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United States

California And Big Oil Are Splitting After Century-Long Affair (reuters.com) 140

It is the end of an era for Big Oil in California, as the most populous U.S. state divorces itself from fossil fuels in its fight against climate change. From a report: California's oil output a century ago amounted to it being the fourth-largest crude producer in the U.S., and spawned hundreds of oil drillers, including some of the largest still in existence. Oil led to its car culture of iconic highways, drive-in theaters, banks and restaurants that endures today. On Friday, however, the marriage will officially end. The two largest U.S. oil producers, Exxon Mobil and Chevron will formally disclose a combined $5 billion writedown of California assets when they report fourth-quarter results.

"They are definitely getting a divorce," said Jamie Court, president of advocacy group Consumer Watchdog, which said the companies long ago stopped investing in California production, and now want to hive off their old wells there. "They've been separated for more than a decade, now they are just signing the papers," he said. Exxon Mobil last year exited onshore production in the state, ending a 25-year-long partnership with Shell when they sold their joint-venture properties. The state's regulatory environment has impeded efforts to restart offshore production, Exxon said this month, leading to an exit that includes financing a Texas company's purchase of its offshore properties. The No.1 U.S. oil producer's asset writedown will cost about $2.5 billion and officially end five decades of oil production off the coast of Southern California.

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California And Big Oil Are Splitting After Century-Long Affair

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  • by magzteel ( 5013587 ) on Wednesday January 31, 2024 @03:18PM (#64204256)

    Summary says "the most populous U.S. state divorces itself from fossil fuels" but the article says it's the other way around.
    After years of spousal abuse Exxon is divorcing California.

    • by dbialac ( 320955 ) on Wednesday January 31, 2024 @03:22PM (#64204264)
      A convenient excuse to raise oil and gasoline prices and blame it on the Californian government.
      • Re: (Score:2, Insightful)

        by taustin ( 171655 )

        Since that is the specific intent of the California government, yeah, blame where blame is due.

        • Why would a decrease in demand raise prices?

          • by taustin ( 171655 )

            Why wouldn't it?

            "We're selling less gas, and our profits are down."

            "It's because more people are buying electric cars."

            "Well, those who still have gas cars (and they're still a big majority) still need gas, so let's raise prices."

            Why it happens isn't as important as the fact that the state government of California was to eliminate ICE vehicles. They know Californians won't give them up voluntarily, so their method, for the moment, is to make it impossible to afford one. People who a) can't make a living wit

            • by AmiMoJo ( 196126 )

              Do oil companies really need an excuse to raise gas prices? Seems like they would always price them according to what makes the maximum amount of profit.

    • There are loads of other places to get oil. California isn't reducing anything other than the money they get from taxing oil extraction.

  • Yes. That's the descriptor I would use to describe California's highways. "Iconic".

    • Yes. That's the descriptor I would use to describe California's highways. "Iconic".

      For all the complaining people seem to do about LA's legendary traffic, I was expecting it to be worse than Miami. It's not; Miami is way worse.

      • For all the complaining people seem to do about LA's legendary traffic, I was expecting it to be worse than Miami. It's not; Miami is way worse.

        At some point, comparing fucked vs fucked becomes quite pointless. Both cities surpassed that by any sane definition long ago.

    • Last time I was in LA driving to Pasadena from Cerritos, the traffic report on KCRW was simply "And now the traffic, all freeways, all directions... slow."

    • Highway 101 for instance. https://en.wikipedia.org/wiki/... [wikipedia.org]

      • Looking at that map, the 101 runs mostly North/South. Except for LA where it runs East/West.

        From wikipedia:
        The east–west geographical alignment of the Ventura Freeway and the north–south designation which appears on the freeway signs can be confusing to visitors; the same freeway entrance can often be signed as "101 North" and "101 West"; this is most common in the San Fernando Valley where the local E/W signing does not match the Caltrans' proper statewide N/S designation.

        In high school I worke

  • Champagne corks are popping. The Earth's goddess is saved!
  • by ceoyoyo ( 59147 ) on Wednesday January 31, 2024 @04:47PM (#64204476)

    There's a lot of colourful writing in the article. Judging by the comments, it's achieved the goal it was no doubt meant to.

    California's remaining onshore oil reserves are mostly low-hydrogen hydrocarbons "the consistency of peanut butter." You could describe it as squishy coal as much as thick oil. It's extracted by melting it with injected steam. That makes it energy intensive to extract, which means it's among the most carbon intensive production in the world and some of the more expensive.

    The moratorium on offshore development (not extraction from existing sites) seems to have been instituted in 1969 after an oil spill, both by the state and the US federal government and renewed on many occasions since then. In the federal case, every year since 1982, and by executive order by a certain President HW Bush. So probably not climate change or gay drag queen liberal conspiracy related, unless you could dousing Santa Barbara's beaches with oil "climate change."

    So Exxon and Chevron are selling off expensive, depleted assets in California to other oil companies.

    • And also not related to climate change, gay drag queen, liberal conspiracies is the same sort of ban in Florida, by everyone's favorite ex-president

      "While the previous moratorium on drilling in the Eastern Gulf of Mexico expired [in 2022], former president Trump issued an executive order to protect both coasts of Florida from drilling through June 2032"

      It is fun how quick the internet denizens are to jump on any grain of news and twist and turn it to some political end. The short version as described in t

  • Here is the rub, Exxon Mobil and Chevron are big companies with deep pockets. These big companies know their liabilities and in recent decades have done a good job on the environmental front. Now, their assets will be sold to people with much smaller bank accounts, and control things from out of state. They will have environmental issues, and they will be slow to respond, and will run into financial trouble fixing the mess. This leaves us worse off, we still get oil production but in a lower quality way.

    A P

    • We don't need more Texans poorly managing oil resources in California.

      California seems to be quite capable of fucking themselves up, you're right, they don't need any help from Texas because they don't deserve it. They deserve the banquet of consequences they set the table for and it looks like they are about to take their first few bites so bon appétit.

  • LOL No (Score:2, Troll)

    Our current Governor, Gassy Gavin, is owned and operated by the Getty Gas empire. Our previous Governor, Jerry Brown, is from one of the richest fossil fuel families in the state. That's why Brown was the leader of the antinuclear movement. Because opposing nuclear supported his families fortune. We are not leaving fossil fuels. We should, but we won't.
    • America could practically forgive Californias contribution to the pollution problem, if lying hypocrites could just shut the fuck up about going or being “green”. They should, but they won’t.

  • by Petersko ( 564140 ) on Wednesday January 31, 2024 @05:49PM (#64204616)

    First, nothing much seems to be changing. According to the article, this has no current impacts. It's just a recognition on financial paper of the reality on the ground.

    Second, if California wants out of oil production, that's fine. Texas is probably happy to sell them fuel. If you think they should produce oil if they consume it, then perhaps we should be narrowing the list of foods you should eat if you're in, say, Nevada. And the rest of the US should mostly give up almonds. And pineapple... bananas... etc. etc..

    It's economics. It'll either work out for them or it won't. I don't know what the fuss is about.

    • by PPH ( 736903 )

      then perhaps we should be narrowing the list of foods you should eat if you're in, say, Nevada. And the rest of the US should mostly give up almonds. And pineapple... bananas... etc. etc..

      Nevada will have minimal problems trucking food out of the Cali. central valley. Fill up at the NV-CA border, make a run in, pick up a load and make a run back to the filling station just over the NV border. Drop off diesel for the farms the same way.

      But the trip from the farms to the West coast cities will be more problematic. Very few remaining filling stations along the way. The trucks probably won't make it. The few remaining fuel resources will be precious and guarded [fancaps.net].

      This isn't the first time a lea [pinimg.com]

      • by whitroth ( 9367 )

        Gosh. Wow. I can't imagine what they're going to do.

        But then, I can't imagine how food got from the midwest to the east before all the Interstates. I think I read something about some weird form of cheap transportation... I think they were called railroads.

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