California News Pulse April 2022

Posted: May 24, 2022

California | April 2022

Field Overview

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- 7 (No change)
Total Rigs in United States- 728 (+336)
Total U.S. Rigs 37.5% YTD37.5% YTD

State Permitting Data
Permits Approved – 3

State Highlights

New Safety Measure Added to Oil and Gas Pipeline in US, but Won’t Apply to all Pipelines

In 2010 a massive pipeline burst caused a fire that resulted in the deaths of 8 people and began the conversation of how pipelines can be made safer. Over a decade later changes are finally being made. Newly constructed or replaced pipelines will be required to include emergency valves that can quickly shut off the flow of oil, natural gas or other hazardous fuels when pipelines rupture. Pipeline companies have resisted the installation of shut-off valves because of the expense of installing them and concerns they could close accidentally and shut off fuel supplies. However, the more stringent regulations for the industry will help save lives and reduce environmental damage. 

California Reveals Its Plan to Phase Out New Gas-Powered Cars by 2035

12% of all vehicles sold in California are zero-emission, which includes both hybrid and electric vehicles. The California Air Resources Board has made public their ambitious plan to increase the number of zero-emission vehicles on the roads. The plan will require 35% of new vehicles sold in the state by 2026 to be powered by batteries or hydrogen. By 2036 the plan includes 100% of all new vehicles sold to be zero-emission. While California is the first state to enact such measures, other states including New York, Massachusetts and North Carolina often follow in its footsteps regarding tailpipe emissions proposals. 

California’s Gas Tax will Likely Increase

Californians pay some of the highest prices at the pumps, and may soon be paying even more. A bill from 2017 requires the gas tax to go up each year to counter inflation, this time around it will be a 3 cent increase. The tax is important because it goes towards funding for roads, bridges and transportation. During unprecedented high gas prices, lawmakers have come up with three ways to help drivers find relief. One option is to send $200 checks to each taxpayer who makes less than $125,000 per year, another is to send up to $800 to car owners and the final option is to put off the increase until January of next year. 

California is Investigating Big Oil for Allegedly Misleading the Public on Recycling

How recyclable are plastics? Most people would say a large majority are. California’s attorney general Rob Bonta has a different opinion and has opened an investigation into the country’s most productive oil companies for misinformation on the topic. Bonta claims that the fossil fuel industry has financially benefited from campaigns that spread the idea that plastics are recyclable and therefore are okay to use. ExxonMobil has since been subpoenaed for information and documents, and has publicly stated their rejection of such allegations.  

Rig Count

California Oil Production

California Gas Production

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