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Jun 26, 2026

Massive breakthrough for California oil as desperately needed new sources get green light

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Massive breakthrough for California oil as desperately needed new sources get green light

By Zain Khan Published June 25, 2026, 4:12 p.m. ET

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A major federal decision has cleared the way for new oil and gas leasing on public lands across Central California, reopening energy development opportunities in eight counties despite fierce opposition from the state.

The Bureau of Land Management (BLM) — an agency within the United States Department of the Interior — announced this week it has finalized updated management plans governing oil and gas leasing and development on federal lands within portions of Fresno, Kern, Kings, Madera, San Luis Obispo, Santa Barbara, Tulare and Ventura counties.

The decision allows the agency to restart oil and gas leasing within the Bakersfield Field Office region, ending a yearslong pause that stemmed from legal challenges and environmental reviews.

An oil field worker stands near an oil pumpjack and a white pickup truck on a dirt road. 5
A major federal decision has cleared the way for new oil and gas leasing on public lands across Central California.

Federal officials said the move fulfills obligations under a 2022 settlement agreement and aligns with the Trump administration’s push to increase domestic energy production.

The action covers a vast swath of federal land managed by the Bakersfield Field Office, which oversees roughly 400,000 acres of public land and about 1.2 million acres of federal mineral estate across Central California.

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Federal officials said energy activity tied to those lands supports approximately 3,500 jobs and generates more than $200 million annually. The agency also collects between $65 million and $90 million in royalty payments each year, with about half of that revenue flowing back to California and the remainder going to the US Treasury.

Oil pumpjacks operating in the Midway-Sunset Field, California. 5
Oil pumpjacks work the Midway-Sunset Field in Kern County outside of McKittrick, California. AFP via Getty Images
An oil pumpjack operates in Ventura, California, with mountains in the background. 5
BLM says it has finalized updated management plans governing oil and gas leasing within portions of Ventura County. Getty Images

The approval follows the completion of a supplemental environmental impact statement that examined the potential effects of future oil and gas leasing and development in the region.

BLM officials said the decision is consistent with Secretary’s Order 3418, which implements President Donald Trump’s energy agenda and encourages expanded development of oil, natural gas, coal, critical minerals and other energy resources on federal lands.

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