California | March 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- 7 (-1)
Total Rigs in United States- 698 (+48)
Total U.S. Rigs 16% YTD
State Permitting Data
Permits Approved – 3
Santa Barbara country rejected a proposal from ExxonMobil to allow it to transport oil coming from its offshore ventures via tanker truck. Had the country allowed the proposal it would have been the first major step to restarting three oil platforms offshore owned by Exxon operating off the coast. The pipeline that would have otherwise transported the oil ruptured in 2015 causing offshore operations to be suspended. Refusal to allow Exxon to use tanker trucks to transport oil was based on environmental concerns such as adding an additional 24,820 annually on the 101 Freeway and Highway 166 for several years until the pipeline is fixed.
The price of gasoline is expensive everywhere lately, something Californians are especially aware of with the average being $5.44 per gallon. Part of governor Gavin Newsom’s plan to help those living in California is to get rid of the state gas tax and another part includes a $400 per car refund to California vehicles owners up to a maximum of $800. The latter proposal seems to have gained more support than the former. Cutting the gas tax may be harder to implement which means the benefits may not reach consumers for a few months but are struggling now.
A refinery in the Bay Area who is responsible for 13% of the state’s gas, jet fuel, and other oil products refinement, may be responsible for driving California gas prices even higher as its workers go on strike. The strike was in response to failed contract negotiations between refinery workers and refinery owner Chevron. The company said that operations will continue as normal and doesn’t foresee any supply chain disruptions. An expert in the industry with AAA said “If it goes offline, it definitely will have an impact on our supply.”
California Oil Production
California Gas Production
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