California is an isolated energy island.
More than 75 percent of our crude supply comes in oil tankers from foreign countries and Alaska. We rely on Iraq, Brazil, and Guyana to power our cars and tractors, heat our homes, and keep the lights on.
Banking on foreign imports leaves us extremely vulnerable to international disputes and price fluctuations. Look at what happened to Europe not too long ago. It’s one reason why Californians pay significantly more at the pump than anywhere else in the country. At $4.65 a gallon, we’re $1.50 more expensive than the national average. At a time when everyone is concerned about the cost of living in California, we must do more to make it possible to live here.
Forty years ago, 60 percent of the oil used by Californians was produced right here in California. Today, that number has dropped to less than 25 percent. As a state that sees itself as a leader of clean air and water, we must consider what this drastic roughly 70 percent increase in overseas imports is doing to our environment. California produces the cleanest crude oil in the world, yet we continue to increase reliance on dirtier, higher greenhouse-gas sources of crude oil to meet our state’s energy needs. This isn’t leadership.
Here in Santa Barbara, we have an opportunity to replace one million to two million barrels of that dirty foreign oil coming into our state’s ports every month, making gasoline more affordable and creating hundreds of jobs. Why wouldn’t we jump at that opportunity?
Work is underway by Sable Offshore Corp. to restart the Santa Ynez Unit off the Gaviota Coast and Las Flores Pipeline System. Idle since 2015, this project has the potential to stabilize the supply of crude oil and provide 10-20 percent of in-state oil production, displacing that dirty foreign oil. As important, this will be a cleaner energy source that will be moved through the soon-to-be safest pipeline in California. In addition to all the safety upgrades, the pipeline system will undergo safety inspections 10 times more frequently than other pipelines in California. The project will be overseen with care by leaders and operators who have decades of experience in Santa Barbara’s oil industry. It will also be closely monitored by a host of state and local agencies to ensure it meets the highest safety and operating standards.
What does this mean practically for the Santa Barbara community?
First, the project will create new jobs. The company that owns this project is already employing 100 people and 400 mostly unionized contractors. Another 300 new jobs are expected to be created after restart.
Second, it is an economic shot in the arm. Sable Offshore expects the project will initially generate $5 million a year in new tax revenue. At a time when neighboring communities face significant budget deficits, we should be doing all we can to shore up revenue.
Small businesses are already benefiting from the project. As Sable does repair and maintenance work to ensure the pipeline is “as new,” an estimated $12 million has flowed to hotels, restaurants, and construction businesses.
Third, it’s common sense that having a domestic oil supply will make gas at the pump cheaper. While that may not seem like a big deal to the celebrity millionaires in Santa Barbara and Montecito, it is a big deal to everyday Californians. When so many of us are worried about making enough money to keep a roof over our heads and food on the table, saving money matters — both at the gas pump and throughout the supply chain.
California is making strides toward embracing new energy sources and building up its EV network (the state recently announced there are now more EV chargers than gas nozzles). But the state is also the country’s largest consumer of jet fuel and second-largest consumer of gasoline. We use 42 million gallons a day of gas, and another 10 million gallons a day of diesel, to keep our cars and trucks on the road. As long as we continue to rely on gasoline, we need to do our part to ensure we produce and transport it here — for the sake of our pocketbooks and our environment. We can no longer depend on foreign oil to keep California’s economy — the fifth largest in the world — moving. We have a chance to improve our self-reliance, create jobs, and stimulate the economy — all while reducing our carbon footprint. Let’s control our own destiny.
Santa Barbara cannot afford to miss this opportunity.
Jeremy Willett is operations manager of Pacific Pipeline Company.
