California’s Desperate Bid To Charm Oil Companies Is Doomed To Failure
24th September 2025
The state of California has projected an image of economic superiority for many years that is simply a facade. Much of the state’s GDP (the go-to stat used by Governor Gavin Newsom to deflect any criticism of fiscal mismanagement) is based on a large proportion of federal funding, state welfare spending and a handful of large corporations that are now leaving for greener pastures in red states.
The corporate exodus has been taking place for at least a decade, but it accelerated during the pandemic lockdowns and has not abated since. It would appear that Newsom has finally recognized that his economic position is tenuous at best. His latest “charm offensive” is designed to entice oil companies to stay in the Golden State, with legislation to increase domestic oil production in California through new drilling permits and rehabilitating a defunct offshore pipeline.
The bill will allow for 2000 new oil permits a year over the next 10 years.