California News Pulse December 2022

Posted: January 24, 2023

California | December 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- 5 (-1)
Total Rigs in United States- 771 (-4)
Total U.S. Rigs 28% YTD

State Permitting Data
Permits Approved – 19

State Highlights

California requires permits for large natural gas projects to enable environmental and cost scrutiny

While California leads the pack in transitioning to cleaner forms of energy, they are still allowing natural gas projects to progress. Some will say that investing any money into hydrocarbon based forms of energy is a poor decision for the environment, others point out how much better for the environment natural gas is when compared to oil and coal. California is regulating those projects by requiring utility companies to have a state permit prior to building a natural gas project worth more than $75 million or expected to worsen air quality. Each project must also include an environmental analysis outlining its possible environmental impacts.

Campaign behind a California oil and gas veto referendum submits nearly 1 million signatures

Naturally, not everyone in California is happy with how the state is transitioning from oil and gas. One group, California Independent Petroleum Association (CIPA), has begun collecting signatures for their Stop the Energy Shutdown campaign. The campaign has already collected over 978,000 signatures on their veto referendum to fight back against recently passed regulations on the oil and gas industry filed under Senate Bill 1137 (SB 1137). The bill was passed in hopes it would help the state meet climate goals by banning drilling wells within 3,200 ft of homes, schools, nursing homes, and hospitals as well as requiring leak monitors and alarms. CIPA cites that the bill will only increase already high gas prices and outsource the environmental issues to other states and countries.

California approves roadmap for carbon neutrality by 2045

By 2045, California will have or hopes to have, achieved carbon neutrality, meaning that the amount of carbon emissions it generates will be balanced by the amount it removes from the atmosphere. By reducing the demand for fossil fuels by 86% throughout that time, it hopes to achieve this goal. Critics claim it offers the biggest emitters in the state an excuse for not doing enough to slow down climate change. Among other things, the proposal would lower the demand for liquid petroleum fuel by 94% and increase solar and wind power capacity by a factor of four. Additionally, it intends to reduce methane emissions from the agricultural sector by 66%.