Thursday, July 02, 2026

 

Trump Administration Advances New California Oil Lease Plans

The Bureau of Land Management is giving California another chance to weigh in on oil and gas leasing—whether the state wants it or not.

On Thursday, the BLM opened a 30-day public scoping period for 50 federal oil and gas parcels covering roughly 36,000 acres across Kern, Kings, Fresno, and San Luis Obispo counties. The parcels could be included in a future federal lease sale, marking the latest step in the Trump administration's effort to revive domestic energy development on public lands.

If this feels familiar, that's because it is. Just last week, the BLM signed off on a broader leasing plan covering another 850,000 acres in California after years of lawsuits and bureaucratic limbo.

Today's action doesn't authorize drilling, but it does begin the process that could eventually lead to new federal leases in California's most productive oil-producing region.

Of course, leasing is just the first step, and companies must still obtain drilling permits, undergo environmental reviews, and navigate a regulatory maze before a single well is spudded.

But in California, even opening the conversation is enough to reignite a long-running political fight.

The Trump administration has made expanding domestic oil and gas production a central pillar of its energy agenda, while California continues pushing in the opposite direction, seeking to limit new fossil fuel development and accelerate its transition away from hydrocarbons. The two sides have already clashed over offshore drilling and federal authority over public lands, with several disputes still working their way through the courts.

The BLM argues that federal oil production remains economically significant. More than 95% of federal drilling in California occurs in established Kern County fields, generating more than $200 million annually in economic activity and producing between $65 million and $90 million in federal royalties each year. Roughly half of those royalties flow back to California.

Environmental groups are almost certain to oppose the latest leasing proposal, arguing that it conflicts with the state's climate goals and poses risks to air quality, wildlife habitat, and nearby communities.

The public comment period runs through August 1.

By Julianne Geiger for Oilprice.com

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