet up pressure on Russian President Vladimir Putin if he does ...

1 minute ago

1 minute ago

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

7 minutes ago

Soviet-Era Spacecraft Plunges to Earth After 53 Years Stuck in Orbit

13 minutes ago

Tax the Rich? Slash Spending? Republicans Wrestle With Economic Priorities in the Trump Era

17 minutes ago

Israeli Airstrikes Kill 23 in Gaza as Outcry Over Aid Blockade Grows

22 minutes ago

Experts Call Kennedy’s Plan to find Autism’s Cause Unrealistic

30 minutes ago

Trump’s Trip to Saudi Arabia Raises the Prospect of US Nuclear Cooperation With the Kingdom

36 minutes ago

Oh Ohtani! Dodgers Star Hits 3-Run Homer in Late Rally Victory Over Diamondbacks

45 minutes ago

Tariff Talks Begin Between US and Chinese Officials in Geneva

Help continue the work that gets you the news that matters most.

Search

Send this to a friend