Governor Gavin Newsom’s call for the special legislative session on gas price spikes is the latest chapter in the ongoing trend we know to be true: Big Oil spends big to oppose consumer and climate-friendly policy in California. They have consistently avoided taking responsibility for high prices, putting company profits and shareholder interests above the well-being of Californians. Let’s take a look at the facts –
Big Oil’s Lobbying Against Consumer Protections
Big Oil has poured millions into lobbying to avoid responsibility for rising costs. The Western States Petroleum Association (WSPA), which has a history of defending big oil at the cost of Californias, spent over $2.3 million in the first quarter of 2023 on lobbying, including opposition to California’s price-gouging bill, SB X1-2, and Chevron spent nearly $5 million. When asked to build more storage tanks to stabilize gas prices, Chevron claimed it would cost $35 million and take a decade. Given the company’s record profits, that cost is a drop in the bucket—just 0.16% of Chevron’s 2023 earnings.
Record Profits, Record Prices
Big Oil companies play the victim while pulling in record profits.
ExxonMobil raked in a staggering $36 billion in 2023, marking its biggest annual profit since 2014 (aside from the unprecedented $55.7 billion it made in 2022). Chevron isn’t far behind, reporting a $21.4 billion profit in 2023, riding high off its record-breaking $35.4 billion from the previous year. And this year’s quarterly reports show that these companies continue to thrive:
- ExxonMobil: $9.2 billion in Q2 2024
- Chevron: $4.4 billion in Q2 2024
- Phillips 66: $1.02 billion in Q2 2024
- Valero: $880 million in Q2 2024
Big Oil is Scared of a Clean Energy Future
Clean energy is more affordable than ever. The U.S. government estimates that shifting to a green economy could save families an average of $1,000 per year on energy costs. Yet, Big Oil is doing everything possible to prevent continued progress to protect their shareholders.
In an attempt to distract the public from their record-breaking profits, WSPA launched a deceptive advertising campaign, portraying California’s climate policies as unfair and burdensome. The campaign tries to shift the blame for rising costs onto climate legislation, but the reality is that the fossil fuel industry is the real culprit. Their obstruction of clean energy initiatives has directly contributed to higher costs and greater harm to communities.
It’s Time to Break the Cycle
A clean energy future is within reach if our legislators stand with Californians instead of Big Oil. In 2024, wind and solar are the cheapest forms of electricity available, and as battery storage becomes even more efficient, costs will keep dropping. Let’s reduce our reliance on dirty fossil fuels, power our homes and transportation more efficiently, and build a cleaner, more prosperous future for our state.
Download the full fact sheet on Big Oil and Consumer Costs.