Newsom Oil Permits At Standstill, But New Administration Proposal Could Lead to Approval of 4,700 More Oil Wells Next Year, says consumer watchdog

LOS ANGELES, July 23, 2025 /PRNewswire/ -- No new drilling permits for oil and gas wells were approved in the second quarter of 2025, extending a promising trend in reduced fossil fuel development over the last two years under Governor Gavin Newsom's administration. However, Consumer Watchdog and FracTracker Alliance warn that this progress could be reversed if state leaders allow Kern County to fast-track thousands of new drilling permits under a controversial local ordinance. New proposed legislation could open the door to as many as 4,700 new drilling permits in its first year that would not be subject to environmental review, according to FracTracker's analysis.

Since taking office in January 2019, Governor Newsom's administration has approved about 18,515 oil and gas permits. While this figure is high, annual permit approvals have sharply declined during his tenure. In 2019, the state issued 2,366 new drilling permits. By comparison, just 73 were approved in all of 2024, and only 4 have been granted in the first half of 2025. This downward trajectory reflects a deliberate shift away from oil and gas expansion, but that momentum is now at risk.

In June, the Kern County Board of Supervisors unanimously approved a revised oil and gas ordinance that would permit roughly 2,700 new wells per year in unincorporated areas, based on a single EIR. Courts had previously struck down two similar attempts due to failures to evaluate key environmental risks, including air and water quality, noise, cancer risk, and farmland impacts. It is up to Newsom to decide whether to back CalGEM's authority to deny permits based on insufficient environmental review or to direct CalGEM to accept the fast-tracked permitting without the agency's environmental review.

"This ordinance would be a dangerous reversal of Governor Newsom's commitment to rein in the oil industry," said Liza Tucker, consumer advocate at Consumer Watchdog. "If Kern County is allowed to greenlight thousands of new oil wells annually, it would be a catastrophe for California's climate goals—and for Newsom's environmental legacy. This will haunt him."

Kyle Ferrar, Western Program Director at FracTracker Alliance, echoed those concerns. "California is emerging as a climate leader in the U.S., but we still have a long way to go to match the progress of countries like China and those in Europe that are aggressively investing in renewable energy. To stay on track, California must continue to scale back oil and gas extraction and invest more in renewable energy, energy storage, and energy efficiency."

Adding to the concern, the Governor's Office is drafting legislation that would codify the Kern ordinance. If passed, the bill could shield the ordinance from further legal challenges and sidestep CalGEM, the state's oil and gas regulatory agency, by weakening environmental oversight. The proposed legislation could open the door to as many as 4,700 new drilling permits in its first year, none of which would be subject to review under the California Environmental Quality Act (CEQA).

"The Governor's supposed reason for approving new wells in Kern County is to keep the pipelines to Northern California refineries operating," said Tucker. "But expanding drilling across the entire state goes far beyond that purpose. It's nothing more than a giveaway to oil companies that have already caused significant environmental damage. If passed, this legislation could set a dangerous precedent for the Central Coast and other oil-producing counties like Contra Costa, Fresno, and Kings."

Although no new oil drilling permits were approved in the second quarter, CalGEM did approve four permits for underground gas storage wells, each located within the 3,200-foot public health buffer zone established by SB 1137 to protect communities from the dangers of oil and gas operations. Additionally, seven permits were issued to rework existing wells within this buffer zone. One of these wells, in Inglewood, will be used for water flooding to extract more oil, while another in the Wilmington Oil Field will serve a similar purpose.

"It's clear that increased permitting will lead to more drilling near frontline communities," said Ferrar. "While CalGEM does not seem to consider gas storage and injection wells in the same category as production, these wells support nearby production and are not benign. They are long-term sources of environmental harm."

Consumer Watchdog and FracTracker Alliance are urging Governor Newsom to stay the course and protect the state's hard-won progress on climate and environmental justice. The groups are calling on the administration to reject any effort that would erode oversight, fast-track oil and gas development, or place communities at further environmental risk.

Table 1.

CalGEM Data Analyzed by FracTracker Alliance

SOURCE Consumer Watchdog