Last week, CIPA members gathered in Sacramento for our annual advocacy day in the State Capitol. This year, CIPA emphasized the importance of both oil workers and royalty owners, while also correcting some of the myths perpetuated by eco-extremist groups.
Both the California Oil Workers Network (CROWN) and Cal Royalty Network joined oil producers and service and supply companies in the capitol to discuss energy policy and the importance of increasing oil production in California.
CIPA held two morning sessions with a bipartisan group of lawmakers and staff. CIPA CEO Rock Zierman led both sessions of lawmakers through a presentation about the importance of California’s independent oil producers. Twelve lawmakers joined those sessions plus numerous staff.
During the afternoon CIPA deployed four advocacy teams with over twenty people into the “swing space,” which is the temporary building where lawmakers’ offices are located. The teams had productive meetings with nearly two dozen legislators’ offices.
The myths the advocacy teams focused on are as follows:
Myth: California is running out of oil.
Fact: California is one of the largest oil producers in the U.S., with significant untapped reserves. Approval of thousands of unreviewed permits at CalGEM would boost production, meet demand, and reduce reliance on foreign oil imports.
Myth: Reductions in California-produced oil are due to natural decline and old fields.
Fact: A driving factor for reduced production in recent years is regulatory challenges. Thousands of unprocessed drilling permits delay new production and hinder domestic oil supply.
Myth: California is moving away from using fossil fuels.
Fact: California’s oil consumption has risen despite substantial investments in renewable energy. Oil is essential for fuel and as a key ingredient in over 6,000 everyday products, including medical supplies, plastics, cosmetics, and clothing.
Myth: Renewable energy can easily replace fossil fuels in California.
Fact: Renewable energy is growing in California but cannot fully replace oil. The state relies on a diverse energy mix, and oil still plays a critical role in transportation, agriculture, and other essential industries. CARB predicts that even if the state achieves net-zero emissions and 100% renewable energy and electric cars, the state will still need 400,000 barrels of daily oil for the 6,000 petroleum-based products we consume.
Myth: California doesn’t need to produce oil because it can rely on imports, and reducing in-state oil production won’t affect consumers.
Fact: California imports over 75% of its oil. However, refineries do not have the capacity at their port facilities to offload 100% of the crude oil they need from foreign tankers. If there is no in-state oil production, there will be gasoline shortages and lines at fueling stations.
Myth: California’s oil is dirtier and more harmful to the environment than oil from other regions.
Fact: California’s oil production is among the cleanest globally due to strict environmental regulations. In total, over 25 agencies regulate California’s oil operations with high environmental standards. Only California operators produced CA-Climate Compliant oil that is subject to the state’s greenhouse gas emissions cap and trade program.
Myth: Living near oil wells poses serious health risks.
Fact: Scientific studies show that living near oil wells, particularly in California, does not pose significant health risks. Local governments to this day continue to site developments within 3,200 feet of oil wells after extensive environmental impact reports demonstrate no potential harm. Of the 69 studies cited to justify the 3,200-foot setback, 45 come from other states, many of which focus on practices like hydraulic fracturing (fracking) which has never been widely used in California and is now banned by administrative decree. Furthermore, 19 of the studies are not even related to oil and gas production at all.
As CIPA wades into the dangerous waters of another legislative session, the advocacy efforts will continue full steam ahead.
For more information, contact Sean Wallentine.