The biggest long-term problem facing Nevada drivers isn’t what happens in the Strait of Hormuz. It’s California’s war on fossil fuels.
On Labor Day, the average price of gas in Nevada was almost $5 a gallon. According to AAA, that’s well above the previous Labor Day record of $3.82, set in 2012. Democratic gubernatorial candidate Aaron Ford sees a political opportunity in these painful prices. On Monday, he posted a picture showing gas at $5.69 at a gas station in Reno. He blamed the cost on the Iran War.
Certainly the Iran War has increased gas prices. But Mr. Ford has yet to explain how, as governor of Nevada, he would dictate foreign policy in the Middle East. Nevada drivers would be much better served if Mr. Ford explained his strategy to deal with a problem much closer to home — California’s dwindling refinery capacity. Because of existing pipelines, Nevada gets around 88 percent of its gasoline from California.
Over the last year, two major refineries closed in California, leaving it with just six major refineries. In 2017, California had the capacity to refine about 2 million barrels a day. Today, that number is under 1.5 million.
These closures didn’t happen randomly. They are the result of deliberate policy choices made by California Democrats. California Gov. Gavin Newsom and other Democrats want their state to have net zero carbon emissions by 2045. By necessity, that requires cracking down on gasoline refineries.
This is why Nevada’s gas prices are so much higher than most other parts of the country. In Texas, for instance, gas on Labor Day cost $3.67 a gallon. A year ago in Nevada, gas cost $3.86 a gallon. Gas in Texas is cheaper during the Iran War than gas in Nevada was before it.
Things would be worse in California — and hence Nevada — if President Donald Trump hadn’t suspended the Jones Act. California had been dependent on oil from Asia to meet its demand. The Iran War significantly disrupted that supply.
What happens in neighboring states is a problem that a Nevada governor can address more directly. To his credit, Gov. Joe Lombardo has. He’s publicly rebuked Mr. Newsom on this issue. Mr. Lombardo created the Nevada Fuel Resiliency Committee, which is looking for ways to reduce Nevada’s dependence on California. There are no easy solutions, but the Western Gateway Pipeline has promise. In contrast, Mr. Ford has campaigned with Mr. Newsom.
When it comes to lowering future gas prices for Nevadans, Mr. Lombardo’s approach holds more promise than Mr. Ford’s.
