Big Oil Spends Record $17M to Keep California From Doing the Obvious
Oil and gas companies spent a record $17 million lobbying California to block climate and safety laws, all while raking in massive profits. Because who needs clean air when you have cash?
The fossil fuel industry is having a banner year, what with record profits and all. But it's not just cashing checks - it's also writing them, and California is the beneficiary of its largesse. According to the Last Chance Alliance, a coalition of environmental groups, oil and gas companies dropped more than $17 million on lobbying in the Golden State during the first half of 2026. That includes a record-breaking $10.3 million in Q1 alone, followed by a respectable $6.8 million in Q2.
Now, what does one buy with $17 million in lobbying? Apparently, a legislative agenda that says 'no thanks' to things like making polluters pay for climate disasters, clarifying workplace safety rules, and demanding transparency when oil companies abandon their messes. You know, the radical stuff. Faraz Rizvi of the Asian Pacific Environmental Network, part of the Last Chance Alliance, noted that these companies are 'aggressively lobbying' against straightforward measures to protect communities. Shocking, truly.
The top spenders? The Western States Petroleum Association led the pack with $4.3 million, followed by Chevron at $3.7 million, and Phillips 66 chipping in just over half a million. Some of that cash went to 'front groups' like Californians for Energy Independence, which sounds grassroots but is about as grassroots as a Chevron logo tattooed on a lobbyist's forehead.
A key target was California's cap-and-invest program, which covers 80% of the state's economy and aims for carbon neutrality by 2045. The industry successfully lobbied to allow a pool of free pollution permits, potentially depriving the state of billions meant for public transit and housing. Because nothing says 'climate leadership' like giving away your carbon allowance for free. The move faces legal challenges, but hey, why not try?
They also fought a bill to extend the Displaced Oil and Gas Workers Fund, a $30 million program that's helped 600 workers transition to new careers. Because why help workers when you can help shareholders? Other bills they opposed include creating a refinery safety task force, preventing abandonment of methane-leaking wells (there are over 100,000 in California), and requiring retirement plans before shuttering refineries - a response to the messy closure of a Phillips 66 refinery in L.A. County.
Some bills died, including SB 1245 on gas supply stability and SB 982, which would've let the state sue fossil fuel companies for climate damages. That one was aimed at California's home insurance crisis. But no, let's let insurers and homeowners figure it out. Hollin Kretzmann of the Center for Biological Diversity Action Fund called the session 'a huge missed opportunity' for the world's fourth-largest economy. We're sure the oil companies are devastated.
The industry's lobbying is especially galling given their profits. Chevron reported $12 billion in Q2 net profits, nearly five times its 2025 earnings. Exxon made $14.5 billion, more than double. These windfalls are linked to oil supply disruptions from the U.S.-Israel war with Iran, particularly the monthslong closure of the Strait of Hormuz. But Chevron CEO Mike Wirth claims the situation is 'more difficult' every day. Poor thing. His company also blames California policies for high gas prices, deflecting price-gouging accusations. Chevron, Phillips 66, and Californians for Energy Independence didn't respond to Grist's requests for comment. The Western States Petroleum Association declined. Of course they did.
Ryan Schleeter of The Climate Center suggests reducing public subsidies, including cap-and-invest freebies and tax loopholes. 'We're essentially subsidizing their profit margins,' he said. Kretzmann wants limits on lobbyists and their spending. 'We need our legislators to listen to the public … rather than oil industry lobbyists,' he said. Good luck with that - the lobbyists are listening, and they're paying well.
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