A California firm has dropped plans to launch a massive oil drilling project in the Los Angeles County city of Carson.
In a statement shared with KPCC and other media outlets, California Resources Corp. cited the "current commodity price environment" as the reason for its sudden reversal. Oil prices have plunged in recent months.
Here's the full statement:
"California Resources Corporation (CRC) has concluded that our proposed Dominguez energy project is no longer practical in the current commodity price environment, and we are asking the City to stop processing the project. We have greatly appreciated the opportunity to get to know and work with the Carson community, and the vocal support of so many Carson residents. CRC will retain our strong Southern California presence, with about 700 employees throughout the region."
The decision was hailed by environmental activists and residents who had fought the project for years.
City Attorney Sunny Soltani tells the Los Angeles Times that Carson staff will immediately stop work on the project's application and pending environmental review.
The firm, which was spun off from Occidental Petroleum last month, had planned to bore more than 200 wells to extract more oil from the Dominguez Oil Field.
The field has produced more than 270 million barrels of oil since its discovery in 1923.
This story has been updated.