The Bureau of Land Management (BLM) will offer approximately 35,000 acres of California land for an oil and gas auction on December 1, 2023. This auction includes 43 parcels in Kern, Kings, Fresno, and San Luis Obispo counties. This action follows BLM's decisions in June that allowed the resumption of federal oil and gas leases in the Bakersfield planning area and Central Coast of California after years of legal challenges and environmental reviews.
Auction Details and Its Impacts
Most federal drilling in California occurs in Kern County, and according to BLM, over 95% of federal drilling in the state takes place in existing fields in Kern County. These activities support approximately 3,500 jobs and generate over $200 million in annual revenue. Federal revenues from oil and gas in this region amount to about $65 to $90 million annually, half of which is returned to California.
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Lease Process and Timeline
The December auction has been reduced from 44 parcels, which included approximately 36,000 acres. A 30-day protest period has begun on Wednesday and will continue until November 2. Companies must submit separate applications for drilling, which will lead to further review and environmental analysis by BLM before development can begin.
California is increasingly dependent on imported crude oil. In the first six months of 2026, California refineries received 119.9 million barrels of foreign crude oil, accounting for about 56% of total crude oil supply to the refineries. Crude oil produced in California makes up nearly 25%, with Alaska supplying most of the remainder. In 2025, foreign barrels supplied 61.1% of the oil processed by California refineries, while California's domestic production accounted for only 22.9%.
The December auction will determine who gains access to another 35,000 acres. Each new barrel still has years and multiple permitting stages to go through before reaching the refinery.
