In Historic Move, Los Angeles Bans New Oil Wells and Phases Out Existing Ones

In a historic step for a city built by a once-booming oil industry and whose residents have suffered for decades from its environmental consequences, the Los Angeles City Council voted in recent weeks to phase out all oil drilling in Los Angeles and ban new wells.

In a 12-0 vote, the council approved a new ordinance that immediately bans new oil and gas extraction and requires all existing oil and gas extraction to stop within 20 years.

The move was opposed by oil industry leaders, who warned city officials that the phase-out would hurt the city's finances and make Los Angeles more dependent on foreign oil.

According to the city's planning department, Los Angeles has 26 oil and gas fields and more than 5,000 oil and gas wells. Some of these wells are idle, while others are active.

According to the city's planning department, many wells are located in Wilmington and the harbor areas, but there are also wells operating in downtown, West Los Angeles, South Los Angeles and the northwest San Fernando Valley.

Studies have found that oil wells emit likely carcinogens such as benzene and formaldehyde, and that living near wells is linked to health problems such as respiratory issues and preterm births.

Environmental justice activists argue that low-income communities of color are particularly affected by the wells and the associated health problems.

Stand Together Against Neighborhood Drilling (STAND-L.A.), a coalition of civil society organizations that spearheaded the law, said in a statement: "Black, Latinx and other communities of color currently living near polluting oil wells and derricks in South Los Angeles and Wilmington will finally breathe easier."

The group said: "Our city and this council must own up to the anti-Blackness that shaped the policies that allowed oil drilling in neighborhoods in the first place and that fostered an environment in which such a horrific example of racism and corruption could occur between council members."

A 2018 city controller report cited state data showing that 77% of active and idle wells in the city are operated by six companies: Warren E&P, Freeport-McMoRan Oil & Gas LLC, Tidelands Oil Production, Southern California Gas, Pacific Coast Energy and Brea Canon Oil.

In a letter to city officials, the California Independent Petroleum Association, a trade group representing more than 300 independent crude oil and natural gas producers, disputed claims of "detrimental health effects" from oil and gas drilling and production operations.

The association also said that ending oil production in the city would lead to more oil imports through the Ports of Long Beach and Los Angeles.

The association said: "The South Coast Air Quality Management District has identified oil tankers as one of the major sources of air pollution in the Los Angeles Basin."

The association also pointed to a June 2020 study by the consulting firm Capitol Matrix Consulting, which found that the oil and gas industry contributes about $250 million to the city's general funds.

The Office of the City Administrative Officer did not comment on the $250 million figure.

James Watt, president and CEO of Warren, one of the oil companies operating in the city, said in a statement that his company intends to use "all available legal resources" against the new city rules.

Describing the pollution from Warren's operations as "on par with that of a fast-food restaurant", Watt said: "Our operations are a model for urban oil and gas operations."

He also said that Warren has converted its operations to use electric rather than diesel power and that the company has invested more than $400 million in these operations.

Council President Paul Krekorian described the ordinance as a "monumental step" in the history of the city and its relationship with oil.

Krekorian noted that City Hall is adorned with artwork celebrating the oil industry, which helped fuel Los Angeles' growth in the early 20th century and later provided jobs for veterans after World War II.

Krekorian also said: "This may be the most important step toward environmental justice that this council has taken in recent memory."

The city is conducting studies to determine when oil companies operating in Los Angeles will be able to recoup their investments in well and drill sites. If that period is shorter than 20 years, those companies may have to stop operations sooner.

City petroleum administrator Erica Blyther said there are two drill sites on city properties: Rancho Park in Cheviot Hills and O'Melveny Park in Granada Hills. The oil companies lease these properties from the city.

The city also earns royalties from wells located on or near city properties.

Source:Los Angeles Times

This news item was translated into Turkish by Ekin Kaçar.