California News Pulse August 2022

Posted: October 13, 2022

California | August 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

California lawmakers OK buffer zones between new oil wells and homes, schools

The day environmentalist legislators have been waiting for has finally come, buffer zones between oil and gas wells and sensitive areas will be legally backed. It took several years of failed attempts to impose ‘buffer zones’ around areas such as schools, hospitals, and homes because of the oil and gas industry lobbying against the zones. The new buffer zone legislation falls under Senate Bill 1137 which is part of Governor Newsom’s plan to strengthen the state’s environmental policies. It will require new wells to be no closer than 3,200 feet from sensitive sites defined by the state such as those listed above. Opposition of the bill has come from those saying that such policies will only continue to push gas and energy prices higher than they already are.

Central California is getting a break from new oil and gas leasing

Oil and gas leasing in central California is being put on pause until the Bureau of Land Management (BLM) has conducted a more thorough environmental and public health assessment of the area. Trump’s administration had originally opened up 1 million acres in the area for oil extraction, however, was soon met with opposition from California state agencies and half a dozen environmentalist organizations. Most of the controversy revolves around the practice of fracking, due to claimed impacts on air and water quality in the vicinity. While the BLM conducts its investigation environmental advocates continue to fight for the banning of fracking not only in central California but the entire state, which is in line with Newsom’s goal of zero fracking by 2024 and zero oil extraction by 2045.

Rig Count

California Oil Production

California Gas Production

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