California Energy Journal: Oil

Federal Court Allows California Oil Setback Law to Remain in Effect

Thu, 02 Apr 2026 21:16:22 GMT

A federal district court denied the Trump administration’s request to block California’s oil and gas setback law, allowing the state to continue enforcing restrictions on drilling near homes, schools, and hospitals.

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U.S. District Judge Dena Coggins rejected a U.S. Department of Justice motion for a preliminary injunction against enforcement of SB 1137, a…

Bill to Hold Oil Companies Liable for Climate Disasters Reintroduced

Tue, 10 Feb 2026 00:52:51 GMT

Senator Scott Wiener reintroduced legislation to authorize civil lawsuits against oil companies and other “responsible parties” for damages from climate change. SB 982, introduced on February 5, 2026, would authorize the state attorney general to bring a civil action against a responsible party for “climate-attributable damage.” SB 982 is a revised succ…

BLM Says Increased Oil Drilling in California Will Have Minimal Environmental Impact

Wed, 21 Jan 2026 21:15:16 GMT

The Bureau of Land Management (BLM) released a draft environmental impact statement that concludes that new drilling in central and coastal California would not significantly harm public health or the environment. The environmental review is part of the Trump administration’s plans to open 1.2 million acres of federal mineral lands in California to oil …

Trump Administration Sues to Overturn California Oil Setback, Citing Federal Preemption

Fri, 16 Jan 2026 19:34:00 GMT

The Trump administration is suing California to pause and overturn the state’s 2022 oil drilling setback law, known as SB 1137. The administration is arguing that the Mineral Leasing Act and the Federal Land and Policy Management Act preempts the law. The administration notes that the law would “knock out about one-third of all federally authorized oil …

Los Angeles Sues Oil Companies for Well Clean Up and Environmental Damage

Thu, 11 Dec 2025 22:03:06 GMT

The County of Los Angeles is suing four oil companies for failing to plug and decommission exhausted oil wells in the Inglewood Oil Field. The lawsuit against Sentinel Peak Resources California LLC, Freeport-McMoran Oil & Gas LLC, Plains Resources, Inc., and Chevron alleges that the wells released “toxic pollutants into the air, land, and water and pres…

Report Says California Energy Policies a ”Clear and Present Threat to National Security”; Calls for Federal Intervention

Thu, 30 Oct 2025 18:34:53 GMT

California’s energy policies and its “inability to effectively manage the current refinery closings and in-state oil production crisis” could contribute to supply chain disruptions for military fuels and “compromise U.S. force readiness and national security,” according to a new report from California Assemblyman Stan Ellis, USC Professor Michael Mische…

Santa Barbara County Votes to Shut Down Onshore Oil Operations

Thu, 23 Oct 2025 19:36:58 GMT

The Santa Barbara County Board of Supervisors voted on October 21, 2025 to proceed with its plan to shut down the local oil industry. The county supervisors voted 3-2 to end the issuance of any new well permits for onshore oil operations in the county and to begin the process for an amortization study to determine an appropriate period to phase out exis…

Viewpoint: California Must Consider Emissions from Foreign Oil

Philip MacFarlane — Wed, 22 Oct 2025 19:35:14 GMT

The recently passed SB 237 streamlines the approval process for oil drilling in Kern County in an effort to increase oil production and help stabilize California’s gasoline and oil markets. The law originated as part of a series of California Energy Commission recommendations in response to plans to close two refineries and fears of a gasoline shortfall. The recommendation to increase oil drilling in Kern received almost immediate opposition from environmental groups concerned about preserving “California’s life-saving health, climate, and environmental protections.” They argued that the law’s exemptions from the California Environmental Quality Act (CEQA) “would gravely harm the air we breathe and water we drink around the state, but have no impact on refinery closures or gas prices.”

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While the impact of increased in-state oil production on refinery closures or gas prices is uncertain, the environmental opposition is based on incomplete accounting. Any discussion over expanding oil drilling in California must consider the state’s dependence on imported oil that is produced under weak environmental protections, contributes to the destruction of the Amazon Rainforest, and is shipped thousands of miles across the ocean. Oil from California’s main suppliers is produced with environmental protections that are weaker than California’s standards and total greenhouse gas (GHG) emissions that are higher than those associated with oil produced in the state. Increasing in-state oil drilling would reduce this dependence and lessen California’s global environmental impact.

California’s Dependance on Imported Oil

California’s in-state oil production has declined steadily since the 1980s, from a high of 393 million barrels in 1985 to 104 million barrels in 2024. Oil demand, while falling from a high of 708 million barrels in 1988, has been steady at more than 500 million barrels per year since 2021. Imports of foreign oil have made up the difference and have provided an increasing share of California’s oil supply to refineries, growing from below 10% in the early 1980s and mid-1990s to 56% in 2021, 59% in 2022, 61% in 2023, and 64% in 2024.

California’s oil imports come from nine countries, according to the California Energy Commission. The top sources in 2024 were Iraq at 21%, Brazil at 20%, Guyana at 16%, and Ecuador at 14%. None of these countries is known as a steward of the environment. Iraq ranks third in the world—behind Russia and Iran—in flaring natural gas, a process in which excess gas is burned during oil extraction. California’s other leading oil suppliers produce oil in the Amazon region, where deforestation from the exploitation of natural resources is a significant contributor to climate change.

Ecuador has a long history of Amazon oil production and related environmental degradation. Guyana, meanwhile, looks to become a growing producer in offshore oil in the Atlantic Ocean, along the so-called “Amazon coast.” Brazil, which currently produces oil in the Amazon, recently approved exploratory drilling near the mouth of the Amazon River.

Oil production in the Amazon looks to increase, as almost 20% of global reserves discovered during 2022 and 2024 are in the region. California, for its part, is the top consumer of crude oil from the region, as approximately 50% of all oil exported from the Amazon goes to California refineries, according to a California State Senate resolution.

The production process is only a part of the environmental impact from California’s dependance on oil imports. After extraction, the oil is shipped to the state by tanker, traveling thousands of miles for more than two weeks. Oil tankers produce a significant amount of GHG emission through the burning of heavy fuel oil and marine diesel, but the emissions from the journey are not tracked. The California Air Resources Board (CARB) tracks and reports emissions from ocean-going vessels within 100 nautical miles of its coastline only. The total emissions from shipping are significantly underestimated.

The California legislature has resisted efforts to account for the emissions and environmental impact of imported oil. State Senator Shannon Grove has repeatedly introduced legislation to monitor crude oil imports into California and publicly identify countries that have documented human rights abuses or environmental standards for oil production that are lower than California standards. The bills would also require CARB to publish an annual assessment of the GHG emissions associated with the transportation of oil from the point of origin to its point of destination in California. This would include both imported oil and oil produced in the state. Grove has been unable to advance these bills.

A More Comprehensive Approach

A more serious energy policy would require an accounting of the emissions and environmental impact of imported oil. It would recognize that, while demand might be falling, California will need a substantial supply of oil for a long time to come. Oil not produced in the state will be produced in foreign countries under weaker environmental standards and with much greater GHG emissions.

A serious energy transition policy would also recognize the need for the state to reduce exposure to oil-related geopolitical shocks on its economy and the need to maintain political support for its energy transition policies by making energy more affordable. It would also recognize the potential for tax revenue from oil production to fund energy infrastructure and the benefit of keeping a highly skilled oil workforce in the state.

Beyond simply increasing oil production in Kern County, SB 237 provides state leaders with an opportunity to take a holistic approach to energy policy, recognizing the continued need for oil and honestly assessing the global environmental impact of its overall oil policy. This approach, rather than pursuing international climate partnerships, would do more to fulfill California’s claims to be a global climate leader.

Newsom Signs Suite of Energy Bills Into Law

Mon, 22 Sep 2025 20:10:00 GMT

On September 19, 2025, Governor Gavin Newsom signed a package of five climate and energy bills aimed at stabilizing the gasoline market and reducing electricity prices. The bills aim to increase oil and gas production, extend the state’s cap-and-trade program, authorize California to join a regional energy market, establish air pollution monitoring prog…

Legislators Agree on Energy Bills Intended to Reduce Costs

Fri, 12 Sep 2025 21:03:01 GMT

California legislators agreed to a series of climate and energy legislation in last-minute negotiations with Governor Gavin Newsom. The bills aim to increase oil and gas production, extend the state’s cap-and-trade program, reduce electricity costs through a regional energy market, establish air pollution monitoring programs in heavily polluted communit…

No New Legal Challenges for Kern County Oil and Gas Rezoning Ordinance

Tue, 05 Aug 2025 23:07:28 GMT

The 30-day period to challenge against Kern County’s revised oil and gas ordinance expired without new lawsuits, the Bakersfield Californian reported. The court must still approve the environmental review, but local oil permitting could resume within a year.

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The Kern County Board of Supervisors voted unanimously on June 26, 2025 to approve the third revi…

Newsom Proposes Streamlining Onshore Oil Permitting while Enhancing Offshore Requirements

Sun, 20 Jul 2025 14:23:00 GMT

California Governor Gavin Newsom released draft legislation to streamline the permitting process for drilling new oil wells in existing fields until 2036. The proposed bill includes an approval system in which an operator would have to plug and abandon two wells before drilling a new one. It also includes provisions to expedite permitting in Kern County…

BLM Prepares to Expand Oil and Gas Production in Central California

Tue, 15 Jul 2025 16:45:30 GMT

On June 23, 2025, the Bureau of Land Management (BLM) announced a 30-day comment period on proposed oil and gas leasing and development on federal land in eastern Fresno, western Kern, Kings, Madera, San Luis Obispo, Santa Barbara, Tulare, and Ventura counties. The BLM’s Bakersfield Field is gathering input on a supplemental environmental impact stateme…

Senate Committee Advances Resolution to Examine Oil Imports from Amazon Region

Wed, 09 Jul 2025 22:54:41 GMT

The California Senate Committee on Natural Resources and Water advanced a resolution to investigate the impact of California’s crude oil imports from the Amazon region. It awaits a full vote in the Senate for approval.

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The resolution, advanced on July 8, 2025, would commit the Senate to “investigating the impact of California’s role in the consumption of…

Feds Rescind 2012 MOU that Limited Oil Production in California

Tue, 08 Jul 2025 21:45:00 GMT

The Federal government rescinded a 2012 agreement that slowed oil permitting on federal lands in California. The change could lead to increased leasing and oil production in the state. The agreement terminated on June 29, 2025.

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The 2012 Memorandum of Understanding (MOU) between the Bureau of Land Management (BLM) and the California Geologic Energy Manage…

Kern County Approves Revised Oil and Gas Rezoning Ordinance

Tue, 01 Jul 2025 01:19:00 GMT

The Kern County Board of Supervisors voted unanimously on June 26, 2025 to approve the third revision of the county’s oil and gas rezoning ordinance. A 2024 court decision required the county to approve the environmental review supporting the ordinance. The revision is the latest step in a legal battle over the ordinance that began in 2015.

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The ordinance…

Santa Barbara County Supervisors Vote to Phase Out Onshore Oil Operations

Wed, 11 Jun 2025 15:15:48 GMT

The Santa Barbara County Board of Supervisors voted 3-1 on May 13, 2025 to develop a framework to end oil operations in the county. The plan would “phase out” existing onshore oil and gas operations in the county and prohibit new operations. Notably, the phase out would impact onshore production only, as offshore production is under state or federal con…

Constitutional Challenges to Oil Buffer Zone Law

Thu, 01 May 2025 18:59:39 GMT

Oil producers and mineral owners have filed two lawsuits challenging California’s law that bans well maintenance and new drilling within 3,200 feet of homes, schools, and other “sensitive receptors.” The suits challenge the constitutionality of SB 1137, arguing, among other issues, that it is an illegal public taking of private property without just com…

Groups Challenge Federal Approvals for New California Oil and Gas Drilling

Fri, 14 Mar 2025 13:30:15 GMT

Conservation groups and an asthma organization are suing the U.S. Bureau of Land Management (BLM), challenging the government agency’s decision “to continue approving drilling permits for new oil and gas wells on public land” in the San Joaquin Valley.

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The complaint, filed February 5, 2025, challenges the December 2024 approval of an additional 25 permit…

Bills Would Hold Oil Companies Liable for Past Emissions

Wed, 26 Feb 2025 01:04:26 GMT

Assemblymember Dawn Addis and Senator Caroline Menjivar introduced parallel bills that would require oil companies to pay for climate damage from past emissions. The bills would also assess fees and use the funds for climate programs. A similar bill was introduced last year, and the bill comes shortly after a bill that would allow individuals and insura…