Below is an examination of the phase-out of oil production fields in California, integrating expert insights from the W&A February 2025 Brownfield Braintrust Podcast, external quantitative/regulatory data, and contextual analysis. California’s Oil Field Phase-Out: Challenges, Opportunities, and the Road to 2045 Introduction: A New Era for California’s Oil Lands California is undergoing a historic transformation in its energy and land use landscape. With state leaders setting an ambitious goal to cease oil production by 2045 (SB 1137), thousands of acres that have long hosted oil wells are now at the center of regulatory scrutiny, technical challenges, and market opportunity. The process is nuanced, involving complex abandonment procedures, environmental remediation, and intricate agency coordination. As Matt Winefield noted in his recent Brownfield Braintrust Podcast, "What is a loss for oil production could be a gain for remediation companies, homebuilders, and industrial developers." Regulatory Landscape: Laws and Enforcement Tighten The driving force behind California’s oil field phase-out is a combination of legislative action and agency enforcement. The most notable recent law is Senate Bill 1137 (SB 1137), which restricts new drilling and well maintenance within 3,200 feet of homes, schools, and sensitive sites (SB 1137 Text). The law has already sparked industry lawsuits (Yahoo News, April 2025), but its intent is clear: accelerate the sunset of oil extraction in residential and urban-adjacent areas. Key Agencies:
Site Characteristics and Contaminants: What Needs Cleaning Up? A typical California oil production field is crowded with wells and support facilities, often in close proximity to residential areas. As Mark described, “California is very unique in terms of you literally have oil and gas wells separated by a few feet, whereas in all the other states you don’t see that.” Contaminants and Waste:
Steve Figgins (geophysicist, podcast guest) summarized: “In the brine we find a lot of benzene. Occasionally there’s some naturally occurring radioactive material, but what’s left on the site are really long-chain hydrocarbons… it’s kind of a dirty soil issue and a lot of people want to scrape that up.” Well Abandonment: The Technical and Financial Challenge Perhaps the most costly and technically challenging aspect of phasing out oil fields is well abandonment. Modern standards require cement plugs and mechanical isolation to prevent contamination of drinking water and gas migration. As Mark explained, “The goal of CalGEM is to make sure that the freshwater zones are protected… They have added additional requirements in terms of the depth of surface plugs.” Well Abandonment Process:
Cost Estimates:
Steve explained the complexity: “The longer you’ve got an abandonment rig on there, your charges rack up. If you could just do the vertical well before and not chase after what’s in the sidetrack wells, it was less expensive. The enforcement is more rigorous now—they want you to go through that sidetrack well.” Remediation: From Sumps to Soil Vapor Remediation of oil field sites centers on removing contaminated soils (especially from historic sumps) and addressing vapor intrusion risks. “Most of these oil production field remediation projects are dig-and-haul exercises,” Matt summarized. Remediation Technologies:
Steve noted, “You can do some bioremediation—petroleum hydrocarbons are very easily biodegradable. The problem is it takes time… gasoline is easy to biodegrade, long-chain hydrocarbons on crude oil take a lot longer.” Redevelopment Potential: Market Forces and Opportunity Despite regulatory and technical hurdles, the phase-out of oil production opens major opportunities for homebuilders, industrial developers, and remediation firms. Historic oil fields in places like Brea and Huntington Beach have already been transformed into thriving residential communities. Mark observed, “There is a significant market to convert lower producing oil wells and oil fields to positive redevelopment… many of those sites were massive oil fields that are now very nice residential areas.” Market Considerations:
Conclusion: The Road Ahead for Oil Production Field Redevelopment California’s commitment to ending oil production by 2045 is reshaping the future of land use, environmental cleanup, and real estate development in the state. While the challenges are significant—stringent well abandonment requirements, costly remediation, evolving regulations—the opportunities for those able to navigate the technical and regulatory terrain are equally substantial. As Matt Winefield concluded, “Dealing with the contamination issues should be, with the exception of sumps and things that are hazardous waste, less problematic than for a plating site or a dry cleaner… The wild card is the enforcement of abandonment requirements depending on where you site your building.” The next two decades will see a steady transition, with remediation professionals, legal experts, and developers working in concert—and sometimes in conflict—with regulators and industry. For those prepared, California’s oil field phase-out is not just a regulatory mandate—it’s a chance to build a new legacy on old land. References
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About Matt Winefield Matt Winefield is an environmental engineer–turned–brownfield investor and the founder of Winefield & Associates. For 30‑plus years he has transformed contaminated, blighted sites into profitable infill assets through cost‑conscious remediation, creative agency negotiations, and third‑party cost‑recovery strategies. Matt partners with investors who see hidden value where others see risk. Learn more about Matt Email: [email protected] Website: winefieldinc.com Phone: (562) 618‑0037 Connect with Matt: Brownfield Braintrust Podcast VI Blog About Matt Winefield was recently interviewed by environmental attorney extraordinaire, Thierry Montoya, about the current state of brownfield redevelopment in California. The interview was recorded for Thierry’s environmental law podcast known as the “Essential Environmental Podcast.” We try to answer the question: Does it remain feasible to invest in brownfield projects given recent regulatory handcuffs imposed by the California EPA, Department of Toxic Substances Control, and State Water Resources Control Board?  Time Stamp - Topic
05:00 - Defining Brownfields 08:00 - Dry Cleaner Environmental Risks 09:10 - Defining a Soil Vapor Attenuation Factor 13:20 - Environmental Justice Considerations 15:00 - Consequences of the CalEPA’s Vapor Intrusion Guidance (VIG) 18:30 - Environmental Regulator Staff Turnover 20:30 - Brownfield Investment Viability when Groundwater is Impacted 22:45 - Leveraging Old Insurance Policies for Current Remediation 25:00 - Brownfield Success Stories 29:00 - Deals Killed Due to CalEPA’s VIG 30:00 - Site Specific Attenuation Factors 30:45 - The CalEPA VIG is an Underground Regulation 36:00 - Taking Legal Action Against CalEPA 37:15 - Incorporating the VIG into Water Code Section 92-49 39:45 - Regulatory Inflexibility for the 0.03 Attenuation Factor 42:50 - How OCHCA is Using the 0.03 Attenuation Factor for Assessments 44:00 - The Courts’ Deference to Environmental Regulators 48:00 - CA Brownfield Investments in Today’s Regulatory Climate 52:10 - Putting Political Pressure on Environmental Regulators 54:50 - Current Assessment and Remediation Grants 56:50 - Environmental Insurance Options  Winefield & Associates is proud to support the 2023 California Land Recycling Conference (CALRC) in Carson, CA from September 26-28. The Conference is hosted by the U.S. EPA Region 9, CA Department of Toxic Substances Control's (DTSC) Office of Brownfields, and the Center for Creative Land Recycling (CCLR). The theme People, Partnerships, Progress will showcase how brownfield reuse can directly address many of the challenges our communities face to build more equitable, sustainable, resilient, and affordable neighborhoods.
Climate change, environmental injustice and inequity, and the affordability crisis impact our day-to-day lives. The California Land Recycling Conference will showcase neighborhood-level solutions to all three of these challenges through the reuse of abandoned or forgotten sites (brownfields) into the homes, businesses, parks, education and healthcare options so urgently needed. Our founder, Matt Winefield, will also showcase how Winefield & Associates is part of the solution by speaking at the 4pm, Wednesday, September 26th Brownfield Developer panel. The Conference offers a robust program focused on timely and trending land reuse topics, including: interagency collaboration, PFAS, historic funding opportunities, placemaking, welcoming young professionals into our industry, and much more. In addition, to maximize engagement opportunities, the Conference brings together community and private sector leaders engaged in the vital work of brownfield cleanup and revitalization, emphasizing the connections between land revitalization, environmental justice, and climate and highlighting available resources to build stronger communities. We are delighted to support the U.S. EPA Region 9 and DTSC and their significant efforts to revitalize complex properties to create vibrant cities, towns, and neighborhoods! Join us at CALRC to engage People in brownfield reuse, develop long lasting Partnerships, and support Progress within communities! Click here to learn more and register today. We hope to see you there. Our very own Matt Winefield was delighted to interview noted financier Gary Mozer, who shared his perspective on the impact of current interest rate fluctuations on real estate investments. Mr. Mozer places approximately $2 billion annually. He discussed interest rate projections, recent bank failures, and how to take advantage of this unusual real estate market. Many thanks to UCLA’s Bruin Professionals and the Real Estate Alumni Group for assistance with this event. REAG / Bruin Professionals Speaker Series: Matt Winefield Interviews Mary Childs of NPR Planet Money1/18/2023
It was a pleasure interviewing NPR Planet Money co-host, Mary Childs. She discussed how Bill Gross, founder of PIMCO, was one of the first to invest in the mortgage-backed industry, thereby helping foster that industry's growth. Ms. Childs was also kind enough to summarize her book, The Bond King: How One Man Made a Market, Built an Empire, and Lost It All. She has written for Barron's, the Financial Times, and Bloomberg News, covering topics from the bond market and real estate to capitalism and equality. Find out more about Mary at: https://www.npr.org/people/787218595/mary-childs Follow Mary on LinkedIn at: https://www.linkedin.com/in/marychilds/ The Sacramento Bee concurs that the vapor intrusion criteria issued by the California EPA is an important topic pertaining to redevelopment of blighted properties throughout the state. The Sacramento Bee published Matt Winefield's OpEd this week, appealing to the California EPA to update their Vapor Intrusion Guidance Document, which has stopped California brownfield redevelopment in its tracks. Click the image below to read the OpEd:  Curious what impact AB-304 is having on California remediation agencies? Matt Winefield and John Van Vlear give a 30-second overview in this video, but for a deeper explanation, click the following link to listen to the full Brownfield Braintrust Podcast episode: https://www.winefieldinc.com/podcasts/brownfield-braintrust-podcast-with-matt-winefield-and-john-van-vlear |
