California looking at cutting O&G production

California looking at cutting O&G production


California is beginning a new, serious look at curbing oil and natural gas drilling and production in an effort to reduce greenhouse gas emissions.

The California state budget included the allocation of $1.5 million to fund a study to “identify strategies to decrease demand and supply of fossil fuels.” The bill was signed last week by Gov. Gavin Newsom.

The bill marks the first action taken by California to decrease oil and natural gas production. The study will be conducted by an interagency team led by the California Environmental Protection Agency (Cepa).

The team has been directed to “evaluate pathways to achieve a carbon-neutral economy by 2045, manage the decline of in-state production as the state’s fossil fuel demand decreases and assess potential impacts to disadvantaged and low-income communities and strategies to address those impacts,” Cepa said.

In 2017, California ranked fourth among U.S. states for oil production, with 174 million barrels. It was behind Texas, North Dakota and Alaska.

The state budget also earmarks $1.5 million to study strategies to reduce greenhouse gas emissions from vehicles.

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