Texas and California: A tale of two oil states

A large part of the explanation for the Texas boom and the California bust is the political culture. Despite their cars, California voters have elected politicians who consider fossil fuels to be “dirty energy.”

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The plaintiffs in the Monterey shale lawsuit were the local chapters of the Sierra Club and the Center for Biological Diversity. Rita Dalessio, chairwoman of the Ventana chapter of the Sierra Club, said, “We’re very excited. We’re thrilled” by the judge’s ban, adding that “I’m sure the champagne is flowing in San Francisco.” This attitude is prevalent among California’s elite and wealthy.

California has also passed cap-and-trade legislation that adds substantially to the costs of conventional energy production and refining. The politicians in Sacramento and their Silicon Valley financiers have made multibillion-dollar and mostly wrong bets on biofuels and other green energy. Texas has invested heavily in wind power but not at the expense of oil production.

Another contrast is that most Texas oil is on private lands, which owners are willing to lease at a price. In California much of the oil-rich areas are state or federally owned, and leasing doesn’t happen because of political constraints. In California it can take weeks or even months to get approval for an oil rig. The average in Texas? Four days.

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