Merced, CA—The UC Merced Community and Labor Center has released Fueling Transitions, a report documenting California’s oil and gas industry decline, and its implications for employment, property taxes and county budgets.
Top Findings include:
- Oil production has steadily and dramatically decreased across two decades and is projected to reach negligible levels around California’s 2045 goal of carbon neutrality.
- California’s oil and gas employment in 2021 was concentrated in four counties: Kern (18% of state’s employment), Contra Costa and Solano (11%) and Los Angeles (24%).
- California oil and gas workers annually earn $26,500 more than their counterparts with similar education in other industries.
- California workers in occupations concentrated in the declining oil and gas industry are projected to lose an average of $35 million per year in pay premiums.
- Oil and gas property tax revenues comprise a minority of total property taxes for Kern (11%), Contra Costa (2%) Solano (1%), and Los Angeles (0.4%).
- Kern, Los Angeles, and Contra Costa County’s general fund balances have increased nearly every year since 2000, despite steady and dramatic oil and gas industry declines.
The report outlines several recommendations identified by the study’s Community Advisory Board, including how the State of California can provide support for displaced oil and gas workers, and how it can create a stabilization fund to protect public budgets, services, and jobs.
The Center analyzed several public data sources including California Oil, Gas, and Geothermal Annual Reports (2000-2022); American Community Survey (2000-2023) public use microdata; California Board of Equalization assessed values; Kern, Los Angeles, and Contra Costa County Annual Financial Reports; and Kern County Assessor’s Office parcel-level data.
