California will stop producing oil in 2042. However, the state now has a bigger oil problem than many EA888.
California golf was once the promised land for hippies and other freedom-loving individuals. Times can change, because these days it is mainly a country for wokies who, in particular, restrict freedoms and want to put everyone in a straitjacket. We have already pointed out several times that both individuals and companies (including, for example, Tesla) are therefore leaving the State en masse, a phenomenon that is also referred to as the California Exodus. In the meantime, however, strict environmental regulations continue to be introduced.
The Los Angeles City Council has now voted 12 to 0 for a proposal that would ban new oil wells within the city’s boundaries. In addition, all existing sources must be closed by 2042. Now you may not directly associate California and Los Angeles with oil production, unless you are an avid GTA V player. Traditionally, that is mainly a Texas thing, you would say.
Historically, however, that is a misconception. California once even accounted for 38 percent of the entire oil production (“production”) of the United States. That has changed for some time now. The heyday of the California oil industry is already several decades behind us.
Nevertheless, when you add it all up, there are a lot of oil wells in the State. Even within the boundaries of the city of Los Angeles, there are approximately 5,000 oil wells. They must therefore disappear within the next twenty years. That will cost the taxpayer quite a bit, because the tax revenue for the city of Los Angeles from the oil industry is still about 250 million dollars a year. They thus represent 2% of the city’s total income. California must therefore miss it. But perhaps the bigger expense is the one associated with cleaning up the old wells.
A 2020 Los Angeles Times article puts the cost of cleaning up an oil well at somewhere between $40,000 and $152,000. This mainly depends on the location of the well and how close it is to residential areas. In principle, it is the responsibility of the company concerned to clean up the wells. However, the decades-long decline in this industry means that many of the companies in this industry are going out of business.
In that case, luckily there is one failsafe. When drilling a well, each company must put an amount on the table, in case a company goes bankrupt and an unused oil well is left behind. However, this contribution amounts to…an average of USD 230 per well. So there is a small gap between the aforementioned 40,000 to 152,000 dollars.
The state of California and the city of Los Angeles are therefore once again facing costs of billions. And so it turns out…it’s not easy…being green…
This article California has a bigger problem with oil than TFSIs appeared first on Autoblog.nl.
#California #bigger #problem #oil #TFSIs