California Wants to Simplify the Issuance of Oil Drilling Permits
California Governor Gavin Newsom has announced a legislative proposal aimed at simplifying the process for issuing licenses for new oil well drilling. However, environmentalists argue that the bill would strip authorities of essential oversight, according to Bloomberg.
The bill outlines a “plug-to-drill” approach through 2036: in order to drill one new well, operators would need to plug two old ones. Under certain conditions, drillers would no longer need approval from the California Department of Geologic Energy Management (CalGem).
This move represents another step by the governor to ease regulatory pressure on the state’s oil and gas industry after years of intensive oversight.
Newsom appears to be softening his stance on the oil sector, especially as refineries operated by Phillips 66 and Valero Energy Corp. are shutting down in California. Meanwhile, state lawmakers point to declining living standards for California’s 40 million residents.
In a memo accompanying the leaked draft of the bill, 12 environmental organizations argue that the legislation gives a carte blanche for unrestricted drilling throughout the state over the next decade.
In response, a representative of the governor stated that environmental groups are only sharing parts of the bill’s text. “We continue to work with the legislature on a policy that will stabilize California’s oil market while ensuring safe, reliable, and affordable motor fuel supplies,” the statement reads.
