News Articles Highlight CIPA’s Active Advocacy

Over the past week, CIPA has been fielding questions from Politico, the San Francisco Chronicle, the Bakersfield Californian, and other media outlets regarding a series of developments related to oil production in California.

At the center of the news cycle are two main developments: a BLM action on federal permitting and a California Energy Commission letter concerning the state’s broken fuels market.

The U.S. Department of the Interior has moved to rescind a 2012 Memorandum of Understanding (MOU) between the Bureau of Land Management (BLM) and CalGEM that muddied BLM’s permitting authority over oil production on federal lands. Prior to the 2012 MOU, the state did not require a separate permitting process for drilling on federal land. This shift signals BLM’s desire to retain exclusive authority over permitting on federal land.

The numbers speak for themselves. In 2023, CalGEM approved just 21 new wells, representing a 99% decrease over the previous 7 years. Meanwhile, more than 100 BLM-approved permits are stalled indefinitely at the state level. As U.S. Representative Vince Fong put it, the current process is “a dereliction of duty” that undermines economic stability and energy independence.

Also gaining attention: a surprising turn in Sacramento. California Energy Commission Vice Chair Siva Gunda issued a formal recommendation to Governor Newsom suggesting that Kern County’s permitting framework be exempted from CEQA litigation. Gunda’s rationale: stabilizing the state’s fuel supply and preventing future refinery closures. His letter acknowledges the growing threat posed by California’s dependence on foreign oil and the real-world impact of delayed domestic production: rising gas prices, shrinking tax bases, and lost jobs.

This marks a notable shift in tone and validates what our industry has been warning for years.

As CIPA CEO Rock Zierman stated to reporters: “We agree with the Energy Commission on one major point: If California is serious about stabilizing gas prices, it must increase local crude production and stop the rise of expensive foreign imports. Kern County taking control of local permitting decisions would be a step in the right direction.”