SACRAMENTO, Calif., June 26,
2024 /PRNewswire/ -- Legislation charging
$10,000 per day to oil wells
producing less than 15 barrels per day within a half mile of a
community passed out of the California Senate Natural Resources Committee
by a vote of 6 to 4. The bill now moves to the Senate
Appropriations Committee.
It's estimated that 2.7 million Californians live within 3,200
feet of an oil well. These Californians suffer higher rates of
respiratory illness, prenatal defects, and cancer. AB 2716,
authored by Assemblymember Isaac G.
Bryan (D-55, Los Angeles),
takes aim at wells in these dangerous zones that are adding
significantly to these health risks while producing only
insignificant amounts of oil.
"Oil drillers would rather keep these low production wells
running and poisoning communities than pay the cost to plug them,"
said Assemblymember Isaac Bryan.
"There needs to be accountability for reckless drilling in
communities when there is almost no economic benefit and people pay
the price with their health."
Wells that produce less than 15 barrels of oil per day are known
as "stripper wells" because they are considered to be at the end of
their economically useful life. It is cheaper for drillers to keep
them running with low production than to plug them at a cost of
$100,000 or more per well.
By comparison, half of the country's oil and gas production
between 2012 and 2022 came from wells that produced between 100 and
3,200 barrels per day, according to the Energy Information
Administration. An onshore well that produces between 1,000 and
3,000 barrels of oil a day is considered a good production
range.
"Oil drillers that continue to drill for so little oil so close
to communities need to be held accountable, particularly as
drillers challenge the legislative ban on new permits for community
drilling at the ballot box," said Jamie
Court, president of Consumer Watchdog, the sponsor of AB
2716. "Drillers need to be incentivized to clean up their messes,
which are poisoning communities."
Considering that 83% of the active oil wells in California communities are operating as
stripper wells, AB 2716 has the potential to positively impact
community health across the state. Stripper wells in
communities make up only 8% of the state's oil supply, according to
the FracTracker Alliance.
FracTracker Alliance found that overall statewide oil production
averages 3.3 barrels per day per well based on CalGEM data for
2022. But for wells located within 3,200 feet of homes and other
sensitive receptors from schools to hospitals the amount of 2.1
barrels per day is 36% less.
Consumer Watchdog is the sponsor of AB 2716. The group said the
average community well's two barrel of oil output is not even
enough to fuel four Ford F-150 trucks.
While critics say AB 2716 targets small oil producers, the fact
is big oil companies own most of the stripper wells. Out of 30
operators that own these stripper wells within the setbacks,
Chevron, California Resources, Sentinel Peak Resources and Aera
Energy own the most, according to FracTracker Alliance
research.
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SOURCE Consumer Watchdog