Long Beach, CA – A newly released economic review by Long Beach City Auditor Laura Doud has sounded the alarm over the financial toll the state’s transition away from crude oil and natural gas could take on the city potentially slashing oil-related revenue by up to $301 million by 2035. With no comprehensive replacement strategy in place, the report is raising difficult questions: How will the city fill this looming budget gap? And is California rushing to end oil production without a clear, sustainable financial alternative for local communities?
The report, prepared by petroleum consulting firm Evans & Walker, details a sharp drop in oil revenue—from $56.5 million in 2023 to as low as $21 million by 2035, a 63% decrease. This decline stems from the natural reduction of oil output—about 6% annually—and potentially the passage of Senate Bill 1137 (SB1137), which would ban new or retrofitted oil wells within 3,200 feet of homes, schools, and hospitals. The bill, if approved by voters this November, would further accelerate the city’s oil revenue loss.
Essential Services at Risk
This revenue funds critical services across Long Beach, including:
- $28.7 million for Tidelands: beach patrols, ADA access paths, bluff improvements, and lagoon restoration.
- $23.4 million for the General Fund and Uplands: covering street and park maintenance, libraries, public health programs, and safety services.
- $3.1 million from Proposition H: dedicated to public safety and homelessness outreach.
- $1.3 million: supporting utilities and community development.
City Auditor Laura Doud underscored the significance of this funding, stating, “Oil revenue has a long history in funding services and projects that safeguard the environment, improve infrastructure, enhance beaches, and keep residents safe.”…