By Eric Eisnhammer, Director of Public Affairs & Public Relations
The recent conflict in the Middle East and hostilities around the Strait of Hormuz impacting Persian Gulf oil exports has highlighted how unprepared California is to deal with global supply disruptions.
As Los Angeles Emmy winning newsman James Vaughn stated in a viral Facebook post:
“California is the only state in the US that has oil coming through Iran’s Strait of Hormuz. If California allowed drilling, it would be the second leading producer of oil in America, behind Texas.”
California’s failure to provide for its energy security has consequences that are not limited to California alone, and further Federal intervention now appears to be imminent.
Governors of neighboring states say supply chain disruptions in California are impacting their own fuel supplies. Furthermore, with instability overseas bringing national security to the forefront, policymakers in DC are taking note of how California’s anti-oil political program has undermined force readiness.
Now, an exclusive report in the California Globe says Washington is considering taking massive action to intervene and roll back the obstacles that have hobbled the state’s oil and gas industry, harmed consumers at the pump who suffer from the nation’s highest fuel costs, and compromised energy security both in California and nationwide.
Among seven Executive Orders the Globe says are under consideration, one is especially of interest to royalty owners:
EO #3: To remove and revoke state and local control and development restrictions on both offshore and onshore in-state crude oil and gas proven and potential reserves and existing crude oil production assets (such as platforms) and drilling restrictions to immediately increase oil production, by any means necessary, by declaring the oil reserves in the counties of Fresno, Kern, Kings, Los Angeles, Monterey, Orange, San Luis Obispo, Santa Barbara, and Ventura Counties national security assets and henceforth under the auspices and direction of the Department of Energy and other designated Federal agencies and exempt from all California state and local purview.
If implemented, such an order could dramatically change things for California oil and gas royalty owners. California has long been among America’s top oil producers and is ranked fifth in the country in proven reserves, according to Statista.
Is an oil boom once again on California’s horizon? If the reports are true, it’s possible. California’s 600,000 royalty owners come from all walks of life. Farmers and ranchers, retirees, students, non-profits, and schools are all among those we advocate for at NARO-CA. We urge policymakers to keep royalty owners front and center as partners and advocates for California’s energy independence.
We represent the backbone of California, and we’re proud to be part of an American oil and gas industry that continues to provide for our country’s security and power our future.