The federal government’s latest decision to resume oil and gas leasing in Central California is important for the future of the industry in the state, but drilling activity isn’t expected to happen on those lands anytime soon due to various factors, according to industry sources familiar with the matter.
Last month, the Bureau of Land Management (BLM) announced the resumption of oil and gas leasing and development on public lands in parts of Fresno, Kern, Kings, Madera, San Luis Obispo, Santa Barbara, Tulare, and Ventura counties. The decision came after the federal agency finalized a supplemental environmental impact statement that allowed these public lands to be opened to energy exploration.
“It is a long, deliberate process,” an industry source told Edhat on the condition of anonymity. “But it all starts with lease sales. We are increasing drilling activity on leases that were entered into years ago. So, these new lease sales will be important in the future but won’t lead to immediate activity.”…