Los Angeles Bans Oil Drilling, Sets 20-Year Phaseout
Oil operators face a mandatory 20-year phaseout for all city-based wells, effectively barring future expansion or reactivation.
Updated on Oct. 28, 2026 in Oil and Gas
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Should local governments have the authority to ban oil and gas operations within their city limits?
The Los Angeles City Council has voted unanimously to ban all oil drilling and pumping within city limits, effectively classifying existing wells as nonconforming uses. The ordinance mandates a 20-year phaseout period for the roughly 1,800 active and idle wells across the city.
Why it matters
The ordinance aims to align local land use with the city's target of reaching 100% clean electricity by 2035 and to mitigate public health concerns. This move forces a long-term operational pivot for local energy operators and developers looking to repurpose land for housing or parks.
The ordinance mandates a 20-year phaseout for 600 active and 1,200 idle oil wells currently located within the city. Three companies, including Warren Resources and E&B Natural Resources Management Corp., operate roughly two-thirds of these active sites.
The players
Los Angeles City Council
The local legislative body responsible for city-wide land use, zoning policy, and municipal regulatory enforcement.
Warren Resources
An energy company that serves as one of the primary operators of oil wells currently affected by the city mandate.
E&B Natural Resources Management Corp.
A petroleum company with a significant footprint of active oil operations now subject to the city's 20-year phaseout.
Tidelands Oil Production Co.
An energy operator holding a major stake in the city's active well sites covered by the new restrictive ordinance.
Gavin Newsom
The Governor of California who signed Assembly Bill 3233, granting local governments legal authority to regulate oil extraction.
The details
Under the new rule, all existing oil and gas activities are classified as nonconforming, prohibiting operators from re-drilling, deepening, or expanding operations. While routine maintenance remains permitted, the ordinance explicitly blocks idle wells from returning to production. The city plans to transition these sites toward residential and recreational use, bolstered by Assembly Bill 3233, which authorizes local control over these industrial operations.
Timeline
2022: Initial city ban on oil production passed.
2024: L.A. County Superior Court judge struck down the previous ban.
October 28, 2026: City Council voted to approve the new, current ordinance.
2035: Target year for the city to achieve 100% clean electricity.
Market Landscape
The ordinance follows the legal framework established by Assembly Bill 3233, which provides the necessary authorization for cities to restrict oil operations. This action marks a departure from earlier attempts that were invalidated by the court system in 2024.
Operators must account for the loss of production capacity over the next two decades and the inability to reactivate idle assets. Businesses should consult legal counsel regarding the impact of the nonconforming use designation on property valuations and long-term land-use planning.
The takeaway
The move signals a definitive shift toward redeveloping industrial sites for commercial or residential use in Los Angeles. Operators should review their land-use agreements and site permits to determine how the phaseout classification affects their ability to maintain operational cash flow.
Further reading
For more on the industry-wide transition and local regulation, explore Oil and Gas.
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Should local governments have the authority to ban oil and gas operations within their city limits?
