California News Pulse September 2021

Posted: October 20, 2021

California | September 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- 7
Total Rigs in United States- 528
Total U.S. Rigs up 98% YTD

State Highlights

Los Angeles County Bans Oil And Gas Drilling

California, which is attempting to balance its clean energy push with the need to boost tight power supplies and avoid rolling blackouts, will rely more on fossil fuels in the coming weeks to Los Angeles County voted unanimously to prohibit oil and gas drilling, which will result in the closure of 1,600 active and dormant wells. The California Independent Petroleum Association opposed the referendum, claiming that it would result in the loss of hundreds of jobs, higher gas costs, and increased California’s reliance on foreign oil. The state imports over 70% of the oil it need. It is also the country’s leading consumer of jet fuel and gasoline. According to EIA data, California accounted for 17% of US jet fuel use and 11% of US motor gasoline consumption in 2019, the last “normal” year of fuel demand.

Kern County sues Newsom over oil and gas development permits

Kern County, California, says that Governor Gavin Newsom and other state officials have been improperly delaying or preventing the issuing of permits for oil and gas development employing specific extraction technologies, including fracking, in a federal complaint. The plaintiff, the state’s largest oil and gas producing region, argues Newsom has acted “arbitrary and capriciously” in preventing statutorily allowed oil and gas extraction processes such as hydraulic fracturing, often known as fracking, and high-pressure cyclic steam injection. According to the county, Newsom even fired a state officer for enforcing the law in a way that went against his “professed values.'”

Rig Count

California Oil Production

California Gas Production

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