Facts on California Production

California oil and gas is produced under the most stringent public health, safety, labor, and environmental standards in the world. Despite the continued need for oil and gas to fuel transportation and provide electric grid reliability, the state has moved aggressively to shut down in-state production.

Oil Production

Local Oil & Gas Supports Jobs

Thousands of good-paying jobs will be lost if California continues with its drastic energy policies that are rapidly shutting down our current energy system.

California's local oil production supports tens of thousands of jobs throughout the state, mostly in the Central Valley. [1]

CA Oil & Gas Supports Local Services

California oil and gas production provides our state with more than a billion dollars in tax revenue each year to fund schools, social services, and public safety.

54 cents of every dollar from California’s oil and gas property taxes go to public schools.[2]

Oil Production

Declining Oil Production Does Not Decrease California’s Consumption

Over the past six years, California crude oil production has fallen by 40%. Permits for new drilling are down 97%. [3] But, decreasing California’s local production does not decrease our consumption; it just changes where the oil we use comes from.

*

Source: EIA, California Field Production of Crude Oil
*Average through October

California still relies on oil and gas for transportation, commerce and the stability of our electric grid, yet drastic CA energy policies are shutting down in-state production while we still rely on it.

California’s Major Oil & Gas Production Regions

About one-quarter of the oil and gas Californians use is produced in-state, the remaining three-quarters is primarily imported from foreign sources.

All oil and gas produced in California is used in California.[4]

California’s Oil & Gas is Strictly Regulated

California oil and gas production meets the strictest environmental regulations in the world and is overseen by over 25 federal, state and local agencies.

Sources:

  1. Economic Impacts of Oil Production Tied to Well Stimulation Treatments in California, January 2021, Capitol Matrix Consulting. Updated to reflect drop in O&G industry employment between 2019 and 2023.
  2. Methodology and assumptions: Economic and Revenue Impacts of a Statewide Oil Production Ban in California, December 2018, Capitol Matrix Source: CA Board of Equalization 2020-2021 Annual Report
  3. U.S. Energy Information Administration data show California crude oil production during the first 10 months of 2019 averaged 431,900 barrels per day; during the first 10 months of 2025, the average had dropped to 259,400 barrels per day, a 39.9% decline. As of December 22, 2025, California Department of Conservation WellSTAR Data Dashboard shows Newsom’s government issued just 85 new drilling permits in 2024 – a 97% decline from the 2,674 issued in 2019.
  4. California Energy Commission: Annual Oil Supply Sources to California Refineries and California Geologic Energy Management Division (CalGEM): Wellstar Data Dashboard