California | September 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- 769 (+10)
Total U.S. Rigs – 42% YTD

State Permitting Data
Permits Approved – 19

State Highlights

Governor Newsom Calls for a Windfall Tax to Put Record Oil Profits Back in Californians’ Pockets

California governor Gavin Newsom is blaming oil companies for raising gas prices and reaping windfall profits, while consumers are suffering at the gas pumps. The governor’s solution is to increase the taxes for oil companies, and return the money to hard working Californians. In the next few weeks, residents will begin to receive inflation relief checks in their bank accounts, where much of the money could be coming from windfall taxes on oil companies operating in the state. Checks of up to $1,050 will be issued to help those struggling to cope with the inflated prices of everything from groceries to gasoline. Newsom also instructed gas stations to begin rolling out the winter blend of gasoline earlier than usual to help increase supply and drop prices.

Newsom relaxes refinery rules as California gas prices soar

Part of Newsom’s plan to ease gas prices, the highest in the country, is an early release of winter blend fuel. Typically states release the cheaper blend of fuel closer to winter and slightly ahead of the colder months, however, residents are getting tired of paying over $6 for their fuel. While the winter blend is cheaper it is also less efficient, meaning it pollutes more than the summer blends, something that goes directly against many of Newsom’s goals for California. Many of the Governor’s opponents have cited that oil companies aren’t in charge of gas prices which are more influenced by state regulations, set by the government. Other factors contributing to record gas prices in California include tight supply and refinery interruptions caused by routine maintenance. 

California Approves a Wave of Aggressive New Climate Measures

California is usually the first state to adopt new, and more stringent oil and gas regulations. Not only that but it invests more than any other state in the country in renewable energy. Legislators have approved $54 billion in spending for climate projects. Governor Newsom has set many goals to achieve zero carbon emissions by 2045, seen as ambitious and out of reach by many and a waste of billions of taxpayer money. While technically not under the umbrella of renewables, investment in nuclear energy has increased slightly in the state as well. A nuclear plant up for decommissioning has been given a new lease on life, well for at least another 5 years that is. 

Rig Count

California Oil Production

California Gas Production

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PETRO Engineering, PLLC via the following sources unless otherwise
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