California lawmakers have passed a new law fast-tracking the approval of oil wells in a last-minute attempt to stop oil and gas companies from fleeing the state. The legislation allows Kern County to approve up to 2,000 new oil wells each year for the next decade, overriding previous restrictions imposed by state courts. The move comes after years of aggressive climate regulations that have driven energy producers out of California and pushed gas prices higher.
Governor Gavin Newsom signed the measure after a state appeals court blocked Kern County’s permitting process in 2022, citing environmental concerns. The new law circumvents that ruling by restoring local permitting authority and shielding it from state-level environmental challenges. Supporters of the bill argue it is necessary to preserve jobs and stabilize California’s energy supply, which has been strained by refinery closures and increased reliance on foreign oil.
Oil executives and industry experts say the measure is too little, too late. For over two decades, California’s oil and gas sector has been subjected to increasingly burdensome regulations, high taxes, and legal uncertainty. These policies have led companies to scale back operations or relocate to more business-friendly states like Texas and North Dakota.
The economic consequences of this exodus have been significant. California now has fewer operational refineries, resulting in reduced fuel capacity and gasoline prices that consistently rank among the highest in the nation. Critics argue the state’s political leadership is only reversing course because the consequences of its anti-fossil fuel agenda have become politically and economically unsustainable.
