California Oil and Gas Industry Decline Leaves Workers and County Budgets Vulnerable
A new report from the UC Merced Community and Labor Center has shed light on California's oil and gas industry decline, highlighting its impact on employment, property taxes, and county budgets. The report, titled 'Fueling Transitions,' found that oil production in the state has steadily decreased over two decades and is projected to reach negligible levels by 2045, when California aims to achieve carbon neutrality.
The study also revealed that four counties - Kern, Contra Costa, Solano, and Los Angeles - account for the majority of California's oil and gas employment. In these counties, workers in this industry earn significantly more than their counterparts in other industries, with an average annual pay premium of $26,500. However, as the industry declines, these workers are projected to lose an average of $35 million per year in pay premiums.
The report also examined the impact on property tax revenues and county budgets. While oil and gas property taxes comprise a small minority of total property taxes in Kern (11%), Contra Costa (2%), Solano (1%), and Los Angeles (0.4%) counties, these revenues have decreased as the industry has declined.
The report's authors recommend that the State of California provide support for displaced oil and gas workers and create a stabilization fund to protect public budgets, services, and jobs. The study analyzed data from various sources, including California Oil, Gas, and Geothermal Annual Reports and county financial reports.