California city’s drilling moratorium blocks Occidental’s plan

|About: Occidental Petroleum Corpor... (OXY)|By:, SA News Editor

A unanimous vote from Carson, Calif., to impose a 45-day moratorium on new oil and gas drilling effectively stalls plans by Occidental Petroleum (OXY -3.5%) to develop ~200 new wells in the area.

The city also voted to stop negotiations with OXY over proposed drilling plans until the company completes a planned spinoff of its California business.

Two test wells in the area pulled enough oil from deep underground that OXY believes it can generate 6K bbl/day of oil and 3M cf/day of natural gas when peak production is reached.