California Could Expand Oil Drilling Under Budget Agreement
SAN FRANCISCO -(Dow Jones)- California could allow new oil drilling under a tentative agreement the state’s governor and lawmakers reached to plug the state’s $26.3 billion budget hole.
In a rare agreement with environmental groups, oil producer Plains Exploration & Production Co. (PXP) has proposed promptly expanding oil drilling off the coast of Santa Barbara, then shutting down four oil platforms and two onshore processing facilities in Santa Barbara by 2022. The company also agreed to donate 4,000 acres of land for public use. The company would slant-drill into the state’s seafloor from a platform it operates in federal waters.
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