BAKERSFIELD, Calif. (KERO) — A new California law is helping drive a surge in oil drilling permits in Kern County, with industry leaders saying the legislation has made the permitting process more predictable and opened the door for new jobs and investment across the region.
At the center of the shift is SB 237, a state law that took effect on Jan. 1. For many projects in Kern County, it allows the state to rely on the county's environmental review process. California Resources Corporation says that change has made permitting more predictable.
"What that allowed for was streamlining the surface permitting requirements in order to secure a new drill permit from CalGEM," CRC Vice President of Operations Brent Ilott said.
The change is already showing up in permitting numbers. An analysis of state data by Consumer Watchdog and FracTracker found 353 new-drill permits were approved statewide in the first half of 2026, compared with 17 during all of last year. State regulators caution that a permit does not guarantee a new well will actually be drilled.
CRC says it has received 193 of 194 permits it applied for to meet its 2026 drilling needs, and the company intends to drill close to that number. Four of CRC's five active drilling rigs are currently operating in Kern County, with the fifth at its Long Beach operation. Ilott said those 4 rigs support roughly 360 jobs.
Ilott said the increase in permits does mean additional oil production. He explained that CRC's fields operate on a base decline rate, and that additional drilling activity helps flatten that decline.
"Between our current program, additional investment and workovers, we're able to flatten that to about a 1 to 2% decline for the year," Ilott said. "What these additional activities do is increase our reserves for the year for the complexes that we have. What that translates to is property value, and property value translates to taxes for the county."
CRC is also applying for permits to plan its 2027 operations. Ilott said the company is publicly committed to a 4-rig drilling program and will communicate any further drilling opportunities at its next quarterly earnings release.
Chevron also has one active rig in Kern County. The company says the increase in permits is helping it maintain production and reinvest in future operations.
"The additional permits allow us to sustain the production that we have. It means to keep the jobs we've got, continuing to grow strategically where it makes sense for us," Chevron General Manager of Operations Ray Thavarajah said.
Thavarajah said the lack of permits over the last several years created a slowdown in investment that rippled beyond the oil field itself.
"We are an interconnected ecosystem. So as investment slows down within oil and gas, that means some of the supporting companies and our partners that work with us slow down. And that's an overall depressing effect across the community," Thavarajah said.
That reach extends to service companies like Halliburton, which provides services to both CRC and Chevron. Frank Rodriguez, a district manager with Halliburton, said what the increase in permits means most to the industry is stability.
"I think stability, really, more than anything," Rodriguez said.
The increase in permits has also drawn concerns from environmental and consumer groups about the impact of additional drilling. Ilott said SB 237 directly addresses some of those concerns, noting the law prohibits permitting new wells within 3,200 feet of a sensitive receptor such as a home, school or park.
"None of the changes by bringing this legislation change the regulation itself. We're still under the same scrutiny in terms of bio surveys, etc., in order to achieve surface signoff to be able to drill and permit new wells," Ilott said.
Thavarajah said strong regulation is something Chevron welcomes.
"Good regulation, strong regulations help us focus our efforts on the things that matter. We realize that and we actually welcome a higher level of scrutiny, a higher level of oversight, but it's got to be in terms of help us get to the right answer," Thavarajah said.
Both CRC and Chevron say the future of the industry in Kern County will depend on clear regulations, timely permitting and continued community support. Thavarajah said he sees Kern County remaining a leader in energy over the next five to 10 years.
"Success to me, if you simply put it, is that Kern County residents today and tomorrow have the same opportunities their generations before did," Thavarajah said.
CRC is also pursuing a data center project at its Elk Hills property.
Ilott said the company has submitted a conditional use permit for the development, which could support 200 to 250 permanent jobs within five years. He said the project would use a closed-loop cooling system requiring an initial fill of roughly 600,000 gallons of water — comparable to about six homes' annual water use in Kern County — and approximately 6,000 gallons per year after that. Ilott said the data center would be powered by CRC's existing 550-megawatt power plant and would not increase the use of purchased natural gas.
