Supreme Court Rejects Oil Industry Challenge to Reverse Offshore Fracking Ban in California

A rare blue whale surfaces 11 miles off Long Beach Harbor in the Catalina Channel, Calif., near offshore oil rigs in an undated image. (David McNew/Getty Images)

The U.S. Supreme Court sided with environmentalists and rejected a challenge by the oil industry to reverse an offshore fracking ban in California on June 5.

The Environmental Defense Center filed its original lawsuit in 2014 to stop offshore fracking in federal waters, arguing the fracking chemicals could cause environmental issues and kill marine life.

Last year, the U.S. Court of Appeals for the 9th Circuit ruled that the federal government violated the National Environmental Policy Act when it allowed fracking and acidizing extraction practices at all offshore oil and gas wells in leased federal waters in the Pacific Ocean.

“The agencies also should have prepared a full [environmental impact statement] in light of the unknown risks posed by the well stimulation treatments and the significant data gaps that the agencies acknowledged,” the appeals court wrote.

State Attorney General Rob Bonta agreed with the Supreme Court’s ruling to protect California’s coast and wildlife.

“One of our prized jewels is our beautiful coastline, and with today’s decision, we are able to continue protecting it from harmful fracking,” Bonta said in a June 5 statement. “The science and the law were on our side, and the Supreme Court agreed there was no reason to continue this litigation.”

California Governor Gavin Newsom speaks in the rotunda of the California State Capitol in Sacramento on March 28, 2023. (Courtesy of the Office of Governor Gavin Newsom)

Environmental Groups Celebrate

The Environmental Defense Center (EDC) praised the Supreme Court’s decision in a statement.

“The Supreme Court was right to reject the oil industry’s latest attempt to allow fracking and acidizing in our waters with zero meaningful environmental reviews,” Maggie Hall, senior attorney at EDC, said in a statement.

The Center for Biological Diversity also weighed in.

“The decision to halt fracking was exceedingly well-reasoned, and I hope the court rejects the oil industry’s reckless attempt to overturn the 9th Circuit’s ruling,” Kristen Monsell, oceans legal director at the Center for Biological Diversity, said in a statement. “Fracking is dangerous to whales, sea otters, and other marine wildlife, and this dirty, harmful technique has no place in our ocean.”

Gov. Gavin Newsom took action in 2021 to phase out oil extraction in California by January 2024. Additionally, he requested that the California Air Resources Board analyze pathways to phase out oil extraction across the state by 2045.

“The climate crisis is real, and we continue to see the signs every day,” Newsom said in a statement at the time. “As we move to swiftly decarbonize our transportation sector and create a healthier future for our children, I’ve made it clear I don’t see a role for fracking in that future and, similarly, believe that California needs to move beyond oil.”

Newsom’s Energy Policies

Robbie Hunter, president of the State Building and Construction Trades Council of California, said in 2021 that Newsom’s actions would lead to thousands of lost jobs, exporting them to foreign countries.

“This announcement, steeped in politics rather than facts and science, will bring about the loss of tens of thousands of good, middle-class, blue-collar jobs and double the cost of gasoline and diesel, adding more weight to the backs of already struggling California families,” Hunter told the Los Angeles Times.

Clark Williams-Derry, an energy finance analyst from the nonprofit Institute for Energy Economic and Financial Analysis, said at the time that Newsom’s actions would only inflict financial hardships on multinational oil companies that operate almost exclusively in California.

“The fact that oil companies haven’t been making much money in California already—just the basic economics has not been very lucrative for them—makes it easier for Newsom to make a move like this,” Williams-Derry told the Los Angeles Times. “It’s not like it’s a growing and booming industry with much potential for the future. This is a recognition that oil is coming out in California.”

Earlier this year, the American Petroleum Institute (API) and two oil companies filed their petition for certiorari (pdf) with the U.S. Supreme Court, seeking a review of a lower court decision that halted offshore fracking in federal waters off California.

Holly Hopkins, API’s vice president of upstream policy, said the organization will continue to work with policymakers to advance opportunities for the safe and responsible development of the Outer Continental Shelf.

 “Access to the vast energy resources offshore is essential for meeting the growing demand for affordable, reliable energy while achieving our climate goals,” Hopkins said in a statement, according to California Globe.