Gov. Gavin Newsom’s administration Tuesday announced broad changes in the regulation of oil production, amping up health and safety rules and placing a moratorium on high-pressure steam injections—a common oilfield practice that can be dangerous to workers and foul water sources.
The moves are part of an overhaul of the Division of Oil, Gas and Geothermal Resources in what is the sixth-largest oil-producing state. As part of that, the division will get a new name, the Geologic Energy Management Division, or CalGEM.
The announcement’s language was striking, aligning the management of fossil fuels in the state with larger carbon-reduction goals, and presaging the gradual ramping down of the industry in California.
Newsom stopped short of banning hydraulic fracturing but did add oversight:
- Lawrence Livermore National Laboratory experts will review all pending fracking permits.
- The Department of Finance will audit the fracking process.
Fracking is not common in California, unlike steam injection, which is used extensively in older wells, particularly in Kern County.
Some environmentalists praised the move, and representatives of California’s oil region protested.
- Senate Republican Leader Shannon Grove, who represents Kern County, said the announcement “simply means the Golden State will rely on more of our oil supply shipped in from foreign countries whose environmental policies and humanitarian treatment are far below California’s standards.”
