McCarthy Tours Bakersfield Oil Fields: 1,000 Permits on Newsom’s Desk, California Lost 89,000 Barrels/Day to Putin

On 3/22/2022, House Republican Leader Kevin McCarthy toured oil fields in his Bakersfield district, standing with local officials and oil workers to highlight how Governor Newsom’s policies had cut California oil production by 20% — 89,000 barrels per day — while the state imported over 51% of Ecuador’s rainforest oil and replaced domestic barrels with Russian crude. McCarthy revealed over 1,000 drilling permits sat unsigned on Newsom’s desk while gas in California hit nearly $7 per gallon at some stations. Local officials and workers described the human cost, including second-chance workers earning six-figure incomes in an industry the state government was trying to destroy.

$100 to Fill a Small Tank

McCarthy opened with a personal story. “Last night, my wife’s car was low on gas, so I went to fill it up. Even with the discount from the bonds, we paid more than $5 a gallon — paid more than $100 to fill up a small tank of gas,” McCarthy said. “It’s the same experience people are having across the country.”

1,000 Permits on Newsom’s Desk

McCarthy laid out the state-level obstruction. “Ever since Gavin Newsom has become governor, his role of not providing the permits — more than a thousand permits sit on his desk,” McCarthy said. “California, since he’s been governor, has lowered production by 20%. That’s 89,000 barrels a day.”

“But you still need the crude oil. So where do you get it? He’s replaced it through the time from Russia — getting 50,000 barrels a day,” McCarthy said. “Instead of more jobs being produced in California, Putin is getting our money. And what is he doing with it?”

He added a startling detail about Ecuador. “California imports over 51% of the Ecuadorian oil that’s produced in the rainforest. The governor of the state of California purchases over 50% of Ecuador’s oil. And it’s brought here to be a bunker fuel over our ecosystem,” McCarthy said.

The Sacramento Surcharge

A local official illustrated the price disparity with a dramatic example. “I went through Needles, California on I-40. It was $6.999. I crossed the river two miles later — $4.56 at the end of the street in Bullhead City. Where I lived, $3.399,” the official said.

“They don’t produce oil in Arizona. They don’t refine oil in Arizona. And they don’t steam Saudi Arabian supertankers up the Colorado River,” the official continued. “That is the cost of California. That is the Sacramento surcharge. That’s fines, fees, and infrastructure. That is government intervention at its purest form.”

Second-Chance Workers and Veterans

Local leaders highlighted who works in the oil industry. “55% of people of color work in our oil industry. 20% are United States military veterans. 12% are women. 22% of the people that work in this industry that make well above a six-figure income are second-chancers,” a local leader said. “It stops recidivism. A job is the greatest security you can ever have, and a job is the greatest solution to poverty.”

Kern County: 70% of California’s Oil

The Kern County mayor laid out the county’s significance. “We produce over 70% of all the oil produced in California, about 70% of the natural gas, close to 60% of the renewables in the state,” Mayor Doerr said. “Oil and gas — they are six out of our 10 top taxpayers. $80 million a year that goes to fund county government. $100 million to our schools from the oil industry.”

“If our industry is driven out of business — and that’s exactly what the Newsom administration is trying to do — it was once covertly suppressed. Now there’s no covert about it,” Doerr said.

Energy Secretary “Doesn’t Even Know”

McCarthy criticized Energy Secretary Granholm. “Our secretary of energy doesn’t even know how much we produce a day or how much we need. She doesn’t understand the industry,” McCarthy said. “I would welcome her to come here, because she’s got 4,000 permits that are still sitting there. She’s got 6 permits on LNG that have been sitting at the desk for no other reason.”

He again cited Democrats pressing CEOs in congressional hearings. “You know what their question was? ‘Will you promise to produce less oil next year and be like Europe?’ I don’t want to be like Europe. I don’t want to be beholden to Putin. I want to control our own destiny,” McCarthy said.

Key Takeaways

Over 1,000 drilling permits sat unsigned on Newsom’s desk; California oil production fell 20% (89,000 barrels/day) since he became governor.
California replaced domestic production with Russian oil (50,000 barrels/day) and imported over 51% of Ecuador’s rainforest oil.
Gas in some California locations hit $6.999 while two miles across the Arizona border it was $3.399 — “the Sacramento surcharge.”
The oil industry employs 55% people of color, 20% veterans, and 22% second-chance workers earning six-figure incomes.
Kern County derives $80 million in county revenue and $100 million in school funding from the oil industry that the state was trying to destroy.

Transcript Highlights

The following is transcribed from the video audio (unverified — AI-generated from audio).

More than a thousand permits sit on his desk. California has lowered production by 20%. That’s 89,000 barrels a day. Putin is getting our money.
I went through Needles, California — $6.999. Crossed the river — $4.56. Where I lived — $3.399. That is the Sacramento surcharge.
55% of people of color work in our oil industry. 22% are second-chancers making well above six-figure incomes.
Our secretary of energy doesn’t even know how much we produce a day or how much we need.
Will you promise to produce less oil and be like Europe? I don’t want to be like Europe. I don’t want to be beholden to Putin.
Six out of our 10 top taxpayers are oil and gas. $80 million to county government. $100 million to our schools.

Full transcript: 1347 words transcribed via Whisper AI.