Why California Must Take Ownership of Its Oil Industry

California has long stood as a beacon of environmental leadership, pushing ambitious climate goals and pioneering renewable energy innovation. Yet despite this progress, the state remains bound to an outdated fossil fuel system controlled by private corporations that prioritize profits over the planet’s future.

Trump's reelection, illegitimate as it might be, means it is time for California to take bold action by bringing its fossil fuel assets into public ownership, ensuring that energy production aligns with climate goals and the public good.

As Johanna Bozuwa and Olúfẹ́mi O Táíwò argued in The Guardian, private fossil fuel companies are no longer fit for purpose. Their business model depends on extracting and burning as much fossil fuel as possible, even as the world faces a climate crisis. California has an opportunity to lead by example, demonstrating how public ownership of critical energy resources can drive a just transition to clean, sustainable energy.

The Case Against the Fossil Fuel Industry

For decades, fossil fuel companies have knowingly contributed to environmental destruction. Internal documents from industry giants like ExxonMobil and Shell reveal they understood the catastrophic impacts of fossil fuels as early as the 1970s. Instead of acting responsibly, they funneled billions into misinformation campaigns and lobbied to block climate action.

California has already taken legal action. The state’s Attorney General, Rob Bonta, has sued major oil companies for deceiving the public and worsening the climate crisis. These lawsuits highlight how the fossil fuel industry’s relentless pursuit of profit has harmed Californians through wildfires, rising sea levels, and other devastating impacts.

The evidence is overwhelming: fossil fuel companies have failed to act in the public interest. Their business practices have violated the public trust, making a compelling case for public ownership of their assets.

Public Ownership: A Path to Energy Sovereignty

Bringing fossil fuel assets into public hands would allow California to take control of its energy future and ensure a responsible transition away from oil and gas. Public ownership offers multiple benefits:

1. Phasing Out Fossil Fuels ResponsiblyCalifornia could manage the gradual reduction of fossil fuel production, ensuring energy security while protecting jobs and communities. A just transition for workers would include job retraining programs and investments in clean energy industries.

2. Redirecting Revenues to Clean EnergyInstead of private profits going to shareholders, revenues from fossil fuel operations could be reinvested in renewable energy, hydrogen infrastructure, and next-generation nuclear power.

3. Ensuring Environmental JusticePublic ownership would prioritize the health and well-being of communities most impacted by fossil fuel extraction and pollution, particularly low-income and marginalized groups.

4. Democratizing Energy DecisionsA publicly controlled energy system would make decisions transparent and accountable to Californians, aligning with the state’s climate goals rather than corporate interests.

A Holistic Energy Strategy for California

Taking control of fossil fuel assets is only one part of the solution. To secure its energy future, California must adopt a comprehensive strategy that includes renewable energy, nuclear power, and hydrogen technologies.

• Nuclear Power: A Reliable FoundationNuclear energy provides stable, carbon-free power that complements intermittent renewable sources like solar and wind. Extending the lifespan of Diablo Canyon and exploring advanced nuclear technologies are critical steps to maintain grid stability and meet climate targets.

• Hydrogen: The Future of Clean FuelExcess renewable energy can be used to produce hydrogen, creating a clean, storable fuel for transportation and industrial use. Hydrogen fuel cell vehicles (FCEVs), particularly for heavy-duty applications like trucks and buses, can complement battery electric vehicles (BEVs) and reduce reliance on fossil fuels.

• Expanding Renewable EnergySolar and wind must remain at the core of California’s energy strategy. However, addressing their intermittency requires investments in energy storage and grid modernization.

Addressing Federal Limitations

Public ownership of California’s fossil fuel infrastructure would also shield the state from federal inaction or backtracking on climate policies. Despite climate pledges, the Biden administration has approved increases in oil and gas drilling, demonstrating the federal government’s inability—or unwillingness—to fully confront the fossil fuel industry. A potential return of a Trump administration hostile to environmental progress further underscores the need for California to chart its own course.

A Model for the Nation

As George Monbiot argued, the fossil fuel industry has shown it is incapable of adapting to the demands of the climate crisis. California has the opportunity to set an example for other states and nations by bringing its fossil fuel infrastructure into public ownership. A publicly controlled energy system focused on decarbonization, equity, and innovation could become a blueprint for the global energy transition.

Conclusion: California’s Responsibility to Lead

The fossil fuel industry’s relentless pursuit of profit has exacerbated the climate crisis, endangered public health, and delayed the clean energy transition. By taking ownership of its fossil fuel infrastructure, California can phase out oil and gas responsibly, invest in clean energy technologies, and ensure environmental justice for all its residents.

California’s leadership is critical. The climate crisis demands bold, transformative action. Public ownership of fossil fuel assets is not just a necessary step—it is a moral and practical imperative. Let California lead the way.

Why California Must Take Control of Its Energy Future: A Case for State-izing Fossil Fuel Assets

California has long been a global leader in climate action, innovation, and environmental regulation. Yet despite its ambitious goals, the state remains tethered to an outdated, profit-driven fossil fuel system. Privately owned oil and gas companies, with their long history of deceit and environmental destruction, continue to prioritize short-term profits over the planet’s future. It’s time for California to take bold action: the state must "state-ize" its fossil fuel industry and lead the transition to a diversified, sustainable energy future powered by renewables, nuclear, and hydrogen.

This is not just about California. It’s part of a larger reckoning with the global fossil fuel industry, which, as journalist George Monbiot has argued, is no longer fit for purpose. California has the opportunity to demonstrate what true leadership looks like by taking control of its energy assets and aligning them with climate goals, environmental justice, and economic resilience.

The Case Against the Fossil Fuel Industry

The fossil fuel industry’s track record is one of greed, deception, and environmental devastation. Internal documents from ExxonMobil, Shell, and others show that these companies knew as early as the 1970s about the catastrophic effects of burning fossil fuels. Instead of warning the public, they spent billions spreading misinformation, lobbying against climate action, and expanding their operations.

California has not been spared. Oil companies have continued drilling, refining, and polluting communities, particularly in low-income and marginalized areas. The state’s Attorney General, Rob Bonta, has filed lawsuits against major fossil fuel companies, accusing them of public nuisance, negligence, and consumer fraud. These legal battles highlight the industry’s culpability in exacerbating wildfires, rising sea levels, and other climate impacts.

The evidence is clear: the fossil fuel industry has violated the public trust. It is time for California to intervene by taking ownership of these assets and repurposing them for the public good.

Why State-izing Fossil Fuel Assets is Essential

Bringing fossil fuel assets under public control would allow California to phase out oil and gas responsibly while building a sustainable energy system. State ownership would enable:

1. Phasing Out Fossil Fuels ResponsiblyPublic control would allow California to gradually wind down fossil fuel production, ensuring energy security during the transition and supporting workers with retraining programs and new job opportunities in clean energy sectors.

2. Redirecting Profits to Clean EnergyInstead of lining the pockets of private shareholders, revenues from fossil fuel operations could be reinvested in renewable energy, hydrogen infrastructure, and next-generation nuclear power.

3. Ensuring Environmental JusticeState ownership would prioritize the health and well-being of communities most affected by pollution and climate change, addressing decades of harm caused by private oil companies.

4. Democratizing Energy PolicyA publicly owned energy system would make decisions transparent and accountable to Californians, rather than being dictated by corporate interests.

A Holistic Energy Strategy for California

To secure its energy future, California must adopt a diversified strategy that combines renewables, nuclear energy, and hydrogen technologies.

1. Nuclear Power: A Reliable, Carbon-Free BackboneNuclear energy is essential for maintaining grid stability as California scales up renewables. Extending the life of Diablo Canyon and investing in small modular reactors (SMRs) would provide the reliable, carbon-free power needed to meet the state’s energy demands.

2. Renewables: Expanding Capacity and Addressing IntermittencyWhile solar and wind power are vital, their intermittency challenges require innovative solutions, such as advanced energy storage systems and hydrogen production.

3. Hydrogen: The Key to Clean Transportation and IndustryHydrogen, produced using excess renewable energy, can serve as a storable, clean fuel for electricity generation, industrial applications, and transportation. Hydrogen fuel cell vehicles (FCEVs) are particularly promising for heavy-duty trucks, buses, and other applications where battery electric vehicles (BEVs) fall short.

   
   

Addressing Federal Inaction

State control of fossil fuel assets would also protect California from the limitations of federal policy. Despite its climate rhetoric, the federal government, including the Biden administration, has approved increases in oil and gas drilling. With a return of a Trump administration hostile to environmental progress, California must safeguard its sovereignty and lead by example. State ownership would allow California to set its own course, free from the influence of fossil fuel interests entrenched in Washington.

A Model for the Nation

California has always been a trendsetter, and state-izing its fossil fuel assets would set a powerful precedent for other states and nations. By creating a publicly owned energy system focused on decarbonization, equity, and innovation, California could demonstrate how to transition from fossil fuels in a way that prioritizes people and the planet over profit.

Conclusion: A Just and Sustainable Future

The fossil fuel industry has proven time and again that it cannot be trusted to act in the public interest. California must seize this moment to take control of its energy future. By state-izing fossil fuel assets, the state can phase out oil and gas responsibly, reinvest in clean energy technologies, and lead the way in building a sustainable, equitable energy system.

This is California’s opportunity to set a global example. The climate crisis demands bold action, and state ownership of fossil fuel assets is a critical step toward achieving climate justice and energy sovereignty.

Conclusion

California has the opportunity to set a global example by taking control of its fossil fuel industry and implementing a bold, diversified energy strategy. Public ownership of oil and gas operations would enable the state to phase out fossil fuels responsibly, reinvest in renewables and nuclear energy, and scale up hydrogen infrastructure for a sustainable future.

As Monbiot wrote, private fossil fuel companies are no longer fit for purpose. California can—and must—lead the way in building an energy system that prioritizes people and the planet over profits. The climate crisis demands nothing less.

What are your thoughts on public ownership of fossil fuel infrastructure? Let’s discuss in the comments!