California | January 2022
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- 8 (-)
Total Rigs in United States- 610(+24)
Total U.S. Rigs 59% YTD
State Permitting Data
Permits Approved – 3
California has always been one of the most difficult places for drillers due to tightening regulations. A new set of rules may soon come into effect prohibiting all new drilling within LA city limits. If that doesn’t go through there are other regulations in the works prohibiting new drilling within 3,200 ft of homes, schools, and hospitals. Under the new rules existing wells will still be allowed to operate with new pollution controls and could be phased out entirely within the next five years.
Glendale California could see the final fossil fuel power plant built in the entire state. City officials are expected to meet on February 8 to vote between two plans, one to build a brand new, low emission natural gas powered plant and refurbishing several older ones to meet new emission standards. Both options will cost over $200 million and come as a disappointment to environmentalists in the area who are pushing for more renewable energy production units to take the reins from burning fossil fuels.
No celebration in Sacramento: environmental groups divided on Newsom’s big, headline-grabbing budget
There is $4.7 billion available for states’ use in remediation, particularly in the case of well plugging and abandonment. LA is seeking a large portion of the funds to pay for the costs associated with maintaining environmental standards surrounding the approximately 5,000 orphaned wells across the state. Experts estimate that around 500,000 thousand people in LA live within a half-mile of a well. Moving the industry out of population centers has been a priority of LA officials for some time now and obtaining federal funding would help greatly.
California Oil Production
California Gas Production
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