California News Pulse July 2021

Posted: August 18, 2021

California | July 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- 5
Total Rigs in United States- 479
Total U.S. Rigs up 86% YTD

State Highlights

California Scrambling to Buy Power

As a hot, dry summer increases the risk of blackouts, California’s power-grid manager is taking emergency measures to secure extra electricity. In anticipation of region-wide heat waves that will significantly increase electricity demand, the California Independent System Operator is soliciting power producers across the West to sell more megawatts to the state in July and August. Caiso, as it is known, stated that power supplies are lower than expected due to a decrease in hydroelectric generation caused by ongoing drought conditions, power-plant outages, and delays in bringing new generation sources online.

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Biden Administration Looking to Decomission California Rigs

The Biden administration announced that it will conduct a programmatic environmental analysis of the effects of decommissioning oil and gas drilling platforms, pipelines, and wells off the coast of southern California. The announcement marks the beginning of the process of permanently terminating all offshore oil and gas operations at eight platforms and removing these platforms and their associated pipelines from the ocean.

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CalGEM Rejects Fracking Applications

CalGEM, the state’s oil and gas regulatory agency, announced that it has denied all 21 of Aera Energy’s applications for fracking operations in California, citing risks to public health and safety, environmental quality, and climate change under regulatory statutes. This comes shortly after a report announcing that the amount of hydraulic fracturing in the state may have been severely underreported as a justification for banning it in the state.

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Rig Count

California Oil Production

California Gas Production

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