You’ve probably heard that the price of oil has plummeted due to a perfect storm of Russia, OPEC price cuts and the Coronavirus affecting supply and demand. Gas prices in California have fallen to $2.80, $1.80 or less in the East. Big Oil is clearly on the ropes.

But like the old Blob movies, the heavy liquid, once thought defeated, puddles up again with the words, “The End – Or is it?”

California oil is the dirtiest, heaviest, costliest to refine. It can only make money when prices are very high. So this must be “The End” for California oil. Or is it?

Kern County-based Aera Energy, owned jointly by Shell and Exxon, is not letting Coronavirus or low prices stop it from plowing ahead with a proposal, which, combined with the TerraCore project proposed in Cat Canyon, would collectively triple onshore oil production in Santa Barbara County with steam and acid injection, a process just as bad, or worse, than fracking.  

Santa Barbara County planners hope to have a review ready in June with a public hearing in July. The County’s Energy Division has inexplicably recommended approval of all past oil projects despite a continued 3-2 anti-oil majority on the County Board of Supervisors. Despite Coronavirus, the Big Oil Blob may be getting an Energy Division staff lifeline that would take months, if not years, for appointed and elected officials to redirect.

But the Big Oil Blob is not just moving on land. On sea, Exxon is still moving full-speed with its proposal to resume production on three Gaviota Coast offshore oil platforms carted out by 70 trucks per day on the 101 just a few miles west of Goleta and up the 166 to Kern County. Why trucks? Because five years ago, the fragile onshore pipeline at Refugio Beach burst coating the Channel, the coast, birds and sea life with the heavy goo of oil. The full pipeline to Kern would have to be replaced. Santa Barbara County staff, which again has oddly always recommended oil projects, is working to get Exxon’s reviews done during the pandemic. Those reviews are expected in July with public hearings in August. Big Oil Blob is reconstituting.

But is the economy having any effect on these companies’ plans? Yes. One Cat Canyon-applicant PetroRock just withdrew after a year of fierce opposition by Sierra Club, SBCAN, our lawyers EDC, and many other allies. Public opposition also postponed the application by bankrupt ERG (now TerraCore).

But Exxon and Shell have money to burn and losses are always a great tax write off. Plus, some oil companies may receive funds in future government stimulus packages to not pump oil, which while better than pumping (which there is no market for) will allow these companies to harm the climate after demand rises.

Even the Newsom Administration, leading the fight against Trump’s expansion of drilling and mining on federal lands, gave 24 Kern County fracking permits to Aera Energy two weeks ago and hundreds more are in the hopper. Like Santa Barbara County’s Energy Department, the State of California has an Oil Regulation Division, CalGEM, to keep the blob going. Only through reforms can we avoid a dangerous future. Click here to send comments to CalGEM to protect the public's air and water from oil drilling in their new rule making process.

The Trump Administration is going all out to help the Blob, suspending federal protections and moving forward on public lands and pro-oil policies all during coronavirus. Coronavirus Doesn’t Slow Trump’s Regulatory Rollbacks, NY Times. Government employees are working through Coronavirus to Make Big Oil great again.

So how do we stamp out the blob? How do we keep our groundwater supply unpierced and protected, our shores and rivers oil free, our highways and rural roads free of oil tankers? Our climate from passing disastrous tipping points?

At Sierra Club, we keep doing what has been successful. We continue to hire the best lawyers and partners at Environmental Defense Center. We ask our members and supporters like you to submit comments to county energy staff. We ask you to write heartfelt letters and emails to Santa Barbara County appointed and elected officials. We join in a broadbased coalition to not only fight oil and gas but build a new clean energy economy. And we show up, whether in person or in online meetings! To volunteer, click here.

All our work is fueled by local donations –small and large. Click here to help.

Is this the end? Let’s make it so.

-- Jonathan Ullman, Sierra Club Los Padres Chapter Director