This is a form dealing with the Over-Production and Under-Production of Gas, the event Assignor's gas production, if any, from the Assigned Property is in excess of or less than Assignor's interest in the Property, then Assignee shall acquire Assignor's interest subject to that over-production or under-production.
California Over-Production and Under-Production of Gas
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Multi-State
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US-OG-502
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FAQ
In 2022, about 14.5% of U.S. crude oil was produced from wells located in the Federal Offshore Gulf of Mexico and about 0.1% was produced in Federal Offshore Pacific (California).
2021 Total System Electric Generation Fuel TypeCalifornia In-State Generation (GWh)Total Imports (GWh)Natural Gas97,4317,925Oil37-Other (Waste Heat/Petroleum Coke)38283Nuclear16,4779,28111 more rows
The U.S. has been the world's biggest oil producer since 2018 and continued its dominance in 2022 by producing close to 18 million barrels per day (B/D).
Capacity limitations in a pipeline flowing from Texas to the west put additional constraints on supply because the state imports about 90%-95% of its natural gas. Southern California's supply comes from as far away as Texas and Louisiana. Gas can flow through the pipeline at about 20-30 mph.
California gas is generally more expensive than the rest of the nation due to: High local taxes. Taxes can make up about 13% of the price of a gallon of gas, ing to the U.S, Energy Information Administration. California's regulation for a special more environmentally friendly blend that tends to be more expensive.
California's Oil Refineries Because more than 90 percent of the gasoline consumed in California comes from in-state refineries, significant unplanned refinery outages contribute to increases in the price at the pump. The state's 14 oil refineries are in the Bay Area, Central Valley, and Los Angeles.
But perhaps the greatest factor, Haan says, is a lack of refining infrastructure that goes back decades and has isolated the Golden State. ?California has made it very difficult to be a refinery here. In fact, the number of refineries here has fallen by more than half since 1991,? he says.
California also has less natural gas storage than it once had, in part because Aliso Canyon in Los Angeles, one of the biggest natural gas storage sites in the Western United States, reduced its capacity after a major leak there in 2015. That means the state has fewer reserves when demands are high.
