Since January 2020, California oil producers have struggled with declining well production, primarily due to a hostile regulatory environment and a government vehemently opposed drilling new wells. In that timeframe, domestic oil production dropped nearly 40 percent.
Prompted by activists, California state politicians are driving the transition from domestically produced fossil fuels to foreign imports, but this shift comes at a significant cost. Through heavy taxation and stringent regulations, the state has given a backhanded "thank you" to the oil and gas producers who sustain California's economy.
Our oil and gas industries have placed California at the forefront of health, technology, and other advancements, yet they are undermined by policies that threaten their existence.
The governor’s office frequently reminds us that California is the sixth largest economy in the world. But our state doesn’t run on wind, solar, or hope. It runs on oil and natural gas. Despite the state's abundant renewable energy resources, fossil fuels still account for 70 percent of California’s energy consumption. This figure does not include the petroleum products used for fertilizer, roads, electric vehicles, and healthcare supplies.
What happens if California succeeds in reducing oil and gas production?
Without new wells, California's oil supply will continue to decline. Some oil and gas producers have already left, and the demand will have to be met with imported oil. It will be shipped across the ocean through our ports and highways. This transition to foreign imports has already begun.
California currently imports more than 75 percent of its oil, paying a significant premium. Because it relies so heavily on imported, foreign-sourced oil that doesn’t come with free shipping, Californians regularly pay the highest gas prices in the nation. The state legislature and governor seem determined to chase what little energy security remains out the door with a gavel.
This has created a situation where Californians pay the highest gas prices in the nation.
California residents are fed up with rising gas prices and the increasing cost of living. It's time to acknowledge the vital role of the oil and gas industry in our state's economy. Rather than continuing to push these industries out, we need policies that balance environmental goals with economic realities.
Sustainable progress requires a pragmatic approach that considers Californians' immediate needs and the long-term health of our economy. Only then can we ensure a stable and affordable energy future for all.
For more information, contact Sean Wallentine.