In December, the LA City Council voted unanimously to ban new oil and gas drilling as well as agreeing to phase out existing wells over the next 20 years.
Yet, just over a month after the council’s decision, an oil firm with a drilling project in Wilmington, LA has decided to sue the city over the ban. The company, Warren Resources, has accused the council of failing to carry out the necessary environmental review over the potential impact of halting extraction. The lawsuit, filed in the LA Superior Court, states that the decision violates the California Environmental Quality Act, the city’s General Plan and the state and federal constitutions.
However, four other oil entities have already also initiated a separate lawsuit against the city’s ban this month. And more oil companies may soon follow in Warren’s footsteps, many of whom have several high-value oil operations in development across the city.seventh-largest crude oil-producing state
in 2021 and third-largest refiner. It is also the largest consumer of jet fuel and second-largest consumer of gasoline, accounting for 15 percent of U.S. jet fuel consumption and 10 percent of motor gasoline use in 2020. However, in 2021, California was also the country’s biggest producer of electricity from solar, geothermal, and biomass energy, demonstrating the expanse of its renewable energy sector.
LA’s ban on new oil and gas projects, and plans to phase out existing operations, marks a major step away from fossil fuels to renewable alternatives. It follows several new climate policies at the state level and a wide array of reports and lobbying from environmental groups and residents. However, this is unlikely to be an easy transition as oil companies operating in the state reject the move, using legal action to ensure the City Council faces several hurdles on the road to green.
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