The Newsom Announcement -- Sunday, April 25, 2021

Wow, talk about tectonic shifts.

After "the Newsom announcement," I thought it was time to get caught up with CRC.

California Resources Corp is the state's largest oil and gas production company.

It filed for bankruptcy protection on a Wednesday evening, mid-July, last year (2020). Just three months later, a federal judge approved the company's reorganization plan. 

There are three major producers in the state of California:

• CRC: the largest in production, apparently;
• Chevron:
• Aera: jointly owned by Shell and Exxon Mobil.

I don't know where it stands now, but this gives me an idea:

CRC, the Santa Clarita-based company, created in late 2014 as a spin-off from Occidental Petroleum, was saddled with debt from its inception after transferring billions of dollars to Occidental. 

But it did well for part of its brief history, reporting average net daily production of 132,000 barrels of oil equivalent per day in 2018. 

By this week, though, nearly half of its 17,500 wells sat idle, from the tidelands of Long Beach and Huntington Beach to the sprawling Elk Hills oil field.

I believe the total amount of oil produced by California is now less than 400,000 bbls crude oil daily (need to fact check). 

2020: 144,349,000 bbls crude oil during the entire year
/365 = 395,476 bopd

Holy mackerel:

• the state: 400,000 bopd
• that equals DAPL out of North Dakota
• CRC: largest oil producer? 132,000 boepd in 2018?

Oil production. I've always said Libya was irrelevant. California is irrelevant.

There was never going to be any fracking in California. Geologically it won't work; politically it won't work. 

The Newsom announcement. Nothing more than a political statement (for obvious reasons).

Doesn't change a thing. 

Except it sends a message to those working in the oil business in California. They're not welcome. At least by some. 

Companies like CRC, Chevron, and Shell-ExxomMobil know where they stand.

But companies like SRE, one of my favorite, need to figure out where they stand.  

*********************************
Production -- CRC

San Joaquin Basin: 72% of CRC's estimated proved reserves as of  year-end 2020, including CRC's flagship Elk Hills Field near Bakersfield.

Los Angeles Basin: comprises 24% of CRC's estimated proved reserves as of year-end 2020, including the Wilmington Field in Long Beach.

Ventura Basin: approximately 2% of CRC's estimated proved reserves as of year-end 2020.

Sacramento Basin: approximately 2% of CRC's estimated proved reservs as of  year-end 2020, where the company operates natural gas fields that supply the San Francisco Bay area. 

By the way, aren't California cities starting to ban natural gas ovens?