Latest news with #MarshallSchoolofBusiness
Yahoo
23-05-2025
- Business
- Yahoo
Gas prices could surge 75% to over $8/gallon in the Golden State by 2026 — what's driving the pending crisis
With a cost of living that's 38.5% higher than the national average, California is an expensive place to live. In fact, the Golden State currently ranks as the third most expensive state to live in, but a recent news report suggests California could potentially work its way up that list in the years to come. According to a report from USC's Marshall School of Business, California drivers could be paying more than $8 per gallon for gasoline by the end of 2026. The analysis, authored by Professor Michael A. Mische, warns of a potential 75% price increase from the April 2025 average of $4.82 per gallon. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) 'The estimated average consumer price of regular gasoline could potentially increase by as much as 75% from the April 23, 2025, price of $4.816 to $7.348 to $8.435 a gallon by calendar year end 2026,' Mische wrote. 'We can expect retail prices to be even higher in counties such as Mono and Humboldt.' According to KTLA 5 News, the potential increase is primarily driven by the scheduled closures of two major oil refineries. The Phillips 66 refinery in Los Angeles and Valero's facility in Northern California are both slated to shut down, removing approximately 21% of the state's refining capacity over the next three years. "Weak refining margins, rising regulatory compliance costs, softening demand for gasoline and the push for lower-carbon alternatives like batteries and renewable diesel have each contributed to a steady decline in California's refining capacity the past few years," writes Robert Auers in a blog post for RBN Energy LLC. "Now, Phillips 66's plan to idle its 139-Mb/d Los Angeles Refinery in Q4 2025 will leave the Golden State with only seven conventional refineries producing gasoline, diesel and jet fuel — a couple of dozen fewer than it had 40 years ago." The closure of these two refineries could lead to a daily deficit of 6.6 million to 13.1 million gallons of gasoline, as California currently consumes over 13.1 million gallons daily while producing less than 24% of its crude oil needs. Lawmakers have expressed concern over the potential economic impact and have urged Governor Gavin Newsom to intervene and prevent the refineries from closing. 'If the Governor doesn't act now, Californians will be blindsided by sticker shock at the pump and skyrocketing prices on everyday goods,' said Senate Minority Leader Brian W. Jones in a written statement. A spokesperson for the governor said that efforts are underway to maintain a stable fuel supply and protect Californians from steep price increases. 'Just last month, the governor directed the state to redouble efforts to work with refiners to ensure a safe, affordable and reliable supply of gasoline,' Daniel Villaseñor, a spokesperson for Governor Newsom, shared with KTLA 5 News. 'Governor Newsom will keep fighting to protect Californians from price spikes at the pump." Read more: This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs As of now, California already has some of the highest gas prices in the country, with averages exceeding $5 per gallon in certain areas. If prices rise to the projected $8.43 per gallon, California would further solidify its position as the state with the most expensive gasoline. To mitigate the impact of rising fuel costs, residents can consider several strategies: Look for fuel discounts: Membership-based retailers like Costco often provide lower fuel prices. Some grocery stores also offer points per dollar spent to help offset gas prices. Carpooling: Sharing rides can significantly reduce individual fuel expenses. Consider riding to work with a colleague or sharing driving duties with a family at your child's school. Limit your driving: Be mindful of when and where you drive. For example, you can consolidate nearby errands and make them all in one trip. Also, consider working remote more often, if that is an option. Invest in fuel-efficient vehicles: Transitioning to a vehicle with higher fuel economy, or switching to an electric vehicle, can offer long-term savings. California also offers a variety of tax rebates and incentives for electric cars. Use public transportation: California's major cities, including Los Angeles, San Francisco and San Diego, offer extensive public transit systems including buses, light rail and commuter trains. However, the state offers limited alternatives to driving outside of the major hubs. While these measures can help, the state's infrastructure may limit alternatives to driving for many residents. Continued investment in public transportation and policies to rein in the costs of fuel will be critical to address what could become a gasoline crisis in California. Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Yahoo
09-05-2025
- Business
- Yahoo
Newsom's office pushes back on report claiming 75% spike in California gas prices by 2026
Gov. Gavin Newsom's office is pushing back on claims made in a recent report that gas prices in California could surpass $8 per gallon by the end of 2026. The report, authored by Michael A. Mische of USC's Marshall School of Business, stated that the scheduled closure of the Phillips 66 refinery in Los Angeles, along with Valero's planned shutdown of its facility in Northern California, 'represents a potential 21% reduction in California's refining output over three years.' Mische and other experts argue that reduced refining output is a major reason why California drivers consistently see the nation's highest gas prices. 'The estimated average consumer price of regular gasoline could potentially increase by as much as 75% from the April 23, 2025, price of $4.816 to $7.348 to $8.435 a gallon by calendar year end 2026. We can expect retail prices to be even higher in counties such as Mono and Humboldt,' Mische wrote. However, Newsom's office claimed that Mische is 'bankrolled by Saudi Arabia' and utilized the scientific method of 'guessing.' In a statement to KTLA, Mische admits to working for Saudi Arabia but said his work was related to a project called Vision 2030. 'Allegations have been leveled as to being an 'agent' of, working for or on behalf of, and being 'bankrolled' by Saudi Arabia. Nothing could be further from the truth, and the allegations are patently inaccurate and without substance and merit. For the record, my work in Saudi Arabia had absolutely nothing to do with petroleum, and I received no payments from any Saudi petroleum company or any oil company,' Mische told KTLA. He said his Vision 2030 work involved steering the Saudi economy away from fossil fuels. Mische also called the allegations 'perverse.' He shared that he has offered the governor, or any member of his staff or legislature, the opportunity to meet with him on this matter. He told KTLA that he would provide them with complete transparency into the work. 'We have not received any direct outreach. The Governor relies on the experts he's appointed at the Energy Commission, Division of Petroleum Market Oversight, and the Independent Consumer Fuels Advisory Committee to keep the state informed of market dynamics,' Daniel Villaseñor, a spokesperson for Gov. Newsom, said in a statement to KTLA. Newsom's office isn't the only one casting doubt on the report. Consumer Watchdog announced Thursday that its president, Jamie Court, wrote to the leaders of the University of Southern California asking that it investigate Mische for a violation of the university's conflict of interest code since he didn't disclose that he had ties to Saudi Arabia. 'The recommendations from Mische's report are a treasure trove of tax subsidies and giveaways to both the refining and oil production sector,' Court wrote in the letter. Saudi Arabia's state-owned oil company, Saudi Aramco, has an interest in refining in the United States. There is no question that the policies Mische advocates will inure to the benefit of his client.' 'The university received and is reviewing Jaimie Court's letter. We are unable to discuss any individual cases due to the confidential nature of personnel matters,' a statement from USC read. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
07-05-2025
- Business
- Yahoo
Newsom wants a federal tax credit to save Hollywood. Why that's a long shot
Shortly after President Trump stunned Hollywood with his call for tariffs on films produced overseas, California Gov. Gavin Newsom waded into the debate with an unexpected offer. Despite the public enmity between the two, Newsom reached out to the White House in hopes of working together on the creation of a $7.5-billion federal tax incentive to keep more productions in the U.S. Hollywood insiders have wanted a federal tax incentive program all along. Some publicly cheered Newsom's Monday proposal. Many lawmakers, including Sen. Adam Schiff (D-Burbank) and Rep. Laura Friedman (D-Glendale), have advocated for a national program to try to put the U.S. on a more equal footing with foreign countries that offer generous incentives. But such an initiative faces significant obstacles. It will be a difficult sell to the average American taxpayer, who may not be eager to support an industry viewed as wealthy and politically liberal. It's unclear where funding for the U.S. entertainment industry ranks on a list of ever-growing national priorities. "I would give it 50/50 at best," Sanjay Sharma, who teaches media and entertainment finance at USC's Marshall School of Business, said of the incentive's odds. Recently, a coalition of Hollywood unions and industry trade groups — including the Motion Picture Assn. and guilds representing screenwriters, directors and actors — backed the idea of a domestic production incentive. They said the proposal would advance the administration's goal of reshoring American jobs and providing economic growth around the country. "As Congress undertakes 2025 tax legislation, we urge lawmakers to include a production incentive to support film and television production made by workers in America," the coalition said in a statement. But with so many competing priorities facing the country, including infrastructure, homelessness and the opioid crisis, lawmakers could face an uphill battle in justifying a vote to effectively subsidize the entertainment industry. "The political optics on it are going to be very, very difficult," said George Huang, a professor of screenwriting at the UCLA School of Theater, Film and Television. "To most people, [the entertainment industry] seems like a frivolous thing." Even if a federal film tax incentive were to pass, it's not a guarantee that filming would automatically flow back to the U.S., particularly if other countries chose to increase their own tax credit programs in response, he said. But such a proposal would provide much-needed support for the entertainment industry, which has been battered in recent years by the effects of the pandemic, the dual writers' and actors' strikes in 2023 and cutbacks in spending by the studios. The situation has created what leaders call an employment crisis in the film and TV business, particularly in California. "Right now the industry is teetering," Huang said. "This would go a long way in helping right the ship and putting us back on course to being the capital of the entertainment world.' A federal tax incentive was part of a proposal from actor Jon Voight, one of Trump's so-called Hollywood ambassadors, and his manager, Steven Paul, who traveled to Mar-a-Lago last weekend to present Trump with a plan on bringing filming jobs back to the U.S. That proposal included a 10% to 20% federal tax credit that could be added on top of individual state incentives, according to a document published by Deadline. MPA Chief Executive Charles H. Rivkin also met with Voight last week, according to a source familiar with the matter who was not authorized to comment. After the Deadline story published, Paul cautioned that the document was not meant as a full-on policy proposal. 'The document does not claim to represent collective views of the participating film and television organizations, but serves as a compilation of ideas explored in our discussions on how to strengthen our position as creative leaders,' Paul wrote. In the meantime, the MPA and others have also lobbied Congress to extend and strengthen Section 181 of the federal tax code to encourage more films to stay in the U.S. Such a move could boost smaller, independent productions as well as studio films. The section addressing film production was enacted in 2004 amid a recognition that more films were moving to Canada and Europe, and the U.S. needed to remain competitive. Section 181 allows up to $15 million of qualified film and TV production expenses to be deductible during the year in which they were incurred — or up to $20 million if the project was produced in a low-income area, according to the MPA. Productions can qualify if three-quarters of their labor costs were in the U.S. The measure allows filmmakers to take the deduction when the cost is incurred, rather than after the film is released. That's important to independent filmmakers who often work on shoestring budgets and can't wait for years to see the benefit. 'If there is a bright side, maybe some of the U.S.-based companies will start taking a look at their domestic production levels,' said Frank Albarella Jr., a partner at KPMG in its media and telecommunications unit. 'Maybe there will be some more federal and state incentives right here in the U.S. That's what people are hoping for.' Times staff writer Stacy Perman contributed to this report. Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights. This story originally appeared in Los Angeles Times.
Epoch Times
07-05-2025
- Business
- Epoch Times
California Gas Prices Could Rise 75 Percent by End of 2026: USC Analysis
California gas prices could skyrocket by as much as 75 percent by the end of 2026 with the expected shutdown of oil refineries in the state, according to an Regular gasoline prices could rise from an average of $4.82 in April 2025 to as high as $8.44 a gallon by the end of next year, said the report, authored by Professor Michael Mische at the Marshall School of Business. Two Phillips 66 refineries in Los Angeles—about 8 percent of the state's oil refining capacity—are slated to close by the end of this year. Valero Energy Corp. also announced last month it will shut down or restructure its Benicia refinery in the San Francisco Bay area—which accounts for about 9 percent of refining capacity—by April 2026, increasing The USC analysis states that based on current demand, consumption, state regulations, and other factors, the refinery closures could result in a potential 21 percent drop in refining capacity from 2023 to April 2026. This could create a gasoline deficit potentially ranging from 6.6 million to 13.1 million gallons a day, said Mische. 'Reductions in fuel supplies of this magnitude will resonate throughout multiple supply chains affecting production, costs, and prices across many industries such as air travel, food delivery, agricultural production, manufacturing, electrical power generation, distribution, groceries, and healthcare,' he wrote. Related Stories 4/27/2025 4/17/2025 Industry experts have also warned that gas prices will spike dramatically when the refineries close. Phillips 66 The state of California is currently suing major oil companies over alleged deception regarding the risks of climate change and fossil fuel combustion. Governor Urges Energy Commission to Take Action In an April 21 Newsom directed Gunda 'to reinforce' the state's 'openness to a collaborative relationship and our firm belief that Californians can be protected from price spikes and refiners can profitably operate in California—a market where demand for gasoline will still exist for years to come.' The governor also referred to the CEC's Transportation Fuels Assessment report, which lists a state Republican state Sen. Brian Jones from San Diego, the Senate minority leader, issued a May 6 statement citing the USC study and calling the refinery closures 'a looming energy and economic crisis.' 'If the Governor doesn't act now, Californians will be blindsided by sticker shock at the pump and skyrocketing prices on everyday goods,' Jones said. In a May 6 Meanwhile, Republican state Sen. Shannon Grove from Bakersfield urged the governor to increase New permits have plummeted 97 percent over the last five years, according to data from the California Department of Conservation. New drilling permits in the state dropped from 2,676 in 2019 to 86 in 2024. 'This is catastrophic for every Californian at the gas pump,' Grove said in an April 16 social media 'Controlling the Damage' Mike Umbro, founder and CEO of Californians for Energy and Science—a nonprofit advocate for energy economics and environment—and a developer of an oil field project west of Bakersfield, told The Epoch Times that Newsom's letter appears to be conducting damage control with oil companies. 'He is trying to task Siva Gunda with controlling the damage,' Umbro said. Umbro urged the governor to take a more direct and deliberate approach by signing an executive order declaring an energy crisis, issuing permits to drill, and allowing refineries to produce gasoline. Umbro applauded the USC study, saying it and other independent studies are what's needed to fully evaluate the oil-and-gas supply and ensure there is no shortage of affordable gas at the pumps for consumers. Daniel Villaseñor, a spokesman for the governor's office, told The Epoch Times in response to questions that Newsom's letter to Gunda 'speaks for itself.' Sandy Louey, a CEC spokeswoman, told The Epoch Times in an email that the agency is 'committed to working with stakeholders to explore options to ensure an affordable, reliable, and safe transportation fuel supply.' Louey said the concept of a state-owned refinery is 'just one in a list of many potential options for the state to consider' that the CEC proposed as possible solutions to mitigate gas price spikes in a report released last August. In the report, the CEC identified that a state-owned refinery may provide relief to consumers but recognized many challenges to overcome, including high costs, the expertise necessary to manage refinery operations, and how the refinery would fit into the state's transition away from petroleum fuels, she said in the email. The California Air Resources Board is also required to develop and submit a Transportation Fuels Transition Plan to be released by the end of the year, Louey said. According to a statement by Valero, a fire broke out at its Benicia refinery on May 5 but was extinguished within hours. No injuries were reported, and the cause of the fire is under investigation, said the oil company. Valero did not say whether the fire would significantly disrupt production at the refinery.
Los Angeles Times
06-05-2025
- Business
- Los Angeles Times
Newsom wants a federal tax credit to save Hollywood. Why that's a long shot
Shortly after President Trump stunned Hollywood with his call for tariffs on films produced overseas, California Gov. Gavin Newsom waded into the debate with an unexpected offer. Despite the public enmity between the two, Newsom reached out to the White House in hopes of working together on the creation of a $7.5-billion federal tax incentive to keep more productions in the U.S. Hollywood insiders have wanted a federal tax incentive program all along. Some publicly cheered Newsom's Monday proposal. Many lawmakers, including Sen. Adam Schiff (D-Burbank) and Rep. Laura Friedman (D-Glendale), have advocated for a national program to try to put the U.S. on a more equal footing with foreign countries that offer generous incentives. But such an initiative faces significant obstacles. It will be a difficult sell to the average American taxpayer, who may not be eager to support an industry viewed as wealthy and politically liberal. It's unclear where funding for the U.S. entertainment industry ranks on a list of ever-growing national priorities. 'I would give it 50/50 at best,' Sanjay Sharma, who teaches media and entertainment finance at USC's Marshall School of Business, said of the incentive's odds. On Tuesday, a coalition of Hollywood unions and industry trade groups — including the Motion Picture Assn. and guilds representing screenwriters, directors and actors — backed the idea of a domestic production incentive. They said the proposal would advance the administration's goal of reshoring American jobs and providing economic growth around the country. 'As Congress undertakes 2025 tax legislation, we urge lawmakers to include a production incentive to support film and television production made by workers in America,' the coalition said in a statement. But with so many competing priorities facing the country, including infrastructure, homelessness and the opioid crisis, lawmakers could face an uphill battle in justifying a vote to effectively subsidize the entertainment industry. 'The political optics on it are going to be very, very difficult,' said George Huang, a professor of screenwriting at the UCLA School of Theater, Film and Television. 'To most people, [the entertainment industry] seems like a frivolous thing.' Even if a federal film tax incentive were to pass, it's not a guarantee that filming would automatically flow back to the U.S., particularly if other countries chose to increase their own tax credit programs in response, he said. But such a proposal would provide much-needed support for the entertainment industry, which has been battered in recent years by the effects of the pandemic, the dual writers' and actors' strikes in 2023 and cutbacks in spending by the studios. The situation has created what leaders call an employment crisis in the film and TV business, particularly in California. 'Right now the industry is teetering,' Huang said. 'This would go a long way in helping right the ship and putting us back on course to being the capital of the entertainment world.' A federal tax incentive was part of a proposal from actor Jon Voight, one of Trump's so-called Hollywood ambassadors, and his manager, Steven Paul, who traveled to Mar-a-Lago last weekend to present Trump with a plan on bringing filming jobs back to the U.S. That proposal included a 10% to 20% federal tax credit that could be added on top of individual state incentives, according to a document published by Deadline. MPA Chief Executive Charles H. Rivkin also met with Voight last week, according to a source familiar with the matter who was not authorized to comment. After the Deadline story published, Paul cautioned that the document was not meant as a full-on policy proposal. 'The document does not claim to represent collective views of the participating film and television organizations, but serves as a compilation of ideas explored in our discussions on how to strengthen our position as creative leaders,' Paul wrote. In the meantime, the MPA and others have also lobbied Congress to extend and strengthen Section 181 of the federal tax code to encourage more films to stay in the U.S. Such a move could boost smaller, independent productions as well as studio films. The section addressing film production was enacted in 2004 amid a recognition that more films were moving to Canada and Europe, and the U.S. needed to remain competitive. Section 181 allows up to $15 million of qualified film and TV production expenses to be deductible during the year in which they were incurred — or up to $20 million if the project was produced in a low-income area, according to the MPA. Productions can qualify if three-quarters of their labor costs were in the U.S. The measure allows filmmakers to take the deduction when the cost is incurred, rather than after the film is released. That's important to independent filmmakers who often work on shoestring budgets and can't wait for years to see the benefit. 'If there is a bright side, maybe some of the U.S.-based companies will start taking a look at their domestic production levels,' said Frank Albarella, Jr., a partner at KPMG in its media and telecommunications unit. 'Maybe there will be some more federal and state incentives right here in the U.S. That's what people are hoping for.'
