BAKERSFIELD, CA — A new California law is being credited with a fast increase in oil drilling permits in Kern County, where industry leaders say the permitting process has become more predictable and easier to plan around.
The change centers on SB 237, which took effect Jan. 1 and allows the state in many cases to rely on Kern County’s environmental review process. Companies operating in the region say that shift has already helped move projects forward, with California Resources Corporation and Chevron both describing a more stable outlook for drilling, staffing and reinvestment.
State permit totals jumped in 2026
The effect of the law is showing up in permit numbers statewide. An analysis of state data by Consumer Watchdog and FracTracker found 353 new-drill permits approved in California during the first half of 2026.
That compares with just 17 permits approved across all of 2025. State regulators caution that a permit does not guarantee a well will actually be drilled, but the increase signals a sharp change in activity since the law took effect. For Kern County operators, that matters because permit timing affects whether companies can keep rigs working and capital flowing into the field.
Industry officials say the new framework reduces uncertainty that had slowed planning in prior years.
CRC says permits are lining up with its drilling needs
California Resources Corporation says it has received 193 of the 194 permits it applied for to cover its 2026 drilling needs, and the company expects to drill close to that number. Brent Ilott, CRC’s vice president of operations, said SB 237 streamlined the surface permitting steps needed to secure a new drill permit from CalGEM.
CRC says four of its five active drilling rigs are operating in Kern County, while the fifth is at its Long Beach operation. Ilott said those four rigs support roughly 360 jobs. He also said the added drilling helps offset the natural decline in production from existing fields and can strengthen reserves, property values and county tax revenue.
Ilott said the company is already applying for permits tied to its 2027 plans and remains publicly committed to a four-rig drilling program.
Chevron and service companies see stability returning
Chevron also has one active rig in Kern County and says the permit increase is helping the company sustain production and reinvest in future operations. Ray Thavarajah, Chevron’s general manager of operations, said the added permits make it easier to maintain the jobs the company already has and to grow strategically where it makes sense.
Thavarajah said years of limited permit availability had created a slowdown that reached beyond the oil patch. In his view, when investment cools in oil and gas, the effect spreads to the contractors and support businesses that depend on that work.
That broader network includes companies like Halliburton, which serves both CRC and Chevron. Frank Rodriguez, a district manager with Halliburton, said stability is the biggest benefit of the new permit environment.
Rules still include setback limits and environmental review
Even with the faster pace of permits, CRC says the law does not erase existing environmental scrutiny. Ilott said SB 237 prohibits permitting new wells within 3,200 feet of a sensitive receptor such as a home, school or park.
He also said the company still has to go through the same biological surveys and other reviews required to obtain surface signoff. Thavarajah said Chevron welcomes strong regulation and views oversight as a way to focus companies on the right answer rather than as an obstacle in itself.
Environmental and consumer groups have raised concerns about the effects of more drilling, but industry leaders say the law balances those concerns with a more workable approval process for projects that meet the rules.
Oil leaders say Kern County’s future depends on clear rules
Both CRC and Chevron say Kern County’s long-term energy future will depend on clear regulations, timely permits and community support. Thavarajah said he expects the county to remain an energy leader over the next five to 10 years.
He said success would mean residents have the same opportunities they have had in past generations. CRC, meanwhile, is looking beyond oil production alone and is also pursuing a data center project at its Elk Hills property.
Ilott said the company has filed a conditional use permit for the project, which could create 200 to 250 permanent jobs within five years. The facility would use a closed-loop cooling system with an initial fill of about 600,000 gallons of water, then roughly 6,000 gallons a year after that.
CRC's Elk Hills data center could add jobs
CRC says the proposed data center would be powered by its existing 550-megawatt power plant and would not increase the use of purchased natural gas. Company officials said the project would use about as much water initially as six homes in Kern County use in a year, based on the company’s comparison.
The proposal adds another example of how energy companies in Kern County are trying to pair traditional drilling with new investment plans. While the permit surge is centered on oil production, company officials say the broader goal is keeping operations active, creating jobs and supporting the local tax base.
For now, the companies say the law has given them a clearer path forward, and local drilling activity appears to be responding quickly.
