Climate protest in front of the offices of the Western States Petroleum Association earlier this year. Photo by Dan Bacher.
Los Angeles, CA—In a historic first, California oil regulators approved zero new drilling permits in the first quarter of 2024, effectively halting new drilling permit approvals at 5,947 since Governor Newsom came to office in 2019, according to Consumer Watchdog and FracTracker Alliance in a press statement.
Newsom's regulators have issued a total of 15,940 well permits of all types since he took office in 2019.
“At the same time, permits to redrill oil and gas wells plummeted 89% to 99 permits in the first quarter over the same quarter last year,” according to FracTracker Alliance analysis of permit data from the California Geologic Energy Management Division (CalGEM) that approves drilling permits. Permits to plug wells rose 76% to 1, 299. See Table 1.
Table 1.
FracTracker analysis of CalGEM permit data
“CalGEM is diligently requiring environmental reviews under CEQA and assessing the potential impacts of the permits that they are issuing,” said Kyle Ferrar, Western Program Director for FracTracker Alliance. “The reduction in approved permits is a strong indication that CalGEM is taking the risks associated with drilling and drilling activity more seriously when considering their impacts on communities.”
Table 2.
California is home to 101,000 actively producing, idle, and newly permitted wells that have not yet become operational, according to FracTracker Alliance. Out of that number, 26,000 are located within the 3,200-foot health protective zone where millions of people live.
Wells within the setback zone produce an average of only two barrels of oil per day, adding almost no economic benefit. Drillers prefer to keep them running rather than pay the cost of plugging them.
“Scientific evidence shows a direct link between drilling, pre-term births, respiratory illnesses and cancer among people who live in close proximity to oil drilling,” said Liza Tucker, consumer advocate with Consumer Watchdog. “It’s also not profitable for oil companies to drill for oil inside the health protective zone. So, it makes no sense to continue to poison people for the sake of pennies. These findings make the case for passage of new laws to protect vulnerable California communities by holding drillers accountable.”
Assembly Bill 3155 (Friedman) creates a new financial liability presumption for a respiratory ailment, a pre-natal defect, and a person’s cancer diagnosis if they lived for two years within 3,200 feet of an oil and gas production facility that failed to use the most effective pollution control technology. The bill passed out of the Assembly Judiciary Committee earlier this week and heads to a hearing before the Assembly Natural Resources Committee on Monday, April 22nd.
AB 2716 (Bryan), the Low-Producing Well Accountability Act, takes aim at wells eking out less than 15 barrels of oil per day in health protection zones by levying a $10,000 per day fine on each of these wells known as “stripper wells.”
“Stripper wells are at the end of their economically productive lives. Drillers keep them open because it costs less than spending $100,000 or more per well to plug them. Stripper wells inside health protection zones pollute, endangering the health of residents for little economic gain,” according to the groups. “83% of the active wells in the setback zone operate as stripper wells. AB 2716 passed out of the Assembly Natural Resources Committee and awaits action in the Appropriations Committee.”
To see the number of drilling permits approved in the first quarter of 2024 and locations, visit Consumer Watchdog and FracTrackerAlliance’s joint site: https://newsomwellwatch.com
Chevron and Western States Petroleum Association top 2023 California lobbying with $18.1 million
Why has Big Oil been able to get away with what it does in California for decades? It’s because of the inordinate influence of Big Oil on California politicians and regulators.
Big Oil spent more money on lobbying in California in 2023 than any other year on record besides 2017. Big Oil spent $25,445,606 on lobbying in California in 2023 and $25,445,606 in 2017, according to the research team at Sunstone Strategies in their “Crude Truth” newsletter.
The group analyzed the California lobbying filings of every registered oil company in California, in putting 2023 trends into the context of industry lobbying for the past 20 years dating back to 2004. While in an earlier report on oil spending I used the raw data on fossil fuel spending from the filings on the California Secretary of State’s website, the newsletter used a slightly different methodology.
“Topping the lobbying spending charts in 2023 was Chevron, the second biggest oil producer in the state and the leading crude oil refiner. Trailing at number two: its trade association, the Western States Petroleum Association (WSPA),” wrote Sunstone Strategies.
“The two combined spent $18.1 million in 2023 — more than 71% of the industry’s total $25.4 in expenditures for 2023. Aera Energy, California’s top oil producer and a former joint venture of Exxon Mobil and Shell, placed in a distant third for 2023 lobbying spending,” they said.
However, in the fourth quarter, “WSPA and Chevron exchanged the number one and number two spots as the top lobbying spenders. Their expenditures totaled $2.8 million, accounting for over 60% of Big Oil’s quarterly spending total. Trailing in third was ExxonMobil, spending over $243,000 in lobbying for the quarter.”
The report also revealed that the state’s five major refiners, including Valero, PBF Energy, Marathon Petroleum, and Phillips 66, spent over $2.5 million on 2023 lobbying and influence activities.
Since 2009 I have documented how WSPA and the oil companies wield their power in 8 major ways: through (1) lobbying; (2) campaign spending; (3) serving on and putting shills on regulatory panels; (4) creating Astroturf groups; (5) working in collaboration with media; (6) sponsoring awards ceremonies and dinners, including those for legislators and journalists; (7) contributing to non profit organizations; and (8) creating alliances with labor unions, mainly construction trades.
For more information, go to: www.dailykos.com/...
