Most of CA oil drilling permits in third quarter were for extreme extraction techniques

Los Angeles, CA -- Zero California permits to drill conventional oil and gas wells were approved in the third quarter of 2024, but 33 out of 34 permits were issued to drill wells using extreme enhanced oil recovery techniques (EOR) in the notorious Cymric Oilfield in Kern County, Consumer Watchdog and FracTracker Alliance reported on Oct. 30.

The 34 approvals by CalGEM, the state’s oil and gas regulator, represent a rise of 580% over the third quarter of 2023. (See Table 1.) Sentinel Peak Resources California received the 33 approvals, the groups said in a press statement.

Those approvals were among the 930 oil drilling permits approved in the first nine months of the year that include 69 new well permits and 861 oil well rework permits. 

Since Governor Newson came to office in January 2019, a total of 16,719 total oil and gas drilling permits of all types have been approved by state regulators.  

After a long battle by climate and environmental justice groups to ban fracking in California, the state this year finally ended permits to stimulate oil production using hydraulic fracturing to break up rock and reach oil underneath. “But oil regulators continue to permit wells that inject steam under pressure to heat tarlike oil for extraction from nearby production wells,” the groups wrote.

“These techniques are energy intensive and have a larger carbon footprint and we are experiencing multiple climate catastrophes currently,” said Kyle Ferrar, Western Program Director for FracTracker Alliance. “Instead of moving away from these climate change driving techniques, California is approving more of them when the rest of the country is drowning under water.”

“Drilling injection wells next to old wells in a Swiss cheese of overdeveloped fields can cause eruptions of oil rock and mud and spills that threaten the air, water, and oilfield workers,” pointed out Consumer Advocate Liza Tucker. “It’s time for regulators to stop approving permits for new injection wells using steam flooding and cyclic steaming. This should be banned on the way to stopping all permitting.”  

Tucker said the extreme extraction steam injection well permits were issued to Sentinel Peak Resources California LLC, in the Cymric field in one of several pockets where the Bureau of Land Management (BLM) holds the mineral rights. In this case both CalGEM and the BLM approved these new drilling permits, which were pushed though using an outdated 2021 BLM environmental impact report (EIR) that does not fully consider the environmental risks, according to environmental attorneys

“CalGEM is supposed to look at the review and decide independently whether the analysis meets state CEQA requirements, including any feasible mitigation measures. Instead, CalGEM continues to approve new permits that have received insufficient environmental review from the BLM, according to the ongoing litigation,” Tucker explained.

Tucker said the drilling of injection wells for steam injection and cyclic steaming is widely used in the Cymric oil field, about 35 miles West of Bakersfield, that has experienced numerous spills over the years. As of last June, spills in Chevron’s part of the field have gushed more than six million gallons of wastewater and crude through June of 2023, according to the Desert Sun.   

“One of the spills has continued for 21 years after it began in Kern County oilfield. The amount spilled is larger than the Exxon Valdez disaster, according to the Sun and ProPublica, which found that Chevron earned at least $11.6 million by capturing crude from that spill in just three years. According to ProPublica, producers can turn spills into moneymakers as there is nothing to stop them,” Tucker explained.

“In March, Chevron said it would pay $13 million to the Department of Conservation and Department of Fish and Wildlife for dozens of spills. Governor Newsom toured the first phase of a Chevron Cymric spill in 2019. Newsom banned the use of cyclic steaming and steam flooding at very high pressures in the wake of his visit.  But the over-drilling of the area, liquified formations underground, and close proximity of wells still increases the risks of oil spills at lower pressures,” said Ferrar. 

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  

Just follow the money

How does Big Oil continue to get its way in “green” California? Well, it all comes down to: “Just follow the money.”

Big Oil spends millions of dollars every quarter to lobby California officials

Big Oil continues to spend millions of dollars in lobbying California officials to thwart climate bills and other environmental legislation opposed by the oil industry, as well as leaning on state regulators to issue more oil drilling permits.

Big Oil spent a record $31.4 million in California lobbying efforts in the first 9 months of 2024 in an effort to fend off polluter accountability and anti-price gouging measures.

California’s 2024 third-quarter disclosures reveal that the oil and gas industry spent an unprecedented $16.1 million on lobbying and influence activities from July through September, according to a press statement from the Last Chance Alliance.

“This spending easily surpasses the previous annual record of $26.2 million set in 2017, with a full quarter of payments yet to be disclosed,” the group wrote. “With a full quarter left—this year’s oil industry spending has reached new heights.”

Over the seven quarters of the current legislative session of 2023-2024, Big Oil has already invested $56.8 million in lobbying efforts, far exceeding the previous record of $44 million set during the 2017-2018 session, the alliance stated.

The Western States Petroleum Association (WSPA), Chevron, and Aera Energy, now merged into California Resources Corporation, collectively spent $14.5 million. WSPA topped the lobbying spending spree with an amazing $10,121,571. Chevron came in second with $4,106,389, while Aera Energy came in third with $302,093.