Right Column
Energy Resources
Fossil Fuels
The first California tideland oil well was drilled in 1896 in Santa Barbara County. Within 10 years, about 400 wells could be seen on the beach and just offshore. At that time, no State laws governed the extraction of oil and gas from State-owned lands and no revenues accrued to the State.
In 1921, the Legislature authorized the issuance of prospecting permits and leases for oil and gas development of the State's tide and submerged lands by the Surveyor General, the predecessor of the California State Lands Commission. Exclusive jurisdiction over all oil and gas development on the State-owned property was given to the Commission by the Legislature in 1938.
The State now administers more than 100 sites on which oil companies have developed some 1,000 wells that take oil and gas from State lands. A royalty is paid on each barrel of oil that is removed. In addition, over 1,000 wells produce oil from granted tidelands in the city of Long Beach.
The revenues received from oil and gas are deposited in the State's General Fund and allocated to be used for the Commission's budget, support of the State Water Project, capital outlay for higher education, and many other important projects. The Commission has generated over $6 billion in revenues from the extraction of oil and gas.
Geothermal
California is rich in geothermal resources. A significant commercial geothermal electric generating complex is located at "The Geysers" in Sonoma County. This complex generates enough electricity to provide for the needs of more than a half million people, and approximately one-fourth of the steam used to generate electricity at "The Geysers" comes from State geothermal leases.
The State has some land in every area within California where there are identified geothermal resources or where exploration or development of geothermal steam is taking place. Other State-owned lands are located in areas with identified geothermal potential, but not yet explored. Some of this land may be leased for direct heat rather than for electrical generating applications.