Anyone who works in Kern County's nonprofit sector or who watches the local news or reads The Californian knows that oil companies in Kern County have a long and proud history of support for local nonprofit organizations and the causes they champion.
Tens of millions of dollars have been contributed over decades to local nonprofits and charities, community organizations and institutions, by such oil industry giants as Chevron, Aera Energy, California Resources Corp. and Berry Corp.
"Those are the Big-4 in town," said Aaron Falk, president and CEO of Kern Community Foundation, whose mission is to help other nonprofits fulfill their own missions.
But some nonprofits are wondering whether Big Oil's longstanding tradition of philanthropy in Kern County might be affected by two major developments in the oil patch.
The first is the pause on oil permitting, originating from the policies of Gov. Gavin Newsom. These delays and tacit prohibitions to new oil and gas production are being blamed, at least in part, for a projected 25% drop in tax revenue from Kern County petroleum properties.
Are local nonprofits expecting a similar reduction in charitable contributions from oil companies?
The second development is California Resources Corp.'s recent acquisition of Aera Energy LLC. Aera and CRC have, for years, maintained generous, but separate philanthropic programs designed to support local communities in such areas as public health, safety and the environment; STEM and job training; and many other areas of focus.
But now that the two companies have been combined, it raises the question of whether the merger will bring a reduction or cause the elimination of philanthropic programs Aera maintained for all those many years.
Jeremy T. Tobias, CEO of Community Action Partnership of Kern, said the oil industry is a cornerstone of Kern County's economy, and he called its support for nonprofits like CAPK invaluable.
"Oil companies have been essential partners in funding programs that benefit our community," Tobias stated in an email.
"However, recent industry challenges, including permitting delays and mergers, raise concerns about potential reductions in corporate philanthropy, employee volunteerism, and board leadership," Tobias said. "While we haven't experienced decreased support yet, we anticipate future challenges."
But don't assume these changes will only affect nonprofits, he said.
"The repercussions of these changes extend beyond the nonprofit sector. A thriving oil industry is vital to our entire community, and we hope to see the industry stabilize and innovate to ensure its long-term success and continued support for Kern County."
Like CAPK, Kern Community Foundation has developed a valued partnership over several years with the oil industry.
"Our foundation has had a longstanding relationship with Aera," Falk said. "I have a director on our board who is a senior employee at Aera."
But now that Aera has been acquired by California Resources Corp., it raises the question, "What happens next? How might that tradition of philanthropy from Aera be affected by the merger of the two companies?"
"Nobody has said anything to me either way yet," Falk said.
Not only that, he showed no indication that he's losing sleep over the changes in Kern's oil industry.
"We've had a front-row seat at least to what Aera does," he said. "They give to Cal State and local sports. You see them funding a wide range of local fundraising efforts, whether it's doing their own canned food drive or sponsoring different events that nonprofits or other associations put on."
When discussing these challenges in the energy industry, Falk said the problem is not just in changes involving the Big-4. It affects everyone down the line.
"You also got to understand that there's a whole industrial base that is built up around this industry," he said. "A lot of the companies that provide services to the oil producers are local companies run by local families — who also give away so much money.
"And you're going to see that probably decrease, as well as the rest of the industry, as it becomes less profitable," Falk said. "And these are families who give away sometimes incredible amounts of money, and don't want any publicity, or they'll stay anonymous if they can."
Rich Venn, senior director of communications at CRC, suggested nonprofits who have worked closely with the energy company — and Aera as well — shouldn't expect radical changes in community partnerships developed over years.
"California Resources Corp. has a strong dedication to our local communities where we live and work," Venn said in an email. "We also have a long track record of navigating the complexities of California’s permitting process.
"We do need further progress on permits to help meet California’s economic and environmental goals. Still, we're pursuing parallel paths for drilling opportunities while the Kern County Environmental Impact Report process advances, and as state permits for work on existing wells move ahead, our confidence in the outlook grows.
"We know the state, we know the geology, and now combined with Aera, we are better built to deliver on our business strategy and continue our charitable commitments to our communities more than ever before."
CRC’s operations and employees have established an enviable record of charitable donations and volunteerism. In 2023, the company supported 138 nonprofit organizations and provided more than $2.5 million in donations across California.
Since 2015, CRC has provided nearly $17 million to local nonprofits and organizations, including: Adventist Health Bakersfield Foundation, African American Network, American Cancer Society Relay For Life, Bakersfield Police Activities League, Children First Campaign, CAPK, Kern Community College District, Latina Leaders of Kern County, Sikh Women’s Association of Bakersfield, Taft College Foundation, The Open Door Network, Tree Foundation of Kern, West Side Recreation & Park District, and many more.
Chevron, too, has a long and consistent record of giving in the communities in which it does business.
"In 2023, Chevron contributed $6.4 million to more than 150 community organizations in Kern, Fresno and Monterey counties, focusing on education, health, and economic and workforce development," Chevron spokesman Sean Comey said in an email.
But the economic and community benefits Chevron brings are at risk, he said.
"Unfortunately, our ability to continue to deliver positive economic impact and community benefits in the San Joaquin Valley is being challenged by California government policy choices," Comey said.
"California needs to take action to remove bureaucracy, encourage investment in the energy industry, and eliminate unnecessary burdens on businesses."
