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Featured, The Big Picture Mar 11, 2021

6 reasons why California needs oil and gas production

The Golden State consumes every barrel of oil and gas produced here – and imports way, way more. Read other quick facts about the industry that powers California

California is the world’s fifth largest economy. It requires a safe, affordable and reliable energy supply to power its economy and the daily lives of its nearly 40 million citizens.

California is the world’s fifth largest economy. It requires a safe, affordable and reliable energy supply to power its economy and the daily lives of its nearly 40 million citizens.

Source: Californians for Energy Independence

1. Californians use oil and natural gas every day as part of our daily lives.

2. Oil and natural gas power our economy.

  • $1.5 billion in state and local tax revenue to fund vital community services – education, health and public safety.
  • 50,000 high-paying jobs for working families from diverse backgrounds–31,000 in the Central Valley.
  • A safe, affordable and reliable energy supply that fuels cars, heats homes, powers businesses, grows food and produces everyday products.

Regionally, about three-quarters of in-state oil and gas production occurs in the Central Valley where the unemployment rate is already 2.1 percentage points higher than the rest of the state.

3. California oil and gas is produced under some of the most stringent regulations in the world.

Oil produced by foreign sources isn’t subject to the rigorous environmental review, greenhouse-gas mitigation and worker safety inspections present in California.

4. California needs local oil and natural gas production to ensure reliability and affordability for consumers.

CA O & G production areas - CEICalifornia consumes 1.8 million barrels of oil a day to meet its energy needs. About one-quarter of oil and gas is produced in-state. The rest is imported from domestic and foreign sources. California consumes every barrel of oil and gas produced in the state.

  • Due to a lack of crude oil pipeline infrastructure, California is disconnected from the other lower-48 states and therefore is unable to secure additional domestic crude oil sources to support its energy needs.
  • Increased reliance on foreign oil threatens reliability, sustainability and affordability for California’s diverse communities.

5. Oil and natural gas producers embrace an “all of the above” energy strategy.

That incorporates all forms of energy – fossil fuels and renewables such as wind, solar and hydroelectric power. The industry recognizes that renewable energy sources are a vital and important part of that energy mix.

  • California’s oil and natural gas producers are leading the world in innovative and renewable technologies. Oil and natural gas producers are investing in new technologies to lower the carbon intensity and environmental footprint of production. They are examining different ways to make oil and natural gas production carbon neutral.

6. Unnecessary policies – like a hydraulic fracturing ban, increased setbacks and an oil and gas severance tax – would cost California consumers more at the pump.

Such policies also would disproportionately impact the Central Valley, where the majority of the oil and gas industry resides and average wages are more than one-third less than the statewide average.

CEI is a coalition of local oil and gas producers and community members. They support safe and responsible instate local oil and natural gas production that protects public health, safety and the environment. The coalition opposes policies such as oil taxes and energy bans that would hinder production and increase reliance on foreign oil. For more information, visit: www.EnergyIndependenceCA.com.

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