Transportation Secretary Sean Duffy hit out at Governor Gavin Newsom (D-CA) on Monday, accusing the latter of letting his state be dependent on foreign oil suppliers amid the U.S.-Iran war.
Sean Duffy Slams ‘Climate Alarmist’ Gavin Newsom
In a post on the social media platform X, Duffy shared a video, touting President Donald Trump‘s call to oil producers to “Drill baby drill,” as the Transportation Secretary shared the progress of Sable Offshore Corp‘s (NYSE:SOC) pipeline off the coast of Santa Barbara, California.
“Climate alarmist @GavinNewsom would rather Californians be dependent on foreign oil,” Duffy said in the post, accusing critics of “playing politics.” He then shared that the Department of Transportation’s (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) was “working overtime to ensure that the oil is flowing.”
The video showcased the oil rig’s production capabilities, sharing that the pipeline would deliver 60,000 barrels of oil every day to consumers in California.
Concerns About Sable’s Pipeline
Newsom has been a vocal critic of the administration’s decision to reopen the Sable pipeline after a 2015 oil spill led to its closure. The decision has been criticized by State officials and environmental groups, who have continued to argue against reopening the pipeline.
The Governor’s Press Office had said that the decision to reopen the pipeline puts communities as well as California’s $51 Billion coastal economy at risk. The pipeline will reportedly supply crude oil to Chevron Corp (NYSE:CVX), which has criticized Newsom for the California Air Resources Board’s (CARB) “disastrous” policies aimed at curbing greenhouse gas emissions in the state.
Oil, Gas Soar Amid Iran War
Gas prices have continued to rise, with data from the American Automobile Association (AAA) showing that the national average price for a gallon of gas in the U.S. was $4.125 on Monday. Californians continued to pay the highest prices at the pump, with a gallon of gas costing $5.893 in the state.
Investor Peter Schiff also sounded out concerns over Trump’s decision to begin a U.S.-led blockade of the Strait of Hormuz, sharing that oil prices could be at over $150/barrel in the near future if the situation escalates further.
Meanwhile, Newsom hit out at the Trump administration amid soaring gas prices, saying that the President’s “unhinged war with Iran” was forcing ordinary people “in every single state to pay over a dollar more for a gallon of gas.”
Jim Cramer Cautions Oil Surge
TV host Jim Cramer lamented analysts not taking the crude oil price surge into account in their analyses, calling them “Panglossian” or naive, accusing them of wanting to “buy the dip” ahead of Trump’s blockade, which they think could make the markets rally.
At the time of writing this article, the West Texas Intermediate (WTI) crude oil dropped 2.33% to $96.77/barrel, while the Brent Crude oil also slipped 1.50% to $97.87/barrel.
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Photo Courtesy: Sheila Fitzgerald on Shutterstock.com
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