Aera Energy LLC is making big changes to its drilling operations next year.

The company has announced that due to pressure from state regulations, it will remove one of its six drilling rigs from its 2020 schedule, resulting in the loss of jobs for more than 90 contractors. None of these are Aera employees, according to the company. 

Aera said the decision was made as a result of regulatory disruptions in the permitting approval process by California’s Division of Oil, Gas and Geothermal Resources (DOGGR). Since June, Aera Energy and other oil and gas producers stopped receiving DOGGR permits for well-stimulation treatments. 

The state also recently announced a moratorium on new oil extraction wells using high-pressure steaming, which has impacted Aera’s diatomite thermal recovery project

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