California News Pulse July 2022

Posted: August 22, 2022

California | June 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 (-)
Total Rigs in United States- 762 (+6)
Total U.S. Rigs 52% YTD

State Permitting Data
Permits Approved – 3

State Highlights

California not counting methane leaks from idle wells

California is known for some pretty strict environmental regulations, though environmentalists think things could get even tighter. CalGEM monitors methane emissions of producing assets all across the state, but they do not include emissions from some 35,000 idle wells. Cesar Aguirre, a community organizer with the Central California Environmental Justice Network, says, “It’s clear that they are willing to ignore this public health emergency. Our communities are done waiting. CalGEM needs to do their job.” Whether or not CalGEM rises to the occasion is unknown, but governor Gavin Newsom has penned in legislation that will work to get methane monitoring satellites into orbit. Operating in California is already tough, but it could just get that much tougher.

California cities ban new gas stations in battle to combat climate change

A new movement is spreading across the Bay Area. Cities in California are becoming the first in the nation to ban the construction of new gas stations. Even LA’s director of environmental affairs may want to get on board. “L.A.’s enormous and damaging ecological footprint really helped set us on this path,” Shrader said at a recent conference about gas station prohibitions across California. “If you have lung cancer, you stop smoking; if your planet’s on fire, you stop pouring gasoline on it.” Opinions from the city seem to be generally in favor of banning additional gas stations and having the general public switch to EVs, a move becoming more popular thanks to Newsom’s banning of gasoline vehicles by 2035.

Rig Count

California Oil Production

California Gas Production

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