EIR Information

California Oil and Gas Regulations: It's Our Responsibility

The old adage states, “with great power comes great responsibility,” and in no industry is this more applicable than Oil & Gas. Fortunately, the Oil & Gas industry in California is very mature and has the benefit of many years of effective regulation.

There are solid economic reasons to support regulation. Sustainable and clean, Oil and Gas production requires standardized processes to ensure the safety of workers and the community. A level playing field is necessary to prevent competitors, willing to cut costs at the expense of the public interest, from taking advantage of the market.

Regulation can bring public surety through analysis and scientific determination. Recently there has been buzz in the media about shale oil extraction and hydraulic fracturing. Unsubstantiated theories had been put forth that the process of extracting oil from shale plays was dangerous to the point of disaster. Termo emphasizes a prudent and judicious use of hydraulic fracturing or other well stimulation techniques when necessary to maximize a sustainable and responsible solution for resource recovery, however the negative misinformation threatens to reverse years of exceptionally positive advancements in technological discovery and the loss of substantial gain for the California economy. Twenty one leading scientists, engineers and technical experts submitted a letter to Governor Jerry Brown endorsing the benefits of hydraulic fracturing in California when combined with the proper regulatory oversight. This led to the landmark legislation, SB 4, which allows and exerts oversight for hydraulic fracturing in California. Created by the Division of Oil, Gas and Geothermal Resources (DOGGR), SB 4 may be the strongest oil and gas regulation ever adopted and helps to ensure the production of cleaner energy and the reduction of our dependence on foreign oil for decades.

Industry regulation is often perceived by the media as an “us versus them” battle, environmentalists versus corporations. This perception is far from the reality. Corporations are often the major champions of environmental safety and regulation. Oil and Gas corporations rely on safe practices for the success and profit of their companies. Without regulation, long term profitability would be impossible to attain.

California is under a non-binding executive order to reduce emissions 90 percent by 2050. A carbon cap established in 2006, as Assembly Bill 32 (AB 32), became active in January of 2013. It first covers the electric-power sector and large factories. Then it expands to the carbon dioxide from gasoline, diesel, natural gas, and other fossil fuels. California's refineries are highly sophisticated and are capable of processing a wide variety of crude oil types. To meet these strict federal and state environmental regulations, California refineries are configured to produce cleaner fuels, accommodating the most comprehensive carbon pricing regulatory system in the world.

Termo strictly adheres to the reporting and monitoring regulations of the Department of Conservation’s Division of Oil and Gas, California’s various Air Quality Management Districts, and the Regional Water Quality Control Boards.

We recognize our role and responsibility in caring for our environment. By adhering to regulation and preventing waste, we ease our impact on the environment, increase operational efficiency and care for the communities we serve.

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