Energy transition in California: Impact on Taft’s oil industry

This article examines the economic challenges facing the city of Taft, California, as a result of the energy transition, highlighting local oil industry issues and divergent community opinions.

Share:

industrie pétrolière

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

California’s energy transition has had a direct impact on Taft’s oil industry. The town of Taft, located in the heart of California’s Kern County, has long been a symbol of the oil industry in the United States. However, the ambitious energy policies of the State of California pose major challenges for this community and its economy.

Faced with the threat of increasing restrictions on oil drilling, Taft found itself at a crucial turning point in its history. This article examines the impact of California’s energy transition on the city and its oil industry.

Taft’s oil tradition

Taft, surrounded by thousands of oil wells in the Californian desert, is proud of its oil tradition. Kern County produces 70% of California’s oil. Yet the local oil industry is facing major challenges as a result of the state’s environmental initiatives.

For many Taft residents, the priority is to preserve jobs in the oil industry. The “Save the wells” sign in the bar on the main street sums up this sentiment. Some believe that climate targets should not harm the local economy, which is heavily dependent on oil.

Economic issues

The tax revenues generated by the oil industry fund many local infrastructures, from education to security services. The energy transition could jeopardize these essential sources of financing.

Retraining oil industry workers for green jobs is a major challenge. Although California has recently put measures in place to facilitate this transition, the changes are already noticeable in Kern County.

The prospect of renewable energy

Kern County is also a major producer of renewable energy. However, certain tax exemptions for solar and wind power can have an impact on local finances.

Kern County is fighting in court to authorize new drilling, arguing that demand for oil remains strong and that importing black gold from abroad is not the solution.

Diversity of opinion

Taft residents have a variety of views on the energy transition. Some favor preserving the oil industry, while others stress the importance of the environment and air quality.

The Ministry of the Economy forecasts stable regulated tariffs in 2026 and 2027 for 19.75 million households, despite the removal of the Arenh mechanism and the implementation of a new tariff framework.
The federation of the electricity sector proposes a comprehensive plan to reduce dependence on fossil fuels by replacing their use in transport, industry and housing with locally produced electricity.
The new Czech Minister of Industry wants to block the upcoming European emissions trading system, arguing that it harms competitiveness and threatens national industry against global powers.
Several scenarios are under review to regain control of CEZ, a key electricity provider in Czechia, through a transaction estimated at over CZK200bn ($9.6bn), according to the Minister of Industry.
The government has postponed the release of the new Multiannual Energy Programme to early 2026, delayed by political tensions over the balance between nuclear and renewables.
Indonesia plans $31bn in investments by 2030 to decarbonise captive power, but remains constrained by coal dependence and uncertainty over international financing.
A drone attack on the Al-Muqrin station paralysed part of Sudan's electricity network, affecting several states and killing two rescuers during a second strike on the burning site.
The Bolivian government eliminates subsidies on petrol and diesel, ending a system in place for twenty years amid budgetary pressure and dwindling foreign currency reserves.
Poland’s financial watchdog has launched legal proceedings over suspicious transactions involving Energa shares, carried out just before Orlen revealed plans to acquire full ownership.
The Paris Council awards a €15bn, 25-year contract to Dalkia, a subsidiary of EDF, to operate the capital’s heating network, replacing long-time operator Engie amid political tensions ahead of municipal elections.
Norway’s energy regulator plans a rule change mandating grid operators to prepare for simultaneous sabotage scenarios, with an annual cost increase estimated between NOK100 and NOK300 per household.
The State of São Paulo has requested the termination of Enel Distribuição São Paulo’s concession, escalating tensions between local authorities and the federal regulator amid major political and energy concerns three years before the contractual expiry.
Mauritania secures Saudi financing to build a key section of the “Hope Line” as part of its national plan to expand electricity transmission infrastructure inland.
RESourceEU introduces direct European Union intervention on critical raw materials via stockpiling, joint purchasing and export restrictions to reduce external dependency and secure strategic industrial chains.
The third National Low-Carbon Strategy enters its final consultation phase before its 2026 adoption, defining France’s emissions reduction trajectory through 2050 with sector-specific and industrial targets.
Germany will allow a minimum 1.4% increase in grid operator revenues from 2029, while tightening efficiency requirements in a compromise designed to unlock investment without significantly increasing consumer tariffs.
Facing a structural electricity surplus, the government commits to releasing a new Multiannual Energy Programme by Christmas, as aligning supply, demand and investments becomes a key industrial and budgetary issue.
A key scientific report by the United Nations Environment Programme failed to gain state approval due to deep divisions over fossil fuels and other sensitive issues.
RTE warns of France’s delay in electrifying energy uses, a key step to limiting fossil fuel imports and supporting its reindustrialisation strategy.
India’s central authority has cancelled 6.3 GW of grid connections for renewable projects since 2022, marking a tightening of regulations and a shift in responsibility back to developers.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.