Released November 25, 2025 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)
Crude oil production in California peaked in 1985 at 394 million barrels, or around 1.07 million barrels per day (BBL/d). It's now closer to 285,000 BBL/d, according to the U.S. Department of Energy.
But in the Santa Maria Basin under Santa Barbara County, the USGS estimates there are technically recoverable resources of 67 million barrels of oil and 56 billion cubic feet of gas.
Upstream activity began in the region in 1901. It has since produced 900 million barrels of oil, which the USGS estimates is as much oil as the U.S. consumes in six weeks.
"The U.S. economy and our way of life depend on energy, and USGS oil and gas assessments point to resources that industry hasn't discovered yet," said USGS Director Ned Mamula in a press release.
Much of the oil in the Santa Maria Basin is considered high in sulfur, which is considered low in quality relative to the light, sweet crude oil found in many U.S. shale basins. That sulfur needs to be removed before the oil can be processed into refined petroleum products, increasing the costs downstream.
This prompted Phillips 66 (Houston, Texas) to decide to shut down its Los Angeles refinery center, which received its final batch of waterborne crude oil deliveries in mid-October.
Should others follow suit, the U.S. Department of Energy said California may be forced to import fuels from out-of-state refineries to meet its transportation demands.
State lawmakers, however, have already passed a handful of bills meant to ensure California has a clean economy while at the same time ensuring that its refineries can keep running. A state Senate measure, SB-237, permits 2,000 new wells to be drilled annually in oil-rich Kern County starting in 2026. With that, legislators want to secure about 25% of the state's refinery feedstock with domestic supplies.
"By moving forward with the development of a robust, forward-thinking leasing plan, we are ensuring that America's offshore industry stays strong, our workers stay employed, and our nation remains energy dominant for decades to come," Secretary of the Interior Doug Burgum said.
Drilling offshore could violate laws that limited activity off the state's coast, and the proposal has already drawn the ire of California Governor Gavin Newsom.
"For decades, California has stood firm in our opposition to new offshore drilling, and nothing will change that," he said. "We will use every tool at our disposal to protect our coastline."
By the Numbers
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Summary
In decline since the 1980s, there are still billions of cubic feet of gas and millions of barrels of oil in California, according to the USGS. That assessment followed a proposal for offshore drilling.Still Untapped Reserves, USGS Finds
After the U.S. Interior Department announced plans for drilling off the coast of California, the U.S. Geological Survey (USGS) said Friday that inland California could hold as much as 56 billion cubic feet of gas and 67 million barrels of oil.Crude oil production in California peaked in 1985 at 394 million barrels, or around 1.07 million barrels per day (BBL/d). It's now closer to 285,000 BBL/d, according to the U.S. Department of Energy.
But in the Santa Maria Basin under Santa Barbara County, the USGS estimates there are technically recoverable resources of 67 million barrels of oil and 56 billion cubic feet of gas.
Upstream activity began in the region in 1901. It has since produced 900 million barrels of oil, which the USGS estimates is as much oil as the U.S. consumes in six weeks.
"The U.S. economy and our way of life depend on energy, and USGS oil and gas assessments point to resources that industry hasn't discovered yet," said USGS Director Ned Mamula in a press release.
Much of the oil in the Santa Maria Basin is considered high in sulfur, which is considered low in quality relative to the light, sweet crude oil found in many U.S. shale basins. That sulfur needs to be removed before the oil can be processed into refined petroleum products, increasing the costs downstream.
What About Refineries?
Elsewhere, AB X2-1, a measure signed into law last year, mandates that refiners maintain minimum fuel storage volumes to avoid any supply-side issues but puts a burden on California refiners by reducing their profits.This prompted Phillips 66 (Houston, Texas) to decide to shut down its Los Angeles refinery center, which received its final batch of waterborne crude oil deliveries in mid-October.
Should others follow suit, the U.S. Department of Energy said California may be forced to import fuels from out-of-state refineries to meet its transportation demands.
State lawmakers, however, have already passed a handful of bills meant to ensure California has a clean economy while at the same time ensuring that its refineries can keep running. A state Senate measure, SB-237, permits 2,000 new wells to be drilled annually in oil-rich Kern County starting in 2026. With that, legislators want to secure about 25% of the state's refinery feedstock with domestic supplies.
Trump Wants to Drill in Newsom's Backyard
Last week, the U.S Department of the Interior included six leases in a proposed five-year lease plan for the U.S. Outer Continental Shelf."By moving forward with the development of a robust, forward-thinking leasing plan, we are ensuring that America's offshore industry stays strong, our workers stay employed, and our nation remains energy dominant for decades to come," Secretary of the Interior Doug Burgum said.
Drilling offshore could violate laws that limited activity off the state's coast, and the proposal has already drawn the ire of California Governor Gavin Newsom.
"For decades, California has stood firm in our opposition to new offshore drilling, and nothing will change that," he said. "We will use every tool at our disposal to protect our coastline."
By the Numbers
- 900 million: Barrels of oil produced to date in California
- 1.07 million: Barrels per day produced during California's peak oil period
- 25%: Refinery feedstock could come from domestic supplies
- California has plenty of untapped reserves, USGS finds.
- The oil is high sulfur, however, and considered low quality.
- California's governor objects to offshore drilling.
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
