Key facts
- BLM will auction 35,000 acres in California for oil and gas leases on December 1.
- The sale includes 43 parcels across Kern, Kings, Fresno, and San Luis Obispo counties.
- Most federal drilling in California occurs in Kern County, supporting about 3,500 jobs.
- Federal oil and gas royalties from Kern County total $65 million to $90 million annually.
- California refineries received 119.9 million barrels of foreign crude in the first six months of 2026, representing 56% of total supply.
- California-produced crude accounted for 25% of refinery supply during the same period.
The Bureau of Land Management (BLM) is set to auction approximately 35,000 acres of California land for oil and gas leasing on December 1. The sale will feature 43 parcels located in Kern, Kings, Fresno, and San Luis Obispo counties. This offering follows BLM's June decisions to permit federal oil and gas leasing to resume in its Bakersfield and Central Coast planning areas, ending a period of litigation and environmental assessments.
Kern County is the primary location for federal drilling in California, accounting for over 95% of such activity. This established industry supports around 3,500 jobs and generates more than $200 million annually. Federal oil and gas royalties from the region contribute between $65 million and $90 million each year, with half of these funds returning to California.
The proposed sale has seen a slight reduction in scope since August, when 44 parcels covering approximately 36,000 acres were under consideration. A 30-day protest period commenced on Wednesday and will conclude on November 2. Companies interested in drilling will still need to submit individual applications, which will undergo further BLM review and environmental analysis before any development can commence.
California's reliance on imported crude oil has been increasing. Data from the California Energy Commission indicates that during the first six months of 2026, refineries received 119.9 million barrels of foreign crude, making up about 56% of the total crude supply. Domestic production from California contributed roughly 25%, with most of the remainder coming from Alaska. In 2025, foreign sources supplied 61.1% of the crude processed by California refineries, while California production accounted for 22.9%. The upcoming auction will grant access to an additional 35,000 acres, though any new oil production is years away from reaching refineries due to permitting processes.