Aera Energy LLC
Encyclopedia
Aera Energy LLC is a natural gas, oil exploration and production company jointly owned by Shell
and ExxonMobil
headquartered in Bakersfield, California
. The company is operated as a stand-alone company through its own board of directors.
, is one of California’s largest oil and natural gas producers, with an approximate 2010 revenues of approximately $4 billion.
Most of Aera’s production is located in the San Joaquin Valley
. The company also has oil field operations in Ventura
and Monterey counties. Aera produces approximately 148,000 barrels of oil1 and 42 million cubic feet of natural gas each day1, and has proved oil and natural gas reserves equivalent to approximately 756 million barrels of oil.1 Aera produces about 25 percent of California’s oil and natural gas. Aera is the number one privately-held oil and natural gas company in the nation.3
The work force needs of Aera are provided by Aera Energy Services Company (Aera Services), a Delaware
corporation. Aera and Aera Services provide employment for more than 1,200 people and hundreds of contractor companies.
The company began operating as Aera Energy LLC on June 1, 1997 and consists of the California onshore and offshore exploration and production assets previously operated by CalResources LLC (a former Shell
affiliate), Mobil
Exploration & Producing US Inc. (now an ExxonMobil
affiliate), and ARCO
.
The California-based refining, retail petroleum marketing and pipeline operations of Shell
and ExxonMobil
are not included in Aera.
, consists of 6059 acres (24.5 km²) of habitat.6 More than a dozen rare, threatened and endangered birds, animals and plant life can be found in the preserve. The preserve encompasses the last two miles (3 km) of riparian habitat along the Kern River
, where it drains into Buena Vista Lake.
Established in 1992 by ARCO
and the California Department of Fish and Game
, the preserve was acquired by Aera in 1998. The preserve is largely riparian habitat and is surrounded by active oil fields (the North Coles Levee Oil Field and South Coles Levee Oil Field, as well as the Elk Hills Oil Field
to the west, operated by Occidental Petroleum
).7
, Aera is planning to develop some property holdings in Orange
and Los Angeles
counties for residential, commercial, and recreation uses while setting aside large portions of its property as natural open space.
The master planned community of Vista Del Verde, Aera’s first real estate development, followed the decommissioning and clean up of the 850 acres (3.4 km²) Yorba Linda oil field. The community includes housing, parks, an elementary school, and a city-owned golf course, Black Gold Golf Club. As part of the development, Aera added more than 1000 acres (4 km²) of adjacent, company-owned land to the Chino Hills State Park, and provided funding for the restoration, enhancement, and maintenance of native habitats within the park.
Two additional real estate projects are being planned. The Aera Master Planned Community would develop approximately 3000 acres (12.1 km²) of company-owned land in unincorporated Los Angeles and Orange counties, approximately where the county line intersects the Orange Freeway (SR-57). Part of the larger Brea-Olinda Oil Field
, the property has been used for oil operations dating back to the1890s and cattle grazing operations since the 1850s. Aera is pursuing approvals to develop this property for residential and commercial uses while devoting more than 1500 acres (6.1 km²) to recreation uses and open space restoration. The project will also preserve and enhance a wildlife corridor to improve regional open space connectivity.
Additionally, Aera owns a 50 percent interest in approximately 400 acres (1.6 km²) known as the Newport Banning Ranch property on the western edge of the city of Newport Beach. Aera is a participant in Newport Banning Ranch, LLC, which has submitted a proposal to build 1,375 homes, parks, a coastal inn, and a small commercial center on about 153 acre (0.61916958 km²) of the site, while preserving and restoring more than 55 percent of the property for open space and wildlife habitat uses. The project would remove oil facilities and restore the surface of most of the oil operations areas on the property, consolidating the remaining oil operations to two sites totaling about 20 acres (80,937.2 m²).
Counting current plans and proposals in Orange and southeastern Los Angeles Counties, Aera estimates that about two-thirds of the original land position held by Aera and its predecessors in these areas has been or will ultimately be devoted to park, recreation or open space uses.
Nearly all large-scale projects proposed in metropolitan Southern California encounter opposition from neighbors and environmental groups, who often have competing visions for a given piece of property. Aera’s projects are no exception. Opponents have raised environmental concerns and argued that new development will place an unacceptable strain on local water supplies, transportation infrastructure, schools and other public services.7
The projects are currently being examined under the California Environmental Quality Act
, which provides a detailed process to examine projects, solicit input from a broad spectrum of individuals and public agencies, and give all stakeholders a voice in shaping projects prior to approval.
Several websites (see external links below) have been created to inform the public of the positions of both sides.
won the prestigious North American Maintenance Excellence (NAME) Award for its maintenance and reliability program and results.8 In 2004 Aera's North Midway Sunset Unit
was awarded a NAME Award.8 Aera is the first oil exploration and production company to win the award previously given only to manufacturing organizations. In 2011 Aera’s development team was awarded the Association for Manufacturing Excellence (AME) Manufacturing Excellence Award. Aera is the first energy company to receive this AME recognition.
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
and ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
headquartered in Bakersfield, California
Bakersfield, California
Bakersfield is a city near the southern end of the San Joaquin Valley in Kern County, California. It is roughly equidistant between Fresno and Los Angeles, to the north and south respectively....
. The company is operated as a stand-alone company through its own board of directors.
Business areas
Aera Energy LLC, a California limited liability companyLimited liability company
A limited liability company is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions...
, is one of California’s largest oil and natural gas producers, with an approximate 2010 revenues of approximately $4 billion.
Most of Aera’s production is located in the San Joaquin Valley
San Joaquin Valley
The San Joaquin Valley is the area of the Central Valley of California that lies south of the Sacramento – San Joaquin River Delta in Stockton...
. The company also has oil field operations in Ventura
Ventura, California
Ventura is the county seat of Ventura County, California, United States, incorporated in 1866. The population was 106,433 at the 2010 census, up from 100,916 at the 2000 census. Ventura is accessible via U.S...
and Monterey counties. Aera produces approximately 148,000 barrels of oil1 and 42 million cubic feet of natural gas each day1, and has proved oil and natural gas reserves equivalent to approximately 756 million barrels of oil.1 Aera produces about 25 percent of California’s oil and natural gas. Aera is the number one privately-held oil and natural gas company in the nation.3
The work force needs of Aera are provided by Aera Energy Services Company (Aera Services), a Delaware
Delaware
Delaware is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. It is bordered to the south and west by Maryland, and to the north by Pennsylvania...
corporation. Aera and Aera Services provide employment for more than 1,200 people and hundreds of contractor companies.
The company began operating as Aera Energy LLC on June 1, 1997 and consists of the California onshore and offshore exploration and production assets previously operated by CalResources LLC (a former Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
affiliate), Mobil
Mobil
Mobil, previously known as the Socony-Vacuum Oil Company, was a major American oil company which merged with Exxon in 1999 to form ExxonMobil. Today Mobil continues as a major brand name within the combined company, as well as still being a gas station sometimes paired with their own store or On...
Exploration & Producing US Inc. (now an ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
affiliate), and ARCO
ARCO
Atlantic Richfield Company is an oil company with operations in the United States as well as in Indonesia, the North Sea, and the South China Sea. It has more than 1,300 gas stations in the western part of the United States. ARCO was originally formed by the merger of East Coast-based Atlantic...
.
The California-based refining, retail petroleum marketing and pipeline operations of Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
and ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
are not included in Aera.
Business relationships
- Aera Energy LLC owns and operates the oil and natural gas producing assets.
- Aera Energy Services Company provides the work force for Aera Energy LLC.
- Mobil California Exploration & ProducingMobilMobil, previously known as the Socony-Vacuum Oil Company, was a major American oil company which merged with Exxon in 1999 to form ExxonMobil. Today Mobil continues as a major brand name within the combined company, as well as still being a gas station sometimes paired with their own store or On...
Asset Company (now an Exxon Mobil affiliate) contributed its assets to Aera as part of a merger with CalResources LLC effective June 1, 1997. - ARCOARCOAtlantic Richfield Company is an oil company with operations in the United States as well as in Indonesia, the North Sea, and the South China Sea. It has more than 1,300 gas stations in the western part of the United States. ARCO was originally formed by the merger of East Coast-based Atlantic...
traded California oil and natural gas production assets to MobilMobilMobil, previously known as the Socony-Vacuum Oil Company, was a major American oil company which merged with Exxon in 1999 to form ExxonMobil. Today Mobil continues as a major brand name within the combined company, as well as still being a gas station sometimes paired with their own store or On...
which contributed those assets to Aera Energy LLC. - ShellRoyal Dutch ShellRoyal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
is the majority (52 percent) owner of Aera. - ExxonMobilExxonMobilExxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
is the minority (48 percent) owner of Aera. - Toll BrothersToll BrothersToll Brothers is a Horsham, Pennsylvania based luxury homes builder.-Company Overview:Toll Brothers is a residential and commercial real estate development company with communities in 50 markets throughout 19 states...
is a home builder for Aera's Vista del Verde real estate development in Yorba Linda, CA. - The PACEPaper, Allied-Industrial, Chemical and Energy Workers International UnionThe Paper, Allied-Industrial, Chemical and Energy Workers International Union was an international union that represented workers in the United States and Canada...
labor union represents some Aera employees.
Coles Levee Ecosystem Preserve
The Coles Levee Ecosystem Preserve, located about 20 miles (32.2 km) southwest of BakersfieldBakersfield, California
Bakersfield is a city near the southern end of the San Joaquin Valley in Kern County, California. It is roughly equidistant between Fresno and Los Angeles, to the north and south respectively....
, consists of 6059 acres (24.5 km²) of habitat.6 More than a dozen rare, threatened and endangered birds, animals and plant life can be found in the preserve. The preserve encompasses the last two miles (3 km) of riparian habitat along the Kern River
Kern River
The Kern River is a river in the U.S. state of California, approximately long. It drains an area of the southern Sierra Nevada mountains northeast of Bakersfield. Fed by snowmelt near Mount Whitney, the river passes through scenic canyons in the mountains and is a popular destination for...
, where it drains into Buena Vista Lake.
Established in 1992 by ARCO
ARCO
Atlantic Richfield Company is an oil company with operations in the United States as well as in Indonesia, the North Sea, and the South China Sea. It has more than 1,300 gas stations in the western part of the United States. ARCO was originally formed by the merger of East Coast-based Atlantic...
and the California Department of Fish and Game
California Department of Fish and Game
The California Department of Fish and Game is a department within the government of California, falling under its parent California Natural Resources Agency. The Department of Fish and Game manages and protects the state's diverse fish, wildlife, plant resources, and native habitats...
, the preserve was acquired by Aera in 1998. The preserve is largely riparian habitat and is surrounded by active oil fields (the North Coles Levee Oil Field and South Coles Levee Oil Field, as well as the Elk Hills Oil Field
Elk Hills Oil Field
The Elk Hills Oil Field is a large oil field in northwestern Kern County, in the Elk Hills of the San Joaquin Valley, California in the United States, about twenty miles west of Bakersfield...
to the west, operated by Occidental Petroleum
Occidental Petroleum
Occidental Petroleum Corporation is a California-based oil and gas exploration and production company with operations in the United States, the Middle East, North Africa, and South America...
).7
Real estate development
As oil and gas production declines in the Los Angeles BasinLos Angeles Basin
The Los Angeles Basin is the coastal sediment-filled plain located between the Peninsular and Transverse ranges in southern California in the United States containing the central part of the city of Los Angeles as well as its southern and southeastern suburbs...
, Aera is planning to develop some property holdings in Orange
Orange County, California
Orange County is a county in the U.S. state of California. Its county seat is Santa Ana. As of the 2010 census, its population was 3,010,232, up from 2,846,293 at the 2000 census, making it the third most populous county in California, behind Los Angeles County and San Diego County...
and Los Angeles
Los Angeles County, California
Los Angeles County is a county in the U.S. state of California. As of 2010 U.S. Census, the county had a population of 9,818,605, making it the most populous county in the United States. Los Angeles County alone is more populous than 42 individual U.S. states...
counties for residential, commercial, and recreation uses while setting aside large portions of its property as natural open space.
The master planned community of Vista Del Verde, Aera’s first real estate development, followed the decommissioning and clean up of the 850 acres (3.4 km²) Yorba Linda oil field. The community includes housing, parks, an elementary school, and a city-owned golf course, Black Gold Golf Club. As part of the development, Aera added more than 1000 acres (4 km²) of adjacent, company-owned land to the Chino Hills State Park, and provided funding for the restoration, enhancement, and maintenance of native habitats within the park.
Two additional real estate projects are being planned. The Aera Master Planned Community would develop approximately 3000 acres (12.1 km²) of company-owned land in unincorporated Los Angeles and Orange counties, approximately where the county line intersects the Orange Freeway (SR-57). Part of the larger Brea-Olinda Oil Field
Brea-Olinda Oil Field
The Brea-Olinda Oil Field is a large oil field in northern Orange County and Los Angeles County, California, along the southern edge of the Puente Hills, about four miles northeast of Fullerton, and adjacent to the city of Brea...
, the property has been used for oil operations dating back to the1890s and cattle grazing operations since the 1850s. Aera is pursuing approvals to develop this property for residential and commercial uses while devoting more than 1500 acres (6.1 km²) to recreation uses and open space restoration. The project will also preserve and enhance a wildlife corridor to improve regional open space connectivity.
Additionally, Aera owns a 50 percent interest in approximately 400 acres (1.6 km²) known as the Newport Banning Ranch property on the western edge of the city of Newport Beach. Aera is a participant in Newport Banning Ranch, LLC, which has submitted a proposal to build 1,375 homes, parks, a coastal inn, and a small commercial center on about 153 acre (0.61916958 km²) of the site, while preserving and restoring more than 55 percent of the property for open space and wildlife habitat uses. The project would remove oil facilities and restore the surface of most of the oil operations areas on the property, consolidating the remaining oil operations to two sites totaling about 20 acres (80,937.2 m²).
Counting current plans and proposals in Orange and southeastern Los Angeles Counties, Aera estimates that about two-thirds of the original land position held by Aera and its predecessors in these areas has been or will ultimately be devoted to park, recreation or open space uses.
Nearly all large-scale projects proposed in metropolitan Southern California encounter opposition from neighbors and environmental groups, who often have competing visions for a given piece of property. Aera’s projects are no exception. Opponents have raised environmental concerns and argued that new development will place an unacceptable strain on local water supplies, transportation infrastructure, schools and other public services.7
The projects are currently being examined under the California Environmental Quality Act
California Environmental Quality Act
The California Environmental Quality Act is a California statute passed in 1970, shortly after the United States federal government passed the National Environmental Policy Act , to institute a statewide policy of environmental protection...
, which provides a detailed process to examine projects, solicit input from a broad spectrum of individuals and public agencies, and give all stakeholders a voice in shaping projects prior to approval.
Several websites (see external links below) have been created to inform the public of the positions of both sides.
Demonstration project
Global Greensteam is in the testing phase of a demonstration biomass-to-steam project at Aera’s Belridge field. Upon successful completion of the demonstration and Aera’s decision to proceed, Greensteam will commence construction of 10 full-scale commercial units that will replace 20 natural gas-fired steam generators. The project will reduce steam generation operating costs and decrease greenhouse gas emissions.Awards
In 2002 Aera's Belridge Producing ComplexSouth Belridge Oil Field
The South Belridge Oil Field is a large oil field in northwestern Kern County, San Joaquin Valley, California, about forty miles west of Bakersfield...
won the prestigious North American Maintenance Excellence (NAME) Award for its maintenance and reliability program and results.8 In 2004 Aera's North Midway Sunset Unit
Midway-Sunset Oil Field
The Midway-Sunset Oil Field is a large oil field in Kern County, San Joaquin Valley, California in the United States. Discovered in 1894, and having a cumulative production of close to of oil at the end of 2006, it is the largest oil field in California and the third largest in the United States....
was awarded a NAME Award.8 Aera is the first oil exploration and production company to win the award previously given only to manufacturing organizations. In 2011 Aera’s development team was awarded the Association for Manufacturing Excellence (AME) Manufacturing Excellence Award. Aera is the first energy company to receive this AME recognition.
External links
- Aera Energy LLC website
- Save the Wildlife Corrider website