California bill could unlock permitting for oil producers, analysts say

[Oil pump, oil industry equipment]
bjdlzx/E+ via Getty Images

A proposed California bill could reshape the permitting landscape for oil producers in Kern County, according to a report from Texas Capital Securities. The legislation, Senate Bill 237, remains in draft form [https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202520260SB237] but is already being viewed as a potential boost for companies such as Berry Corp. (NASDAQ:BRY [https://seekingalpha.com/symbol/BRY]) and California Resources Corp. (NYSE:CRC [https://seekingalpha.com/symbol/CRC]).

The draft measure would recognize Kern County’s Environmental Impact Report (EIR) as sufficient to satisfy state environmental review requirements under the California Environmental Quality Act (CEQA), reducing the risk of legal challenges that have slowed new drilling approvals. It would also authorize up to 2,000 new drilling permits annually in the county, with additional permits possible if needed to maintain in-state fuel supplies.

Analysts noted that the proposal would streamline the process for approving new wells in California’s most productive oil region, while also providing temporary relief through a CEQA exemption that runs until January 1, unless changed by lawmakers.

“Codifying the Kern County EIR would limit potential legal challenges that currently slow permitting in the state’s key producing region,” Texas Capital said in the September 10 report. The firm added that the legislation could help stabilize local oil production volumes, a move aimed at easing consumer fuel prices.

Shares of California Resources (NYSE:CRC [https://seekingalpha.com/symbol/CRC]) and Berry (NASDAQ:BRY [https://seekingalpha.com/symbol/BRY]) were flagged as potential beneficiaries if the measure advances, with the research team calling the proposal a “significant positive” for both companies.

MORE ON BERRY

* Berry Corporation: California Regulatory Situation Looking More Positive [https://seekingalpha.com/article/4817989-berry-corporation-california-regulatory-situation-looking-more-positive]
* Berry Corporation (BRY) Q2 2025 Earnings Call Transcript [https://seekingalpha.com/article/4811231-berry-corporation-bry-q2-2025-earnings-call-transcript]
* Berry Corporation 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4811228-berry-corporation-2025-q2-results-earnings-call-presentation]
* Marathon, others see new opportunity in California as regulatory policy eases [https://seekingalpha.com/news/4482852-marathon-others-see-new-opportunity-in-california-as-regulatory-policy-eases]
* Berry Q2 2025 Earnings Preview [https://seekingalpha.com/news/4478617-berry-q2-2025-earnings-preview]