A massive oil drilling project planned in the City of Carson, California was shelved Monday by The California Resources Corp., a former subsidiary of Occidental Petroleum.
The company had intended to drill up 200 new wells in the city as part of its Dominguez energy project—a lucrative deal which was expected to yield around 300 new jobs and hefty revenues. But with oil prices steadily falling, the company decided to cancel the venture and withdraw its application.
“California Resources Corp. has concluded that our proposed Dominguez energy project is no longer practical in the current commodity price environment, and we are asking the city to stop processing the project,” said communications vice president Margita Thompson. “We have greatly appreciated the opportunity to get to know and work with the Carson community, and the vocal support of so many Carson residents.”
Monday’s decision followed an extensive public relations campaign to shore up support for the controversial plan. Fearing that the company would utilize the process of hydraulic fracturing, residents organized opposition to it, prompting a 45-day moratorium on all new oil and gas drilling. The company, however, insisted it had no intention of employing fracking methods and the moratorium was ultimately lifted.
Residents who remained skeptical of the company’s motives celebrated Monday’s announcement.
“We don’t have to worry about our water that we drink, we don’t have to worry about our air quality that we breathe.… We’re talking about a way of life for us,” said Dianne Thomas, a resident and member of the Carson Coalition, which opposed the project.
City Attorney Sunny Soltani said city staff will cease work on the company’s application and pending environmental review immediately.
Read more about the project’s cancellation here.