Kate Gordon, CEO of economics policy group California Forward, and a former Biden administration energy adviser, said the dominance of the agricultural sector makes the Golden State “uniquely vulnerable.”
“Diesel prices are incredibly connected to food and ag — and logistics, which is a huge sector for California,” Gordon said.
The repercussions could potentially reach the skies.
“Jet-fuel prices are bonkers,” said Tom O’Connor, an ICF energy consultant who advises California’s Energy Commission after 30 years with ExxonMobil.
Jet fuel prices have nearly tripled since February, and O’Connor said he believes airlines won’t have many options if Asian countries can’t meet demand coming from major airports in California, as well as Phoenix and Vegas.
“They’re going to have to cut flights,” O’Connor said.
O’Connor said he’s advised the state to come up with a plan for addressing shortages. Even if normal flow resumes, he said, things could remain elevated for at least four months. Both Meng and O’Connor advise Californians to “hedge” their bets.
“If that means going down and getting an electric vehicle, try to do it, get a cheap one … if you can afford it,” O’Connor said. “Carpool with neighbors, things like that. I don’t want to make it sound overly dramatic, but as COVID proved, there’s one thing that will [drive] prices lower, and that’s lower demand.”
