California News Pulse April 2023

Posted: May 23, 2023

California | April 2023

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- 2 (-)
Total Rigs in the United States- 755 (-)
Total U.S. Rigs 8.2% YTD

State Permitting Data
Permits Approved – 8

State Highlights

Court throws out Berkeley, California’s ban on natural gas

The nation’s first ban on natural gas in new construction was reversed by a federal appeals court, siding with restaurant owners who claimed Berkeley, California, violated federal energy standards when it passed the policy. According to a complaint filed by the California Restaurant Association, the regulation was unlawful under a federal statute that grants the American government the power to establish energy-efficiency requirements for products like stoves, furnaces, and water heaters. According to Judge Bumatay’s ruling the ordinance impacts the quantity of energy consumed which is regulated by the federal government.

California passes 1st-in-nation emission rules for trains

The rule would expand the use of zero-emissions technology to transport freight from ports and throughout railyards and will restrict locomotive engines older than 23 years by 2030. Additionally, if a locomotive has an automated shutoff, it would be prohibited from idle time in the state exceeding 30 minutes. Some contend that the locomotive standards are premature. The law would be expensive for rail firms, according to Wayne Winegarden, a senior fellow at the Pacific Research Institute, and higher expenditures would result in higher pricing for many items transported by train. The Environmental Protection Agency reports that in 2020, the transportation industry was responsible for the biggest portion of national greenhouse gas emissions. However, just 2% of those pollutants come from rail.

Gov. Gavin Newsom signs watered-down oil profit penalty into law

During the past six months, Governor Gavin Newsom has engaged in a very visible campaign against the oil sector, accusing businesses of ripping off Californians as gas prices hit all-time highs in 2017. He has also called on lawmakers to confiscate the surplus profits and give them back to the taxpaying public. As he signed a first-in-the-nation bill that might result in a cap on oil refiners’ earnings, he finally got to do a victory lap. Refiners operating in the state will closely monitor the development of regulations under the law and whether the Legislature pursues additional bills to address their lingering concerns before deciding whether to mount a legal challenge, according to a representative for the oil industry, which vehemently opposed the governor’s efforts.

Rig Count

California Oil Production

California Gas Production

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