California Oil Producers Welcome Regulatory Certainty After Years of Uncertainty

California's oil producers have been voicing their concerns about regulatory uncertainty for years. According to Brent Ilott, Vice President of Operations at California Resources Corp., this uncertainty can be a significant barrier to long-term investments in the industry.

'Regulatory uncertainty is not an abstract issue at all,' Ilott said during a recent luncheon event sponsored by the Kern County Hispanic Chamber of Commerce. 'It directly affects whether companies are willing to commit capital and resources to continue developing.'

Ilott's comments were echoed by Ray Thavarajah, General Manager of Operations at Chevron, who emphasized that high standards for regulations are not the issue. 'Having high standards is not the challenge for us,' Thavarajah said. 'In fact, most operators can plan around them.'

The problem lies in the uncertainty surrounding the permitting process, which has been exacerbated by California's ever-stricter regulations under Governor Gavin Newsom.

However, with the signing of Senate Bill 237 last year, Kern County government was granted environmental clearance to issue its own oil permits. This change has led to a significant rebound in drilling permits for Chevron and other oil producers in the area.

Chevron has received about 130 drilling permits this year and has drilled around 20 wells since August 1, according to Thavarajah.