Although leasing in state waters has been prohibited since 1994 , the law allows exceptions when petroleum under state lands is being drained by nearby wells on non-state tracts ; no such exceptions have been made to date . In 2008 both Plains Exploration & Production ( PXP ) and ExxonMobil offered competing proposals to the state to drill wells into Tranquillon Ridge field , offshore Santa Barbara County . The Tranquillon Ridge field lies partly in state and partly in federal waters . Neither proposal entailed additional offshore surface structures . Plains proposed to drill wells directionally from their existing Irene Platform in federal waters . ExxonMobil proposed to drill directionally from wells onshore in Vandenberg Air Force Base . The Plains Exploration proposal was endorsed by the Environmental Defense Center and by Get Oil Out ! On 29 January 2009 the State Lands Commission denied the applications by a 2-1 vote . The reason given for the denial was that " approving the lease request would send a message that additional drilling is possible off the California coast . " In July 2009 Governor Arnold Schwarzenegger proposed allowing oil production from the state portion of Tranquillon Ridge field , as a way to increase state revenue , which would include a $ 100 million up-front payment to the state . The provision was defeated in the state legislature . On 3 May 2010 , governor Schwarzenegger , reacting to the Deepwater Horizon oil spill , withdrew his support for the Tranquillon Ridge drilling plan , stating , " I see on TV the birds drenched in oil , the fishermen out of work , the massive oil spill and oil slick destroying our precious ecosystem . " Despite the long-term bans on new leasing in state ( since 1969 ) and federal waters ( since 1984 ) , drilling and production have continued on existing leases , from existing drilling and production platforms
Deepwater Horizon oil spill
Deepwater Horizon oil spill
Offshore oil and gas in California