Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Agencies
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
Search
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News Releases view all

    • News in Focus
        • Browse News Releases

        • All News Releases
        • All Public Company
        • English-only
        • News Releases Overview

        • Multimedia Gallery

        • All Multimedia
        • All Photos
        • All Videos
        • Multimedia Gallery Overview

        • Trending Topics

        • All Trending Topics
    • Business & Money
        • Auto & Transportation

        • Aerospace, Defense
        • Air Freight
        • Airlines & Aviation
        • Automotive
        • Maritime & Shipbuilding
        • Railroads and Intermodal Transportation
        • Supply Chain/Logistics
        • Transportation, Trucking & Railroad
        • Travel
        • Trucking and Road Transportation
        • Auto & Transportation Overview

        • View All Auto & Transportation

        • Business Technology

        • Blockchain
        • Broadcast Tech
        • Computer & Electronics
        • Computer Hardware
        • Computer Software
        • Data Analytics
        • Electronic Commerce
        • Electronic Components
        • Electronic Design Automation
        • Financial Technology
        • High Tech Security
        • Internet Technology
        • Nanotechnology
        • Networks
        • Peripherals
        • Semiconductors
        • Business Technology Overview

        • View All Business Technology

        • Entertain­ment & Media

        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertainment & Media Overview

        • View All Entertain­ment & Media

        • Financial Services & Investing

        • Accounting News & Issues
        • Acquisitions, Mergers and Takeovers
        • Banking & Financial Services
        • Bankruptcy
        • Bond & Stock Ratings
        • Conference Call Announcements
        • Contracts
        • Cryptocurrency
        • Dividends
        • Earnings
        • Earnings Forecasts & Projections
        • Financing Agreements
        • Insurance
        • Investments Opinions
        • Joint Ventures
        • Mutual Funds
        • Private Placement
        • Real Estate
        • Restructuring & Recapitalization
        • Sales Reports
        • Shareholder Activism
        • Shareholder Meetings
        • Stock Offering
        • Stock Split
        • Venture Capital
        • Financial Services & Investing Overview

        • View All Financial Services & Investing

        • General Business

        • Awards
        • Commercial Real Estate
        • Corporate Expansion
        • Earnings
        • Environmental, Social and Governance (ESG)
        • Human Resource & Workforce Management
        • Licensing
        • New Products & Services
        • Obituaries
        • Outsourcing Businesses
        • Overseas Real Estate (non-US)
        • Personnel Announcements
        • Real Estate Transactions
        • Residential Real Estate
        • Small Business Services
        • Socially Responsible Investing
        • Surveys, Polls and Research
        • Trade Show News
        • General Business Overview

        • View All General Business

    • Science & Tech
        • Consumer Technology

        • Artificial Intelligence
        • Blockchain
        • Cloud Computing/Internet of Things
        • Computer Electronics
        • Computer Hardware
        • Computer Software
        • Consumer Electronics
        • Cryptocurrency
        • Data Analytics
        • Electronic Commerce
        • Electronic Gaming
        • Financial Technology
        • Mobile Entertainment
        • Multimedia & Internet
        • Peripherals
        • Social Media
        • STEM (Science, Tech, Engineering, Math)
        • Supply Chain/Logistics
        • Wireless Communications
        • Consumer Technology Overview

        • View All Consumer Technology

        • Energy & Natural Resources

        • Alternative Energies
        • Chemical
        • Electrical Utilities
        • Gas
        • General Manufacturing
        • Mining
        • Mining & Metals
        • Oil & Energy
        • Oil and Gas Discoveries
        • Utilities
        • Water Utilities
        • Energy & Natural Resources Overview

        • View All Energy & Natural Resources

        • Environ­ment

        • Conservation & Recycling
        • Environmental Issues
        • Environmental Policy
        • Environmental Products & Services
        • Green Technology
        • Natural Disasters
        • Environment Overview

        • View All Environ­ment

        • Heavy Industry & Manufacturing

        • Aerospace & Defense
        • Agriculture
        • Chemical
        • Construction & Building
        • General Manufacturing
        • HVAC (Heating, Ventilation and Air-Conditioning)
        • Machinery
        • Machine Tools, Metalworking and Metallurgy
        • Mining
        • Mining & Metals
        • Paper, Forest Products & Containers
        • Precious Metals
        • Textiles
        • Tobacco
        • Heavy Industry & Manufacturing Overview

        • View All Heavy Industry & Manufacturing

        • Telecomm­unications

        • Carriers and Services
        • Mobile Entertainment
        • Networks
        • Peripherals
        • Telecommunications Equipment
        • Telecommunications Industry
        • VoIP (Voice over Internet Protocol)
        • Wireless Communications
        • Telecommunications Overview

        • View All Telecomm­unications

    • Lifestyle & Health
        • Consumer Products & Retail

        • Animals & Pets
        • Beers, Wines and Spirits
        • Beverages
        • Bridal Services
        • Cannabis
        • Cosmetics and Personal Care
        • Fashion
        • Food & Beverages
        • Furniture and Furnishings
        • Home Improvement
        • Household, Consumer & Cosmetics
        • Household Products
        • Jewelry
        • Non-Alcoholic Beverages
        • Office Products
        • Organic Food
        • Product Recalls
        • Restaurants
        • Retail
        • Supermarkets
        • Toys
        • Consumer Products & Retail Overview

        • View All Consumer Products & Retail

        • Entertain­ment & Media

        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertainment & Media Overview

        • View All Entertain­ment & Media

        • Health

        • Biometrics
        • Biotechnology
        • Clinical Trials & Medical Discoveries
        • Dentistry
        • FDA Approval
        • Fitness/Wellness
        • Health Care & Hospitals
        • Health Insurance
        • Infection Control
        • International Medical Approval
        • Medical Equipment
        • Medical Pharmaceuticals
        • Mental Health
        • Pharmaceuticals
        • Supplementary Medicine
        • Health Overview

        • View All Health

        • Sports

        • General Sports
        • Outdoors, Camping & Hiking
        • Sporting Events
        • Sports Equipment & Accessories
        • Sports Overview

        • View All Sports

        • Travel

        • Amusement Parks and Tourist Attractions
        • Gambling & Casinos
        • Hotels and Resorts
        • Leisure & Tourism
        • Outdoors, Camping & Hiking
        • Passenger Aviation
        • Travel Industry
        • Travel Overview

        • View All Travel

    • Policy & Public Interest
        • Policy & Public Interest

        • Advocacy Group Opinion
        • Animal Welfare
        • Congressional & Presidential Campaigns
        • Corporate Social Responsibility
        • Domestic Policy
        • Economic News, Trends, Analysis
        • Education
        • Environmental
        • European Government
        • FDA Approval
        • Federal and State Legislation
        • Federal Executive Branch & Agency
        • Foreign Policy & International Affairs
        • Homeland Security
        • Labor & Union
        • Legal Issues
        • Natural Disasters
        • Not For Profit
        • Patent Law
        • Public Safety
        • Trade Policy
        • U.S. State Policy
        • Policy & Public Interest Overview

        • View All Policy & Public Interest

    • People & Culture
        • People & Culture

        • Aboriginal, First Nations & Native American
        • African American
        • Asian American
        • Children
        • Diversity, Equity & Inclusion
        • Hispanic
        • Lesbian, Gay & Bisexual
        • Men's Interest
        • People with Disabilities
        • Religion
        • Senior Citizens
        • Veterans
        • Women
        • People & Culture Overview

        • View All People & Culture

    • Explore Our Platform
    • Plan Campaigns
    • Create with AI
    • Distribute Press Releases
    • Report Results
    • Amplify Content
    • All Products
    • General Inquiries
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices
    • Hamburger menu
    • PR Newswire: news distribution, targeting and monitoring
    • Send a Release
      • ALL CONTACT INFO
      • Contact Us

        888-776-0942
        from 8 AM - 10 PM ET

    • Searching for your content...

      No results found. Please change your search terms and try again.

      News Releases

      view all
      Close menu
    • News
    • Products
    • Contact
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      • 3 News in Focus
      • 5 Business & Money
      • 5 Science & Tech
      • 5 Lifestyle & Health
      • 1 Policy & Public Interest
      • 1 People & Culture
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      • Explore Our Platform
      • Plan Campaigns
      • Create with AI
      • Distribute Press Releases
      • Report Results
      • Amplify Content
      • All Products
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      • General Inquiries
      • Editorial Bureaus
      • Partnerships
      • Media Inquiries
      • Worldwide Offices
      • Send a Release
      • Client Login
      • Resources
      • Blog
      • Journalists
      • RSS
      Close submenu (News in Focus) News in Focus
      • Browse News Releases
      • Multimedia Gallery
      • Trending Topics
      Close submenu (Business & Money) Business & Money
      • Auto & Transportation
      • Business Technology
      • Entertain­ment & Media
      • Financial Services & Investing
      • General Business
      Close submenu (Science & Tech) Science & Tech
      • Consumer Technology
      • Energy & Natural Resources
      • Environ­ment
      • Heavy Industry & Manufacturing
      • Telecomm­unications
      Close submenu (Lifestyle & Health) Lifestyle & Health
      • Consumer Products & Retail
      • Entertain­ment & Media
      • Health
      • Sports
      • Travel
      Close submenu (Policy & Public Interest) Policy & Public Interest
      • Policy & Public Interest
      Close submenu (People & Culture) People & Culture
      • People & Culture

      California Oil Regulators Continue Issuing Permits In Q2 To Rework Leaky, Unproductive Wells; Should Order Plugging Instead, Advocates Say

      Consumer Watchdog Logo (PRNewsfoto/Consumer Watchdog)

      News provided by

      Consumer Watchdog

      Jul 13, 2023, 14:55 ET

      Share this article

      Share this article


      LOS ANGELES, July 13, 2023 /PRNewswire/ -- The total number of oil drilling permits issued blew past 15,000 since Governor Newsom took office in 2019, while nearly all permits issued in the first six months of 2023 were to fix unproductive wells, not to drill new ones, Consumer Watchdog and FracTracker Alliance said today. The groups said that the repair, deepening or redrilling of existing wells that produce up to 15 barrels a day–called "stripper" wells– makes no difference to the state's overall oil production, so the state should order their plugging instead.

      In the second quarter, 92% of the wells that got rework permits produced less than 15 barrels daily, according to CalGEM data analyzed by FracTracker Alliance. Nearly one third of all rework permits granted were for wells within six tenths of a mile (3,200 feet) of communities—the distance that the state set in oil industry-blocked legislation as a public health protection zone. 

      "The latest permit numbers show approvals to drill new wells have cratered, while permit approvals to rework old leaky wells continue to rise," said Consumer Advocate Liza Tucker. "The state is simply helping the oil industry cut costs by issuing permits to tinker with unproductive wells rather than making them plug and remediate those wells that endanger the public and environment by emitting toxic compounds. The state should issue no more oil permits. Instead, oil companies should have to plug these wells."

      When drilling operators neglect their obligations to plug or even maintain well sites, leaks can develop very quickly, according to Kyle Ferrar, Western program coordinator for FracTracker Alliance. "In Bakersfield and Arvin, dozens of leaking wells have been discovered in the last year. Many of these wells would not be leaking if they had been plugged rather than sold to a stripper well company and reworked. Regulators let operators avoid paying to plug and remediate well sites, even though they produce barely any oil. The rework permits helped larger oil companies like Chevron unload these bad assets on smaller companies destined for bankruptcy." 

      Approvals for well rework permits began rising last September when Governor Newsom signed SB 1137. That law would have created California's first public safety zone of 3,200 feet between drilling operations and vulnerable communities. But an oil-industry funded referendum to overturn the law on the 2024 ballot suspended its enactment this January. One of the six new drilling permits was issued within the 3,200' public health protection zone, while all six were within one mile of a home, a distance associated with negative health impacts. Of the total 754 rework, sidetrack, and deepening permits issued, 32% were within the 3,200' public health protection zone.

      Permits to drill new wells of all kinds—from regular oil and gas production wells to wells using more dangerous extraction techniques—fell in the second quarter by a combined 93% over the same quarter last year, according to data from the California Geologic Energy Management Division (CalGEM) crunched by FracTracker Alliance. (See Table 1 below). During the second quarter of 2023, CalGEM approved 6 new drilling permits in California. Those permits included five steamflood wells by E&B Natural Resources Management Corporation in Kern County. While only six permits to drill new wells were issued in the second quarter, 754 permits to rework wells were granted, an increase of 25% over the same quarter of the previous year.

      Table 1. Summary of CalGEM well permitting during the second quarter of 2023. Counts are compared to the second quarter of 2022. 


      Permits by Well Types

      Permit Count Totals

      Oil and Gas Production

      EOR & Support

      O&G and EOR Totals

      Plugging

      Year

      New Drilling

      Rework/
      Workover

      New Drilling

      Rework/
      Workover

      New Drilling

      Rework/
      Workover

      Total

      Abandon

      2022 – Q2

      42

      269

      43

      333

      85

      602

      687

      2,035

      2023 – Q2

      1

      339

      5

      415

      6

      754

      760

      1,509

      Percent
      Change:

      Down 98%

      Up 26%

      Down 88%

      Up 25%

      Down 93%

      Up 25%

      Up 11%

      Down 57%

      *Permits for Sidetracks and to Deepen wells are included in the Rework counts

      Data courtesy of CalGEM crunched by FracTracker Alliance

      California currently has about 102,000 total unplugged oil and gas wells. Out of those, 40% percent are idle, meaning not worth it to the oil industry to operate to produce oil. Nearly half of the state's idle wells have stood idle for more than 15 years, according to the think tank CarbonTracker. Oil producers are allowed to idle wells indefinitely for a small fee paid to the state, instead of plugging them.  But these wells can leak toxic and greenhouse gasses. The top 20 oil companies that received the highest counts of rework permits this year operate over 75% of the currently idle wells in California, according to CalGEM data provided to FracTracker. (See Table 2). 

      Table 2. Idle well counts for California oil and gas operators that received the most rework permits in the second quarter of 2023.

      Rank

      Operator

      2nd Q Rework Permit
      Count 

      Idle Well Count

      1

      Aera Energy LLC

      285

      8,989

      2

      Bridgeland Resources, LLC

      255

      347

      3

      Berry Petroleum Company, LLC

      142

      2,478

      4

      Sentinel Peak Resources California LLC

      115

      2,070

      5

      California Resources Production Corporation

      111

      3,408

      6

      Chevron U.S.A. Inc.

      103

      9,081

      7

      California Resources Elk Hills, LLC

      55

      2,821

      8

      Crimson Resource Management Corp.

      45

      474

      9

      Macpherson Oil Company

      41

      138

      10

      Holmes Western Oil Corporation

      33

      261

      11

      Carbon California Operating Company, LLC

      30

      122

      12

      *Pacific Gas and Electric Company 

      18

      13

      13

      CalNRG Operating, LLC

      16

      994

      14

      *Southern California Gas Company

      16

      72

      15

      Bridge Energy LLC

      11

      174

      16

      Signal Hill Petroleum, Inc.

      11

      245

      17

      Kern River Holdings II, LLC

      10

      26

      18

      Shadow Wolf Energy, LLC

      9

      168

      19

      Cat Canyon Resources LLC

      8

      291

      20

      *Lodi Gas Storage, L.L.C.

      8

      0

      *Three companies on this list run natural gas storage wells, thus they are well operators but not producers of oil and natural gas.

      According to CalGEM, 92% of the wells that got rework permits in the second quarter produced less than 15 barrels daily. The state has no rules about how long oil producers can keep running such "stripper" wells that produce hardly any oil. "California oil and gas operators need to be paying to properly plug and remediate stripper and idle wells rather than conducting reworks," said Ferrar. "Additionally, 34% of the wells that received rework permits in the second quarter are idle, producing no oil at all. These wells should be plugged instead of reworked, as the data shows rework operations do not substantially increase production volumes for the state." 

      Consumer Watchdog and FracTracker Alliance are urging the Governor, lawmakers, and oil regulators to order plugging of both stripper and idle wells. But first, the amount of well bonding to ensure plugging and remediation as a condition of operating must be significantly boosted.

      "Bonding amounts oil producers must put up to work on wells are woefully low, and need to be drastically increased to cover the entire projected costs of future well plugging and site reclamation," said Ferrar. "When wells are sold, the state should require buyers to put up full bonding as a condition of the well ownership transfers."

      According to the think tank CarbonTracker, California producers are responsible for at least $13.2 billion in onshore decommissioning costs. In its base analysis, CarbonTracker had to exclude a large amount of infrastructure lacking cost data. The think tank compared figures to public estimates and extrapolated to a total of more than $21 billion for decommissioning costs. "Oil producers shutting down and leaving the state, or selling off wells to small operators, would love the public to be left holding the bag. The state shouldn't allow that," said Tucker.

      SOURCE Consumer Watchdog

      Modal title

      Also from this source

      Consumer Watchdog Reports: PG&E Says It Cannot Afford to Serve Customers. Legislature Must Demand Services Before Wall Street Payouts

      Consumer Watchdog Reports: PG&E Says It Cannot Afford to Serve Customers. Legislature Must Demand Services Before Wall Street Payouts

      PG&E is warning 25,000 customers they may have to wait up to six extra months for electricity, while delaying $2 billion in planned investments,...

      PG&E CEO Tells Investors Company Is Coordinating With Public Utilities Commission & Assembly On Bailout Blackmail Strategy To Get Special Session Wildfire Relief, Says Consumer Watchdog

      PG&E CEO Tells Investors Company Is Coordinating With Public Utilities Commission & Assembly On Bailout Blackmail Strategy To Get Special Session Wildfire Relief, Says Consumer Watchdog

      PG&E's Chief Executive Officer Patty Poppe told investors on an earnings call today that she expects that a Public Utilities Commission (PUC) report...

      More Releases From This Source

      Explore

      Oil & Energy

      Oil & Energy

      Utilities

      Utilities

      Advocacy Group Opinion

      Advocacy Group Opinion

      Environmental Issues

      Environmental Issues

      News Releases in Similar Topics

      Contact PR Newswire

      • Call PR Newswire at 888-776-0942
        from 8 AM - 9 PM ET
      • Chat with an Expert
      • General Inquiries
      • Editorial Bureaus
      • Partnerships
      • Media Inquiries
      • Worldwide Offices

      Products

      • Explore Our Platform
      • Plan Campaigns
      • Create with AI
      • Distribute Press Releases
      • Report Results
      • Amplify Content

      About

      • About PR Newswire
      • About Cision
      • Careers
      • Accessibility Statement
      • APAC
      • APAC - Simplified Chinese
      • APAC - Traditional Chinese
      • Brazil
      • Canada
      • Czech
      • Denmark
      • Finland
      • France
      • Germany
      • India
      • Indonesia
      • Israel
      • Italy
      • Japan
      • Korea
      • Mexico
      • Middle East
      • Middle East - Arabic
      • Netherlands
      • Norway
      • Poland
      • Portugal
      • Russia
      • Slovakia
      • Spain
      • Sweden
      • United Kingdom
      • Vietnam

      My Services

      • All New Releases
      • Platform Login
      • Data Privacy

      Do not sell or share my personal information:

      • Submit via [email protected] 
      • Call Privacy toll-free: 877-297-8921

      Contact PR Newswire

      Products

      About

      My Services
      • All News Releases
      • Platform Login
      • ProfNet
      Call PR Newswire at
      888-776-0942
      • Terms of Use
      • Privacy Policy
      • Information Security Policy
      • Site Map
      • RSS
      • Cookies
      Copyright © 2026 Cision US Inc.