Aera Energy LLC (or simply Aera) is a natural gas, oil exploration and production company started as a joint venture between Shell plc (through Shell USA) and Mobil (which later merged to form ExxonMobil). Headquartered in Bakersfield, California, Aera Energy LLC is a California limited liability company, and one of California's largest oil and natural gas producers, with an approximate 2015 revenues of over $2 billion. Aera is operated as a stand-alone company through its board of managers.
In August 2022, IKAV, a European investment company, announced it was buying Aera from Shell and ExxonMobil.
Business areas
Most of Aera's production is located in the San Joaquin Valley. The company also has oil field operations in Ventura, Monterey and Fresno counties and has begun the permitting process to redevelop the East Cat Canyon oilfield in northern Santa Barbara County. Aera produces approximately 126,300 barrels of oil and 32 million cubic feet of natural gas each day, and has proved oil and natural gas reserves equivalent to approximately 536 million barrels of oil. Aera produces nearly 25 percent of California's oil and natural gas.
The work force needs of Aera are provided by Aera Energy Services Company (Aera Services), a Delaware corporation. Aera and Aera Services employ about 1,100 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.
Business relationships
Aera Energy LLC owns and operates the oil and natural gas producing assets. Aera Energy Services Company provides the workforce for Aera Energy LLC. Mobil California Exploration & Producing Asset Company (now an Exxon Mobil affiliate) contributed its assets to Aera as part of a merger with CalResources LLC effective June 1, 1997. ARCO traded California oil and natural gas production assets to Mobil which contributed those assets to Aera Energy LLC. Shell is the majority (52 percent) owner of Aera. ExxonMobil is the minority (48 percent) owner of Aera. Toll Brothers is a home builder for Aera's Vista del Verde real estate development in Yorba Linda, California. The United Steelworkers labor union (originally the Oil, Chemical and Atomic Workers International Union represents some Aera employees.
Other business interests
Belridge Project
In 2017, Aera Energy launched its plan to build California's largest solar field in partnership with GlassPoint Solar. This initiative called Belridge Project covers 770 acres and it is constructed to assist the company's oil extraction process and make it more sustainable.
Coles Levee Ecosystem Preserve
The Coles Levee Ecosystem Preserve, located about southwest of Bakersfield, consists of 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 California Resources Corporation.7
Real estate development
As oil and gas production declines in the Los Angeles Basin, 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 company calls this initiative Brea 265, which aims to develop former oil fields into residential areas.
The master planned community of Vista Del Verde, Aera's first real estate development, followed the decommissioning and cleanup of the 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 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.