In May 2023, the Long Beach City Council requested a comprehensive review of the fiscal liabilities and economic impacts associated with California’s anticipated transition away from crude oil production. The resulting report examines the potential impacts of Senate Bill 1137, which would require a 3,200-foot setback between oil and gas production wells and homes, schools, playgrounds, hospitals, and nursing homes.

The report warns that the City of Long Beach faces a $301 million loss in oil revenue by 2035, driven by ongoing production decline and the potential implementation of SB 1137. These revenues play an important role in supporting core city priorities, including environmental protection, infrastructure improvements, beach maintenance, and public safety services.