A pump jack does its work at an oil field in Kern County. Photo by Frank Lopez

A major Central Valley energy company announced cuts to its workforce last week.

Aera Energy LLC, an oil producer based in Bakersfield, has let go about 10% of its workforce, or about 100 jobs, in the last few weeks.

The cuts come on the heels of the oil producer’s sale to German asset management company IKAV and minority owner Canada Pension Plan Investment Board in February.

In the last few months, Aera Energy’s leadership and a “cross-functional project team” have assessed operations to see how to better position the company for long-term success in the face of political challenges to California’s oil and gas industry, according to a statement from Aera.

In 2022, Gov. Newsom signed Senate Bill 1137, which would keep new oil wells 3,200 feet away from homes, schools and parks. The law is currently on hold as the oil industry takes the question to voters for the 2024 ballot.

On June 26, a new law went into effect in California to combat “price gouging” at the pump. It aims to expose price manipulation “in real time” by requiring daily reports on the market and imports, requires refinery operators to report maintenance schedules in advance and unplanned maintenance in real-time. It requires monthly reports on refiners’ profit margins and establishes the Division of Petroleum Market Oversight to monitor the industry.

“As an industry, we cannot ignore the business landscape is changing and therefore we will need to change as well. At Aera we are challenging ourselves to evaluate difficult decisions such as reducing expenses which sadly includes workforce. However, we are laser-focused on making these decisions in a way that will not impact the safety of our employees or our environmental performance,” said Kimberly Ellis-Thompson, public affairs advisor for Aera Energy.

Aera Energy began as a joint venture between Shell and ExxonMobil, which at the time was just Mobil. Aera has field operations in the counties of Kern, Ventura, Monterey and Fresno.

Ellis-Thompson said the company is challenging itself to continue to deliver safe, reliable energy, and preparing organizationally play a significant role in the states low-carbon goals, according to the statement.