Dissecting the Big Oil versus Cap-and-Trade Rivalry in California

Enhanced regulatory authority exercised by US state governments has resulted in disparate laws across states related to tax rates, drug policies, and laws affecting personal liberties, among other political issues.  This has also resulted in stringent environmental legislation in some areas and lax or nonexistent regulation in others, prompting inconsistent pollution regulations. One innovative approach to limiting emissions is the cap-and-trade program in California. In the past, the oil industry in California has been too powerful to be hampered by state-level regulations, and lawmakers have historically failed to thwart the power of “Big Oil”. However, a whirlwind of recent events has prompted the expansion of cap-and-trade to the oil industry.