BAKERSFIELD, Calif. (KERO) — The first discovery well in the Kern River Fields was drilled in 1899, now according to a new report, it's a $20 billion industry.
- According to the Los Angeles Economic Development Corporation, the oil and gas industry in Kern County has an over $20 billion dollar impact, is responsible for over 13,400 jobs, and notes that $3.2 billion in wages paid out, goes back into the local economy.
- According to the Sierra Club, while the numbers are staggering, they claim that there are several hidden costs to Kern County residents like excess pollution.
- Chad Hathaway, owner of petroleum company Hathaway LLC., when looking at the future of the industry, it's still unclear. Hathaway says if legislation continues to further regulate the industry, it could spell trouble for operators down the line.
- To read the full LAEDC report, please visit their website.
BROADCAST TRANSCRIPT:
According to California State Parks, Kern County’s first discovery well in the Kern River oil field was drilled in 1899, now oil and gas account for over 20 billion dollars in economic impact yearly according to the Los Angeles Economic Development Corporation’s latest oil and gas report, I’m Sam hoyle, your neighborhood reporter, let’s break down this report and see where things could be going for oil and gas in the future.
According to the report, the gas and oil industry accounts for 20.5 billion dollars of economic impact, over 13,400 jobs, and 3.2 billion dollars of the money from the industry that’s paid in wages gets spent in our local economy.
While the numbers look good on paper, environmental groups like the Sierra Club point out some of the hidden costs of the oil and gas industry with Mercedes Macias, Sierra Club’s Beyond Dirty Fuels Campaign Organizer saying in a statement:
"The most glaring omission in this report is the complete absence of the significant costs the oil and gas industry imposes on society. Pollution from drilling puts children in the hospital, causes dramatic spills and leaks, and warms the climate to record temperatures. And year over year, fossil fuel companies pass these medical and climate disaster costs to California taxpayers. Yes, Big Oil CEOs are making millions off of oil and gas, but millions of others are paying the price."
And looking to the future, it’s unclear which direction the industry will trend.
For Chad Hathaway, owner of Petroleum Company Hathaway LLC in Bakersfield, he believes the state has over-regulated the industry to the point where operators in the area could be forced to close up shop unless things change.
"With some regulatory relief. I definitely see, you know, a lot of vendors, a lot of services, have left the state and but they will come back if the work is there," said Hathaway. "I think it with some easing and with some common sense applied to this, the regulatory overload that's occurring right now, then I think that things could turn the right direction."
To see the full oil and gas report from the LAEDC, be sure to check out this story online.
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