This weekly newsletter highlights the latest from the California Energy Journal along with links to articles and analysis on key developments in California energy policy.
From the California Energy Journal
Viewpoint: California Must Consider Emissions from Foreign Oil (October 22, 2025) – 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. Read more.
ExxonMobil Challenges California Climate Reporting Laws on Speech Grounds (October 27, 2025) – ExxonMobil is challenging California’s greenhouse gas (GHG) emissions reporting laws as a violation of the company’s right to free speech. The company is asking the court to block implementation of SB 253 and SB 261, scheduled to take effect in 2026. Exxon filed the lawsuit in the U.S. District Court for the Eastern District of California on October 24, 2025. Read more.
Trump to Open California Coast to Offshore Oil Drilling (October 24, 2025) – The Trump administration plans to open large areas of the east and west coasts and Alaska to offshore oil drilling. The new areas in federal waters are part of the administration’s proposed five-year offshore oil drilling program and would include areas previously withdrawn for environmental protection. The plan would open lease sales in federal waters off Alaska in 2026, the coasts of southern and central California in 2027, and along the Atlantic Coast in 2028. Read more.
Santa Barbara County Votes to Shut Down Onshore Oil Operations (October 23, 2025) – 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 existing oil and gas facilities and operations. The votes comes after the supervisors voted in May 2025 to develop a framework to end oil operations in the county. Read more.
Additional California Developments
Wind and Solar
A Politico analysis found 79 out of the 321 projects that DOE slashed funding for Oct. 2 are in California, more than any other state. This totaled $3.3 billion in anticipated funding, which includes $2.1 billion committed to recipients and $1.2 billion in expected funding for the ARCHES hydrogen hub. Politico (October 22, 2025).
Oil and Gas
Phillips 66 and Kinder Morgan began soliciting shipper commitments for a proposed pipeline system that will move fuel from the Texas refining hub to bolster supplies in Arizona and California as a spate of refinery closures stokes supply concerns. Reuters (October 20, 2025).
Valero Energy said it is moving forward with plans to close its 145,000-barrel-a-day Benicia refinery in California by next spring, after talks with state officials failed to find a way to keep it running. Yahoo Finance (October 24, 2025).
Interesting Reads
Karina Smith, “California Can Lead a Just Climate Transition,” Inequality.org, October 22, 2025.
Edward Ring, “Oil Extraction Reduces Methane Seepage,” California Policy Center, October 22, 2025.
Sofia Carrasco, “Kern County oil drilling law reveals who and what California lawmakers will sacrifice,” CalMatters, October 23, 2025.
Hayley Smith, “10 years since Aliso Canyon: Disaster was wake-up call for U.S. on dangers of underground gas,” Los Angeles Times, October 23, 2025.
George Harmer, “Community Voices: Shutting down oil permits will worsen natural seeps in Santa Barbara,” Bakersfield Californian, October 25, 2025.
Felicity Bradstock, “Can California Still Lead the Charge on Electric Trucks?,” Oil Price.com, October 26, 2025.
Bruce Kranz, “California’s Climate Lawsuit Ignores Energy Reality, California Globe, October 27, 2025.
Additional News
Climate Policy
The US and Qatar have warned the EU its trade, investment and energy supplies will be harmed unless the bloc walks back tough new climate and human rights rules. FT (October 21, 2025) DOE.
The Greenhouse Gas Protocol, the world’s leading authority on carbon accounting, has proposed stricter disclosure rules. The EU, California and the International Financial Reporting Standards all draw on the voluntary oversight body in their guidelines on how companies should disclose their carbon footprints. FT (October 21, 2025).
European Union countries are negotiating proposals to give industries a more flexible path to meeting climate goals, a draft EU document showed, as the bloc attempts to win support from governments for a new 2040 emissions-cutting target. Reuters (October 26, 2025).
New York state judge orders state to produce long-delayed Climate Act regulations by state judge. Times Union (October 24, 2025).
Wind and Solar
Ming Yang Smart Energy Group announced plans to build the world’s largest floating wind turbine, as Chinese firms seek a larger share of the global market. The firm is working on a 50-megawatt, two-headed turbine, with mass production scheduled for next year, and aims to offer a cost of less than 10,000 yuan per kilowatt. Bloomberg (October 21, 2025).
EVs
The US risks falling further behind China in the global electric car race after the Trump administration’s championing of the petrol engine led to a steep drop in EV investments, industry executives and experts have warned. FT (October 26, 2025).
Coal
Global coal use hit a record high in 2024 despite efforts to switch to clean energy. The share of coal in electricity generation dropped as renewable energy surged ahead. But the general increase in power demand meant that more coal was used overall, according to the annual State of Climate Action report. Guardian (UK) (October 22, 2025). World Resources Institute (October 22, 2025).
Critical Minerals
US officials expect China to delay introducing export controls on rare earths, after two days of talks in Malaysia raised hopes that Donald Trump and Xi Jinping would agree to extend a trade truce at their high-stakes summit this week. FT (October 26, 2025)
The United States signed a flurry of deals on trade and critical minerals with four Southeast Asian partners on Sunday, looking to address trade imbalances and diversify supply chains amid tighter export curbs on rare earths by China. Reuters (October 26, 2025).
Interesting Reads