Today, Congressman Kevin McCarthy led a meeting with the California Republican Congressional Delegation – made up of Representatives Ken Calvert (CA-42), Mike Garcia (CA-25), Darrell Issa (CA-50), Young Kim (CA-39), Doug LaMalfa (CA-01), Tom McClintock (CA-04), Devin Nunes (CA-22), Jay Obernolte (CA-08), Michelle Steel (CA-48), and David Valadao (CA-21) – and the California Independent Petroleum Association (CIPA), to hear directly from small and independent oil and natural gas producers about how they have been burdened by the Biden and Newsom Administrations’ anti-oil and gas policies.
The California Republican Congressional Delegation released the following statement:
“At a time when it’s more important than ever for the U.S. to remain energy independent, we urge the Biden and Newsom Administrations to support common sense energy policies that will not destroy an entire industry, undoubtedly leaving millions of Californians hurt in the aftermath. California’s oil and gas sector not only supports over 360,000 jobs in our State, but also provides billions in revenue and fees to help fund the coffers of our State, counties, and cities. In addition, countless Californians benefit from the industry’s social programs that provide funds for local schools, recreation centers, and scholarships. Californians are already struggling due to a global pandemic, including with one of the worst state-managed vaccine distributions programs in the country, so to suggest anything but an all-of-the-above approach to meet our energy needs would just compound on an already extremely challenging time. We are fortunate to represent diverse constituencies in Congress, and we will continue to hold the Biden and Newsom Administrations accountable to the millions of Americans who will be hurt by the outrageous oil and gas policies being proposed on state and national levels.”
Statement from Rock Zierman, Chief Executive Office of the California Independent Petroleum Association: “Bad energy policies get their start in California and make their way to Washington D.C., so we appreciate the time California’s Republican Congressional Delegation took to understand the emerging issues facing independent oil and natural gas producers. As the manmade blackouts last summer in California taught us: our nation’s energy needs are too big to rely upon a single energy source. We need both new and traditional energy sources working together to power the needs of our nation.”
Statement from Steve Layton, California Independent Petroleum Association 2021 Chairman and President of E&B Natural Resources: “California historically ranked as a national leader in oil production but over-regulation caused the Golden State to fall from #3 to #7 within the last four years. While California production has declined, the state’s overall consumption has remained steady and the reliance on imports, mainly from Saudi Arabia, has skyrocketed. We hope our California Congressional Republican partners help us make the case to the new Administration that the men and women who proudly and responsibly produce American-made oil and natural gas are essential to helping our post-pandemic economy rebound and in protecting our nation’s energy security.”
Background on Biden and Newsom Natural Gas Policies:
Biden Anti-Oil and Gas Actions
- On January 20, 2021 President Biden issued a new Executive Order on the climate which resulted in the Interior Department issuing Secretarial Order 3395 that imposed a 60-day moratorium on new mining, oil, and gas leasing and permitting on federal lands and in federal waters.
- On January 26, 2021, McCarthy led a GOP letter to the President strongly opposing this action, highlighting its negative impact on jobs and energy independence, as well as how the industry is already struggling due to COVID.
- On January 26, 2021, McCarthy led a GOP letter to the President strongly opposing this action, highlighting its negative impact on jobs and energy independence, as well as how the industry is already struggling due to COVID.
- On January 27, 2021, Biden issued another Executive Order on the climate, which included a specific, indefinite ban (Section 208) on new oil and natural gas leases on federal onshore and offshore lands.
- This Executive Order also includes a provision directing that 30% of federal lands be “conserved” by 2030, potentially putting them under lock and key for recreation, responsible resource development, and hazardous fuels management.
- On February 9, 2021, McCarthy led another GOP letter to the President strongly opposing this open-ended ban on new leases on federal lands.
- This Executive Order also includes a provision directing that 30% of federal lands be “conserved” by 2030, potentially putting them under lock and key for recreation, responsible resource development, and hazardous fuels management.
Newsom Anti-Oil and Gas Actions
- On September 23, 2020, Governor Newsom issued an Executive Order that seeks to phase out internal combustion cars and trucks, repurpose traditional energy development facilities as he transitions California away from oil and natural gas, and proposes new regulations that would significantly restrict oil and natural gas production in the State.
- Governor Newsom has also banned cyclic steam stimulation and called on the State legislature to permanently ban hydraulic fracturing after slowing these permits, as well as new Underground Injection Control (UIC) permits, to a crawl, which stunts producers’ ability to meet California’s energy needs.
What Oil & Natural Gas Means to California’s Economy
- The oil and natural gas industry creates or supports 366,000 jobs in California generating more than $26 billion in income.
- This sector of the economy also generates more than $21 billion in total state and local tax revenue in California.
- Californians employed in the oil and natural gas industry on average have higher incomes than the median personal income in the United States.
- California imports nearly 60% of its oil needs from foreign sources.
