Cards

Acknowledging that federal regulators hold most of the trump cards related to lowering natural gas costs, the California legislature nevertheless has produced four bills aimed indirectly at cutting consumer costs by developing more underground storage (AB 78X); producing more in-state gas supplies (AB 73X); eliminating anti-competitive tariffs (AB 23X); and shortening new pipeline permitting processes (AB 42X).

Occidental Petroleum, the unpredictable mid-size producer, holdssome wild cards in California’s unfolding natural gasrestructuring, and it’s so far playing them close to the vest.Independents in the south San Joaquin Valley oil patch think Oxy is”up to something,” perhaps a merger with another Californiaproducer, while others are watching the company put increasinglymore gas supplies on the market since buying Elk Hills reservesfrom the federal government two years ago.