New Thoughts on California Oil

SEI scientists Peter Erickson and Michael Lazarus argue that limiting fossil fuel supply, specifically high-cost and high-emissions oil in California, is essential for solving the climate crisis. They contend that reducing production helps avoid stranded assets and that California's projected decrease in oil demand by 2030 allows for a production phase-down without increasing oil imports.

• Limiting the supply of fossil fuels is an essential component of addressing the climate crisis, as continued investment in new production risks locking in a future with higher carbon emissions.
• Restricting investment in higher-cost and higher-emissions oil, such as that produced in California, can protect investors from 'stranded assets' that lose value as oil prices drop due to lower future demand.
• California can phase down its annual oil production of approximately 170 million barrels without increasing oil imports, provided it meets its consumption reduction goals. The California Air Resources Board's 2030 Climate Change Scoping Plan projects the state will use about 150 million fewer barrels of oil in 2030 compared to current levels.
• Reducing oil production in California can lead to a reduction in global oil consumption because the replacement ratio for oil supply is likely less than one-for-one, meaning a price increase would reduce consumer demand.

APA

Erickson, P., & Lazarus, M. (2018). New Thoughts on California Oil. Stockholm Environment Institute. https://www.sei.org/perspectives/new-thoughts-california-oil/

Chicago

Erickson, Peter, and Michael Lazarus. New Thoughts on California Oil. Stockholm Environment Institute, 2018. https://www.sei.org/perspectives/new-thoughts-california-oil/.

Wikipedia

{{cite press release |last1=Erickson |first1=Peter |last2=Lazarus |first2=Michael |title=New Thoughts on California Oil |publisher=Stockholm Environment Institute |date=16 August 2018 |url=https://www.sei.org/perspectives/new-thoughts-california-oil/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{erickson2018new, author = {Erickson, Peter and Lazarus, Michael}, title = {{New Thoughts on California Oil}}, publisher = {Stockholm Environment Institute}, year = {2018}, month = aug, url = {https://www.sei.org/perspectives/new-thoughts-california-oil/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }