California | June 2020
California, with both onshore and offshore oil production, has been supplying the U.S. with petroleum products since the 19th century. Operations are primarily focused around Kern County, the LA Basin, and the San Joaquin Valley, with the Midway-Sunset oil field in Kern County being the state’s largest.
State Drilling Statistics
Total Rigs in California- 4
Total Rigs in United States- 284
Total U.S. Rigs down 73% YTD
Financial & Economic Updates
Much of the economic news for the month was related to COVID-19. Please see below for state highlights.
No Internal Combustion Trucks by 2045
On June 25, California Air Resources Board adopted a first-in-the-world regulation requiring truck manufacturers to transition from diesel trucks and vans (for Class 2b through Class 8) to electric zero-emission trucks, with a plan for every new truck sold in California to be zero-emission by 2045. This process will scale with time starting with a 9% requirement in 2024. While the requirements will not be the same, the plan extends to cover ships, trains, harbor craft, and cargo handling equipment sold within the LA and Long Beach areas.
Correlation to be Made for Wells and Low Birth Weight
University of California scientists conducted a study in an attempt to link oil and gas production to underweight babies. At first glance, the report states that there is a 40% increase in likelihood that a baby will be born underweight if the mother resides near rural oil and gas production. This of course, comes after adjustments for variables such as socioeconomic status and age. Before the adjustment the difference is a 1% increase from 5% to 6%. Sabrina Demayo Lockhart, spokesperson for the California Independent Petroleum Association, said socioeconomic factors could explain the findings, such as access to prenatal care, low incomes and underlying health conditions. She was quoted saying, “Pinpointing direct health outcomes to one highly regulated activity ignores the fact that there are so many socioeconomic variables that can impact public health. California has the strongest environmental protections for oil and natural gas activity. Extremists will use the headlines to generate fear in their push for stricter regulations.”
California Oil Production
California Gas Production
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