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Tag: oil company

  • Trump wants oil drilling off the coast of California. But does anyone else?

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    The Trump administration reportedly has plans to open the waters off California’s coast to new oil and gas drilling for the first time in four decades, drawing swift condemnation from Gov. Gavin Newsom, lawmakers and environmental groups who say it would be disastrous for the state’s environment, economy and clean energy targets.

    Whether energy companies would be interested in such leases is another question. Experts say the resources are limited and oil majors may not clamor for leases that could ensnare them in the Golden State’s stringent environmental policies.

    Trump has focused heavily on increasing fossil fuel production in the United States, yet some say offering the opportunity to drill in the Pacific is more likely a political move from an administration that has repeatedly targeted California’s green ambitions.

    Details of the administration’s plan are still emerging, but maps from the Bureau of Ocean Energy identify four West Coast planning areas, three off the coast of California and one off Oregon and Washington. The administration is planning to propose up to six offshore lease sales off the coast of California between 2027 and 2030, according to internal documents first reported by the Washington Post.

    Officials with the U.S. Interior Department declined to comment, citing the U.S. government shutdown. Last month, the administration also announced plans to open the entire 1.5 million-acre coastal plain of Alaska’s Arctic National Wildlife Refuge to oil and gas leasing, which Interior Secretary Doug Burgum said would create jobs and strengthen U.S. energy independence.

    California has about two dozen operating oil platforms in state and federal waters, some of which are visible from the shore in different parts of Southern California. But new leases have not been granted in federal waters since 1984, in part due to strong opposition stemming from a 1969 oil spill off the coast of Santa Barbara that spewed an estimated 100,000 barrels of crude oil into the water and helped jumpstart the modern environmental movement.

    The years that followed saw a string of actions to protect the Outer Continental Shelf from oil and gas development, including bipartisan actions from the state, Congress and presidents including George H.W. Bush and Barack Obama. In January, President Biden signed an executive order protecting more than 625 million acres of the U.S. ocean from offshore drilling, which Trump repealed on his first day back in office.

    Oil companies have expressed some interest in new offshore leases. The American Petroleum Institute and other leading oil and gas trade groups encouraged the Trump administration in a June letter to evaluate and consider all areas of the Outer Continental Shelf for oil and gas drilling, noting that “continuous exploration and drilling will be needed” to ensure long-term energy security and meet U.S. energy demands into 2050.

    But the opposition from California could be strong. The state has set ambitious climate goals, including reaching 100% carbon neutrality by 2045.

    “Nobody really wants offshore oil, except for maybe Texas and Louisiana,” said Clark Williams-Derry, an energy industry analyst with the Institute for Energy Economics and Financial Analysis. “In my mind, this is at least in part politically motivated rather than substantively motivated.”

    Trump — who received record donations from oil and gas companies during his 2024 presidential campaign — has moved to block clean energy projects in the state and repeal its authority to set strict tailpipe emissions standards, among other challenges.

    Williams-Derry noted that offshore oil drilling is a speculative and risk-laden venture for oil companies, and prospects are better in fracking basins in Texas and New Mexico.

    The U.S. Bureau of Ocean Energy Management’s most recent federal assessment of undiscovered oil and gas resources in the Outer Continental Shelf estimates there are about 9.8 billion barrels of untapped oil off the coast of California — the majority off Southern California — compared with about 29.6 billion barrels in the Gulf of Mexico.

    Offshore oil platforms often send oil ashore, requiring pipelines and other infrastructure. California isn’t likely to cooperate with that onshore work, and in fact has built up something of a “blue wall” of opposition to offshore drilling through local resolutions and legislative efforts, according to Richard Charter, senior fellow with the nonprofit Ocean Foundation.

    A network of state laws such as the longstanding California Coastal Sanctuary law, the California Coastal Act, the California Environmental Quality Act and a 2025 assembly bill would effectively prevent oil companies from using existing oil and gas infrastructure in state waters to export or bring ashore new production from federal offshore leases, Charter said. State waters are the first three miles offshore.

    “I think we have as many layers of protection as it is possible to get — certainly more than any other state,” he said, adding that “the limited petroleum potential is not worth the effort and the risk.”

    However, it’s possible that interested oil companies could bypass the state altogether by loading crude onto tankers and shipping it elsewhere, something the Sable Offshore Corp. is now considering for its controversial project to restart oil drilling off the coast of Santa Barbara.

    Energy companies have also been making use of floating oil processing centers that dramatically reduce the need for pipelines.

    Rumors of the Trump administration’s plans drew sharp criticism from state leaders, including Sen. Alex Padilla, who led an Oct. 30 letter signed by more than 100 lawmakers demanding the administration reverse course to open up the Outer Continental Shelf.

    “This is a matter of national consequence for coastal communities across the country, regardless of political affiliation,” the letter said. “It puts our economies, national security, and our most vulnerable ecosystems at severe risk.”

    The lawmakers noted that the U.S. already leads the world in oil and gas production, and the industry already holds more than 2,000 offshore leases covering more than 12 million acres of federal waters, but fewer than 500 of those leases are actively producing oil and gas.

    “There is no justification for opening vast swaths of our oceans to leasing when existing leases remain largely unused, while imposing mounting environmental and economic costs on coastal communities,” they wrote.

    At the same time, any expanded drilling would meet with weakened oil spill prevention and response programs at the the National Oceanic and Atmospheric Administration, which have lost about 30% of its staff to layoffs and buyouts and face a potential 50% budget cut.

    The Trump administration has caved to at least some political pressure on the issue: The administration largely backed off plans to open the Atlantic Ocean for drilling after reports drew the ire of Republican coastal state leaders.

    But advocacy groups say the administration is less likely to give favor to California, where Gov. Gavin Newsom — a 2028 presidential contender — has repeatedly sparred with Trump over energy and the environment. Newsom is currently at the United Nations climate conference in Brazil, which Trump opted not to attend.

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    Hayley Smith

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  • Nonprofit plans to transform a former oil drilling site in South L.A. into affordable housing

    Nonprofit plans to transform a former oil drilling site in South L.A. into affordable housing

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    After a years-long neighborhood battle against an oil drilling site in South Los Angeles, a local nonprofit has purchased the now-demolished facility and plans to transform it into a park, community center and affordable housing.

    The Los Angeles Neighborhood Land Trust recently bought the 1.86-acre dirt lot on Jefferson Boulevard for nearly $10 million from Sentinel Peak Resources. The nonprofit and its partners are now seeking grants and other funding sources to pay for planning, remediation and project execution.

    “It’s what we hoped for,” Richard Parks, president of the South L.A. nonprofit Redeemer Community Partnership, said of the purchase. “It’s just so amazing to see our community receiving beauty for ashes. It’s overwhelming and feels like such a blessing.”

    The sale marks a new chapter in a persistent and community-led fight against the oil drilling site, which residents argued for years was noisy and spewed foul odors. It also comes at a time of growing concerns about the risks and inequities of urban drilling in neighborhoods. L.A. City Councilmember Katy Yaroslavsky recently introduced legislation aiming to address public health and environmental threats posed by a drill site near the Pico-Robertson area.

    Oil wells are known to emit carcinogens such as benzene and formaldehyde, and living near wells is associated with health problems such as respiratory issues and preterm births, studies have found.

    Community leaders hope the purchase serves as a model for how to repurpose shuttered fossil fuel facilities as the city phases out existing oil and gas wells, a historic move approved last year by the L.A. City Council that also bans new oil and gas extraction.

    Tori Kjer, executive director of the L.A. Neighborhood Land Trust, believes it is critical that these sites are transformed into uses that benefit communities historically affected by oil drilling. “It’s an environmental justice issue,” she said. It’s also imperative that planned site uses won’t displace residents through gentrification, she added.

    “It’s so important, this idea of joint development, where you’re layering in affordable housing, community space and a park together,” she said. “For us, it’s really the ideal approach to equitable development in communities. … This is a rare opportunity, and an important opportunity, as we think bigger scale about future types of development in Los Angeles.”

    Kjer estimates they will need three to six months and about $600,000 for remediation planning, and an additional year and $2 million to $3 million for cleanup. They are seeking state grants. The park’s budget will be about $6 million.

    Lori R. Gay, president and chief executive of the Neighborhood Housing Services of Los Angeles County, said their target is to build 70 affordable housing units. They are also considering creating a community land trust to preserve the neighborhood and produce new homeowners.

    After a years-long neighborhood battle against an oil drilling site in South L.A., a local nonprofit has purchased the now-demolished facility and plans to transform it into a park, community center and affordable housing.

    (Francine Orr / Los Angeles Times)

    “The Jefferson site is in a homeownership community, so we wanted to maintain both the integrity and culture of the community with affordable homeownership,” she said. “It is too easy to just build affordable housing focused on tenancy and not provide the opportunity to build generational wealth. This development provides the opportunity to build wealth for generations to come.”

    But the grand visions for the property won’t come without hurdles.

    Finding land trust lenders will be challenging, Gay said, as will plan reviews and significant market changes that could hinder the speed of development. Having multiple partners involved in a large project could also further complicate it, Kjer added. Planning, remediation and raising and finding finances will also be tricky.

    “The housing kind of funds itself, and we have some really good prospects for funding the park through different grants, but the community center I think will be a very big challenge,” Parks said. “How do we raise the several million dollars to be able to build that out for the community?”

    First approved nearly 60 years ago, the South L.A. oil site on West Jefferson Boulevard and Van Buren Place was situated closer to homes than any other city drilling facility, according to the nonprofit Community Health Councils.

    In 2013, environmental justice advocates with Redeemer Community Partnership began organizing after the oil company requested permits by the city of Los Angeles to drill three new wells.

    Parks remembered knocking on residents’ doors and hearing concerning stories about the nearby oil facility: One woman was sprayed with oil while she watered her front lawn. The noxious smells of diesel exhaust and petroleum fumes permeated through a toddler’s room even with the windows closed. Others complained of headaches and nosebleeds, and miscarriages were commonplace, he recalled.

    A report by a petroleum administrator, who was hired in 2016 to oversee oil and gas operations in the city, noted that the Jefferson Boulevard facility was classified as having hydrogen sulfide gas, which can give off a rotten-eggs odor and cause smell loss, and that chemicals such as benzene have also been emitted from the site.

    A group of people stand on a dirt lot.

    A group of community members who were involved in the fight against the Jefferson Boulevard oil drilling site stand on the demolished facility.

    (Francine Orr / Los Angeles Times)

    In 2017, after persistent demands from community activists to enclose the site, L.A. City Council members issued a set of stringent rules that oil companies must follow if they wanted to continue operating drilling sites next to homes in South L.A.

    The requirements included, among other things, that drilling equipment be permanently closed off by a 45-foot-tall structure to reduce noise, odors and block glaring lights. It was a big victory for community activists, who had argued that the site exemplified the toxic outcomes of oil drilling in urban neighborhoods.

    Officials at the time described the requirements as the toughest ever imposed on a drill site in L.A.

    Sentinel Peak Resources spurned the commands and filed a lawsuit. The company argued that the new mandates were “unduly oppressive” and would force it to reduce or stop its operations.

    Nearly a year later, the company announced it would shutter the site for good.

    While it removed all oil operating equipment and capped the 36 wells on site, the community began working on a shared vision for the site’s future.

    “Because we knew if we did not do that, that the toxic violence of oil extraction would be replaced by the violence of displacement,” Parks said. “Developers are coming in, they’re tearing down homes, they’re building up student housing, they’re driving out longtime residents, and we didn’t want to see that happen.”

    With help from California Assemblymember Reggie Jones-Sawyer (D-Los Angeles), who is running for L.A. City Council District 10, they secured a $10-million state grant for those efforts.

    “I’m really excited,” Jones-Sawyer said. “This will be the blueprint for how you can effectively make changes.”

    When Redeemer Community Partnership contacted him about their vision for the land, “it seemed like the perfect combination of dealing with our housing crisis and dealing with our crisis with having no open space. And so when I had the opportunity to provide the $10 million … it seemed like a wonderful opportunity,” Jones-Sawyer said.

    For residents such as Corissa Pacillas, who fought for years for more stringent protections from the Jefferson Boulevard site, the purchase exemplifies the power of organizing.

    “It was encouraging to see that when people really intentionally organize and speak up, and are persistent … passionate and have good leadership … that change can happen,” said Pacillas, who spent years documenting the facility’s activities from the porch of her second-floor apartment. “I’m just so excited that the property … is going to go toward really benefiting the community.”

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    Dorany Pineda

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  • Exxon scraps plan for new pipeline after 2015 spill — but may try to resurrect old one

    Exxon scraps plan for new pipeline after 2015 spill — but may try to resurrect old one

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    Central Coast environmentalists are celebrating ExxonMobil’s recent decision to scrap plans to replace miles of pipeline through Santa Barbara County, key to revitalizing a local network of petroleum energy production shuttered since the catastrophic 2015 Refugio oil spill.

    But at the same time, the oil giant has raised fresh concerns, saying it is instead exploring the possibility of repairing existing, damaged pipeline.

    The years-long effort by oil companies to replace two major segments of pipeline could have allowed the company to restart offshore oil platforms along Santa Barbara County’s coast and an onshore processing plant. These possibilities have been long reviled by local environmental groups and some residents, especially after the catastrophic 2015 spill, which continues to loom large in the region.

    “This [pipeline] replacement has been hanging over the community’s head for five years now,” said Jonathan Ullman, director of the Sierra Club’s Santa Barbara-Ventura chapter. “I was very happy to hear this news; it felt like their withdrawal signified that the writing was on the wall that they could not continue.”

    Ullman said the construction project — had it been approved — had major implications for the environment, wildlife and public health, with heightened risks of oil spills and increased fossil fuel emissions.

    The 2015 spill, caused by “extensive” corrosion on a section of pipeline, hemorrhaged more than 140,000 gallons of crude oil along the Gaviota Coast, much of which ended up in the ocean and along the region’s prized coastline, closing Refugio and El Capitan state beaches for weeks and affecting countless seabirds and marine life. Oil heavily coated a stretch of Santa Barbara County’s coast, with small tar balls reaching as far south as Redondo Beach in Los Angeles County.

    Officials for Pacific Pipeline Co., a subsidiary of Texas-based ExxonMobil, wrote to Santa Barbara County leaders that it had found “the potential environmental impacts associated with the major construction of a second pipeline unnecessary and avoidable,” according to an Oct. 24 letter, withdrawing its proposal from the county’s permitting process.

    The letter, however, also opened the door for another complicated fight in Santa Barbara County, with Exxon officials announcing that the oil giant would change its focus from building replacement pipeline to trying to restore old, damaged pipeline.

    “Recent inspections and analysis affirms … the existing pipeline can be responsibly restarted,” the letter said. It also mentioned that during the replacement pipeline’s environmental review, “staff from the U.S. Army Corps of Engineers and U.S. Environmental Protection Agency indicated that restart of the existing pipeline is likely the Least Environmentally Damaging Practical Alternative under the Federal Clean Water Act.”

    Exxon officials did not release additional information about those reviews but clarified that any “formal decision on the [Least Environmentally Damaging Practical Alternative] cannot be made until the entire environmental review and permitting process is completed.”

    Exxon officials did not respond to questions from The Times requesting further details about such an undertaking, including any analysis of environmental impacts.

    “Pacific Pipeline Company and ExxonMobil have assets that we intend to leverage to deliver reliable energy to Californians and others,” Exxon spokesperson Julie King said in a statement.

    Kelsey Gerckens Buttitta, a spokesperson for Santa Barbara County, said Exxon and its subsidiaries do not have any current applications under review regarding the pipeline, noting that another recent proposal to upgrade multiple valves along the line was not approved this summer. However, any plans to restart the lines would fall under the jurisdiction of the California State Fire Marshal, she said, making it clear that county officials would still be paying attention.

    “The County does have concerns with the integrity of restarting the existing pipeline but we are confident in the California State Fire Marshall’s ability to ensure that these concerns are addressed through their review authority,” Buttitta said in a statement.

    Environmental groups also shared overwhelming concerns about Exxon’s portrayal of restoring the existing pipeline, which was found to be heavily corroded in 2015.

    “At this stage of the climate crisis, building new oil infrastructure is reckless, to say the least,” said Maggie Hall, deputy chief counsel at the Environmental Defense Center, a nonprofit law firm that advocates for environmental protection in Santa Barbara, Ventura and San Luis Obispo counties.

    “However, restarting a corroded and compromised pipeline that already caused one massive oil spill is even worse,” she said in a statement. “There is no way for the pipeline owners to credibly claim it will be safe. If this pipeline is allowed to restart, it’s not a question of if, but when, it will be responsible for another catastrophe.”

    Ullman said he is hopeful that Exxon continuing to show interest in further construction in Santa Barbara County is simply a ploy by the company to keep investors interested, because he doesn’t believe such a plan could be successful.

    “That pipeline cannot be repaired,” Ullman said. “It must be abandoned for the safety of the people who travel on the Gaviota Coast, but also for the massive amount of wildlife and sea life that’s there now.”

    The ruptured pipeline that created the 2015 spill was built in 1987 and extended about 11 miles along the Gaviota Coast. It is part of a larger oil transport network that expands into Kern County, which Exxon had hoped to rebuild almost entirely, for a total of more than 120 miles through Santa Barbara County.

    With the replacement project now halted, Ullman hopes to see the existing lines — still not in operation — removed.

    “We’re still dealing with the consequences and the threats,” Ullman said. “The Gaviota Coast is really a special place … and worth protecting.”

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    Grace Toohey

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