This proposal, like the previous one in Florida, is all about money as the states grapple with budget shortfalls. California expects the legislation could bring in over $1.8 billion over time. The proposals also show how quickly two states which were adamant against lifting the drilling moratorium in federal waters less than a year ago could change their opinion.
California’s decision to allow offshore drilling would be a boon to the exploration industry, especially if the state supported opening up federal areas beyond state waters. Those regions have substantial proven reserves: roughly 2/3 of all proven supplies on the US’s outer continental shelf.