California News Pulse August 2021

Posted: September 22, 2021

California | August 2021

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 (End of 7/9)
Total Rigs in California- 6
Total Rigs in United States- 497
Total U.S. Rigs up 94% YTD

State Highlights

California’s Clean Grid May Lean on Oil & Gas to Avoid Blackouts

California, which is attempting to balance its clean energy push with the need to boost tight power supplies and avoid rolling blackouts, will rely more on fossil fuels in the coming weeks to keep the lights on if scorching heat waves strain its grid. In the coming weeks, the Golden State, which has some of the most aggressive environmental policies in the world, could face a supply shortfall of up to 3,500 megawatts during peak demand hours. That equates to approximately 2.6 million households’ worth of electricity supply. According to a recent emergency proclamation, Governor Gavin Newsom intends to fill that gap in part by allowing industrial energy users to run on diesel generators and engines.

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Kern County Board of Supervisors Vote to Sue California Over Phasing Out Oil

California Governor Gavin Newsom announced in April that all fracking would be phased out by 2024. The Kern County Board of Supervisors announced a new lawsuit in an effort to protect the county’s oil and agriculture industries. The Kern County Board of Supervisors voted 4 to 1 to sue Governor Newsom over his recent legislation to phase out fracking. Except for Supervisor Letica Perez, all members of the board of supervisors voted in favor of the lawsuit during a closed session.

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Devastating Wildfires Advancing Through Northern California

Northern California wildfires that demolished two mountain communities raged on in the Sierra Nevada, while a utility intentionally blacked out up to 51,000 customers to prevent new blazes. Two weeks after the Dixie Fire destroyed most of the Gold Rush-era town of Greenville, the Caldor Fire exploded through tinder-dry trees and ravaged Grizzly Flats, a forest community of around 1,200 people, more than 100 miles (161 kilometers) southeast. Since the Caldor Fire erupted, at least 50 homes have burned in the area, according to fire officials, and two people have been hospitalized with serious injuries.

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Rig Count

California Oil Production

California Gas Production

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